Liberty Kenya Holdings CEO Kieran Godden has outlined the company’s strategic focus on bolstering its core underwriting operations, emphasizing that long-term, sustainable earnings are rooted in managing risks effectively rather than reliance on investment income.
This comes after a year of exceptional financial performance, highlighted by a 3.3-fold increase in net investment income to Sh4.74 billion in 2024.
In an interview with Business Daily, Godden highlighted that while investment profits are beneficial for shareholders, the true driver of sustained profitability lies in the company’s insurance underwriting activities.
“Underwriting is what we do. Our job is to manage risks,” he said. “Investment returns are great and decent to shareholders, but the real returns added to shareholders are in underwriting results.”
Looking ahead, Liberty Kenya has identified promising growth opportunities within emerging sectors such as marine, cyber, health, and wellness insurance.
As digitalization advances across various industries, interest in cyber insurance is surging, while health-related coverage, including mental health products, is gaining momentum following the pandemic’s impact.
However, the company recognizes that Kenya’s insurance penetration remains below three percent of GDP—a challenge rooted in lack of trust and limited understanding of insurance products.
To address these issues, Liberty has ramped up its anti-fraud initiatives, investing in data analytics and machine learning tools to combat fraudulent claims, particularly in health and motor insurance.
Additionally, the company is working closely with other insurers and regulators to share intelligence and improve industry-wide fraud prevention measures.