Insurance Profitability in 2024: Winners & Losers

The Kenyan insurance sector in 2024 delivered a mixed bag of performances—some insurers posted explosive growth, while others faced setbacks. Year-over-year (YoY) profit swings reveal a sector responding to economic shifts, innovation, and changing customer needs.

Profits at a Glance

Here’s how leading insurers performed (profits in KShs billions, YoY growth):

Breakout Performers: Sanlam, Liberty, and CIC Group

Sanlam posted the most dramatic turnaround, shifting from a KShs 127 million loss in 2023 to a KShs 1.05 billion profit in 2024—a massive 933% YoY increase. This performance was driven by stronger underwriting results, improved loss ratios, and better investment returns.

• Sanlam Life Insurance led the charge, with a KShs 1.3 billion profit, up 158% from KShs 533 million.

• Sanlam General Insurance also saw growth, posting KShs 337 million in profit, up from KShs 123 million.The Board credited innovation in products and a focus on delivering value to customers and shareholders.

  
  

Liberty followed with a 117% profit increase to KShs 1.37 billion—likely due to effective underwriting and favorable market conditions.

CIC Group nearly doubled its profits to KShs 2.85 billion (+98%), benefitting from a diversified portfolio across general, life, and asset management lines.

The Industry Heavyweights: Britam, Jubilee, and Kenya Re

Britam topped the chart in absolute profit with KShs 5.03 billion (+53%), thanks to its regional footprint and multi-sector approach. Jubilee wasn’t far behind, recording KShs 4.72 billion (+82.5%), likely riding on strong demand in life and health insurance segments.

Kenya Re, however, was the only insurer to post a decline, with profits falling 11% to KShs 4.44 billion. While still profitable, the dip may point to increased claims, rising competition, or shifting global risk trends.

What's Driving These Results?

Key factors behind the divergent performance include:

1. Economic Rebound: Rising demand for insurance and financial products helped many insurers grow.

2. Tech Adoption: Digital platforms and AI-powered underwriting likely boosted efficiency and client engagement.

3. Investment Returns: Firms with smart investment strategies, like Sanlam and Britam, gained a competitive edge.

4. Claims Management: Lower claims in some segments helped boost margins, while Kenya Re may have felt the opposite.

   
   

Winners & Watch-List

By YoY growth, Sanlam emerges as the biggest winner, followed by Liberty and CIC Group—showcasing how agility and innovation pay off. Kenya Re, despite a dip, remains a top earner, signaling resilience amid challenges.

Looking Ahead

The 2024 results reflect a sector both resilient and evolving. As we look to 2025, questions remain: Will Sanlam sustain its momentum? Can Kenya Re rebound? How will giants like Britam and Jubilee innovate next?

What’s your take? Are these swings signs of a thriving industry or warning lights of deeper volatility? Let’s discuss.