Equity Life Profit Rises 16.2% to Ksh1.24B as Digital Growth Accelerates

Equity Life Assurance (Kenya) Limited posted solid financial results for the year ending December 31, 2025, with strong growth across earnings, assets, and customer reach.

The performance reflects a business that is scaling quickly while leaning heavily on technology and the wider Equity ecosystem.

Profit after tax rose to Ksh 1.24 billion, marking a 16.2 per cent increase from the previous year. Profit before tax grew even faster, jumping 27.5 per cent to Ksh 1.78 billion. Earnings per share also improved, climbing to 2,954 from 2,542, signalling stronger returns to shareholders.

The company’s revenue growth was driven by both its core insurance business and investment income. Gross written premiums surged 40 per cent to Ksh 7.3 billion, pointing to increased demand for its protection, savings, and retirement products. Insurance revenue rose 45.4 per cent to Sh2.08 billion, while investment income climbed 38.7 per cent to Sh4.19 billion. Together, these pushed the net insurance and investment result up by 33.5 per cent to Ksh 1.97 billion.

Behind these numbers is a rapidly expanding balance sheet. Total assets grew by 31.6 per cent to Ksh 31.88 billion, while insurance contract liabilities increased by 25.4 per cent to Sh24.9 billion, reflecting growth in the company’s policyholder base. Liquidity also improved, with the current ratio rising to 168 per cent from 159 per cent, giving the firm a stronger cushion to meet short-term obligations.

Returns remained attractive. The insurer reported a 36 per cent return on equity and four per cent return on assets, underlining efficient use of capital. Its capital adequacy ratio strengthened to 300 per cent, up from 278 per cent, well above regulatory requirements and a sign of stability for long-term policy commitments.

The retirement business also recorded steady growth. The Deposit Administration Fund closed the year at Sh17.3 billion, up from Sh13.9 billion in 2024. During the period, the company received Sh3.1 billion in pension contributions, paid out Sh1.9 billion in benefits, and credited Sh2.6 billion in interest to members, a 26.2 per cent increase.

Digital distribution

A key highlight for the insurer has been its aggressive push into digital distribution. By early 2025, the company had issued 19.2 million cumulative policies, up from 14.1 million the previous year. It now serves 6.9 million unique customers, compared to 5.9 million a year earlier. Digital platforms accounted for 79 per cent of all policies issued, showing how central mobile and online channels have become to its growth strategy.

At the same time, Equity Bank Holdings Limited continues to play a crucial role in distribution. Its branch network remains important for reaching customers who prefer in-person services, especially for more complex or high-value products.

On the investment side, the insurer has continued to tilt towards government securities, which rose to Sh23.4 billion. This reflects a cautious approach aimed at preserving capital while earning stable returns in a shifting economic environment.

Industry recognition followed the strong performance. The company was named Life Insurer of the Year at the Think Business Insurance Awards and also picked up honours for customer-centric underwriting, claims settlement, and partnerships.

Overall, the results paint a picture of an insurer that is not just growing, but doing so with a clear strategy. By combining digital access, a large banking network, and a focus on everyday financial protection products, Equity Life is steadily positioning itself as a mass-market leader in Kenya’s insurance space.