Liberty Kenya Holdings half year net earnings slowed to Ksh 260 million, a 59pc decline when compared to the same period last year.
The insurer attributes the drop in profitability from Ksh 632 million reported last year to higher claims booked during the period under review
The firm says the results were also dragged by the accounting impact of the disposal of Heritage Insurance Tanzania.
“Even though higher claims reduced our earnings, our strong investment performance, good expense control, and solid capital base helped us stay resilient,” said Kieran Godden.
The decline was mainly due to an increase in motor and medical claims in the general insurance business, as well as higher group risk claims and a stronger reserving basis in the life business.
The group’s net insurance service result fell by 61pc to Ksh 225 million, compared to Ksh 577 million a year earlier, showing the impact of the higher claims burden.
However, Liberty Kenya recorded stronger investment returns, with net investment income rising by 5pc to Ksh 2.08 billion, up from Ksh 1.99 billion in June 2024.
On the other hand, net insurance finance expenses rose by 12pc to Ksh 1.25 billion, further straining earnings.
The group’s total assets stood at Ksh 45.3 billion, almost unchanged from Ksh 45.2 billion in June 2024.
During the period, Liberty Kenya also completed the sale of Heritage Insurance Tanzania (HIT) in April 2025, earning Ksh 503 million net proceeds after capital gains tax.
Looking ahead, Liberty Kenya said that while new business growth is likely to remain subdued, the Group will focus on margin improvement and capital efficiency.
“We are now looking forward to launching fully digital life insurance solutions later this year, which will improve customer experience and strengthen our position in the market,” added Godden.
The Board has not declared an interim dividend for the period.
