Liberty Kenya Holdings Plc, an underwriter listed at the Nairobi Securities Exchange(NSE), has posted a decline in net earnings to KSh 81.8 Million in 2021 compared to a net profit of KSh 675.9 Million over a similar period in 2020.
This is according to the Group’s audited financial results for the year ended 31st December 2021.
Liberty Kenya directors said the Group recorded reduced profitability on account of increased claims costs in our long term business due to the continuing impact of the pandemic and the resultant ongoing maintenance of a pandemic reserve to cover the estimated future short-term impacts.
“Our general insurance businesses in Kenya and Tanzania also experienced increased claims costs in the motor private class,” said a statement from the firm.
Liberty Group said the negative impacts of claims and the second-order pressures on economic activity resulted in another tough year for the business.
Liberty Group said it remains resilient amid the unprecedented global crisis brought about by the spread of the Covid-19 coronavirus.
“Despite this, the directors and management are proud to note our achievements in being
judged both the Life and General insurer of the year in 2021 at the Think Business Awards for the third year running,” said the firm
The Group remained resilient, delivering on top-line growth, a demonstration of its solid business fundamentals regarding the future of the business.
Directors have not recommended any dividends due to the Group’slower earnings, prevailing uncertain covid-19 and volatile economic circumstances.
The AGM date is to be announced later.
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