Equity bank’s board of directors have approved the plan to set up a conglomerate that will oversee all insurance business for Equity Group Holdings.
“The board of directors has approved the setting up of a non-operating holding company to hold EGH’s insurance business subsidiaries and a subsidiary in Kenya to conduct and undertake long-term insurance business in Kenya,” Equity Group Managing Director James Mwangi said in a cautionary statement.
Equity has been in the insurance business offering life and non-life insurance using the subsidiary Equity Insurance Agency Ltd, which was licensed in May 2007 by the Insurance Regulatory Authority.
The bank will now have a fully fledged business with separate structures and commercial arrangements that will manage insurance-related products for the group.
Equity Group’s new venture into insurance goes hand in hand with its venture in setting up a financial service firm with digital subsidiary Finserve that hosts Equitel, investments and consulting.
Kenya’s insurance industry has had very low penetration, standing at 2.43pc of the country’s GDP, a 15-year low. This makes Insurance offers a great opportunity for growth
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