Kenya Re Records 9% Growth In Profit After Tax To Ksh 0.9 Billion

Kenya Reinsurance Corporation Limited (Kenya Re) has today reported a Profit before Tax (PBT) of Kshs 1.3 billion for the half-year period ending June 30, 2023, registering 9% growth compared to a similar period last year.

The improved performance was achieved on the back of a 16% rise in investment income from KShs 1.9 billion as of June 2022 to KShs 2.2 billion as of June 2023. This is in addition to the 29% decline in total outflows from KShs 10.4 billion as of June 2022 to KShs 7.4 billion as of June 2023.

Commenting on the financial results, Group Managing Director, Dr. Hillary Maina Wachinga said: “We are pleased with this performance, which reflects our business resilience and adaptability in an ever-evolving insurance landscape. It also validates the relevance of our solutions to our insurers’ needs. This strength positions the Kenya Reinsurance Corporation as a solid security for insurers in its chosen markets.”

Read Also: Why Remittances To Kenya Remained Resilient Despite Inflation

Other Highlights include:

Operating Expenses

The reinsurers’ statutory operating expenses dropped by 72% from Ksh 1 billion as of 30^th June 2022 to Kshs 0.3 billion as of 30^th June 2023. This is attributable to forex gains and prudent containment of operating expenses.

Outlook

The Reinsurer is in the final phase of executing a 5-year strategy built on key pillars that guide its business operations. These include sustainable growth goals and profitability as well as, reinvention approaches to provide unique product offerings in line with market needs.

The Corporation attributes its commendable performance to its continued commitment to delivering innovative reinsurance solutions as well as cutting-edge digital solutions which has enabled streamlined claim payment processes, enhanced risk assessment, and improved service delivery to customers.

Sustainability, ESG Lens

Additionally, as part of its sustainability and corporate social responsibility, the Corporation has undertaken various initiatives to contribute to environmental conservation and support the govt. agenda. Among these is an ambitious 10,000 tree seedling project at Lenana School, 100,000 avocado seedlings distributed to forest-edge communities around the Kaptagat Forest ecosystem, and a Sh1 million donation for rehabilitation of 400 Ha within Kaptagat’s five forest blocks.

On the social aspect, the Corporation has contributed funds towards the disbursement of scholarships for needy secondary school students through the Affecto Foundation.

Read Also: Kenya Re Profits Up 15%, Hits 3.62 Billion Shillings