South African financial services group acquires stake in Cannon Assurance

By Jackson  Okoth

South African-based Metropolitan International (MMI Holdings) is set to merge its business with that of Cannon Assurance.

The financial services group will acquire a significant stake in Cannon Assurance Limited (Cannon) while the shareholders of Cannon will in turn acquire a minority stake in Metropolitan Life Kenya.

With a market capitalisation in excess of approximately Sh290 billion, Metropolitan is one of the largest insurance groups with a presence in 13 African countries.

In Kenya, it operates as Metropolitan Life Kenya- offering individual and group life insurance products..

The transaction, which is subject to regulatory and other required approvals, will ultimately see the merger of the two companies with the consolidation of the life licences into one and a standalone general insurance licence and business. “The business partnership with Cannon represents an important milestone to fast-track our organic growth strategy in Africa and strengthen our presence in East Africa,” said Nicolaas Kruger, the group chief executive officer of Metropolitan International.

The firm is investing a significant amount on the acquisition of a majority stake in Cannon, which will be one of the transactions that will drive its strategic growth initiatives in Africa.

Metropolitan Life’s Desterio Oyatsi said that policyholders would now have access to a far wider range of products and services together with an increased number of service outlets.  “In addition, the increased size of operations and diversity of the business provides further security and protection to customers,” he said.