Kenya Reinsurance Corporation Limited (Kenya Re) has reported a profit after tax of Ksh900 million for the half-year ended 30th June, 2023, registering 9% growth compared to a similar period last year. Profit before tax as at June 2023 stood at Ksh1.29 billion, an increase of 8.7% from the Ksh1.19 billion recorded in a similar period in 2022.
The improved performance was achieved on the back of a 16% rise in investment income from Ksh1.86 billion as at June 2022 to Ksh2.15 billion as at June 2023. This is in addition to the 29% decline in total outflows from Ksh10.48 billion as at June 2022 to Ksh7.40 billion as at June 2023.
“This performance, which reflects our business resilience and adaptability in an ever-evolving insurance landscape,” Group Managing Director, Dr. Hillary Maina Wachinga, says. “It also validates the relevance of our solutions to our insurers’ needs. This strength positions the Kenya Reinsurance Corporation as a reliable partner for insurers locally and across Africa, ensuring the security and continuity of their operations.”
The reinsurers’ statutory operating expenses were down by 72% from Ksh1 billion as at 30th June 2022 to Ksh300 million as at 30th June 2023. This is attributable to forex gains and prudent management of operating expenses.
The reinsurer is in the final phase of executing a five-year strategy built on key pillars that guide the business operations including sustainable growth goals and profitability yearly, 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 – supporting the growth of the local and continental insurance.
Investment income increased by 16% from Ksh1.9 billion in June 2022 to Ksh2.2 billion in June 2023.
Net claims incurred as at June 2023 decreased by 36% to Ksh4.2 billion from Ksh6.5 billion in June 2022.
Net cedant acquisition costs decreased by 12% from Ksh2.7 billion in June 2022 to Ksh2.4 billion in June 2023 .
Operating expenses decreased by 72% from Ksh1 billion as at June 2022 to Ksh0.3 billion as at June 2023.
The asset base increased from Ksh70.13 billion as at December 2022 to Ksh72.77 billion as at June 2023, a growth of 4%.
The shareholders’ funds increased from Ksh40.8 billion as at December 2022 to Ksh41.2 billion as at June 2023 a growth of 1%.
Sustainability, ESG Lens
As part of its sustainability and corporate social responsibility, the corporation has undertaken various initiatives to contribute to environmental conservation and support the community among them an ambitious 10,000 tree seedling project at Lenana School, 100,000 avocado seedlings distribution to forest-edge communities around Kaptagat Forest ecosystem and a Sh1 million donation for rehabilitation of 400 Ha within Kaptagat’s five forest blocks.
Further, the Corporation has contributed funds towards the disbursement of scholarships for needy secondary school students through the Affecto Foundation. These initiatives highlight Kenya Re’s dedication to environmental preservation, social empowerment, and creating a sustainable future for the communities it serves.