Absa Group to Sell 63.32% Stakes in First Assurance and Absa Life Kenya
Absa Group has agreed to sell its entire 63.32 percent stake in First Assurance Company Limited and Absa Life Assurance Kenya Limited to First Assurance Investments Limited (FAI), an existing shareholder in the two insurance businesses.
The sale is subject to regulatory approvals and other conditions precedent required for the transaction to proceed.
The transaction will see Absa exit its direct ownership of the two Kenyan insurance businesses after holding the controlling stake since 2015.
Absa said the parties will work together during the transition to ensure there is no disruption to the operations of First Assurance Company and Absa Life Assurance Kenya. Existing distribution arrangements between the insurance companies and Absa Bank Kenya PLC will continue after the transaction.
The bank’s customers will also continue to access their existing insurance products and services, with Absa stating that customer products and services will not be affected by the sale.
Further announcements will be made in line with regulatory requirements when there are material developments regarding the transaction.
The Kenyan transaction follows Absa Group’s divestment of insurance manufacturing operations in other African markets. Between 2024 and 2025, the group sold its insurance operations in Botswana, Zambia and Mozambique.
The businesses included Absa Life Botswana, Absa Life Zambia and Global Alliance Seguro in Mozambique.
Absa Life Kenya Grew Under Absa Ownership
Absa Life Assurance Kenya was launched in 2015 as Barclays Life before the bank’s rebranding to Absa. During its period under Absa ownership, the life insurer recorded growth in earnings and its position in Kenya’s long-term insurance market.
The company’s net profit increased by 84 percent to KSh667.2 million in 2023 from KSh361.8 million in 2022. Its profit subsequently reached KSh862 million in early 2024, according to figures provided on the company’s financial performance.
Absa Life also accounted for 5.56 percent of Kenya’s long-term insurance market as of early 2025 and held a 19.51 percent share of the group life premium segment. Its annual insurance service revenue stood at KSh5.9 billion during the period cited. The insurer recorded a return on equity of 50.3 percent under Absa ownership.
First Assurance Faced Weaker General Insurance Performance
First Assurance Company followed a different performance trajectory after Absa acquired its controlling stake. Absa, then operating as Barclays Africa, acquired a 63.32 percent stake in First Assurance in 2015 for KSh2.9 billion.
The company subsequently faced weaker performance in its general insurance business. In 2022, Absa Group recognized a KSh219.5 million impairment charge against acquisition-related goodwill associated with First Assurance. The company later ranked 13th among general insurers in Kenya.
The structure of the insurance businesses also changed after regulators required the separation of First Assurance’s long-term and general insurance portfolios in 2019.
The long-term insurance business was transferred to Absa Life Assurance Kenya, while First Assurance retained its general insurance operations covering property and casualty risks.
