Absa Life Assurance Kenya (Absa Life), a subsidiary of Absa Group Limited, has recorded an 84 percent growth in profit after tax to Ksh245 million for the period ended December 31, 2021, driven by strong growth in premiums.
For the period, Absa Life’s gross written premium of Ksh5.5 billion was 45 percent higher, on the account of business from the Government scheme, Education policy and growing Corporate Business.
Assets grew from Ksh6 billion in 2020 to Ksh7.6 billion in 2021, a 25 percent increase. The largest increase was in investments closing at Ksh5.9 billion from Ksh4.6 billion in 2020, a 29 percent growth. Absa Life continues to maintain a strong capital position.
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“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,” Absa Life’s Managing Director Githanji Waiguru said.
Operating expenses grew slightly by 3 percent to Ksh560 million on the account of premium levies and taxes, training as well as marketing and advertising. These overruns were offset by savings in employee costs resulting from delayed replacements of staff.
“Looking ahead, IFRS 17 remains the most significant development for the insurance industry and is slated for implementation on 1st January 2023. The rollout of the standard will demand robust new systems and data capture processes, upskilling of our people and involvement of multiple stakeholders beyond those finance roles. As a business, we are on track towards the implementation of this major new standard,” Mr Waiguru added.
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