By Jackson Okoth
Kenya Reinsurance Corporation released its 2011 financial results on Tuesday showing a 24 per cent increase in net income to Sh8 billion.
In the year under review, gross premium underwritten grew by 33 per cent from Sh4.9 billion in 2010 to Sh6.6 billion. Profit before tax came in at Sh1.9 billion, which is a 23 per cent improvement from Sh1.5 billion over the year 2010.
Investment income declined 14 per cent to Sh1.5 billion, with the poor performance of the Nairobi Securities Exchange (NSE) for the better part of 2011, largely to blame.
"Our good results have been achieved through support and partnerships of the local insurance industry, which remains our single largest market for general and long term business," said Kenya Re Managing Director Jadiah Mwarania.
Kenya Re insuranceâs asset base grew by 11 per cent from Sh17.2 billion to Sh19 billion while the corporationâs shareholders funds were up 9 per cent from Sh10.5 billion to Sh11.5 billion.
In an environment of a weakening shilling, high energy and food prices, Kenya Reâs net claims incurred were up 44 per cent to Sh2.9 billion. Total expenses went up 12 per cent to Sh3.2 billion and dividend per share of 35 cents was declared. A bonus share issue of one share for every six held was also recommended.
The company plans to hold its annual general meeting on June 8, 2012 where shareholders will approve these accounts.
Impressive performance by Kenya Re is happening when the process of rebranding its image, estimated to cost Sh50 million, is still ongoing.
"After being in existence for 41 years, we are now rebranding in line with the changing market dynamics," said Mwarania.