Kenya Re profit hits Sh3.6 billion on higher premiums, forex gains
A rise in premiums has seen Kenya Re’s net profit increase by 15 percent to Kes3.62 billion for the fiscal year ending December 2022.
The strong performance was attributable to a rise in gross written premiums that went up by 23 percent to Kes24.98 billion while net earned premiums grew by 16 percent to close at Kes22.15 billion.
In the period, the company’s investment income edged up by two percent to Kes3.74 billion with the corporation noting this was due to the effects of full containment of the Covid-19 pandemic on the investment environment.
In the period, Kenya Re‘s operating expenses dropped by 16 percent on account of a decrease in forex losses, lower amortization cost of non-tangible assets, and the easing of corporate and other expenses.
The Nairobi Securities Exchange listed company says the rise in profits was driven by continued improvement in the reinsurance portfolio, enhancing customer-centricity, and intensified market engagements to improve the firm’s visibility.
Kenya Re’s diversification of portfolios and markets, speedy processing of claims, positive culture to support service delivery, and enhanced partnership with cedants and intermediaries also paid dividends during the trading period.
Acting Managing Director Michael Mbeshi said due to higher written business, Kenya Re saw an increase in net claims which went up by 30 percent to Kes13.87 billion.
“We have significantly scaled our business via strategic investments in new business lines and innovation with the key focus being Kenya and key countries with East, Southern and Northern Africa setting the stage for the next phase of our strategy,” noted Mr Mbeshi.
The Board of Kenya Re is set to pay dividends at the rate of Kes0.20 per share on July 28th, 2022.
Established in 1970, Kenya Re is the oldest reinsurer in Eastern and Central Africa and offers reinsurance services to over 265 companies spread out in over 62 countries in Africa, Middle East and Asia.