Absa Life Assurance Kenya (Absa Life) has reported an 84 per cent growth in net profit to Sh667.2 million for the year ending December 31, 2023, from Sh361.86 million recorded in 2022. The increase has been driven by the surge in insurance services revenues and investment income.
The firm, an Absa Group subsidiary, reported a 90 per cent increase in headline earnings to Sh862 million for the financial year ending December 31, 2023 - driven by investments in product diversification, digital capability expansion, and enhanced distribution channels. Insurance services revenues increased by 29 per cent to Sh5.9 billion, which the firm said was driven by new product lines, including the flagship endowment plan launched last year.
Investment income grew by 27 per cent to Sh1.1 billion, reflecting Absa Life’s philosophy of investing funds in high-yield options that optimise investment returns. “Absa Life continues to maintain a healthy quality of portfolio in the products we provide to the market and the policies that we underwrite, which is a clear testimony to the value we continue to drive both for our policyholders and the shareholders, and these results serve as a clear demonstration to this,” said Absa Life Managing Director Githanji Waiguru.
In the year under review, insurance contract liabilities increased by 21 per cent year-on-year to Sh8.6 billion, owing to the acquisition of more policyholders. Total assets closed the year at Sh11.5 billion, up 26 per cent from the previous year, attributed to increased investments. Absa Life’s return on equity was 50.3 per cent, up 18 per cent year-on-year, with the company distributing Sh450 million in total dividends to the shareholders.
Mr Waiguru explained Absa Life had made significant investments in its technology infrastructure, which resulted in the automation of its systems and operational processes, translating to gains in operational effectiveness and efficiencies.
This has supported the expansion of the business by providing a seamless customer experience, resulting in top-line growth without compromising capacity.
He noted that Absa Life improved its digital capabilities with enhanced customer interaction capabilities and continued diversifying its distribution approach to include collaborations with strategic partners such as insure-techs and other insurance service providers.
The digital transformation agenda, Waiguru observed, has helped to improve efficiency and customer interactions while also making Absa Life’s products and services more accessible and affordable.
“As part of our Environmental, Social, and Governance (ESG) agenda, we have continued to promote financial inclusion by providing financial products with societal impact, such as funeral policies and education plans that ensure the lives of one’s dependents continue with minimal interruptions following incapacitation or accidental death,” Waiguru added.
