Kenya Re’s net profit hits Sh1.6 billion impressive business growth
Lewis Njoka @LewisNjoka
Impressive growth in fire and bond business saw Kenya Reinsurance Corporation Lt (Kenya Re)’s half-year after tax profit for the period ended June 30 increase by 46 per cent to hit Sh1.6 billion.
The reinsurer said profit before tax for the period stood at Sh2.09 billion compared to Sh1.37 billion reported same period last year, a 52 per cent rise.
In a statement, it said fire recorded 71 per cent growth to hit a gross premium of Sh2.59 billion up from Sh1.51 billion in 2019.
Similarly, gross premium from bond rose to Sh144 million up from Sh91 million in 2019 a 58 per cent growth.
Life business section grew by 17 per cent to hit 909 million while non-life grew by two per cent to hit 8.16 billion with most business lines posting positive growth which the company attributed to aggressive sourcing of business.
Kenya Re Managing Director, Jadiah Mwarania expressed satisfaction with the results, adding that growth in profit is largely attributable to strong risk adjusted capitalisation and markets diversification.
Other factors that drove the performance were low risk investment portfolio, a diversified business portfolio, prudent underwriting and effective expenses management.
“The Covid-19 pandemic has, however, slightly affected our investments income but we remain optimistic that we shall report positive results in the next half of the year,” Mwarania added.
He said the corporation continues to consistently anchor its business on five strategic pillars that have helped it make major strides in reinsurance business.
“These pillars are financial performance, business development, business process improvement, enhanced risk management as well as people and culture,” Mwarania said.
Overall, the gross written premium increased by two per cent to hit Sh9.07 billion up from Sh8.86 billion reported same period in 2019.
Shareholders’ funds rose to Sh33.1 billion up from Sh31.9 billion as in December 2019 as three per cent increase, according to Kenya Re.