FEP eyes insurance business in UAP Old Mutual deal
Investment firm FEP Holdings has ventured into insurance brokerage in a move aimed at diversifying its income.
FEP has partnered with UAP Old Mutual Group to co brand insurance products, initially targeted at 10,000 of the firm’s members.
Through the partnership, FEP expects to generate Sh70 million in revenues by the end of the year.
FEP Chief Executive Officer Maurice Korir said the partnership is part of plans to channel its energies towards beefing up existent business lines as opposed investing in new ventures.
“We see this as a great opportunity to grow our range of products as well a strategic entry path to finally venture into insurance brokerage. FEP Insurance Agency will greatly benefit from UAP’s marketing support,” Mr Korir said.
UAP-Old Mutual Group Managing Director- General Insurance James Wambugu said the company would offer FEP Holdings the office representation in the counties where investors and customer register and present their insurance claims, while FEP Holdings will offer the insurer an extra footprint in the counties.
The move will also benefit UAP Old Mutual by deepening its penetration in the country.
Insurance penetration in Kenya remains low at a paltry 2.9 percent.
FEP Holdings has 200,000 members of whom 70,000 have invested in the company.
The investment company has a share capital of Sh4.8 billion.
The two firms have jointly developed co-branded medical and general insurance products that will see FEP members benefit from discounted rates of up to 7.5 percent on policy premiums.
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