Equity Group Holdings Plc, a Nairobi-based financial services conglomerate led by Kenyan banker James Mwangi, is poised to diversify its portfolio by venturing into the general and health insurance sectors. This strategic move is slated for completion by mid-year 2024.
The expansion follows a successful foray into life insurance in 2022 and subsequent approval from the Insurance Regulatory Authority (IRA) in May 2023 to establish a general insurance company. This underscores the group’s commitment to broadening its presence in the insurance landscape, offering coverage for car accidents, diseases, fire, and theft.
Mwangi, Equity Group’s CEO, emphasized the company’s dedication to a comprehensive approach, particularly in terms of medical coverage. “We are projecting by the end of June to have life and general insurance, which will also have health, completing the entire offering so that we can protect lives and the wealth that we have helped to build,” Mwangi announced at an investor briefing last week.
Mwangi leads Equity Group’s expansion
Under Mwangi’s leadership, Equity Group has become a dominant force in East and Central Africa, with a presence in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo. Mwangi, recognized as Kenya’s wealthiest banker, holds a 3.38-percent stake in Equity Group, equivalent to 127,809,180 ordinary shares.
The upcoming general insurance venture will operate under the banner of Equity Insurance Group, complementing its existing life insurance subsidiary, Equity Life Assurance (Kenya) Limited (Elak). Established in March 2022, Elak marked Equity’s direct entry into the insurance sector after a decade as an agent for Britam Holdings through a bancassurance agreement.
Equity targets Kenyan general insurance market
Despite high claims and loss ratios, general insurance remains a major segment in Kenya’s $2.03 billion annual insurance market, driven by medical and mandatory motor coverage. Equity Group, led by James Mwangi, is set to enter the general insurance market, utilizing its extensive network of bank agents to enhance policy accessibility across various segments.
The group’s financial strength received a boost from its strong performance in 2023, reflected in a record Ksh15.1 billion ($114.4 million) dividend payout proposed by the board of directors. This highlights Equity Group’s financial resilience and strategic direction.
With its recent expansion into the general and health insurance business, Equity Group is poised to strengthen its position as a key player in East African financial services. It aims to provide a wide range of solutions to meet the changing needs of its customers.
