Liberty Kenya Group’s Insurance Revenue in the financial year ending 31st December 2025, rose 8.5 per cent to KSh 11.883 billion from KSh 10.950 billion in 2024, driven by strong momentum at both Heritage Insurance Kenya, the Group’s short-term business, and Liberty Life Assurance Kenya, its long-term insurance arm.
Alongside these results, the Board of Directors has recommended a normal dividend of KSh 0.50 per ordinary share, unchanged from 2024, subject to approval at the Annual General Meeting scheduled for 29 May 2026. The recommendation reflects the Group’s robust capital position and its confidence in the ability to sustain policyholder obligations and fund future growth.
The revenue gains, however, were accompanied by significant pressure on the bottom line.
Group Profit Before Tax from continuing operations declined 47.8 per cent to KSh 1.091 billion from KSh 2.091 billion in the prior year, attributable to elevated claims experience in motor, medical, fire, and group life business lines; a normalization of investment returns following the exceptional equity market performance of 2024; and the adverse impact of declining interest rates on general insurance earnings.
The insurance service result dropped 55.1 per cent to KSh 478 million from KSh 1.064 billion as insurance service expense rose 19.1 per cent to KSh 10.153 billion.
Net investment income eased 17.8 per cent to KSh 4.020 billion.
Group total earnings, including the impact of discontinued operations, fell 65.3 per cent to KSh 487 million from KSh 1.402 billion, while earnings per share across all operations declined 67.2 per cent to KSh 0.85.
Total group assets stood at KSh 46.306 billion, a 3.8 per cent reduction from KSh 48.149 billion, reflecting disciplined balance-sheet management and the Group’s continued strong ability to meet its obligations to policyholders.
“2025 was a year in which we demonstrated the resilience of our diversified insurance platform. Despite a challenging claims environment and lower equity market returns compared with 2024, our businesses continued to grow premiums, maintain disciplined expense management, and deliver strong capital adequacy. We enter 2026 well positioned for sustainable growth,” said Kieran Godden, Group Chief Executive Officer and Director of Liberty Kenya Holdings Plc.
Heritage Insurance Kenya, the Group’s general insurance business, delivered insurance revenue of KSh 8.65 billion, a 5.6 per cent increase from KSh 8.19 billion in 2024.
The claims ratio rose to 61 per cent from 53 per cent in the prior year, reflecting elevated motor, medical, and property claims, though the expense ratio improved materially to 24 per cent from 29 per cent, demonstrating firm cost discipline. The company’s profit before income tax from continuing operations was KShs 1.02 billion. The capital adequacy ratio strengthened to 466 per cent from 451 per cent, comfortably above the regulatory minimum.
Liberty Life Assurance Posts Strong Growth
Liberty Life Assurance Kenya recorded insurance revenue of KSh 3.23 billion, a 17.3 per cent increase from KSh 2.76 billion, reflecting growth across life, annuity, and savings products.
Net investment income was KSh 2.91 billion, supported by a government securities portfolio of KSh 21.4 billion, while asset management services revenue grew 14 per cent to KShs 519 million.
Total assets expanded 13 per cent to KShs 32.4 billion. The capital adequacy ratio improved significantly to 244 per cent from 198 per cent, a meaningful strengthening of the company’s solvency position.
Both subsidiaries, maintained investment-grade financial strength ratings of AA+(KE) from GCR Ratings, with stable outlooks, affirming confidence in the Group’s long-term financial stability.
The Group also completed the disposal of Heritage Insurance Tanzania on 4 April 2025, following satisfaction of all conditions under the Sale and Purchase Agreement, a transaction that sharpens focus on core Kenyan operations and streamlines the portfolio.
Expenses across the Group remained well controlled, with Heritage’s expense ratio improving materially and Liberty Life managing total costs effectively despite ongoing inflationary pressures.
“Our balance sheet remains robust. The improvement in capital adequacy ratios at both Heritage and Liberty Life reflects our commitment to maintaining adequate buffers for policyholder protection and business growth. Despite lower headline earnings, we remain confident in our ability to generate long-term value for Kenyan shareholders.” Godden added.
Looking ahead to 2026, Liberty Kenya Holdings is well positioned for continued growth, underpinned by a strong capital base, an expanding distribution network, and diversified product offerings across both life and short-term insurance.
Management acknowledges that the global operating environment remains uncertain, characterized by ongoing geopolitical tensions, US trade policy developments, and climate-related risks, all of which may continue to affect investment conditions and claims experience.
The Group will continue to act prudently, prioritize operational efficiency, and invest in capabilities that enhance customer value and long-term shareholder returns.
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