Absa Life Assurance Kenya has posted an 84.4 percent rise in net profit to Sh667.2 million in the financial year ended December 2023, driven by increased investment income.
The life assurance firm, a subsidiary of Absa Group Limited, saw its net earnings grow from Sh361.86 million it had posted in the previous year.
Net investment income grew 27 percent to Sh1.07 billion from Sh845.6 million while loss from insurance service was reduced to Sh79.6 million from Sh194.7 million, supporting the growth in the bottom line.
The firm’s finance expenses from insurance contracts reduced to Sh15.5 million from Sh122.5 million, taking its net finance result to Sh1.06 billion from Sh774.9 million.
Absa Life has on the back of increased profitability proposed a final dividend of Sh230 million to add to the Sh220 million interim dividend it had paid earlier.
The firm had not paid any dividends in the previous year.
“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 Githanji Waiguru, managing director at Absa Life.
The firm commenced operations in 2015, after receiving its licence from the Insurance Regulatory Authority and was the first life assurance company in Kenya to fully adopt a bancassurance model of distribution.
Mr Waiguru said Absa Life had made investments in its technology infrastructure, which resulted in the automation of its systems and operational processes, translating to gains in operational effectiveness and efficiencies.
“As part of Absa Group, we are proud of the role we continue to play in ensuring the company’s position as a wholesome financial services group offering banking, investment, and insurance services to its customers because their story matters.”
