Kenya-Re annual profit falls to Ksh.2.9B
Re insurer Kenya-Re has posted a 27.5 per cent earnings deceleration for the year ended in December 31 with profits falling to Ksh.2.9 billion from Ksh.4 billion last year.
The trim in profitability is largely attributable to increased claims which outpaced the company’s income growth.
Net claims and benefits were for instance up by 21.6 per cent to Ksh.13.5 billion from Ksh.11.1 billion from greater claims by policy holders.
This to outpace a slower 13.1 per cent growth in income to Ksh.25 billion fro Ksh.22.1 billion.
The re-insurer’s net earned premiums were up by 34.8 per cent to Ksh.20.9 billion from Ksh.15.5 billion.
Kenya-Re nevertheless booked a Ksh.364 million fair value loss from the revaluation of its investment properties as the real estate sector took a significant hit from the COVID-19 pandemic.
The re-insurer’s earnings per share in the period eased to Ksh.1.05 from Ksh.2.55 at the end of 2019.
The company has nevertheless held off the profitability concerns with its board declaring a 20 cents dividend per share dividend.
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