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Led by James Mwangi, shareholders approve Equity Group's expansion into health insurance

James Mwangi
James Mwangi

Table of Contents


Key points:


  • Equity Group shareholders approved the establishment of a new health insurance subsidiary to expand its offerings beyond life and general insurance.
  • Equity Group will provide $5.6 million in initial capital for the new health insurance unit, incorporated in Kenya.
  • In 2023, Equity’s insurance business achieved $11.2 million in revenue, with a 39-percent profit growth in its life insurance arm.

Equity Group, East and Central Africa’s leading financial services group led by Kenyan banker James Mwangi, during the announcement of the group’s 2023 full-year financial results at an investor briefing at Equity Centre in Nairobi on March 27, 2024, revealed a development for the company.

Approval and new subsidiary

Equity Group shareholders have approved the establishment of a new health insurance subsidiary. This move pushes the lender closer to expanding its insurance offerings beyond life and general categories. The new health insurance company will be incorporated in Kenya as a subsidiary of the group through Equity Group Insurance Holding Limited.

To kickstart this venture, Equity Group will provide Sh800 million ($5.6 million) in initial capital for the new unit’s share capital. The shareholders’ approval clears the board to incorporate the new unit and secure necessary approvals as the sole shareholder in the Insurance Holding Company.

Current performance and future plans

Equity Group Insurance Holding Limited currently manages life and general insurance businesses in Kenya. In 2023, Equity’s insurance business achieved Sh1.6 billion ($11.2 million) in gross revenue and issued 9.9 million cumulative policies.

The lender’s life insurance arm, Equity Life Assurance Kenya, started in 2022 and offers life insurance alongside retirement solutions. It posted a profit before tax growth of 39 percent, reaching Sh934 million ($7.3 million).

Later this year, Equity Group plans to introduce insurance products for both health and existing insurance categories, furthering its diversification. Additionally, shareholders approved the creation of a new banking holding company to consolidate all banking subsidiaries’ activities within the group. This reorganization will see Equity Group operate under four divisions: Banking, Insurance, Technology, and Foundation.

Dividends and major moves

Shareholders also ratified the payment of Sh15.1 billion ($120.8 million) in dividends, equivalent to Sh4 per share. This payout matches the end-of-2022 figure despite a 6.48-percent dip in net profit to Sh41.98 billion ($335.6 million), due to higher provisions for expected bad loans. Moreover, they ratified the acquisition of Cogebanque, elevating Equity Bank Rwanda to the second-largest bank in the country by market share.

These developments reflect Equity Group’s commitment to enhancing its portfolio and offering comprehensive financial solutions across its extensive network in Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo.

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