Absa Life Assurance, a subsidiary of Absa Bank Kenya, has gained 84 percent net profit to Ksh.245 million for the period ended December 31, 2021.
Absa Life’s Managing Director Githanji Waiguru said the strong performance has been driven by strong growth in premiums.
“We believe that every Kenyan should have access to insurance services, as they help them to secure a better future for themselves and their loved ones. We, therefore, continue to introduce innovative and diverse channels of delivery, including banc-assurance, agents, intermediaries, microfinance partners, SMS and USSD,” said Waiguru.
For the period under review, Absa Life’s gross written premium of Ksh.5.5 billion was 45 percent higher, on the account of business from the Government scheme, Education policy and growing Corporate Business.
Assets grew from Ksh.6 billion in 2020 to Ksh.7.6 billion in 2021, a 25 percent increase. The largest increase was in investments closing at Ksh.5.9 billion from Ksh.4.6 billion in 2020, a 29 percent growth.
Operating costs grew slightly by 3 percent to Ksh.560 million on account of premium levies and taxes, training as well as marketing and advertising.
According to the life assurance company, these overruns were offset by savings in employee costs resulting from delayed replacements of staff.
Absa Life Assurance Kenya is expected to rollout the International Financial Reporting Standards (IFRS) effective January 1, 2023, which is aimed at demanding robust new systems and data capture processes, upskilling of people, and involvement of multiple stakeholders.