The History and Evolution of First Assurance Kenya

Nov 06, 2025 0

First Assurance Kenya Limited (FAKL), also known as First Assurance Company Limited, is an established insurance provider in Kenya with a rich history. The company was founded in 1930 as Prudential Assurance Company, later rebranding to its present name.

FAKL is a key financial services provider in East Africa. As at December 2014, the company's total assets were valued at KSh 7.11 billion (approximately US$71 million), with shareholders' equity valued at KSh2.162 billion (approximately US$21.6 million).

In 2015, the company had 132 employees, with over 50,000 policyholders in general, medical, and group life insurance. The insurance firm has five branches in Kenya; one branch each in Kisumu, Mombasa, and Nakuru; and two branches in Nairobi. The shares of First Assurance Kenya Limited are privately held.

First Assurance Kenya's precise establishment date remains undisclosed in publicly accessible information. However, its affiliation with Absa Group Limited signifies a substantial presence within Kenya's insurance sector. The company's stated focus is on delivering reliable assurance and high-quality service across all insurable financial and social needs. This commitment to quality underpins its operational philosophy.

Early History and Expansion

On 30 May 1848, a group of gentlemen met in London to form the Prudential Mutual Assurance, Investment and Loan Association.

In 1923 Prudential’s first overseas life operation opened in Calcutta, India, marking the start of our global expansion. Prudential took its first steps in Africa in 1930, when chief office officials undertook a two-week investigative tour of South Africa.

By 1939, new net business in our overseas life branches was rivalling that of the UK, and Prudential’s international business continued to grow rapidly.

Acquisition by Barclays Africa Group

In 2015, Barclays Africa Group Limited via Barclays Life Assurance Kenya acquired 63.3 percent of First Assurance (formerly Prudential Assurance) long term insurance life business for KES 2.9bn.

Specific historical milestones for First Assurance Kenya are not readily available. However, its integration within the Absa Group Limited structure suggests a history of consistent growth and market penetration within the competitive Kenyan insurance landscape. Further research into Absa's financial reports might reveal more detailed information about First Assurance Kenya's growth trajectory.

Regulatory Compliance

First Assurance Kenya operates within the robust regulatory framework governing Kenya's insurance industry. This framework is primarily overseen by the Insurance Regulatory Authority (IRA). The company holds the necessary licenses granted by the IRA, confirming its adherence to the Insurance Act (Amendment) 2006, CAP 487 of the Laws of Kenya. This regulatory compliance demonstrates a commitment to transparency and responsible business practices.

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Insurance Products and Services

First Assurance Kenya provides a diverse range of insurance products, catering to various individual and business needs. While a complete catalog isn't publicly displayed, the company confirms offering home insurance, a product demonstrating a commitment to protecting residential assets. It's reasonable to assume that they offer other common insurance types, such as motor vehicle, life, and potentially commercial insurance, although this needs further confirmation from the company itself.

First Assurance Kenya strives to provide comprehensive coverage options tailored to individual client requirements, encompassing both financial and social considerations. However, specifics regarding coverage limits, deductibles, exclusions, and policy terms are not readily available online. Interested parties should contact First Assurance Kenya directly for complete policy details.

Beyond core insurance products, First Assurance Kenya complements its offerings with value-added services. These include financial advisory, retirement planning assistance, and comprehensive claims support. These additional services demonstrate a commitment to holistic client support, going beyond simple insurance provision.

Premiums and Pricing

While First Assurance Kenya aims for competitive premium rates, precise pricing details for individual insurance products are not published online. This lack of transparency necessitates direct contact with the company for personalized quotes based on specific coverage requirements and risk assessments.

A direct comparison of First Assurance Kenya's premiums against industry averages is unavailable without access to comprehensive market data. However, the company’s commitment to competitive pricing suggests that their rates are likely to be in line with, or potentially more favorable than, market standards. Independent market research would be needed to confirm this.

