Equity Life Assurance (Kenya) Limited has reported a 16.2 per cent rise in profit after tax to KSh 1.24 billion for the year ended December 31, 2025, supported by robust premium growth, higher investment income, and an expanding digital distribution model.
Profit before tax grew at a faster pace of 27.5 per cent to KSh 1.78 billion, while earnings per share rose to 2,954 from 2,542 recorded in 2024, signalling improved shareholder returns.
The insurer’s topline performance was driven by a sharp increase in gross written premiums, which surged 40 per cent to KSh 7.3 billion, reflecting rising demand for protection, savings, and retirement solutions. Insurance revenue climbed 45.4 per cent to KSh 2.08 billion, while investment income increased 38.7 per cent to KSh 4.19 billion. As a result, the net insurance and investment result rose 33.5 per cent to KSh 1.97 billion.
The company’s balance sheet also strengthened, with total assets growing 31.6 per cent to KSh 31.88 billion. Insurance contract liabilities rose 25.4 per cent to KSh 24.95 billion, in line with the expanding policy base. Liquidity improved, with the current ratio increasing to 168 per cent from 159 per cent, while capital adequacy strengthened to 300 per cent from 278 per cent in 2024.
Returns remained strong, with return on equity standing at 36 per cent and return on assets at 4 per cent, underlining efficient capital utilisation.
ELAK’s Deposit Administration Fund closed the year at KSh 17.34 billion, up from KSh 13.90 billion in 2024. During the period, the insurer received KSh 3.11 billion in pension contributions, paid out KSh 1.96 billion in benefits, and credited KSh 2.56 billion in interest to members, marking a 26.2 per cent increase.
The firm continued to scale its distribution footprint, issuing 19.2 million cumulative policies by the end of 2025, a 36 per cent increase from the previous year. Its customer base grew to 6.9 million, up 17 per cent. Digital platforms accounted for 79 per cent of policies issued, reinforcing the company’s digital-first strategy, while the branch network of Equity Bank remained a key distribution channel.
On the investment front, the company increased its allocation to government securities to KSh 23.41 billion, aligning with its balance sheet expansion and risk management strategy.
The insurer also received multiple industry recognitions, including Life Insurer of the Year at the Think Business Insurance Awards, alongside accolades for customer-centricity, claims settlement, and ecosystem partnerships. At the Association of Kenya Insurers Awards 2025, it was recognised for Group Life Best Loss Ratio and Group Life Innovation. It emerged as the first runner-up in the Life Assurance Company of the Year category.
Looking ahead, ELAK is expanding its product suite across life protection, savings, and retirement segments. Offerings include group life products, such as credit life and last expense cover, term life policies, education and goal-based savings plans, and retirement solutions, including income drawdown, post-retirement medical funds, and umbrella retirement schemes.
The company says it will continue leveraging the broader Equity Group ecosystem and digital infrastructure to deepen financial inclusion, enhance service delivery, and drive long-term value for customers.