BUSINESS

Equity Insurance Agency Records Sh600 Million Profit

Share
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 ]
Share

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

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Uchumi is one of the speculative counters at the NSE
BUSINESSFEATURED ARTICLESTOCKS

NSE: How to Trade Penny Stocks

NSE speculative investors have occasionally traded in penny stocks, these are cheap...

Thwake Dam receives additional funding after Cabinet Approval
AGRICULTURE

Thwake Multipurpose Dam Receives Additional KSh12.8Bn After Cabinet Approval

Thwake Multi-Purpose Dam, considered Kenya’s largest earth dam, which has stalled for...

NSE closes the week on a mixed note
ANALYSISBUSINESS

NSE Closes the Week on a Mixed Note as October Rolls Out

NSE(Nairobi Securities Exchange) closed its trading week today on a mixed note...

Nairobi Coffee Exchange
AGRICULTUREBUSINESS

NCE Auction Opens New Season with Sale of 17,084 bags Worth KSh 801Million

NCE (Nairobi Coffee Exchange Auction) begun its new trading session on Tuesday,...