Equity Group has tapped AAR Insurance Holdings CEO Patrick Gatonga as the managing director of its new health insurance company as the financial services firm deepens its foray into the underwriting business.
Sources said Mr Gatonga, who has been the CEO at AAR since September 2022, has moved to Equity Group where he has been appointed the managing director of Equity Health Insurance—the newly formed company.
Mr Gatonga served as CEO of Jubilee Health Insurance between September 2021 and September 2022 and also as the general manager for medical at Jubilee Insurance Kenya between October 2018 and January 2020.
He has previously served as the commercial executive at Old Mutual Group (October 2016 and October 2018), senior consultant at McKinsey & Company (August 2015 to September 2016), and Eastern Africa health systems specialist for Unicef between 2011 and 2013.
His entry at Equity adds to the top talent that Equity Group has hired as it seeks to bolster its insurance and healthcare business.
Equity Group last year raided AAR Healthcare for talent as it moved to strengthen its chain of outpatient clinics that trade under the Equity Afia brand. It picked the then head of clinic operations Joyce Sitonik as the new general manager for clinical services and quality while Joseph Mwangi, who had been serving as AAR financial controller joined as the general manager for finance.
The group’s annual general meeting (AGM) notice shows Equity Health Insurance will be under Equity Group Insurance Holdings Limited, and will undertake health insurance business in Kenya, subject to obtaining the requisite regulatory approvals.
The group’s board will, during the June 26, 2024 AGM, seek the approval of shareholders to provide Sh800 million as capital to the health insurance company as it seeks to join the competitive medical insurance market.
“The board of directors of the company has approved the incorporation of the health insurance company subject to the approval of the shareholders and obtaining the requisite regulatory approvals and recommends that the shareholders of the company approve the incorporation of the health insurance company,” reads the AGM notice.
Jubilee Health commanded a market share of 17.81 percent in medical insurance as at end of December 2023, followed by Old Mutual General (16.02 percent), AAR (14.11 percent), APA (11.45 percent) and CIC General (11.05 percent).
The top five medical insurers have a combined market share of 70.44 percent, which Equity hopes to break into, riding on its banking and medical insurance businesses.
Equity, in July 2021 incorporated Equity Group Insurance Holdings Limited as a fully owned subsidiary with a share capital of Sh400 million. It, in 2022, then launched Equity Life Assurance Kenya as the first underwriting insurance subsidiary to offer life insurance and retirement solutions.
