Liberty Kenya Holdings relied on stronger investment income and cost control to cushion the blow of rising claims that dragged down its profitability in the first half of 2025.
The insurer recorded a 58.86 per cent drop in net profits in six months, equivalent to Sh372 million.
The insurer posted net profits of Sh260 million for the six months to June 30, a sharp drop from Sh632 million a year earlier, as higher motor, medical and group risk claims eroded its insurance service result.
Basic earnings per share from continuing operations fell 30 per cent year-on-year to Sh0.80.
Even so, the company’s net investment income rose to Sh2.08 billion, up from Sh1.99 billion in the same period of 2024, helping offset weaker underwriting performance.
Liberty also pointed to tight expense management, which prevented a steeper decline in profits despite heavy claims pressure.
“Even though higher claims reduced our earnings, our strong investment performance, good expense control, and solid capital base helped us stay resilient,” said Liberty Kenya Group Chief Executive Kieran Godden.
The groups board chair Phillip Odera while holding that “Expense control within the group remains good,” said, that investment income and efficiency gains provided critical support to earnings in a difficult market.
Odera further pointed out that premium income has continued to grow across the Life and General insurance segments, however an increase in the volume of motor and medical claims in the general business has negatively impacted the overall net insurance result and earnings.
Liberty’s net insurance service result—the loss from its core insurance operations after premiums, claims, and related expenses—dropped to Sh225 million from Sh577 million, reflecting higher payouts.
“Higher group risk claims and a strengthening of the reserving basis also impacted on the insurance service result in the life insurance business. This was partially offset by higher investment income,” added the Chair.
Liberty says that the consumer pressure on disposable income, credit constraints, fiscal pressure, and climate change risks are reflective of ongoing challenges and higher uncertainty remains.
However, the officials said that the strategy going forward will be prioritising margin improvement and capital efficiency over rapid new business growth, citing a fragile consumer environment and investment market uncertainty.
The group, which recently exited Tanzania through the sale of Heritage Insurance Tanzania, said it will not pay an interim dividend for the period.
It plans to launch fully digital life insurance solutions in the second half of 2025 to boost customer experience and strengthen competitiveness.
