Insurance and reinsurance firms have increased the share of their investments at the Nairobi Securities Exchange (NSE) to a four-year high of 3 percent, riding on a sustained equity market rally that has lifted returns.
Latest data from the Insurance Regulatory Authority (IRA) shows that the industry’s exposure at the NSE hit 3.0 percent in the quarter ended March 2026 compared with 2.1 percent in a similar quarter last year.
The rise in the share of the industry’s NSE holding came in the period their value of quoted shares rose 75.4 percent to Sh47.46 billion from Sh27.05 billion, pointing to a mix of new purchases and appreciation of existing stake.
During the review period, the NSE market capitalisation rose by 57.1 percent to Sh3.231 trillion at the end of March this year from Sh2.056 trillion in March 2025.
Long term insurers’ holdings of NSE equities jumped by 67.1 percent to Sh37.65 billion from Sh22.52 billion as that of general insurers increased by 14.5 percent to Sh3.46 billion.
IRA said the growth in quoted shares for long term insurers was primarily due to increases in holdings of ICEA Lion Life Assurance, Jubilee Life Insurance and Britam Life Insurance by Sh4.25 billion, Sh3.2 billion and Sh2.91 billion respectively.
“Collectively, these three insurers accounted for 68.5 percent of the overall growth in quoted shares (for life insurers) during the period,” said IRA.
During the quarter under review, the value of reinsurers’ holdings jumped 4.2 times to Sh6.34 billion from Sh1.49 billion, giving them an exposure of 5.5 percent.
At 3 percent, the industry’s share of their Sh1.607 trillion total investment at the NSE is the highest since four percent in the first quarter of 2022.
The insurers started increasing their share of investments at the NSE in the third quarter of 2025, closing at 2.6 percent from 2.1 percent in the second quarter, before rising further to 2.8 percent at the end of the year.
Their increased exposure to equities signals a strategic shift by underwriters seeking higher yields in a recovering market.
The industry’s highest exposure remains in government paper where rates had come down in the past two years as the Central Bank Rate declined.
Despite the uptick, equities still represent a relatively small portion of insurers’ overall investments, with fixed income assets such as Treasury bonds and bills continuing to account for the bulk of holdings.
Government paper accounted for 78.7 percent of long-term insurers’ investments in the quarter ended march 2026 while that of general insurers stood at 60.4 percent.
The industry had for years dialled down their exposure on the NSE. The latest holding is still well below 2014 when quoted equities took up 20 percent of the sector’s investment.
The rebound in stock prices has made equities more attractive compared to traditional fixed-income instruments.
Insurers, which typically prioritise capital preservation, are however cautiously increasing their risk appetite given the volatile nature of equities.
