Absa Group is stepping back further from direct insurance underwriting in Africa after agreeing to sell its controlling interests in First Assurance Company and Absa Life Assurance Kenya.
The banking group has signed an agreement with First Assurance Investments Limited (FAI) to dispose of its 63.32% stakes in the two Kenyan insurers. The deal remains subject to regulatory approvals and other conditions, with Absa yet to disclose the transaction value or expected completion date.
FAI is an existing shareholder in First Assurance, while Absa Bank Kenya will maintain its existing insurance distribution partnerships following the transaction.
The sale marks the unwinding of an investment that began in 2015, when Barclays Africa Group acquired a 63.32% controlling interest in First Assurance for about KSh2.9 billion. The transaction included approximately KSh2.2 billion paid to shareholders and a further KSh700 million capital injection.
The insurers being sold have a significant presence in Kenya’s insurance market. Data from the Insurance Regulatory Authority showed Absa Life generated KSh2.97 billion in gross premium income in the first quarter of 2025, giving it a 5.56% share of the country’s long-term insurance market. The insurer accounted for 19.51% of group-life premiums during the period.
The disposal will end Absa’s direct ownership of insurance underwriting businesses in Kenya, although the group will continue participating in the sector through its bancassurance operations.
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Absa Bank Kenya’s existing insurance distribution arrangements will remain in place, allowing the lender to continue selling insurance products through its banking network without directly owning the insurers. Absa said the transaction would not affect existing customer products or services.
First Assurance dates back to 1930 and historically operated across both general and long-term insurance. In 2019, regulators approved the transfer of its long-term insurance portfolio to Barclays Life Assurance Kenya, separating the life business from First Assurance’s general insurance operations.
Barclays Life, which began operations in Kenya in 2015, was later renamed Absa Life Assurance Kenya following the group’s rebranding.
Absa had previously flagged weaker returns from its investment in First Assurance, recording a KSh219.5 million impairment against acquisition-related goodwill in 2022.
The Kenyan transaction is part of Absa’s broader strategy to reduce its exposure to directly owned insurance manufacturing businesses across Africa. In 2025, the group sold insurance underwriting operations in Botswana, Mozambique and Zambia as it shifted towards a model centred more on insurance distribution than direct ownership of insurers.
