Equity Group Eyes Insurance Business to Grow Revenue

Equity Group Holdings posted a 64 per cent growth in net profit at Ksh 8.7bn in Q21FY21, as compared to KSh5.3 billion in the corresponding period of last year.

Equity Group Managing Director and CEO Dr James Mwangi, displays the new logo at the Group’s headquarters in Upperhill. Looking on is Equity Bank Uganda Board Chairman Apollo Makubuya and Equity Bank Tanzania Managing Director Robert Kiboti.

Equity Group Holdings will establish a non-operating insurance holding company and subsidiary following shareholders’ approval to venture into Insurance Business.

The lenders’ shareholders  (99.98 percent ) voted for the establishment of the new business line that aims to target the Micro, Small and Medium Enterprise Business (SMEs) during the 16th Annual general meeting on Tuesday 30 June.

According to EGH’s Annual 2019 report, the Board expects that the Insurance Business could result in the following benefits for the Group:

  • Enhancing Micro, Small, and Medium Enterprise business by broadening and deepening the Group’s relationships across ecosystems.
  • Enabling the Group to deliver its mission of providing access to competitive, integrated financial services that socially and economically empower consumers, businesses, and communities whilst also delivering significant value to its stakeholders.
  • Ability for the Group to leverage its existing platforms to upsell to existing customers and increase revenue per customer which could ultimately lead to improved return on shareholders’ funds.
  • Expanded scale of Group operations in Kenya which helps diversify the Group’s sources of revenues and profits.

The proposed venture will receive KSh 400 million as share capital for the from the Holding company as required under the Insurance Act (Chapter 487, Laws of Kenya).

However, the establishment is subject to obtaining the requisite regulatory approvals.

Equity Group’s current Bancassurance operations are the largest in Kenya, (which include its 36,000 agents and 180 branches) to market and distribute insurance products and provide a one-stop-shop for offering both financial and insurance products which we believe will further provide confidence and stability for our customers during this COVID-19 crisis.