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First Assurance Kenya potentially offers various discounts, such as those associated with multi-policy purchases, safe driving records (for motor insurance), and loyalty programs for long-term clients. However, detailed information on these discount programs requires direct inquiry with the company for accurate specifics and eligibility criteria.

Information on specific promotional deals and limited-time offers is not currently available through public channels. It's also worth noting that Absa Group Limited, the parent company, might offer occasional cross-promotional opportunities. The availability of live chat support, or other online communication methods, is not explicitly stated. Clarification on these points would require direct communication with their customer service department.

Pros and Cons

Key advantages of choosing First Assurance Kenya include the potential for competitive premiums, the pursuit of comprehensive coverage options, and the company's stated commitment to delivering high-quality service and dependable assurance. The backing of Absa Group Limited also adds a level of financial stability.

Identifying specific drawbacks requires more detailed information than is currently publicly available. Areas for potential improvement might include enhanced transparency in pricing details and expanded customer support channels (e.g., 24/7 availability and multilingual options). Client reviews and feedback could offer valuable insights into areas needing attention.

Additional Context: Insurance Market Growth in Kenya

Insurance mergers and acquisitions in Kenya are partly driven by stakeholders seeking to close the gap with best-in-class markets globally. Increase in minimum regulatory capital for insurance licenses by Insurance Regulatory Authority (IRA) to avert instability and protect policyholders is another trigger for mergers and acquisitions.

Life insurance gross premium income rose by 18.5 percent to Khs.201.56 billion in 2024 which translates to a life insurance penetration rate (premiums as percent of GDP) of 1.24 percent against a GDP of Ksh16.22 trillion. General insurance gross premium income rose by 7.1 percent to Ksh208.52bn in 2024 which equals to a general insurance penetration rate of 1.29 percent.

The Finance Act of 2015 increased general insurance paid up capital by 100 percent to whichever is higher between Ksh600 million, IRA determined risk-based capital or 20 percent of net earned premiums.

In 2023, Luxembourg led the world with the highest insurance penetration rate as its total direct gross premiums written over GDP hit 26.6 percent (life insurance penetration rate of 21.6 percent and general insurance penetration rate of 5 percent). Hong Kong was second globally and led Asia with total insurance penetration rate of 18 percent (life insurance 16.3 percent and general insurance 1.7 percent).

Mergers and Acquisitions in the Kenyan Insurance Market

Investopedia defines Mergers and acquisitions (M&A) as, ‘the process of consolidating companies or major assets of companies through financial transactions’. A company’s M&As options for another company include, ‘purchase and absorb another company outright; merge with it to create a new company, acquire some or all of its major assets, make a tender offer for its stock, stage a hostile takeover’.

Jacqueline Fendt notes the pre-M&A phase has two stages; conception (need identification, definition of M&A goals and strategy) and transaction (choice of candidates, contacting targets, valuations, due diligence, contracts).

Mckinsey identified seven capabilities for the best programmatic acquirers to deliver outsized Total Shareholder Return (TSR):

M&A strategy blueprint backed with active portfolio management and capital reallocation to aligned Acquistions.
Effective target prioritization process and high coordination of stakeholders.
Strong business case and acquisitions in all business cycles.
Set and capture synergies, be accountable and maintain financial discipline in all stages.
Prioritize cultural integration and organization health index.
Deliberately identify and keep the top talent for both companies from leaving via financial and non-financial incentives.

