, NAIROBI, Kenya Aug 31- Strong first half performance by CfC Life Assurance and the Heritage Insurance Company has given fresh ambition to have CfC Insurance Holdings listed at the NSE by the end of the year.
Heritage posted an after tax profit of Sh257.9 million while CfC Life posted Sh176.5 million in the first six months of 2010.
The de-linking of the insurance arm of CfC Stanbic Holdings is part of the group’s internal realignment to have it operate as an independent entity.
CfC Stanbic Holdings Managing Director Kitili Mbathi said they have already sent a formal request to the Capital Markets Authority (CMA) and the return to profitability by both insurance firms is likely to meet the regulator’s requirements.
“We have consolidated our insurance companies into a holdings company which is the third stage of having the holdings company listed at the NSE,” Mr Mbathi said.
CfC Stanbic Holdings has already received shareholder approval for the exercise and is only awaiting regulator approval.
CFC Insurance Holdings (CIH) is currently owned 53.11 percent by CFC Stanbic Holdings, 24.95 percent by Liberty Holdings Limited (South Africa) and 21.94 percent by African Liaison and Consultants.
This is set to change once the CIH is listed. Liberty Holdings stands to be the majority shareholder in the company with close to 56 percent ownership.
The remaining 44 percent will be split between African Liaison and Consultants and the public.
Mr Mbathi however clarified that the new holdings company was not seeking additional capital but as means of growing the insurance business further.
“As we list, it’s not going to be an IPO. What we are going to be doing is giving a dividend of a share to each of the existing shareholders of CfC Stanbic Holdings,” he said.