Rwanda-based Bank of Kigali has off-loaded a 30% stake in its insurance unit, BK General Insurance, to Mauritian insurer Swan General Ltd. for 860 million Rwandan francs, the lender's CFO Nathalie Mpaka told Reuters.
Mpaka said the bank plans to boost the insurance unit's issued share capital to 5 billion francs from 2.9 billion francs, a move that will include Swan General paying a further 640 million francs in relation to its stake, the report noted.
Bank of Kigali hopes that the partnership with Swan General will help move forward its plans to enter into the largely untapped life insurance market in Rwanda. Due to a lack of new licences for the life insurance business, Mpaka said the only way to enter that market is by purchasing an existing company. However, the lender is yet to decide on an acquisition target, she added.
As of Sept. 4, US$1 was equivalent to 866.21 Rwandan francs.