Kenya Reinsurance Corporation recorded a 53 percent gross profit of Kes 7.03 billion compared to a similar period in 2022, attributed to prudent underwriting and business diversification.
Kenya Re’s gross profit stood at Kes 4.59 billion in the full year ending December 2023.
The company’s net investment and insurance proceeds grew to Kes 8.19 billion, representing a 42 percent jump from Kes 5.78 billion in 2022.
This came from the firm’s aggressive investment drive to attract new business across Africa, the Middle East, and Asia.
Kenya Reinsurance Corporation Group Managing Director Hillary Maina Wachinga said the firm will leverage technology to enhance operational efficiency and expand its footprint in emerging markets in the next financial year.
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“As part of our growth trajectory, we are exploring innovative risk management solutions and product offerings to cater to the evolving client as well as the use of technology in enhancing customer satisfaction and relationships.”
Further, profitability was also boosted by an 18 percent decline in claims and other insurance service expenses incurred to Kes 18.21 billion from Kes 22.32 billion in the review period.
“This was mainly due to a reduction in the claims outstanding and claims paid in the year due to prudent underwriting and claims management.”
Additionally, its asset base increased by 15 percent from Kes 57.45 billion to Kes 65.98 billion, with shareholder’s funds rising by 18 percent to Kes 48.17 billion.
“The increase in the asset base was mainly attributable to the increase in investment in associate by Kes 2billion, Increase in government securities by Kes 1.1 billion and increase in deposits with financial institutions by Kes 4.35 billion.”
Similarly, the growth in the shareholders funds was a result of an increase in the retained earnings by Kes 4 billion and an increase in the translation reserves by Kes 3 billion.
