Kenya Re half year profit up 56% to Ksh.1.9 billion
Kenya Reinsurance Corporation Limited half year profit grew by 56 percent to Ksh.1.19 billion compared to Ksh.760 billion in the same period last year.
The firm also reported a 15 percent growth of Ksh.1.42 billion in gross premiums rise to stand at Ksh.11 billion compared to Ksh.9.59 billion reported as of June 30, 2021.
On the other hand, net earned premiums reported a 12.4 percent rise from Ksh.8.69 billion in 2021 to Ksh.9.77 billion this year.
Kenya Re Managing Director Jadiah Mwarania expressed confidence in reporting better financial results in the coming financial years saying they had started implementing the 2022-2026 strategic plan that guides all their business operations and activities.
Mwarania lauded the corporation’s resilience at a time the economy was grappling with the adverse ripple effects of the Covid pandemic adding that they had increased their reinsurance capacity to cushion insurance companies across the region.
“As a corporation, we are committed to constantly reinventing ourselves to achieve sustainable growth in profitability, every year, as well as providing unique product offerings to our valued clients,” he said.
Kenya Re highlighted that cedant acquisition costs increased by 28 percent from Ksh.2.22 billion to Ksh.2.85 billion while operating expenses decreased by 6 percent from Ksh.1.06 billion to Ksh.1.00 billion from June 2021 to June 2022
Subsequently, investment income dropped by 2 percent from Ksh.1.90 billion in June 2021 to Ksh.1.86 billion in June 2022 together with the asset base from Ksh.55.82 billion in December 2021 to Ksh.57.45 billion in June 2022, a growth of 3 percent.
The shareholders’ funds increased from Ksh.37.04 billion in December 2021 to Ksh.37.63 billion in June 2022, a growth of 2 percent.
The board of directors did not, however, recommend payment of interim dividend saying their focus is geared towards improving their market engagements with stakeholders through structured sessions for business development thereby ensuring sustained profitability.
”This being an electioneering year, Kenya Re has put in place adequate capital to withstand economic shocks that may arise from any adverse political activities in the country. It has an operational Business Continuity Plan (BCP) in the event of any eventuality including political activities that may disrupt normal business operations,” said Mwarania.