This archive report was first published on 1 August 2019.
On August 1, 2019, Kenya Reinsurance Corporation (Kenya Re) reported a 12.2% decline in net profit for the half year ended June, weighed down by higher claims.
The Nairobi Securities Exchange-listed re-insurer's net profit stood at Sh1.08 billion in the period, compared to Sh1.23 billion the year before.
Despite this decline, Kenya Re's net earned premiums jumped 16.6% to Sh7.42 billion during the period under review.
However, net claims incurred increased by 48.57% to Sh4.99 billion in the period, contributing to the decline in net profit.
Kenya Re draws most of its gross premiums from the local market, where it enjoys mandatory cession of 20% until 2020.
The guaranteed cessions to the company are backed by the government, which owns 60% of the re-insurer, with the remaining shares held by the investing public at the Nairobi bourse.
Chief executive officer Jadiah Mwarania stated that the re-insurer is eyeing new markets across the globe in the face of stiffening competition.
Mr. Mwarania noted that the firm is dealing with toughening rivalry from domesticated re-insurers in countries like Nepal, Ethiopia, and Uganda, as well as new entrants.
