Absa Group has completed the sale of its entire stake in First Assurance Holdings Ltd., ending the South African banking group’s direct ownership of two insurance businesses in Kenya as it continues to reshape its insurance operations across Africa.

First Assurance Investments Ltd. confirmed the transaction in a public announcement dated Nov. 9, 2026, saying it had acquired 100% of Absa’s shareholding in First Assurance Holdings, the parent company of First Assurance Company Ltd. and Absa Life Assurance Kenya Ltd.

New owner takes control

The acquisition was completed after the parties secured the necessary regulatory approvals and fulfilled other customary conditions. The transaction transfers ownership of both insurance businesses to First Assurance Investments, marking a significant change in the structure of Absa’s Kenyan insurance operations.

As part of the transition, Absa Life Assurance Kenya will be renamed First Assurance Life, while First Assurance Company will operate as First Assurance General. Both businesses will retain the designation “Formerly an Absa Group Company” for six months to help customers and policyholders identify their previous association.

Absa Bank retains distribution links

Despite relinquishing ownership, Absa will maintain its existing distribution partnerships with the two insurers through Absa Bank Kenya. The arrangement allows the lender to retain a channel for offering insurance products to banking customers without directly owning the underwriting businesses.

First Assurance Investments said the ownership transition involved a collaborative process designed to avoid operational disruption. It also assured customers, policyholders and other stakeholders that existing insurance products and services would remain unchanged following completion of the acquisition.

The continued distribution relationship highlights Absa’s broader shift toward a bancassurance model, in which banks distribute insurance products through partnerships rather than maintaining direct ownership of insurance companies.

African insurance exits continue

The Kenyan disposal follows Absa’s July 2024 agreement to sell its insurance businesses in Botswana, Zambia and Mozambique to Hollard International. The transactions were completed in phases, with Mozambique transferring on April 1, 2025, Botswana on May 1 and Zambia on June 1.

The successive disposals reflect a wider restructuring of Absa’s insurance operations across African markets, allowing the group to maintain access to insurance distribution while transferring ownership of the underlying businesses to specialist insurance investors.

Absa Kenya reports higher earnings

The ownership change comes as Absa Bank Kenya continues to report growth in its banking operations. The lender recorded a profit after tax of Ksh 10.53 billion ($81 million) for the six months ended June 30, 2026, according to its unaudited financial results.

Customer loans increased 8% to Ksh 329.9 billion ($2.54 billion), while customer deposits rose 5% to Ksh380.7 billion ($2.93 billion). Total assets reached Ksh 558.1 billion ($4.3 billion), reflecting the scale of the bank’s lending and deposit operations.

Operating income stood at Ksh 29.3 billion ($225.6 milion), comprising Ksh21.1 billion ($162.46 million) in net interest income and Ksh 8.2 billion ($63.13 million) in noninterest income. Absa Bank Kenya reported a return on equity of 21.7%, capital adequacy of 19.4% and liquidity reserves of 42.7%.

Absa refocuses its African business

Absa Group, headquartered in Johannesburg and listed on the Johannesburg Stock Exchange, operates banking, financial services and insurance across Africa markets, including Kenya, Ghana, Botswana, Mozambique, Mauritius, Seychelles, Tanzania, Uganda and Zambia. Its Kenyan banking subsidiary operates 90 branches nationwide and traces its roots to Barclays Bank’s entry into Kenya in 1916.

The bank adopted the Absa name on Feb. 10, 2020, following its separation from Barclays Africa. Fihla has served as group CEO since June 2025, while Yusuf Omari was appointed as Absa Bank Kenya MD/ CEO on September 10, 2026.