APA Apollo Group recorded a 43.2% increase in net profit for the year ended December 2025, driven largely by strong growth in investment income.
The insurer posted net earnings of Sh2.78 billion, up from the previous year, despite a decline in underwriting performance.
The group, formally known as Apollo Investments Limited, oversees several businesses including APA Insurance Kenya and Uganda, APA Life Assurance, APA Microinsurance, Apollo Asset Management, and Gordon Court.
Its insurance service result, which reflects the balance between premiums collected and claims and reinsurance expenses paid out, fell by nearly a third to Sh821.88 million from Sh1.23 billion.
However, this decline was offset by a sharp rise in investment income, which climbed 45% to Sh6.42 billion from Sh4.43 billion, significantly boosting overall profitability.
Group Chief Executive Officer Ashok Shah said the performance reflected a strategy focused on sustainable growth, stronger partnerships, operational discipline, and customer-centred service delivery.
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He noted that the group had strengthened momentum by investing in capabilities across its businesses while maintaining disciplined execution.
APA Life, the unit responsible for long-term insurance products such as life cover and deposit administration, posted a 58.8% rise in net profit to Sh441.66 million from Sh278.1 million, supported by growth in both insurance and investment income.
Meanwhile, APA Insurance, which handles short-term business, recorded a 37.1% increase in profit to Sh1.44 billion from Sh1.05 billion, helped by higher insurance revenues and stronger returns from investments.
APA Microinsurance, which offers low-cost insurance products with premiums of as little as Sh40 per day, more than doubled its earnings to Sh9.56 million from Sh4.61 million.
Mr Shah is expected to retire as group CEO at the end of June 2026. He will be succeeded by Risper Ohaga, who currently serves as chief financial officer and executive director at East African Breweries Plc.
Looking ahead, Shah said the company intends to focus on innovation, technology adoption, and data-driven solutions to expand access to more inclusive insurance products and strengthen customer engagement.
The group is also pursuing regional expansion through planned acquisitions in Tanzania. APA Apollo is seeking to acquire Meticulous General Insurance and Metro Tanzania Life Assurance Company as part of efforts to grow its underwriting business beyond Kenya.
The proposed transactions will be executed through AIL Holdings Tanzania, a wholly owned non-operating subsidiary of Apollo Investments established in the country.
Once completed, the deals are expected to strengthen APA’s footprint in both general and life insurance segments within the Tanzanian market.
APA already maintains operations in Uganda and holds a 34% stake in Reliance Insurance Tanzania, a general insurance provider.
The expansion reflects a broader trend among Kenyan insurers, including ICEA Lion, Britam, Jubilee, CIC, and GA Insurance, which have increasingly expanded their presence across the East African region.
