BUSINESS

Equity Insurance Agency Records Sh600 Million Profit

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Equity Insurance Agency
Growth delivered through both organic and merger & acquisition strategies saw the group become the first financial institution to cross the trillion shillings mark in East and Central Africa. [ PHOTO / Equity ]
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Equity Insurance Agency posted a Ksh600 million gross profit in the financial year ending December 31, 2020. The insurer recorded good performance  despite a challenging operating environment under the Covid-19 pandemic.

Equity Group CEO and Managing Director Dr. James Mwangi said its corporate purpose of transforming lives, giving dignity and expanding opportunities for wealth creation became the guiding compass in navigating through the crisis and the challenging environment.

Industry players such as KCB Insurance agency came close second, recording Ksh435 million in gross profit, followed by Sanlam General which recorded Ksh137 million. CIC insurance recorded Ksh79 million gross loss for the same review period mainly attributed to the impact of the ongoing pandemic.

Over the reporting period, Equity Insurance Agency also recorded a year on year 50% growth in its asset base to Ksh500 million.

The agency was incorporated in December 2006 and was licensed in May 2007 by the Insurance Regulatory Authority to offer both life and non-life business.  It is a fully fledged subsidiary (100% owned) of Equity Group Holdings.

In the results, the Group weathered the COVID-19 disruption to register a 51% growth in its balance sheet with total assets growing to Ksh1.015 trillion (One trillion and fifteen billion shillings) up from Ksh674 billion the previous year.

The growth delivered through both organic and merger & acquisition strategies saw the group become the first financial institution to cross the trillion shillings mark in East and Central Africa.

The growth has been driven by a 53% increase in customer deposits which grew to Ksh741 billion up from Ksh483 billion, while long-term debt financing grew by 71% to Ksh97 billion from Ksh57 billion with shareholders’ funds growing by 24% to Ksh139 billion up from Ksh112 billion.

Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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