Kenya Reinsurance Corporatin has on Friday posted a 40 percent rise in gross written premiums from Sh.6.332 billion to Sh.8.860 billion compared to the same period in the 2018 financial year.
The higher performance is attributed to the corporation tapping into agricultural business whose premiums stood at Sh. 2.962 billion, contributing to 72 percent of the total premium in international business and 33 percent of the overall premium.
Kenya Re’s total assets increased from Sh.44.362 billion as at December 31, 2018 to Sh.45.828 billion as at June 30, 2019 which is a three percent increase.
The profit before taxation for the period ended 30th June 2019 stood at Sh.1.380 billion compared to Sh.1.756 billion for the period ended June 30, 2018 which is a decrease of 21 percent.
This is mainly attributed to an increase of claims by 49 percent compared to the same period in 2018. Shareholders’ funds increased from Sh.28.3 billion as at December 31, 2018 to Sh.29.1 billion as at June 30, 2019 which is a 3 percent increase.
The Kenya Re Managing Director (MD), Jadiah Mwarania said that the rise was also a direct result of aggressive fair sourcing of business. Most business line’s marginal growth was positive compared to same period in 2018, the marginal growth overall stood at 28 percent.
“Some of the challenges the corporation faced during the first half of the year 2019 ranged from increased competition, premium undercutting, domestication of reinsurance business in some of our key markets and changing reinsurance treaty structures towards excess loss as opposed to proportional treaties and devaluation of currency in some of our markets,” explained Mwarania.
The MD further added that Kenya Re aims at developing and penetrating new markets as well as expand existing markets in order to increase market share, spread business risks and increase return on shareholders’ funds. Kenya Re has enhanced its capital to enable it access business in the Middle East, North Africa and some jurisdictions in West Africa.
The Kenya Re Board of Directors Chairman, Chiboli Shakaba said that they will continue to focus on the local market by enhancing existing products and introducing new ones as dictated by the needs of the market.
“We shall continue to explore operations in new potential international markets,” said Shabaka.
The corporation will soon open a regional office in Uganda following approval by Kenya and Uganda regulatory authorities. The Corporation anticipates that such enhancements will go a long way in increasing opportunities for Kenya Re to leverage and eventually maximize on long term shareholder value.
By Charles Kirundi/Hillary Wangila