Kenya Re approves record Sh839M dividend
Kenya Reinsurance Corporation (Kenya Re) shareholders have approved a record Kes0.30 per share dividend amounting to Kes839.9 million for the trading period ended December 31, 2023.
The shareholders also approved a bonus share issue that will see them bag one share for each held, translating to Kes6.69 billion.
Kenya Re, which offers reinsurance services to over 482 companies spread out in 83 countries across Africa, the Middle East, and Asia saw net investment and insurance increase from Kes5.78 billion in 2022 to Kes8.19 billion last year.
The Nairobi Securities Listed company attributed the strong performance to prudent underwriting (practices for both premium and claims), its diversification in strategic regions and product lines as well as favourable macroeconomic environment and product investment decisions during the year under review.
Group Managing Director, Dr Hillary Maina Wachinga said: “Our outstanding financial performance in 2023 reflects our commitment to delivering value to our shareholders and maintaining our position as a leading reinsurer in Africa. Our investors will receive one bonus share for every share held.”
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This announcement conforms with the new International Financial Reporting Standard (IFRS17) that requires all reinsurance and insurance companies to make full disclosures of their obligations (insurance contracts) as opposed to the previous standard, IFRS 4 that recognizes premiums paid as profits.
Kenya Re’s asset base increased by 15 percent to Kes65.98 billion in 2023, while its shareholder’s funds increased by 18 percent to Kes48.17 billion in 2023.
The increase in the asset base was mainly attributable to the increase in investment in associates by Kes2 billion, rise in government securities by Kes1.1 billion, and growth in deposits with financial institutions by Kes4.35 billion.
The growth in the shareholders funds was a result of an increase in the retained earnings by Kes4 billion and increase in the translation reserves by Kes3 billion.
