Equity Group Holdings, the parent company of Equity Bank, is diversifying its operations by entering the general insurance sector, just nine months after launching its life insurance business.
The financial institution announced that the Insurance Regulatory Authority (IRA) had granted it a preliminary approval to provide insurance coverage for risks such as car accidents, diseases, fire, and theft, collectively known as general insurance.
This strategic move positions Equity Group, previously a non-operational entity, as a full-fledged insurance company, capable of competing with well-established players in the industry, including Britam and CIC Insurance.
Over the past nine months, Equity Group has successfully operated its life insurance business, offering policies for retirement planning and education.
With this latest development, Equity Group will expand its range of offerings to encompass health insurance, motor vehicle insurance, and insurance coverage for businesses against fire and theft.
As a result, Equity Group’s portfolio now extends beyond its traditional banking services, incorporating healthcare, investment, and technology.
As expected, the bank expressed satisfactio indicating that its board was pleased to announce that it has obtained a preliminary approval from the Insurance Regulatory Authority (IRA) to establish a General Insurance Company. This follows the successful launch of Equity Life Assurance Kenya (ELAK) – Life Insurance business last year.”
Equity Life Assurance has achieved remarkable results since its inception, issuing 4.1 million policies and underwriting premiums valued at Sh3.99 billion in the first nine months of operation. The subsidiary has already proven profitable, with a post-tax profit of Sh281 million during the review period.
“The early success of the Life Insurance business motivated the Group Board to pursue a General Insurance business license, with the aspiration that Equity Insurance will contribute to the innovative transformation of the insurance industry,” commented Equity.
In addition to its non-banking subsidiaries, such as Equity Bancassurance Intermediary, Equity Investment Bank, Finserve, Equity Consulting, and Azernia, Equity Group’s banking subsidiaries include Equity Bank Kenya, Equity Bank Rwanda, Equity Bank Tanzania, Equity Bank Uganda, Equity Bank South Sudan, and Equity BCDC in DR Congo.