James Mwangi-led Equity Group’s life insurance unit shakes up Kenya market

Equity Life Assurance Kenya, the life insurance unit of Equity Group Holdings, a Nairobi-based financial services giant led by Kenyan banker James Mwangi, has seen its market share surge threefold in just two years of operation, according to Insurance Regulatory Authority (IRA) data.

The wholly-owned subsidiary, established under Equity Group Insurance Holdings (EGIHL), closed in 2023 with a commanding 8.7-percent market share, propelling it to the number four position among long-term insurers in Kenya.

Equity Life disrupts Kenya life insurance market

This meteoric rise comes at the cost of established players. Equity Life displaced Kenindia Life from the coveted fourth spot, while the top three positions remain unchanged. Britam Life Assurance retained its leadership with a market share increase to 21.5 percent from 20.2 percent, followed by ICEA Lion Life Assurance at 16.2 percent (up from 14.7 percent). Kenindia, despite a slight increase to 6.6 percent, was relegated to fifth place.

Equity Life’s success can be partly attributed to its strategic focus on deposit administration, a pension plan management service offered by life insurers. In its first year, the company attracted a staggering Ksh12.02 billion ($91.19 million) in deposits, surpassing industry leaders like ICEA Lion Life, Jubilee and Britam Life.

This aggressive push has been instrumental in driving Equity Life’s overall gross written premium upwards. The company’s premium surged 3.5 times year-on-year to Ksh14.79 billion ($112.21 million) in 2023, compared to Ksh4.18 billion ($31.71 million) the prior year.

Equity Life: Affordable insurance drives growth

Equity Group’s insurance unit entered the market in 2022, promising “affordable, innovative, and accessible” products to address Kenya’s low life insurance penetration rate. Equity Life’s rise coincides with James Mwangi’s continued regional expansion of Equity Group across East and Central Africa.

The group, under Mwangi’s leadership, now operates in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo. Mwangi, a prominent figure in Kenyan finance, holds a significant 3.38 percent stake in Equity Group, solidifying his commitment to its success.