GROWTH

Absa Life Assurance Kenya net profit grows 84% to Sh245 million

This is for the period ended December 31, 2021.

In Summary

•Driven by strong growth in premiums.

•The value of assets grew to Sh7.6 billion  from Sh6 billion in 2020 , a 25 per cent increase.

Absa Bank Kenya PLC managing director Jeremy Awori celebrates with staff at the Sarit Centre branch during the official unveiling of the Absa brand in Kenya on February 10
Absa Bank Kenya PLC managing director Jeremy Awori celebrates with staff at the Sarit Centre branch during the official unveiling of the Absa brand in Kenya on February 10
Image: COURTESY

Absa Life Assurance Kenya (Absa Life), a subsidiary of Absa Group Limited, has recorded an 84 per cent growth in profit after tax to Sh245 million.

This is for the period ended December 31, 2021, driven by strong growth in premiums.

For the period, Absa Life’s gross written premium of Sh5.5 billion was 45 per cent higher, on the account of business from the government scheme, education policy and growing corporate business.  

During the period, the value of assets grew to Sh7.6 billion  from Sh6 billion in 2020 , a 25 per cent increase.

The largest increase was in investments closing at Sh5.9 billion from Sh 4.6 billion in 2020, a 29 per cent growth.

Absa Life continues to maintain a strong capital position.

While commenting on the financial results, managing director Githanji Waiguru said: We believe that every Kenyan should have access to insurance services, as they help them to secure a better future for themselves and their loved ones."

He said the entity continues to introduce innovative and diverse channels of delivery, including banc-assurance, agents, intermediaries, microfinance partners, SMS and USSD

During the period under review, operating expenses grew slightly by three per cent to Sh560 million, on the account of premium levies and  taxes, training as well as marketing and advertising.

These overruns were offset by savings in employee costs resulting from delayed replacements of staff.

Looking ahead, IFRS 17 remains the most significant development for the insurance industry and is slated for implementation on 1st January 2023. The rollout of the standard will demand robust new systems and data capture processes, upskilling of our people and involvement of multiple stakeholders beyond those finance roles," Waiguru noted. 

" As a business, we are on track towards the implementation of this major new standard,” he added.