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In my previous article, ICEA & Lion of Kenya merged to form ICEA LION Group. The merger was successful and ICEA LION Group became one of the leaders in the insurance industry in East Africa.
I had a pleasure of talking to Mr. Steven Oluoch, ICEA LION Group – CEO, ICEA LION General Insurance. Here is how the interview went;
1. Can you explain why you decided to merge ICEA & Lion of Kenya?
The rationale behind the consolidation is enable the group derive maximum benefits from the synergies that will arise from the pooling together and sharing of resources. Such shared resources include a larger asset base, an enhanced human resource pool with attendant diverse and specialized technical skills, common financial and technical IT systems, a larger client data base, an enhanced underwriting capacity supported by a superior reinsurance programme secured by the some of the top reinsurers in the regional and international market and a much broadened portfolio of insurance and financial services that will meet the needs of a wider range of clientele.
2. Please give us a brief overview of what ICEA Lion Group?
The ICEA LION Group was formed as a result of a merger between Insurance Company of East Africa Limited (ICEA) and Lion of Kenya Insurance Company Limited (LOK). The two companies are well known Insurance and financial services market leaders in Kenya and the wider Eastern Africa region. The merger has resulted in the creation of one of the largest insurance groups in the region, with well established insurance operations in Kenya, Uganda and Tanzania as well as leading subsidiaries in fund management and corporate trusteeship.
A key element of this consolidation has been the establishment of separate life and non-life insurance companies in Kenya. ICEA LION Life Assurance Company is a dedicated life assurer while ICEA LION General Insurance Company is a general insurance company, with both operating as subsidiaries of ICEA LION Insurance Holdings Limited. This separation enables each entity have complete focus on its core business, for enhanced customer service, specialization, internal efficiency and competitiveness. The consolidation was also consistent with the government’s declared intention to encourage movement in this direction.
The insurance subsidiaries in Uganda and Tanzania, previously controlled separately by ICEA and Lion of Kenya respectively, also form part of the ICEA LION Group, as does ICEA’s asset management subsidiaries in Kenya and Uganda (as well as ICEA’s trustee and scheme administration subsidiary in Kenya).
3. Does this merger put ICEA Lion Group in a better capital position?
Yes it does, as a result of the merger, the merged group has assets exceeding Kshs 28 billion and an aggregate gross annual premium in the region of Kshs 8 billion
4. Has the merger helped provide better services to your customers?
Between them, ICEA and Lion of Kenya have an enviably large and sophisticated array of insurance and financial investment product offerings that have been created over the years owing to the two companies’ entrepreneurial approach to covering both conventional and unconventional risks. Building on our proud heritage of institutional dynamism and diversity, ICEA LION Group will continue offer its clients a wide assortment of products and services that are relevant, qualitative and competitive.
The Group has offerings that, at one end, encompass the entire spectrum of conventional lines of business and, at the other the more unconventional, specialized range. The latter includes distinctive products that embrace some of the latest solutions in insurance coverage at both the corporate and personal risk levels.
5. Do you have any insurance products for businesses or entrepreneurs?
Yes we do, some of our bespoke product offerings are under the following classes: Aviation, Professional Indemnity, Hotel Industry Packages, Business Persons’ Combined Packages, Electrical Equipment Packages, Agricultural Risks, etc.
This piece is quite informative. I would however like to gain more insight as to how the merger impacted on the performance of the group. Or is there a way i could get direct contact to Steve?