Equity Group has appointed AAR Insurance Holdings CEO Patrick Gatunga as managing director of its new health insurer, as the financial services firm deepens its foray into the underwriting business.
Sources said Mr Gatunga, who has been CEO of AAR since September 2022, has moved to Equity Group where he has been appointed Managing Director of Equity Health Insurance – the newly formed company.
Mr Gatunga served as CEO of Jubilee Health Insurance between September 2021 and September 2022 and also as General Manager Medical Services at Jubilee Insurance Kenya between October 2018 and January 2020.
He previously served as Commercial Executive at Old Mutual Group (October 2016 and October 2018), Senior Consultant at McKinsey & Company (August 2015 to September 2016), and East Africa Health Systems Specialist for UNICEF between 2011 and 2013.
His joining Equity adds to the best talent Equity Group has recruited as it seeks to strengthen its insurance and healthcare businesses.
Equity Group last year raided AAR Healthcare for talent as it moved to boost its outpatient chain which trades under the Equity Afia brand. Joyce Sitonik, the then head of clinic operations, has selected the new general manager of clinical services and quality, while Joseph Mwangi, who was AAR's controller, joins as general manager of finance.
The notice of the group's Annual General Meeting (AGM) states that 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.
During the Annual General Assembly scheduled for June 26, 2024, the Group’s Board of Directors will seek shareholder approval to provide Sh800 million in capital to the health insurance company as it seeks to join the competitive medical insurance market.
“The company’s Board of Directors approved the establishment of the health insurance company, subject to the approval of the shareholders and obtaining the necessary regulatory approvals, and recommends that the company’s shareholders approve the establishment of the health insurance company.” Notice to the General Assembly.
Jubilee Health held a 17.81 percent market share in medical insurance as of end-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 five largest medical insurance companies have a combined market share of 70.44 percent, which Equity hopes to break into, leveraging its banking and medical insurance businesses.
Equity in July 2021 established Equity Group Insurance Holdings Limited as a wholly owned subsidiary with a share capital of Sh400 million. In 2022, it then launched Equity Life Assurance Kenya as the first underwriting insurance company to offer life and retirement insurance solutions.