The International Finance Corporation (IFC), the investment arm of the World Bank, has announced its intention to acquire a significant stake in Britam Holdings.

IFC will pay about KSh3.5bn to buy 224.1 million ordinary shares of Britam at Ksh 15.85 shillings per share, which amounts to a 10.37% stake in the company.

“Britam Holdings Limited (Britam or the Company) hereby announces for the benefit of its shareholders and the investing public that it has on 30 December 2016 entered into a share subscription agreement with the International Finance Corporation (IFC) pursuant to which IFC will subscribe (the Proposed Subscription) for two hundred and twenty four million one hundred and eighty seven thousand six hundred and ninety seven (224,187,697) ordinary shares to be issued by the Company, at a subscription price of Kenya shillings fifteen and eighty five cents (KES 15.85) per share,” reads part of Britam’s announcement.

The transaction is IFC’s largest-ever in the insurance sector in Sub-Saharan Africa and demonstrates confidence in the long-term future of the local insurance industry following a tough operating environment in the past two years.

The benefits of this partnership and investment to the regional economy will become evident as Britam deploys the funds raised for growth within the region.

Although not expressly stated in the available info, the transaction follows a pattern the IFC’s has deployed in the Caribbean where it has been expanding its investment activities in the insurance sector, with the goal of increasing availability of insurance products that address individual needs such as health insurance and access to insurance products for smaller businesses, microfinance institutions, and agribusinesses.

The move comes less than a month after Britam unveiled a new strategy dubbed ‘Going for Gold’ for the years 2016 to 2020 that will enable Britam to deliver improved value and services to clients and shareholders, while building on its strengths as a leading diversified financial services company.