Here are some notable M&A activities in the Kenyan Insurance Market:

Saham Group (Morocco) acquired a 66.7 percent majority controlling stake in Mercantile Insurance (Kenya) and rebranded it to Saham Assurance in March 2013.
In February 2014, Metropolitan International (MMI Holdings- South Africa) acquired 75 percent stake in Cannon Assurance general insurance business for $27.3m and merged it with its Metropolitan Life Kenya business to form Metropolitan Cannon.
In addition, Britam acquired 99 percent of Real Insurance in 2014 for $15.74m (Ksh 825 million cash and Ksh550 million share swap) to deepen Britam’s East and Southern Africa presence especially for general insurance in Tanzania, Malawi, and Mozambique.
Prudential Plc (UK) acquired Shield Assurance life business for $16.6M (KES1.5bn) in 2014.
Allianz (Germany) established Allianz Insurance Company of Kenya as a greenfield in 2014 and in 2020 acquired 66 percent of Jubilee General Insurance operations in Kenya, Uganda, Tanzania, Burundi and Mauritius.
Swiss Re bought out Leapfrog Investments 26.9 percent stake in Apollo insurance in 2014.
DEG (Germany) bought 11 percent (Ksh1.3 billion) of Zep-Re in 2014 and an additional 5.4 percent (Ksh 1.4 billion) in 2020 to own 14.93 percent.
Old Mutual raised its ownership of UAP Holdings to 60.66 percent ($253m) in 2015 after buying out 37.33 percent holding by private equity firms (Swedfund, Africinvest, and Abraaj) for $155.5M (Ksh 14.2 billion) to form UAP Old Mutual.
Barclays Africa Group Limited via Barclays Life Assurance Kenya acquired 63.3 percent of First Assurance (formerly Prudential Assurance) long term insurance life business for KES 2.9bn in 2015.
MUA Insurance (Kenya) from Mauritius acquired Saham Assurance (Kenya) from Sanlam Pan Africa in July 2020 for Ksh1.23 billion in line with its three years “Ambition 2020” strategy to grow by 57 percent its market share in East Africa and become a top 10 insurer in Kenya leveraging its market relevance experience, financial strength and digital innovation.
Holmarcom Insurance (Morocco) acquired 51 percent of Monarch general and life insurance business in 2021 and sold out to Ondoba, Kenyoro, and Equico Thirteen consortium in 2024.
NCBA Group acquired 66.7 percent (Ksh 2 billion) to fully own AIG Kenya and rebranded into NCBA Insurance in 2024.

Britam Holdings PLC

Britam Holding PLC is a leading diversified financial services group and is listed on the Nairobi Securities Exchange. Britam's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, South Sudan, Rwanda, Tanzania, Malawi, and Mozambique. The group's operations commenced in Kenya in 1965 with the opening of the first office in Nairobi as a foreign branch of British-American Insurance Company Limited, headquartered in the Bahamas.

A local company was incorporated on 14 November 1979 as British-American Insurance Company (Kenya) Limited under the Companies Act as a private limited liability company following a government directive that all branches of foreign owned insurance companies must be incorporated locally. By this time, the Company had established nine branches across Kenya. This local incorporation represented the first step in the localisation of the Company.

In 2004, the group incorporated British-American Asset Managers whose core business was the provision of Investment advisory and Fund management services. The company offers investment funds, structured as Unit trusts and discretionary Portfolio management, to both institutions and private clients.

During the same year, the group restructured, creating a non-operating holding company. Also in 2004, Britam acquired a strategic equity stake in the Equity Group Holdings Limited.

In 2011, the shares of British-American Investments Company were listed on the Nairobi Securities Exchange through an undersubscribed initial public offering.

On 9 December 2013, the British-American Investments Company entered into a definitive Share Purchase Agreement with Royal Ngao Holdings to acquire its 99 percent shareholding in Real Insurance Company Limited, a deal that was valued at KSh1.4 billion (approximately US$16 million then). 60% of the sales price was paid in cash and 40% was paid by issuance of new shares in British-American Investments Company. Real Insurance was licensed insurer carrying out General insurance business in Kenya, Tanzania, Malawi, and Mozambique. It had been a player in the Kenyan insurance sector since 1910.

This transaction led to the expansion of Britam to Tanzania, Malawi, and Mozambique. Britam and Real Insurance only had parallel insurance businesses in Kenya. The Kenyan businesses would be consolidated.

