This archive report was first published on 7 August 2020.
Published on August 7, 2020, Kenya Reinsurance Corporation (Kenya Re) has reported a significant increase in its half-year net profit to Sh1.57 billion, a 45.9 percent growth from the previous similar period.
The growth in net profit is attributed to higher premiums, which have defied the challenging environment facing businesses in the wake of Covid-19. This performance keeps the re-insurer on strong footing after the all-time high full year earnings of Sh3.97 billion posted last year.
Kenya Re, which is 60 percent owned by the government, is among the few State-controlled entities that are posting strong performances and paying dividends. The reinsurer's short-term business, also called general reinsurance, continued to dominate, accounting for Sh1.23 billion or 78.1 percent of total profit.
Net profit from long-term business, called life reinsurance, was Sh342.6 million. Gross written premiums grew by 2.4 percent to Sh9.07 billion, while investment income dropped by Sh41 million to Sh1.9 billion.
Investment income for the period under review stood at Sh1.91 billion, a drop from the previous similar period's Sh1.95 billion. This is attributed to the effect of the Covid-19 pandemic, which has significantly affected the investment environment.
CEO Jadiah Mwarania had earlier announced plans to establish a Shariah-compliant subsidiary in Egypt after converting into capital Sh5.25 billion from its cash reserves through issuance of bonus shares.
Global Credit Ratings (GCR) last month affirmed Kenya Re a national scale financial rating of AA+ with a stable outlook, citing strong capital base and healthy liquidity.
