NAIROBI, Kenya Mar 14 – CfC Insurance Holdings (CIH) is set to list and begin trading its shares at the Nairobi Stock Exchange (NSE) on April 21, 2011.
This follows the de-merger of the insurance arm from CfC Stanbic Holdings (CSH).
In a statement sent to the NSE, CFC Insurance will list by way of introduction 515 million shares at the bourse.
The current CSH shareholders will receive one bonus share of each share held in the offshoot.
"Existing shareholders in CFC Stanbic Holdings, will as a result of the restructuring and demerger become shareholders in CIH, while continuing to hold their shares in CFC Stanbic," the statement said.
The company’s directors have pointed out that the listing was not being done to raise additional capital but instead grow the insurance business further.
CfC Insurance currently has two units under it – CfC Life Assurance and Heritage Insurance, which have also been undergoing re-alignment.
CFC Insurance Holdings 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 CIH is listed. Liberty Holdings stands to be the majority shareholder in the company with close to 56 percent ownership, the public will have a 20 percent stake and Africa Liaison Consultants, will hold the rest.
With this separation under CIH, the splitting of the Long-term (namely Life and Pensions) and Short-term or general insurance product lines will be undertaken to facilitate focused management, technical specialization, enhanced customer service and early compliance with proposed regulatory requirements.
Under the re-alignment, Heritage Insurance will now underwrite all new and renewed Short-term business.
The longer-term strategy will see the consolidation of the Long-term business under CfC Life Assurance.
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