Mike Du Toit
Liberty Holdings is delighted to announce the listing of its subsidiary CfC Insurance Holdings Limited (CfCIH) on the Nairobi Stock Exchange. Under the experienced leadership of Regional Managing Director Mike du Toit, CfC’s market capitalisation has almost trebled to 8.1Bn from 3.17Bn since its debut in Kenya on the 21st April 2011, on the back of a 156% increase in its share price from 6.157 to 15.80.
The recently created listing vehicle, CfCIH, in which Liberty has a 56.82% shareholding, arose from the separation of the insurance and banking divisions of CfC Stanbic Holdings Limited and is made up of The Heritage Insurance Company Limited (Heritage) and CfC Life Assurance Limited (CfC Life) in Kenya along with further investments in the Tanzanian insurance market.
As a result of the re-alignment and subsequent acquisition actions, CfC Life and Heritage are now wholly owned subsidiaries of CfCIH, with Liberty Holdings Limited (Liberty) as the controlling shareholder.
The listing on the NSE is indicative of the economic development and growth potential of the East Africa region. African economies have experienced comparatively swift and broad recoveries from the global financial and economic crises, leading to an anticipated continental growth of 5.5 per cent in 2011 and 5.8 per cent in 2012. CfC’s listing positions Liberty to take advantage of this growth.
Commenting on the listing, Ian van Schoor Liberty’s CE responsible for the Growth Business, explained that it represents the next chapter in Liberty’s ongoing transformation from a pure South African Life Insurance company into a truly broad-based, Pan-African wealth management group, while Liberty's growing presence in East Africa has the potential to have a positive impact on the region as a whole.
"The creation of CfCIH follows two years of progress by Liberty in expanding its presence across the African continent - a drive that has seen it establish a presence in twelve countries across the Southern, Western and Eastern African regions. Liberty’s strategy is to leverage Standard Bank’s footprint and to grow its presence on the continent, which not only stands to enhance the operations and reach of Liberty as a group, but also deliver significant benefits to its shareholders and clients.”
“The listing is an important milestone for our African business and whilst the listing has exceeded our expectations, the management team is and will continue to focus on delivering the earnings that the market is so eagerly anticipating.
Commenting on CfC’s successful listing, Mike du Toit, the Regional Managing Director said: “The creation of CfCIH as a separately managed Kenyan operation allows investors to more accurately value the business, whilst also enabling us to better deliver on the life and short-term insurance needs of our current and future clients in the region."
He added: “The creation of CfCIH is another prime example of Liberty’s commitment to invest in the future of Africa as a whole, and represents delivery of our ambition to help positively change the landscape of the financial services industry on the continent. Our vision is to improve financial services in Africa through a combination of unquestionable ethics, exceptional service, accessible and affordable products, and a desire to unlock real value for all the stakeholders in our business."
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