The Rwanda Social Security Board (RSSB) has completed the Rwf31.7 billion acquisition of BK General Insurance Ltd from BK Group Plc, taking full ownership of the insurer.
BK Group said Monday it had sold its entire holding of three million fully paid ordinary shares in BK General Insurance to RSSB.
The shares were sold at Rwf10,567 each, compared with a nominal value of Rwf1,000. BK Group said the price was based on an independent valuation.
RSSB plans to place BK General Insurance and SONARWA General Insurance Ltd under one general insurance business. SONARWA Life Assurance will remain the group’s life insurance business.
RSSB said the move would increase the financial capacity and expertise of its insurance businesses and allow them to expand their products and services in Rwanda and the region.
“This acquisition of the entire stake is an important step toward our vision of becoming a strong insurance group capable of competing in the insurance market,” RSSB Chief Executive Officer Regis Rugemanshuro said.
BK Group said the sale was part of its decision to concentrate on commercial banking through Bank of Kigali Plc and investment banking through BK Capital Ltd.
Bank of Kigali accounts for nearly 98% of BK Group’s business, Chief Executive Officer Dr. Uzziel Ndagijimana said.
The group has also completed the integration of BK TechHouse Ltd into Bank of Kigali. BK TechHouse’s assets, technology platforms and relevant contracts have been transferred to the bank, and the company has ceased to operate as a separate BK Group subsidiary.
Its technology functions will continue under Bank of Kigali’s Digital division.
BK Group said the integration had not affected customer services. It said proceeds from the transaction were used to settle BK TechHouse’s liabilities, with any surplus to be transferred to BK Group when the company is formally closed.
The disposal of BK General Insurance and the BK TechHouse integration complied with applicable legal requirements and were approved by the relevant authorities, including the National Bank of Rwanda, BK Group said.
RSSB last month also acquired the remaining shares in Inyange Industries and Ruliba Clays, two companies previously associated with Crystal Ventures Ltd.
RSSB said those investments are intended to generate sustainable long-term returns for its members while contributing to Rwanda’s economic development.
