Kenya Reinsurance reports 7pc jump in after tax profit

By Winsley Masese

Nairobi, Kenya: Kenya Reinsurance Corporation (Kenya Re) posted Sh3 billion profit after tax for the year ended December 31, 2013, compared to Sh2.8 billion recorded over a similar period last year.

The corporation’s Managing Director, Jadiah Mwarania, attributed the 7 per cent growth to its aggressive marketing across the African continent, Middle East and Asia.

He said the corporation has focused on efficient claims management, product innovation and offering new covers to clients.

According to the corporation’s 2013 full year financial results, operating and other expenses declined from Sh1.08 billion in 2012 to Sh1.01 billion during the period under review. About 45 per cent of the revenues are derived from the Kenyan market and the rest from the international businesses.

Mr Mwarania noted during an investors’ briefing in Nairobi Tuesday that Africa has a huge potential, adding that besides this the corporation understands it better.

He added that plans to open an office to serve the South African market are underway. Kenya Re has a presence in 45 countries and in over 160 insurance companies in Africa, Middle East and Asia. 

According to the trading results, gross premiums written increased to Sh9.5 billion in 2013 compared to Sh7.9 billion registered in 2012.

Net earned premiums also improved from Sh7 billion in 2012 to Sh8.5 billion in 2013, an improvement of 22 per cent.

The corporation’s claims increased marginally by 16 per cent from Sh4.6 billion in 2012 to Sh4.7 billion.

Improved asset base

This was largely due to the severity and frequency of claims across the chosen markets of the corporation, notably the Jomo Kenyatta International Airport and buildings in Thailand. However, asset base increased from Sh23.7 billion in 2012 to Sh28.2 billion during the period under review, a 19 per cent improvement. Shareholders’ funds stood at Sh17.9 billion in 2013 compared to Sh14.6 billion the previous period.

 Mwarania said the corporation will seek to broaden its market portfolio, key among them underwriting oil and gas as part of its strategy to take the company to the next level.

Besides, it also sets to tap into the fast growing Sharia compliant insurance business, which is estimated to hit about Sh2 trillion by 2015.

In West Africa, Kenya Re will have a subsidiary by June to tap the potential in the francophone markets.