Liberty Kenya Holdings Limited Reports 193% Increase in Basic Earnings Per Share for 2023

Published On: July 3, 2024Company: Liberty Kenya Holdings Limited (LBTY.ke)
What is the overall financial performance of Liberty Kenya Holdings Limited for the year ended 31 December 2023?
Liberty Kenya Holdings Limited exhibited improved financial performance for the year ended 31 December 2023, with increased earnings across all operating subsidiaries. Despite various economic challenges, the group experienced an increase in insurance revenue, notably in Kenya, and managed to maintain resilience in the capital position of all insurance entities, which are above regulatory targeted levels. Furthermore, based on its improved financial performance, the board is recommending a dividend payout.

Summary

  • The report presents excerpts from Liberty Kenya Holdings Limited’s audited financial statements for the year ended 31 December 2023, audited by Pricewaterhouse Coopers LLP. The statement received an unmodified opinion.
  • The group has fully adopted IFRS 17 insurance contracts. The restatements required for this adoption are included in the annual financial statements.
  • Global economic stability continues to be impacted negatively by ongoing geopolitical conflicts, especially in developing nations such as Kenya.
  • Factors such as sudden taxation changes, high interest rates, rising fuel prices, increased cost of basic commodities, and depreciation of the Kenyan shilling have led to a rise in the cost of living and increased insurance expenses.
  • Despite these challenges, the group experienced earnings growth across all operating subsidiaries. Basic earnings per share increased by 193%, mainly due to improved insurance service results.
  • In Kenya, there was an 11% increase in insurance revenue, and there was an improved claim ratio compared to the previous year.
  • The Tanzanian operations performed similarly to those in 2022 with a significant increase in claims due to a single insured event. However, as most of this exposure was re-insured, it didn’t have a significant impact on the operational result.
  • The group expressed satisfaction with the improvement in earnings and earned premium in the long-term business. However, unpredictable investment markets continue to constrain investment returns.
  • The capital positions of all insurance license entities in the group remain resilient and exceed regulatory targeted levels, due to active capital and risk management.
  • An independent credit rating places the group among the most credit-worthy insurance groups in Kenya.
  • Given the improved financial performance, the Directors recommend the payment of a dividend per ordinary share of KShs 0.373.

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About Liberty Kenya Holdings Limited (LBTY.ke)

Liberty Kenya Holdings Limited is an insurance company offering products and services for the retail and corporate sectors in Kenya and other countries in the Africa sub-region. The company provides life assurance, superannuation, industrial life assurance, bond investment and business incidental insurance services as well as insurance products and services for aviation, engineering, fire, liability, marine, private and commercial vehicles, personal accident, theft, workmen’s compensation and employer’s liability insurance. Liberty Kenya Holdings Limited also offers asset management and property development services for the private and corporate sectors in Kenya. The company is a subsidiary of Liberty Holdings Limited and is the holding company for Heritage Insurance Company and a short- and long-term insurance business called Liberty Life Kenya Assurance Limited. Liberty Kenya Holdings Limited has a presence in 15 countries in the Africa sub-region. Its head office is in Nairobi, Kenya. Liberty Kenya Holdings Limited is listed on the Nairobi Securities Exchange

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

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