NAIROBI, Kenya, Apr 1 – Equity Insurance Agency has posted a Sh600 million gross profit in the financial year ending December 31, 2020 leading in profit before tax as compared to other market leaders.
The insurers performance in the review period is proof of its resilience and stability despite a challenging operating environment as dictated by the ongoing Covid -19 pandemic.
Commenting on this performance while announcing Equity Group Holdings 2020 full-year financial results EGH CEO and Managing Director Dr. James Mwangi said , “ Our corporate purpose of ’Transforming lives, giving dignity and expanding opportunities for wealth creation’ became the guiding compass of the organization’s essence on how to navigate through the crisis and the challenging environment. Our results and performance became a human story of resilience and determination to live an ethical human purpose.”
Industry players such as KCB Insurance agency came close second, recording Ksh 435 million in gross profit, followed by Sanlam General which recorded Sh137 million. CIC insurance recorded Ksh 79 million gross loss for the same review period mainly attributed to the impact of the ongoing pandemic.
Over the reporting period, EIA also recorded a Year on Year 50 percent growth in its Asset base to Ksh 500 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 announced results, the Group weathered the COVID-19 disruption to register a 51% growth in its balance sheet with total assets growing to Kshs 1.015 billion (One trillion and fifteen billion shillings) up from Kshs 674 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 rubicon in East and Central Africa.
The growth has been driven by a 53% increase in customer deposits which grew to Kshs 741 billion up from Kshs 483 billion, while long-term debt financing grew by 71% to Kshs 97 billion from Kshs 57 billion with shareholders’ funds growing by 24% to Kshs 139 billion up from Kshs 112 billion.