Equity Group’s Bold Foray Into Insurance Pays Off as Non-Banking Units Drive Growth

Equity Group Holdings is fast evolving from a traditional banking giant into a fully integrated financial services powerhouse — one powered by technology and built on diversification. The Group’s impressive growth in the insurance space is now emerging as a key pillar of its transformation journey.

In just three years, Equity has secured three underwriting licenses — for life, general, and health insurance — positioning the Group to offer customers comprehensive risk management tools that safeguard their lives, health, and wealth. This move underscores Equity’s strategy to build a one-stop financial ecosystem that serves individuals and businesses beyond conventional banking.

The Group’s insurance arm, Equity Insurance Group, posted a robust 36% growth in Profit Before Tax to Kshs. 1.46 billion, up from Kshs. 1.07 billion in the prior year. This stellar performance was supported by a 71% surge in gross written premiums to Kshs. 6.55 billion from Kshs. 3.83 billion, while insurance revenue climbed 57% to Kshs. 2.46 billion. The insurer’s balance sheet expanded by 36% to Kshs. 32.1 billion, marking continued confidence and growth momentum.

Read Also: The Billions Equity Bank Kenya Contributed To The Group’s Profits For Q3

Within just its third year of operation, Equity Life Assurance has already become the third-largest group credit insurance provider in Kenya, with a market share of 8% in group and credit life. The company ranked third in return on equity and fourth in profitability, a rare feat for such a young player in the market.

Life Assurance recorded gross written premiums of Kshs. 4.9 billion, up 28% from the previous year, and saw profit before tax rise by 21% to Kshs. 1.3 billion. Insurance contract liabilities increased by 18% to Kshs. 23.3 billion, while total assets grew to Kshs. 29.5 billion. With a return on average equity of 37.7% and return on assets of 4.5%, the business has already served 6.8 million customers and issued 17.8 million policies to date.

Meanwhile, Equity General Insurance, which commenced operations earlier this year, made a strong market entry. The business recorded gross written premiums of Kshs. 1.67 billion within its first nine months, generating insurance revenue of Kshs. 1.01 billion and posting a profit before tax of Kshs. 140 million. It closed the period with total assets of Kshs. 2.3 billion, a capital adequacy ratio of 126%, and a return on equity of 19% — signaling sound underwriting discipline and prudent risk management.

Also making waves is Equity Health Insurance, the Group’s newest entrant, licensed in July this year. Within just three months, it underwrote gross written premiums worth Kshs. 5 million and still managed to post a profit before tax of Kshs. 23 million. The subsidiary closed the quarter with total assets of Kshs. 831 million, a return on equity of 2.6%, and return on assets of 1.9% — a promising start for a newcomer.

Collectively, Equity’s insurance subsidiaries are demonstrating strong growth momentum and have achieved break-even within just six months of operation — a rare milestone in the insurance industry. Their expansion not only diversifies the Group’s income streams but also positions Equity to play a significant role in raising East Africa’s insurance penetration rate from the current 1.34% to potential double digits in the coming years.

The performance of the non-banking businesses — particularly technology and insurance — continues to strengthen Equity’s overall profile. These units have increased their contribution to Group assets from 1.5% to 1.9%, and to Group revenue from 2.8% to 3% year on year. Impressively, the non-banking arm delivered a return on equity of 38% and return on assets of 6.6%, outperforming both the banking subsidiary and the Group average.

As the Group deepens its footprint across the financial services landscape, Equity’s transformation story reflects a broader shift in Kenya’s financial ecosystem — one that merges technology, innovation, and inclusivity to redefine the future of integrated financial services in the region.

Read Also: Breaking Down Equity Bank Billions In Profits After 32% Growth In Q3