Equity Group Holdings has received regulatory approvals to set up a non-operating insurance holding company.
Commencement of the insurance business was approved by the Group’s shareholders and the Central Bank of Kenya(CBK). On January 10th 2022, Equity Group obtained the registration and license of Equity Life Assurance (Kenya) Limited as an insurer from the Insurance Regulatory Authority(IRA).
“The insurance business will provide access to competitive long-term insurance services whilst also enabling the Group to deliver significant value to its shareholders. Further, the insurance business provides an opportunity for the Group to leverage its existing Bancassurance operations that are currently the largest in Kenya, to market and distribute insurance products and provide a one stop shop offering both financial and insurance products,” said Dr James Mwangi, Group Managing Director and CEO, Equity Group Holdings.
This is the lender’s first direct stab at the insurance sector after more than a decade as an agent of Britam Holdings through a bancassurance arrangement.
“Our inspiration is to offer insurance to all categories of consumers and make insurance accessible, affordable and inclusive in line with our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation,” said Dr Mwangi.
Equity Group has entered the least competitive life insurance business
The lender has chosen life insurance in a market that is still dominated by general business.
The Group’s entry into insurance has been enabled by legal and regulatory changes that allowed lenders to go into non-banking businesses after undergoing the necessary corporate restructurings.
Most of the big banks have transformed into non-operating holding companies which are free to own banking and non-banking subsidiaries.
The entry of Equity Group into the insurance business comes at a time when its partner Britam is selling off its remaining 6.7% stake in the lender to IFC for KSh13.9 billion.
ALSO READ: Britam to Earn KSh 13.9 Billion from Sale of its Equity Bank Shares to IFC
