By John Oyuke
Kenya Reinsurance Corporation half-year profit grew by 13 per cent lifted by growth in its investment portfolio.
Profit after tax grew to Sh846 million during the review period compared to Sh751 million in similar period last year.
Net earnings premiums grew by 11 per cent to Sh2.3 billion in June, up from Sh2 billion in June last year, while investment income grew by 41 per cent, up from Sh497 million to Sh699 million.
"The last six months we recorded remarkable growth and our plan is to continue growing premiums by focusing on new markets and deepening our penetration in markets that we already operate in," said the Chief Executive Jadiah Mwarania.
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He said the good results were achieved through the support of the local insurance industry, which remains the largest market for the general, as well as long-term business.
Mwarania who spoke in Nairobi when he released Kenya-Re’s un-audited accounts for half-year ending June said the firm also offered political risks cover to local clients.
Mwarania said the corporation plans to venture into Sharia-compliant business to grow its income and tap into the expanding Islamic finance in other parts of Africa where it already has a presence.
"The intention is to have a window that fully complies with Takaful requirements to rope in more business," said the Chief Executive. Takaful is an Islamic insurance concept observing the rules and regulations of Islamic law.
Chairperson, Mrs Nelius Kariuki, said the latest results is a proof the corporation has great potential with capacity to continue delivering sustained value for its shareholders.
"These results are proof to the success of our business strategy where we continue to aggressively market our brand of quality service to our customers," she added.
Meanwhile, the Nairobi-based Africa’s multilateral credit and investment insurer, ATI has signed a $250m seven-year loan facility arranged through a syndicate of Tanzanian and global financiers.
Tanzania will use the funds for infrastructure development, mainly in the areas of power and roads.
This marks the first time Tanzania has sought commercial financing for its long-term projects.
ATI chief executive George Otieno said in a statement the agency was selected to insure a total of $50 million segment of the larger facility based on its strong capitalisation.
