The board of Kenya Reinsurance Corporation (Kenya Re) has reported a 50% increase in dividend per share to Ksh.0.3 in its financial year ended December 2023.
During a similar period in the previous year 2022, the listed firm posted a Ksh.0.2 per share, which means that last year’s figures went slightly higher, reflecting the firm’s robust financial health and strategic growth initiatives.
Shareholders’ funds increased by 18 percent to Ksh.48.17 billion, bolstered by higher retained earnings and translation reserves.
In the fiscal year 2023, Kenya Re reported an impressive 29.36% increase in profits, rising from Ksh.3.51 billion in 2022 to Ksh.4.97 billion.
Reasons for Raise in Payout
This surge in profitability was attributed to prudent underwriting practices, strategic diversification, and favorable macroeconomic conditions, according to Kenya Re Group Managing Director Dr. Hillary Maina Wachinga.
“As part of our growth trajectory, we are exploring innovative risk management solutions and product offerings to cater to the evolving client as well as the use of technology in enhancing customer satisfaction and relationships,” said Wachinga.
Net investment and insurance results rose from Ksh.5.78 billion realised in 2022, a 42 percent hike to stand at Ksh.8.19 billion revealing the company’s investment drive to attract new business across Africa, the Middle East and Asia.
Also Read: Kenya Re half year profit up 56% to Ksh.1.9 billion
The Corporation incurred claims and other insurance service expenses arising from insurance contracts now referred to as insurance service expenses, which decreased by 18 percent from Ksh.22.32 billion in 2022 to Ksh.18.21 billion in 2023.
This was mainly due to a reduction in the claims outstanding and claims paid in the year due to prudent underwriting and claims management.
Future Plans
Further, its asset base increased by 15 percent from KSh.57.45 billion in 2022 to Ksh.65.98 billion in 2023 while its shareholder’s funds increased by 18 percent from Ksh.40.9 billion in 2022 to Ksh.48.17 billion in 2023.
The increase in the asset base was mainly attributable to the rise in investment in associates by Ksh.2 billion, Increase in government securities by Ksh.1.1 billion and the growth in deposits with financial institutions by Ksh 4.35 billion.
Kenya Re plans to focus on enhancing operational efficiency through technology, expanding its footprint in emerging markets, and deepening its commitment to sustainable business practices.
