This archive report was first published on 4 August 2019.
On August 4, 2019, Kenya Reinsurance Corporation (Kenya Re) reported a 12.4% drop in net profit for the half-year ended June, weighed down by increased claims.
The Nairobi Securities Exchange (NSE)-listed reinsurer's net profit stood at Sh1.08 billion in the period, compared to Sh1.23 billion the year before.
Kenya Re's net claims jumped 48.57% to Sh1.08 billion, with a significant portion attributed to claims relating to the Ethiopian Airlines crash, valued at Sh41.4 million.
The reinsurer also incurred property damage claims amounting to Sh44 million in the recent terrorist attack on dusitD2 hotel and business complex in Nairobi.
Chief executive Jadiah Mwarania stated that the company expects further claims related to the dusitD2 attack, particularly on life insurance.
Other notable claims included Sh72.5 million for last year's severe floods in Kerala, India, and Sh34 million for Standard Media Group.
Kenya Re's gross written premiums increased to Sh8.85 billion in the period, slightly higher than the Sh6.33 billion in the previous period.
Mr. Mwarania emphasized the need to expand the company's presence in the region, citing stiff competition from countries like Uganda, Tanzania, and Ethiopia, which have established their own reinsurers.
Kenya Re plans to distribute two billion new shares to qualifying investors from this month and has set a year-end deadline to open a subsidiary in Uganda.
Former East African Community PS Chiboli Shakaba has replaced David Kemei as chairman at the reinsurer, with Mr. Kemei remaining a director.
