Kenya Reinsurance Corporation has reported a significant growth in underwriting profit for the financial year that ended December 31, 2024 a move likely to see shareholders pocket Sh0.15 per share.
According to the state-backed re-insurer’s financial results released Thursday, insurance service results rose by a massive 336 per cent to hit Sh2.95 billion from Sh0.7 billion reported in the previous financial year.
The corporation attributed its strong performance to prudent underwriting practices, strategic diversification, and favorable macroeconomic conditions.
The firm’s total assets rose by 1.3 per cent to Sh66.8 billion from Sh66 billion in the previous financial year, with shareholders’ funds increasing by three per cent to Sh49.7 billion.
Prudent operational practices saw insurance service expenses decrease by 20 per cent to Sh10.5 billion from Sh13.1 billion in 2023 while total investment income increased by 23 per cent to Sh5.6 billion compared to Sh4.6 billion posted in the previous financial year.
“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,” Kenya Re’s Group managing director, Dr Hillary Wachinga said.
The tough macroeconomic environment witnessed in the local and international market, including Russia -Ukraine war, Israel -Palestine conflict that destabilised global supply chain and Gen Z uprising in the country hurt overall profitability which sunk 11 per cent.
The impressive results saw Kenya Re’s share at the Nairobi Security Exchange (NSE) join the top gainers list, having gained 3.5 per cent to close the market at Sh2.07.
The firm’s share price has been bullish since late last month when it unveiled an expansion strategy.
The corporation announced plans to set up a subsidiary in Tanzania and a branch in India within the next four months as it embarks on an expansion strategy to win more business in Africa, Middle East and Asia. Wachinga said that the firm is already courting the South American market after receiving its first portfolio.
“By diversifying our product offering geographically. Also, by line of business, we minimise exposure to any single market or factor,” he said.
The MD said while the life portfolio in other markets is growing, Kenya is catching up. He referenced India
where penetration of life insurance is
higher than non-life
