Equity Insurance Group: A Force To Reckon With In The Insurance Sector

Equity Insurance Group has once again reinforced its position as a dominant player in the insurance industry, showcasing remarkable growth and resilience despite market fluctuations. This was revealed during the release of Equity Group’s full-year financial results.

As a key subsidiary of Equity Group Holdings, the insurer has continued its upward trajectory, if the numbers that came out are something to go by, leveraging innovative distribution strategies and a customer-centric approach to solidify its market presence.

Tapping into the captive market of over 20 million customers across the region, the Equity Insurance Group has harnessed its synergies with Equity Bank to enhance its distribution capabilities.

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With insurance penetration in the region averaging a low 1.34 percent, Equity Insurance Group sees immense untapped potential, which it is poised to capitalize on through its Africa Resilience and Recovery Plan (ARRP).

This regional expansion aligns with the group’s broader financial inclusion strategy, ensuring more customers access tailored insurance solutions​.

In the year ended December 2024, Equity Insurance Group demonstrated an impressive financial performance, evidenced by a 58 percent growth in Profit Before Tax (PBT) attributed to increased earned premiums, prudent underwriting, and effective claims reserving.

Despite a 13 percent decline in insurance revenue due to lower credit life premiums from a slowing loan book, the insurer remains focused on quality underwriting rather than sheer volume​.

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Key financial highlights include:

Net insurance and investment revenue: 1.48 billion shillings in 2024, a 58 percent increase from 934 million shillings in 2023.

Total assets: Grew by 18 percent from 16.8 billion shillings to 19.9 billion shillings.

Insurance contract liabilities: Increased by 31% from KES 19.2 billion to KES 25.1 billion, signaling stronger financial positioning.

From the numbers, Equity Insurance Group’s underwriting prowess came out in its declining loss ratio, which dropped from 53 percent in 2023 to 40 percent in 2024.

The company has maintained an impressive capital adequacy ratio of 242 percent, ensuring financial stability even in volatile market conditions.

However, Return on Equity (ROE) declined slightly due to a drop in investment and insurance revenue, alongside a marginal dip in Return on Assets (ROA) owing to asset growth, mainly assets under management​.

According to Dr. James Mwangi, CEO of Equity Group, Equity Insurance is well-positioned to further solidify its dominance in the Kenyan market and beyond. He said the Group would leverage its digital investments and banking partnerships to drive financial inclusion, improve underwriting efficiency, and enhance returns for shareholders.

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