(Last Updated On: April 11, 2015)
Insurance firm Liberty Kenya (formerly CFC Insurance) has posted a 3.8% rise in net profit for the year ended December 2014 mainly due to increased premiums. Net profit stood at Ksh1.14 billion compared to Ksh1.1 billion the year before.
Premiums grew by 8.6% to ksh8 billion while investment income went up by 12.8% to hit Ksh2.9 billion. Claims rose by 12.3 percent to ksh3.4 billion while operating expenses went tremendously up by 17.1% to hit ksh3.5 billion.
Investments in technology and distribution made capital expenditures to go up hence the rise in expenses. This will eventually pay off in future.
A dividend of Ksh0.5 per share was recommended, half of what was offered in 2013 since the company needs cash for future expansion.