Kenya-Re bets on oil, gas discoveries for growth

Kenya Reinsurance Corporation (Kenya-Re) is banking on recent oil discoveries in the country and the finding of gas in Tanzania to tap on both fields to grow its revenues.

Kenya Re Chairman Mr. David Kemei (left) and MD Jadiah Mwarania.

Speaking during the insurer’s Annual General Meeting (AGM) yesterday, board chairman David Kimei said the discoveries will boost energy sectors in both countries, which will necessitate creation of new insurance products to serve these niche markets.

Mr Kimei also announced that with Kenya’s economic growth projections at six per cent this year, Kenya-Re wants to align itself to take full advantage of the investment opportunities that are expected to come up.

“With the emergence of unconventional products and services to meet the needs of the vigorously dynamic market, the insurance sector has grown significantly. Increased provisions of reinsurance services have been necessitated by the emergence of political risk, terrorism covers, agricultural and micro-insurance, and Takaful business,” explained Kimei while detailing the growth route that Kenya-Re wants to take.

Last year, the company recorded an increase in profit before tax of 15 per cent, up from Sh3.9 billion registered in 2014 to Sh4.5 billion in 2015.

The company’s asset base also grew from Sh32 billion to Sh35 billion, marking a Sh12 per cent increase. The corporation’s shareholder funds also rose by 10 per cent, from Sh19.9 billion to Sh21.9 billion.
The insurer also announced plans to expand more to regional markets, having already made a foothold in Africa and the Middle East.

“Presently, we have a business presence in over 62 countries and in over 265 insurance companies in Africa, Middle East and Asia,” Kimei said.

The company’s latest venture is in Zambia, where it has set shop and hopes will start to operate soon. Last year, Kenya-Re started the Niko Fiti campaign, which is part of its Corporate Social Responsibility campaign.

The initiative saw 160 disabled persons benefit from mobile vending units.
The board chairman also announced granting of a final dividend of 75 cents to shareholders for the year under review.

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