Banks Lean on Bancassurance to Boost Earnings as Premiums Rise Sharply

Bancassurance is becoming a key source of income for banks in Kenya, with new figures showing strong growth in 2025. Absa Bank Kenya and Co-operative Bank recorded some of the biggest gains as insurers relied more on bank channels to grow their business.

Absa’s net profit from bancassurance rose by 35 percent to Sh1.3 billion in the year ended December, crossing the Sh1 billion mark. Co-op Bank also posted growth, with profit from its intermediary arm increasing by 25 percent to Sh1.16 billion. The gains highlight how banks are using their wide branch networks and customer base to sell insurance products alongside their core services.

Across the sector, bancassurance gross written premiums rose by 74 percent to Sh35 billion, showing strong expansion over recent years. Other major players also recorded mixed results. KCB Bank Group’s bancassurance pre-tax profit fell by 11 percent to Sh400 million, while NCBA Group saw a sharper drop of 34 percent to Sh265 million. In contrast, Equity Bank reported a 31 percent increase in bancassurance profit to Sh808 million, with a growing contribution to overall group earnings.

The figures show that bancassurance is no longer a small add-on service. It is becoming a more important revenue stream for banks, supported by their ability to combine insurance with loans and other financial products. This model allows banks to use existing customer relationships more effectively.

As banks expand into retail, SME, and household finance, bancassurance is helping them build broader financial services. The trend points to a shift where banks are moving beyond traditional lending and deposits to offer a wider range of services, with insurance playing a more central role in their business.