Johannesburg, 27 Jan 2003
Alexander Forbes today announced it will buy 60% of East African actuarial services firm Hymans Robertson Kenya for KSH 80.367 million (R8.8 million), with the balance of the shareholding being held by senior Hymans Robertson Kenya staff.
The transaction is subject to the review of the Kenyan competition authority at which point the company will be renamed Alexander Forbes Financial Services (East Africa) (Pty) Ltd.
This development marks Alexander Forbes` second investment in Kenya. The group has a 40% interest in Alexander Forbes Insurance Brokers Kenya Limited, which will continue to focus on risk management and short term insurance broking services.
Alexander Forbes Financial Services (East Africa) will immediately assume the ranking of largest actuarial consultancy firm in East and Central Africa with a significant pensions and insurance client base in East Africa, Ethiopia and Eritrea. The firm is the appointed agency to 18 life companies in the East African Community (Kenya, Tanzania and Uganda) and actuaries to over 200 retirement benefit schemes in Kenya, two thirds of which by value are public sector schemes.
Mike Ilsley, Alexander Forbes` financial director and head of African operations, says the decision by UK-based Hymans Robertson to exit Africa to focus on its larger international offices presented Alexander Forbes with a one-off opportunity.
"It allowed us to buy into an established East African business with a great pedigree and top management that will have a positive impact on our earnings from day one," he says.
Ilsley believes the earnings of the East and Central African operations will be further enhanced by adding the full spectrum of Alexander Forbes financial services to the existing Hymans Robertson Kenya actuarial services platform.
"The firm currently consults to most of the large retirement funds registered in Kenya which gives us a great entry point to offer a full range of services to these companies and organisations," he says.
Ilsley says the outcome of the recent Kenyan election in which Mwai Kibaki and the National Rainbow Coalition replaced Daniel arap Moi of Kanu after 24 years of rule, restores hope in the country`s economic future.
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