Equity Group has received a license from the Insurance Regulatory Authority (IRA) to operate a life insurance business in Kenya.
IRA issued the license to Equity Life Assurance (Kenya) Limited (ELAK), a subsidiary of the Nairobi Securities Exchange-listed firm on Monday.
The move is seen as growth and diversification of the Group in the financial services industry after acting as a bancassurance intermediary for Britam Holdings for the last 14 years.
Dr James Mwangi, Equity Group CEO and Managing Director said in a statement, “Our inspiration is to offer insurance to all categories of consumers and make insurance accessible, affordable and inclusive in line with our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation”
Speaking during the issuance of the license, IRA chief executive Godfrey Kiptum termed the entry of Equity Group into the insurance market “proof that the industry in Kenya continues to be attractive to investors.”
“We continue to receive interests from foreign-based financial institutions ranging from brokers, insurers, reinsurance brokers, and re-insurance companies looking for investments in the Kenyan Assurance market. This underscores the position of Kenya as a viable investment destination,” Kiptum said.
Equity’s entrance into the insurance market takes the total number of licensed insurance companies in Kenya to 57 with five re-insurance firms operating in the country.
The Kenya insurance industry currently is valued at $2.1 billion. Equity’s entrance into the sector brings the total number of licensed insurance companies to 57.
With an insurance penetration currently estimated at 2.4%, Kenya ranks fourth in Africa after South Africa, Morocco and Egypt.