Listed financial services firm Liberty Kenya Holdings PLC has reported a significant drop in earnings for the financial year ended December 2025, with total earnings falling to KSh 487 million, down from KSh 1.40 billion in 2024.
The decline was largely attributed to weaker underwriting margins in both the life and general insurance segments, alongside the absence of the unusually strong investment gains that boosted results in the previous year.
Even so, the company signalled confidence in its long-term outlook, noting that it expects continued expansion across its insurance operations. Management, however, indicated that the group will remain cautious given ongoing geopolitical tensions and shifting global financial conditions.
Profit before tax from continuing operations dropped to KSh 1.09 billion, compared with KSh 2.09 billion a year earlier. After accounting for taxes and losses linked to discontinued operations, primarily stemming from the sale of the group’s stake in Heritage Insurance Tanzania, total earnings settled at KSh 487 million.
Despite the earnings slowdown, Liberty recorded top-line growth during the period. Insurance revenue rose to KSh 11.88 billion, up from KSh 10.95 billion the previous year.
However, underwriting performance weakened as claims increased across several key insurance classes, including motor, medical, fire, and group life, which squeezed margins.
The insurance service result dropped sharply to KSh 478 million, down from KSh 1.06 billion in 2024, reflecting the impact of rising claims costs. At the same time, reinsurance expenses remained elevated, with net costs from reinsurance contracts held at KSh 1.25 billion.
Investment income also softened during the year. Net investment income declined to KSh 4.02 billion, compared with KSh 4.89 billion in 2024, largely due to lower fair value gains and reduced returns from financial assets.
On the balance sheet, total assets edged down to KSh 46.31 billion, from KSh 48.15 billion the previous year, mainly reflecting adjustments in financial instruments and reinsurance-related assets.
Total equity similarly eased to KSh 10.08 billion, down from KSh 10.65 billion, though the company noted that its capital buffers remain comfortably above regulatory thresholds.
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Total comprehensive income also declined significantly, dropping to KSh 422 million from KSh 1.28 billion in the prior year, a reduction driven by lower profitability and foreign currency translation losses.
Despite the weaker earnings performance, the board recommended maintaining a dividend of KSh 0.50 per share, unchanged from 2024. The decision was supported by the group’s strong capital position and stable balance sheet.
Basic earnings per share fell sharply to KSh 0.85, compared with KSh 2.59 recorded in the previous year.
Key Financial Metrics
| Metric | FY2025 | FY2024 | YoY Change |
|---|---|---|---|
| Insurance Revenue | KSh 11.88 Bn | KSh 10.95 Bn | +8.5% |
| Insurance Service Result | KSh 478 Mn | KSh 1.06 Bn | -55.1% |
| Net Investment Income | KSh 4.02 Bn | KSh 4.89 Bn | -17.8% |
| Profit Before Tax | KSh 1.09 Bn | KSh 2.09 Bn | -47.8% |
| Total Earnings | KSh 487 Mn | KSh 1.40 Bn | -65.3% |
| Total Comprehensive Income | KSh 422 Mn | KSh 1.28 Bn | -67.0% |
| Earnings Per Share | KSh 0.85 | KSh 2.59 | -67.2% |
| Total Assets | KSh 46.31 Bn | KSh 48.15 Bn | -3.8% |
| Total Equity | KSh 10.08 Bn | KSh 10.65 Bn | -5.3% |
