Kenya Reinsurance Corporation has recorded an increase in net profits of 8.8 percent to 3.5 billion shillings for the year ended December 2017, compared to 3.2 billion shillings the previous year in the latest financial results.
The improvement is owed to a rise in investment revenues and gross written premiums. The after-tax premium registered a growth of 13.7 billion shillings, which is an 8 percent increase due to its new markets venture.
A growth of 112.12 percent was recorded, which pushed the gross written premiums to 14.8 billion shillings from 13.2 billion recorded in the previous year.
The insurer’s investment earnings rose from 3 billion shillings recorded in 2016 to 3.16 billion shillings in the 2017 financial year, a 3 percent increase.
Kenya Re’s net incurred claims rose to 7.59 billion shillings, a 14 increase in the period under review from 2016’s 6.68 billion shillings. According to the corporation, this is on the back of the compensations made in Nepal earthquakes and floods experienced in India.
A dividend payout of 0.85 percent was recommended by the insurer, a figure the same as the one put forth in the 2016 financial year.
Amidst stiff competition from tamed reinsurers in other East Africa countries, Kenya Re is looking to leverage on the already in place 5-year strategy aimed at investing in foreign reinsurers as it aims to bolden its presence in the countries it operates on.