Absa Life Assurance Kenya (Absa Life) recorded a 70 per cent profit after tax to Kes416.6 million for the year ending December 31, 2022, compared to Kes244.8 million posted in a similar period in 2021.
The lender has attributed the growth to the buoyed by double-digit growth in revenue.
Digital transformation increased its gross written premium by 15 per cent to Kes6.3 billion, up from Kes5.5 billion between the periods.
Further, the net premium income increased by 13 per cent, or Kes495 million, to Kes4.3 billion, while investment income increased by Kes255 million, or 42 per cent, to Kes849 million.
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Absa Life’s Managing Director, Githanji Waiguru, attributed the improved performance to growth in the Endowment Plan, 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.
However, the MD noted that the results were achieved against a challenging operating environment characterized by macroeconomic, geopolitical, and social challenges that continued to impact businesses locally and globally.
“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.”
At the end of the last financial period, the firm boasted assets worth Kes9.3 billion, a 22 per cent increase.
However, transformational investments increased expenses by 13 per cent as the company intensified product distribution and marketing efforts and enhanced customer value propositions.
