Listed insurer Liberty Kenya Holdings Plc has warned that full-year profit after tax for 2025 will fall by at least 25% from the prior year, citing weaker investment income, higher claims experience and an accounting loss from the disposal of its stake in Heritage Insurance Tanzania.
- •The insurer reported profit after tax of KSh 1.40 billion in 2024, implying a minimum earnings decline of about KSh 350 million based on preliminary unaudited results.
- •In a notice to shareholders, the group said the warning reflects pressure on both underwriting and investment performance during 2025, though it did not disclose detailed financial figures.
- •The profit warning follows a strong rebound in 2024, when the insurer more than doubled earnings from KSh 672 million in 2023.
The board said the expected decline stems from reduced investment yields compared with 2024, elevated claims across the portfolio, and a one-off accounting loss arising from the Tanzania disposal.
Liberty Kenya said the transaction was part of a broader effort to streamline regional operations, but noted that the disposal negatively affected reported earnings for the year. The company did not provide the value of the loss or its impact on cash flows, stating that full details will be disclosed with the release of audited results.
That performance was supported by higher investment income and fair value gains, alongside improved insurance service results under the IFRS 17 reporting framework, which also resulted in restated comparative figures for earlier periods.
Despite the warning, the board said the group remains profitable and financially stable, with all subsidiaries continuing to meet regulatory capital and liquidity requirements. The company said its balance sheet position remains sound.
Shares of Liberty Kenya were unchanged at KSh 10.30 in early trading on Monday, with the stock flat in the first one and a half hours of the session following the announcement.
Liberty Kenya’s earnings history shows pronounced volatility, reflecting sensitivity to claims cycles and movements in investment markets. Profit after tax fell to KSh 81.8 million in 2021 before recovering to KSh 378.7 million in 2022 and KSh 672 million in 2023, culminating in the 2024 peak.
