Liberty Kenya Holdings Plc has received an AA+ (KE) national scale financial strength rating of its two insurance subsidiaries, Liberty Life Assurance Kenya Limited and The Heritage Insurance Company Kenya Limited, by GCR Ratings (GCR).

The ratings reflect the underlying financial strength of Liberty Kenya Holdings, supported by
strong risk-adjusted capitalisation, healthy liquidity and a diversified insurance portfolio spanning
life and general insurance. 

GCR also recognises the Group’s strategic relationship with Liberty Holdings Limited of South Africa, citing brand alignment, strategic importance and a track record of performance.

Commenting on the ratings, Kieran Godden, Group Chief Executive Officer of Liberty Kenya Holdings Plc, said: “The affirmation of these ratings is an important recognition of the financial resilience we continue to build across Liberty Kenya Holdings and our insurance businesses. Our focus remains on maintaining a strong financial foundation, managing risk prudently and delivering
sustainable growth across our life and general insurance operations. 

"Above all, we recognise that financial strength must translate into confidence for our customers, partners and other stakeholders, who rely on us to provide protection and long-term financial security.”

The affirmations come against a backdrop of growth across the Group’s insurance businesses,
with combined insurance revenue increasing to KES 11.9 billion in 2025, from KES 10.9 billion
in 2024.

As at 31 December 2025, the Group recorded a capital adequacy ratio of 2.6 times, reflecting a
sizeable capital buffer relative to its aggregate risks. GCR also assessed the Group’s liquidity
coverage at 2.2 times, up from 2.0 times in 2024, supported by growth in liquid assets and continued operational cash generation.

GCR expects the Group’s capitalisation and liquidity to remain strong over the next 12 to 18 months, underpinning the Stable Outlook assigned to both insurers.

What the ratings mean

Liberty Life retained its AA+(KE) national financial strength rating with a Stable Outlook. The
insurer recorded a 17.3% increase in insurance revenue to KES 3.2 billion in 2025, up from KES
2.7 billion in 2024. Growth was supported by its group life and group credit insurance lines,
alongside new business growth.

GCR highlighted an improvement in Liberty Life’s statutory capital adequacy ratio to 244% in
2025, from 213% in 2024. This followed a KES 600 million capital injection through a subordinated loan from the Group.

The rating reflects Liberty Life’s position as a core operating entity within Liberty Kenya Holdings, contributing 69.9% of the Group’s assets in 2025.

Heritage Insurance also retained its AA+(KE) national scale financial strength rating with a Stable Outlook. Its insurance revenue grew by 5.6% to KES 8.7 billion in 2025, from KES 8.2 billion in 2024, supported by growth in its medical business.

Heritage’s statutory capital adequacy ratio strengthened to 466% in 2025, from 451% in 2024, reflecting its capital position relative to regulatory requirements. The company remains a significant contributor to the Group, accounting for 72.8% of insurance revenue in 2025. 

GCR noted that Heritage’s rating is supported by the wider Group’s capitalisation and liquidity position, while also identifying claims experience, particularly in medical insurance, and lower investment income as areas influencing earnings performance.

Maintaining financial resilience while pursuing growth

While the ratings affirm the Group’s strong capitalisation and liquidity, GCR noted that elevated claims and lower investment income weighed on earnings across the insurance portfolio in 2025. The Group’s insurance service result declined to KES 478 million from KES 1.1 billion in 2024.

The Stable Outlook reflects GCR’s expectation that the Group will maintain strong capitalisation and liquidity over the next 12 to 18 months. GCR projects the Group’s capital adequacy ratio to remain above 2.5 times and its liquidity coverage ratio above 1.7 times over this period.

For Liberty Kenya Holdings, the ratings provide independent recognition of the financial foundations supporting its insurance businesses, while reinforcing the importance of disciplined risk management, prudent capital allocation and sustainable growth across both life and general insurance.