This archive report was first published on 2 August 2019.
Kenya Re, the country's reinsurance company, has seen a decline in its net profits for the first half of 2019. According to the company's financial reports, the net profits dipped by 12 percent to KSh1.08 billion from KSh1.23 billion in 2018.
Despite the decline, Kenya Re's gross premiums jumped up by 40 percent to KSh8.86 billion compared to KSh6.33 billion booked in the first half of 2018. The company's claims also went up by 47 percent to KSh5.3 billion from KSh3.6 billion.
As the reinsurer is 60 percent owned by the government of Kenya, it collects most of its revenues from local insurers. This is due to a regulation that mandates insurers to cede 20 percent of the reinsurance business to the listed Kenya Re.
Kenya Re covers over 160 insurance firms operating in Africa, Asia, and the Middle East. The company's CEO, Jadiah Mwarania, has stated that they are working to reach new markets throughout the world, in response to the tightening competition in the reinsurance sector, particularly in foreign markets.
Kenya Re is preparing to give bonus shares to its investors this month. Shareholders who bought their shares before 14th June 2019 will receive three shares for every stock held.
Related:
