This archive report was first published on 8 August 2020.
On August 8, 2020, Kenya Reinsurance Corporation (Kenya Re) reported a significant 45.9 percent increase in its half-year net profit to Sh1.57 billion, largely due to higher premiums.
Despite the challenging business environment caused by the Covid-19 pandemic, Kenya Re's performance is a testament to the company's resilience and strong footing. The reinsurer's net profit for the period under review surpassed the Sh1.08 billion recorded in the preceding similar period.
Kenya Re's CEO Jadiah Mwarania had earlier announced plans to establish a Shariah-compliant subsidiary in Egypt, following the conversion of Sh5.25 billion from cash reserves into bonus shares in March.
Global Credit Ratings (GCR) recently affirmed Kenya Re's national scale financial rating of AA+ with a stable outlook, citing the company's strong capital base and healthy liquidity.
Key highlights of Kenya Re's half-year performance include:
- Short-term business dominated, accounting for Sh1.23 billion or 78.1 percent of total profit.
- Net profit from long-term business (life reinsurance) was Sh342.6 million.
- Gross written premiums grew by 2.4 percent to Sh9.07 billion.
- Investment income dropped by Sh41 million to Sh1.9 billion, attributed to the Covid-19 pandemic's impact on the investment environment.
