Absa Life Assurance Kenya (Absa Life), a leading and fast-growing life assurance company, has reported an 85% increase in profit before tax to KES 568.6 million for the financial year ended 31 December 2022, driven by double-digit growth in all key revenue lines.

The company’s digital transformation agenda has resulted in it exceeding expected targets of gross written premium income and net earned premium, with gross written premium rising 15% to KES 6.3 billion, up from KES 5.5 billion the previous year. As a result, net premium income increased by KES 495 million or 13%, to KES 4.3 billion, while investment income increased by KES 255 million or 42% to KES 849 million.

Absa Bank Kenya PLC records 34% growth in Profit after Tax to Kshs.14.6 billion

Profit after tax increased by 70% to KES 416.6 million in 2022, a significant increase from KES 244.8 million recorded during the same period in 2021. The company ended the year with assets worth KES 9.3 billion, a 22% increase. Concurrently, Absa Life’s embedded value (which is a measure of the shareholder value in the company determined by the sum of net asset value and future profit present value) has increased to KES 1.2 billion, up from KES 974 million in 2021.

Absa Life’s Managing Director, Githanji Waiguru, said that the impressive financial performance is underpinned by consistent growth in key products, including the Endowment Plan, which was launched in April last year, driving significant business momentum in Q4. A sustained push in other existing products such as Absa Life’s flagship Education Plan and Group Risk Cover where the company has maintained market leadership further reinforced the performance.

“These results were achieved against the backdrop of a challenging operating environment characterized by macroeconomic, geopolitical, and social challenges that continued to have an impact on businesses at both the local and global stages. Some of the challenges included the impact of the long Covid-19 pandemic which continued to drive insurance claims and demand for the adoption of new ways of working and doing business. Additionally, the electioneering period, escalating inflation driven by fuel and food prices, and a volatile exchange rate environment all presented headwinds to business prospects,”  Mr. Waiguru said. 

Akothee slams Size 8 and other no-show celebrities at her wedding in a viral rant!

On the expense side, transformational investments made during the year increased expenses by 13% as the company intensified product distribution and marketing efforts and enhanced customer value propositions to grow the top line. Apart from relaunching the company’s website, www.absalife.co.ke, where customers can view and interact with Absa Life’s products and services, other initiatives undertaken included the establishment of alternative distribution channels through collaboration with insure tech firms, as well as product distribution through independent agents.

“This year, we are advancing our innovation journey and elevating the customer experience with the launch of our digital sales portal, where customers will be able to access all of our services including quotation requests, lodging claims, policy amendments, and many more,” Mr. Waiguru explained. 

“Looking ahead, our main focus is on technology and digital transformation, as well as more strategic partnerships to continue providing our products and services more conveniently to our customers,” he added.