An Absa Group subsidiary, Absa Life Assurance Kenya on Friday, April 26, posted a 90% increase in earnings to Sh862 million for the financial year ended December 31, 2023, thanks to investments in product diversification, digital capability expansion, and enhanced distribution channels.
The company’s key performance indicators rose by double digits fuelling the robust financial results despite an unpredictable operating environment, with its insurance services revenues increasing by 29% to Sh5.9 billion due to new product lines, including the flagship endowment plan launched last year.
Its investment income rose by 27% to Sh1.1 billion, reflecting its philosophy of investing funds in high-yield options that optimize investment returns.
“We are proud of the role we continue to play in ensuring the company’s position as a wholesome financial services group offering banking, investment, and insurance services to support our customers’ growth stories,” Absa Life’s principal officer, and managing director, Githanji Waiguru, said.
He added that the assurer continues to maintain a healthy quality of portfolio in the products it provides to the market and the policies that it underwrites.
In the year under review, the company’s insurance contract liabilities increased by 21 percent year on year to Sh8.6 billion, owing to the acquisition of more policyholders. Total assets closed the year at Sh11.5 billion, up 26% from the previous year, thanks to increased investments.
Its return on equity (ROE) was 50.3%, up 18% year on year, with the company distributing Sh450 million total dividends to the shareholders.
“It is important to note that the current financial statements are based on IFRS17, the new global reporting standards for insurance companies that replaced IFRS4 on January 1, 2023. The resilience of our financial results is noteworthy, as evidenced by consistent growth in our key financial indicators,” Waiguru said.
Absa Life, which is also investing in new distribution models to increase insurance penetration in Kenya, had made significant investments in its technology infrastructure, which resulted in the automation of its systems and operational processes, translating to gains in operational effectiveness and efficiencies.
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Among others, it improved its digital capabilities through a revamped company website with enhanced customer interaction capabilities and continued to diversify its distribution approach to include collaborations with strategic partners such as insure-techs and other insurance service providers. The digital transformation agenda has helped to improve efficiency and customer interactions while also making Absa Life’s products and services more accessible and affordable.
“As part of our Environmental, Social, and Governance (ESG) agenda, we have continued to promote financial inclusion by providing financial products with societal impact, such as funeral policies and education plans that ensure the lives of one’s dependents continue with minimal interruptions following incapacitation or accidental death,” he said.
