Equity Group Holdings, the parent company of Equity Bank, is venturing into the general insurance business nine months after starting a life insurance business.
In a statement, Equity said the Insurance Regulatory Authority (IRA) had approved in principle its application to start the business of insuring against such risks as car accidents, diseases, fire, and theft which together are known as general insurance.
This means that Equity Group, a non-operating firm, will now have a fully-fledged insurance company that will compete with such established names in the sector like Britam and CIC Insurance in offering both short-term and long-term businesses.
For the last nine months, Equity Group has been operating a life insurance business, which includes offering such services as retirement and education policies.
However, with the latest development, Equity Group will also offer insurance for health, motor cars, and businesses against fire and theft.
This expands Equity Group’s reach, beyond its traditional banking services, with the firm now also active in healthcare, investment, and technology.
“The Board of Equity Group Holdings is happy to announce that it has received in-principle approval from the Insurance Regulatory Authority (IRA) to set up a General Insurance Company,” said Equity in a statement released on Monday.
“The application for a General Insurance business licence follows the successful launch of Equity Life Assurance Kenya (ELAK) – Life Insurance business last year.”
In the first nine months that Equity Life Assurance has been in operation, it has been able to issue 4.1 million policies which saw it underwrite premiums valued at Sh3.99 billion.
The subsidiary is already profitable, returning a profit after tax of Sh281 million in the review period.
“The impact of the early success of the Life Insurance business inspired the Group Board to seek the General Insurance business licence in the hope that Equity Insurance business will contribute in innovatively transforming the insurance industry,” said Equity.
Other Equity Group’s non-banking subsidiaries include Equity Bancassurance Intermediary, Equity Investment Bank, Finserve, Equity Consulting and Azernia.
Its 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.
