NAIROBI, Kenya, April 25 – Absa Life Assurance Kenya’s (Absa Life) profit after tax grew 70 percent to Sh416.6 million for the year ending December 31, 2022, buoyed by a double-digit growth in revenue.
Absa Life improved from Sh244.8 million that was posted in a similar period in 2021.
Digital transformation increased its gross written premium by 15 percent to Sh6.3 billion, up from Sh5.5 billion between the periods.
Consequently, net premium income increased by 13 percent, or Sh495 million, to Sh4.3 billion, while investment income increased by Sh255 million, or 42 percent, to Sh849 million.
Absa Life’s Managing Director, Githanji Waiguru, attributed the improved performance to 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,” Waiguru said.
“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,” he added.
“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 Sh9.3 billion, a 22 percent increase.
However, transformational investments increased expenses by 13 percent as the company intensified product distribution and marketing efforts as well as enhanced customer value propositions.
“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,” 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.
