AfricanFinancials - Page 1

1 T H E PA N A F R I C A I N S U R A NCE GROUP OF COMPANIES The companies that make up the Pan Africa Insurance Group of Companies are Pan Africa Insurance Holdings Limited (public Company listed on the Nairobi Stock Exchange), Pan Africa Life Assurance Limited (wholly owned subsidiary carrying on life insurance business), PA Securities Limited (wholly owned subsidiary with investments that include a 40% shareholding in a general insurance Company, APA Insurance Company Limited) and Mae Properties Limited (wholly owned subsidiary that carries on the business of developing and selling land in Runda). Pan Africa Insurance Holdings Limited Pan Africa Insurance Holdings Limited was incorporated on 26th October 1946. Its name, at that time, was Indo Africa Insurance Company Limited. In 1947 the Company began writing life insurance business and in 1972 commenced general insurance business. When the Company was listed on the Nairobi Stock Exchange in 1963 (the first insurance Company to be quoted) it changed its name to Pan Africa Insurance Company Limited to reflect its broader ownership base. In 2000, Pan Africa Insurance Company Limited entered into a strategic partnership with African Life Assurance of South Africa. A change in the structure of the Company followed and two companies were incorporated to carry on life insurance and general insurance i.e. Pan Africa Life Assurance Limited and Pan Africa General Insurance Limited (whose business has now merged with Apollo Insurance to form APA Insurance Company Limited) respectively. After incorporating these two companies, Pan Africa Insurance Company Limited changed its name to Pan Africa Insurance Holdings Limited to reflect its present role as a holding Company. Pan Africa Life Assurance Limited Pan Africa Life Assurance Limited was incorporated to focus on the growth in the largely under-developed life assurance market in Kenya. Expertise was sourced from the strategic partner, African Life Assurance Limited from South Africa, who has a commanding market share and considerable experience in writing life business in Southern Africa. The incorporation of a company dedicated to the provision of life insurance was, in part, intended to focus the business on the specific and technical requirements of writing quality life insurance business. The impact of fresh thinking in Pan Africa Life was immediately apparent with the launch of new life insurance products. For example, Pan Africa Life was the first company to offer life insurance products without HIV/AIDS exclusions; the first company to offer life insurance without the necessity of a medical test; and the first company to actively market and distribute unit-linked life assurance products. Today, Pan Africa Life has one of the fastest growing customer bases in the Kenyan life insurance industry. Pa Securities Limited Established in 2001 as Pan Africa General Insurance Limited to carry on general insurance business, the Company changed its name to PA Securities Limited to reflect its new investment business. In 2003, it merged its general insurance business with that of Apollo Insurance Company Limited through the sale and transfer of certain of their respective assets and liabilities to APA Insurance Limited. The transaction resulted in PA Securities Limited acquiring a 39.97 % shareholding in APA Insurance Limited. In addition to its shareholding in APA insurance Limited, PA Securities retained its non-insurance business including its 100% stake in Mae Properties Limited and other commercial properties in the City of Nairobi. Mae Properties Limited Mae Properties Limited is a land-holding company and a wholly owned subsidiary of PA Securities Limited. Its prime investment is the land in the well-known Runda Estate in Nairobi. Mae Properties still owns a significant portion of land under coffee and two more development phases are in the pipeline. This will see the area under coffee cleared and infrastructure put in place to facilitate the sub-division and sale of the land as serviced residential plots. Mae Properties has a 24.9% shareholding in Runda Water Limited. The principal activity of this water company is the supply of water and provision of estate management services to the residents of Runda Estate.

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