Kenya Re profit up 12pc to Sh3.1b

Kenya Reinsurance posted a 12 per cent jump in profit after tax of Sh3.1 billion compared to Sh2.7 billion recorded in 2013.

The re-insurer attributed this to aggressive marketing in selected markets across the continent and acquisition of new businesses.

However, the firm saw claims increase by 26 per cent last year. During an investor briefing on Friday at a Nairobi hotel, the re-insurer’s Managing Director Jadiah Mwarania attributed the bulk of Sh5.95 billion paid during the period under review to Westgate attack in Westlands, Jomo Kenyatta International Airport (JKIA) fire that gutted down its arrival section and the torrential rains in Southern Thailand.

“In the Asian market, the claims are ongoing. As you know we have invested in the market as part of our businesses diversification across the globe,” said Mr Mwarania about the floods compensations on the sidelines after the event.

The firm injected Sh3 billion in new businesses, including 10 shares worth Sh87.5 million in African Trade Insurance Agency and a 7 per cent stake in Uganda Re. Also the firm has received retrocession treaties (covered by other reinsurances) which now gives them the much needed risk muscle to indulge in oil and energy sector.

As part of its expansion strategy, Kenya Re says plans to set up a subsidiary in Zambia which will act as the regional hub that will serve the Southern African markets. This will be in addition to the re-insurer’s operations in Abidjan, Ivory Coast, which serves the West African and Francophone markets. The net earned premiums grew to Sh10.3 billion in the period ending December 2014, compared to Sh8.6 billion during the same period the previous year.

The board has recommended cash dividends of Sh0.70 per share to its shareholders.