Bank linked to Tanzanian billionaire brothers enters insurance market with new subsidiary

CRDB Bank, the renowned financial services group associated with Tanzanian billionaire brothers Aunali and Sajjad Rajabali, has made a significant move by entering the insurance business.

In a groundbreaking development, the bank has become the first Tanzanian financial institution to establish a full-fledged insurance subsidiary.

The newly formed subsidiary, named CRDB Insurance Company (CIC), received its license from the Tanzania Insurance Regulatory Authority (TIRA), solidifying its position in the insurance sector.

With the goal of increasing insurance coverage among Tanzanians to 50 percent by 2030, the launch of CRDB Insurance Company marks a vital milestone for the country.

Mandatory insurance coverage for buildings, construction projects, as well as health and transport services has been enforced through recently enacted legislation. This move aims to provide better protection and security for the citizens.

CRDB Bank’s managing director, Abdulmajid Nsekela, expressed his enthusiasm, stating, “CIC is a new entrant not only in the insurance industry but also in the financial markets.”

Nsekela emphasized that the launch of the insurance subsidiary represents a significant achievement for CRDB Bank, which is already one of the leading banks in Tanzania.

Initially, CRDB Insurance Company will focus on offering “general insurance” coverage.

However, Nsekela highlighted the company’s commitment to innovation in fulfilling its responsibilities. The bank aims to establish an effective network of agents, brokers, and other stakeholders to deliver improved insurance services to the public.

CRDB Bank, which is headquartered in Dar es Salaam and has a significant operational presence in Burundi, is owned in part by the Rajabali brothers. They rank as two of the wealthiest men in Tanzania.

The Tanzanian Rajabali billionaire brothers own a combined 2.6-percent stake in CRDB Bank, which is worth more than $12.5 million. Their investment in the bank positions them among the leading shareholders on the Dar es Salaam Stock Exchange.