NAIROBI, Kenya, June 12 – Kenya Re gross profit last year grew by 53 percent to Sh7.03 billion compared to a similar period in 2022, buoyed by prudent underwriting and business diversification.
Between January and December last year, the re-insurer’s profit before tax stood at Sh4.59 billion.
In its latest financial statement for the full year ending December 2023, its net investment and insurance proceeds grew to Sh8.19 billion, representing a 42 percent jump from Sh5.78 billion in 2022.
This came on the back of the firm’s aggressive investment drive to attract new business across Africa, the Middle East, and Asia.
In the next financial year, its Group Managing Director, Hillary Maina Wachinga, said that the firm will leverage technology to enhance operational efficiency and expand its footprint in emerging markets.
“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,” said Wachinga.
Profitability was also boosted by an 18 percent decline in claims and other insurance service expenses incurred to Sh18.21 billion from Sh22.32 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,” Kenya Re added.
Likewise, its asset base increased by 15 percent from Sh57.45 billion to Sh65.98 billion, with shareholder’s funds rising by 18 percent to Sh48.17 billion.
“The increase in the asset base was mainly attributable to the increase in investment in associate by KShs 2billion, Increase in government securities by Kshs 1.1 billion and increase in deposits with financial institutions by Kshs 4.35 billion,” the re-insurer stated.
“The growth in the shareholders funds was as a result of increase in the retained earnings by KShs 4 billion and increase in the translation reserves by KShs 3 billion.”
