Liberty Kenya Profit Falls 67% on Elevated Claims

Liberty Kenya Profit Falls 67% on Elevated Claims

Liberty Kenya Holdings posted a profit of KES 487 million for the year ended 31 December 2025, down from KES 1.4 billion in the prior year, with earnings per share falling 67% to KES 0.85 from KES 2.59, as elevated claims across motor, medical, fire and group life lines weighed heavily on underwriting margins. Insurance revenue grew 8.5% to KES 11.9 billion from KES 10.9 billion, reflecting continued premium growth across both short-term and long-term businesses, though the insurance service result collapsed to KES 478 million from KES 1.1 billion as claims outpaced premium gains. Net investment income declined to KES 4.0 billion from KES 4.9 billion, with the drop largely attributable to the normalisation of fair value gains that had been exceptionally strong in 2024 and were not expected to recur, while interest income fell to KES 808 million from KES 1.1 billion as interest rates eased during the year. The Group also recorded a loss of KES 172 million from discontinued operations following the completed disposal of Heritage Insurance Tanzania, which had been flagged at the half year. Total assets stood at KES 46.3 billion at year end, with financial instruments growing to KES 33.2 billion from KES 28.1 billion. Despite the earnings decline, the Board has recommended a dividend of KES 0.50 per ordinary share, unchanged from 2024, citing a strong capital position and capital adequacy levels that remain above both regulatory and internal thresholds.  Management cautioned that ongoing geopolitical tensions, US trade policy uncertainty and climate-related risks continue to pose headwinds for investment conditions and operating performance, though the Group's balance sheet strength and growing premium base position it to pursue recovery in underwriting margins through disciplined pricing and tighter risk selection in the year ahead.