In April 2014, the group announced its intention to acquire 30 percent of Continental Re Kenya Limited, a fully owned subsidiary of Lagos-based Continental Reinsurance Plc., in a deal valued at KSh300 million (approximately US$3.4 million).

Britam Life Assurance Company (Kenya) Limited - Nairobi, Kenya - 100% Shareholding - The flagship company of the group.

Britam General Insurance Company (Kenya) Limited - Nairobi, Kenya - 100% Shareholding - Offering General Insurance and Holding Company for Tanzania, Malawi and Mozambique subsidiaries.

Britam Insurance Company Malawi Limited - Blantyre, Malawi - 64.35% Shareholding- Held through Real Insurance Company Limited - Offering General Insurance. Started operating in 1959, making it the oldest insurance company in Malawi. It was listed on the Malawi Stock Exchange on 29 September 2008 through a successful IPO that was over-subscribed by 300%.

The shares of the stock of Britam Holdings Limited are traded on the Nairobi Stock Exchange, under the symbol: BRIT.

Britam Tower is a 31-storey building located along Hospital Road in Upper Hill, Nairobi which serves as the headquarters for the company. The tower is known for its prism-like shape and an adjacent 15-storey parking. Standing at 200m, it is the tallest building in Kenya and the third tallest in Africa. The tower has wind turbines that generate power for parts of the building.

In April 2015, a US$693 million Ponzi scheme in Bramer Banking Corporation hit Britam's largest shareholder British American Investment Company Mauritius Limited (BAIC). The Group moved swiftly to inform the public that the ponzi scheme did not affect their operations. However, the directors were put under investigation by the IRA.

The Mauritian government appointed receiver managers at BAI Co. later announced their intention to dispose of the group's entire shareholding in Britam. Dawood Rawat moved to the International Court of Arbitration in France to block this sale.

Peter Munga, a Kenyan billionaire and Britam shareholder with an initial 16.96 percent shareholding acquired 23.3 percent in new shareholding that he bought from the Government of Mauritius at an undisclosed sum in June 2016, bringing his new total shareholding to 40.26 percent. At the time, Munga stated that he would dispose of the newly acquired shareholding, in approximately two years.

In January 2017, the International Finance Corporation agreed to invest KSh3.5 billion (approx. US$35 million) in Britam, in exchange for 10.37 percent shareholding.

In April 2019, the Business Daily Africa newspaper reported that the Swiss insurer, Swiss Re had acquired 15.79 percent in Britam Holdings Limited. Africinvest, now the largest shareholder, owns 16.2 percent. The International Finance Corporation controls 8.8 percent.

First Assurance Kenya - A Balanced Perspective

First Assurance Kenya presents itself as a reputable insurance provider within Kenya, offering a diverse range of insurance products backed by the stability of Absa Group Limited. While the company emphasizes quality service and assurance, further clarity on specific aspects such as detailed pricing structures, comprehensive policy information, and the extent of its customer support services is warranted. Prospective clients are encouraged to directly contact the company for comprehensive information tailored to their specific needs.

First Assurance Kenya's offerings would particularly benefit individuals and businesses seeking reliable and comprehensive insurance coverage coupled with a focus on quality service and financial security. The company's affiliation with a large, established financial group like Absa provides an added layer of confidence.

Frequently Asked Questions

Question	Answer
What types of insurance does First Assurance Kenya offer?	While a complete list isn't publicly available, they confirm offering home insurance and likely offer other standard types. Contact them directly for details.
How can I get a quote? What is the claims process?	The exact claims process is not publicly detailed. Contact First Assurance Kenya for specifics.
What are the company's hours of operation?	This information is not publicly available.

Key Takeaways:

First Assurance Kenya is a Kenyan insurance company part of Absa Group Limited.
They offer various insurance products, including home insurance, but details are limited publicly.
Regulatory compliance is maintained through the Insurance Regulatory Authority (IRA) of Kenya.
Pricing is competitive but requires direct inquiry for specific details.
Customer service is available, but the extent of 24/7 support and multilingual options needs clarification.