First Assurance Investments Limited has completed the acquisition of Absa Group’s controlling stakes in two Kenyan insurance companies, bringing an end to the South African banking group’s 11-year ownership of the businesses.
The transaction transfers Absa’s 63.32 per cent shareholding in First Assurance Company Limited and Absa Life Assurance Kenya Limited to First Assurance Investments, giving the investment firm control of both insurers following regulatory approvals and the fulfilment of completion conditions.
The deal has been reported to be worth approximately KSh3 billion, although Absa did not disclose the financial terms when it initially announced the proposed sale in August 2026.
Under the new ownership structure, Absa Life Assurance Kenya will operate as First Assurance Life, while First Assurance Company will adopt the name First Assurance General.
The companies will retain references to the Absa brand for six months as they transition to their new identities. Their existing distribution arrangements with Absa Bank Kenya will also continue, allowing customers to access insurance products through the bank despite the change in ownership.
The continued partnership is significant because it separates ownership of the insurance businesses from the distribution network that connects them to customers. Absa Bank Kenya can continue offering insurance products through its bancassurance arrangements without retaining controlling ownership of the insurers.
The transaction reverses a major ownership change dating back to 2015, when Barclays Africa Group, which later became Absa Group, acquired a controlling interest in First Assurance.
First Assurance traces its origins to 1930, when it operated in Kenya as Prudential Assurance Company. It became wholly Kenyan-owned in 1991 before Barclays Africa acquired its controlling stake more than two decades later.
The insurance business was subsequently reorganised, with its life insurance operations transferred to Absa Life Assurance Kenya in 2019, leaving the general insurance business operating separately.
The latest acquisition brings the two businesses under First Assurance Investments, restoring control to an investment group that already held shares in the insurers before the transaction.
The purchase also forms part of Absa's wider restructuring of its insurance operations across Africa. The group disposed of insurance businesses in Botswana, Mozambique and Zambia in 2025 as it shifted towards a distribution-led model built around partnerships with financial institutions.
For policyholders, the ownership change is not expected to interrupt existing services or products. The continuation of Absa Bank's distribution arrangements provides a bridge between the old and new ownership structures while the insurers establish their independent corporate identities.
The completion marks a significant return of Kenyan investor control over two established insurance businesses, while preserving the banking relationship that has supported their distribution of products.
