Insurer optimistic of improved returns

Re-insurer ZEP-Re expects better returns this year after posting Sh2.3 billion gross loss last year mainly driven by effects of two major earthquakes in Nepal. This pushed its net retained losses to Sh400 million.

However, the insurer, also called PTA Reinsurance, managed a net profit of Sh1.99 billion. This was supported by a 10.6 per cent growth in its gross written premiums to Sh13.8 billion. Speaking in Mombasa during the firm's 25th Annual General Meeting, Board Chairman William Erio said the harsh macroeconomic environment served to strengthen the firm.

"The fact that ZEP-RE withstood such a catastrophe is testament to the company's strong financial position and a versatile risk management system," said Erio in reference to Nepal case. Going forward, its Managing Director Rajni Varia said the company expects better returns this year.