Absa Life Assurance Kenya (Absa Life) has reported a net profit of Ks. 416.6 million in 2022 which represents a 70% rise in profitability from Ksh. 244.8 million recorded during the same period in 2021.
This rise in profitability was on the back of a double-digit growth in all key revenue lines where the company exceeded 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.
The company ended the year with assets worth KES 9.3 billion, which represents 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.
Operational expenses rose by 13% to hit Ksh. 1.7 Billion as the company intensified product distribution and marketing efforts and enhanced customer value propositions to grow the top line.
Absa Life’s Managing Director, Githanji Waiguru, “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. 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.”