Kenya Re half-year profit rises to Ksh.1.6 billion


Kenya Re half-year profit rises to Ksh.1.6 billion
FILE | Kenya-Re Managing Director Jadiah Mwarania

In Summary

  • The growth in earnings through the period dominated by COVID-19 shocks is attributable to a marginal increase in written premiums along with critical costs management.
  • Kenya Re marked higher growth in its life business which expanded by 17 per cent to Ksh.909 million while its non-life segment grew at a slower pace of two per cent to Ksh.8.2 billion.
  • The board of Kenya Re has opted out of the declaration of an interim dividend for the half year period. Previously, Kenya-Re has cautioned of COVID-19 impact on operations

Kenya Reinsurance (Kenya Re) profit through the first six months of 2020 has soared by 46 per cent to Ksh.1.6 billion.

The growth in earnings through the period dominated by COVID-19 shocks is attributable to a marginal increase in written premiums along with critical costs management.

Net earned premiums in the period stood at Ksh.8.7 billion from Ksh.7.4 billion in the first half of 2019, Kenya Re marked higher growth in its life business which expanded by 17 per cent to Ksh.909 million while its non-life segment grew at a slower pace of two per cent to Ksh.8.2 billion.

The company has attributed the growth to the aggressive sourcing of new business against the difficult environment occasioned by the pandemic.

The re-insurer investment income meanwhile remained flat at Ksh.1.9 billion as the portfolio struggled under the weight of the current macro-economic environment.

The company however managed its operational costs with total expenses growing by a marginal 4.4 per cent to Ksh.956.9 million.

Net claims and benefits grew by a mere three per cent to Ksh.5.1 billion in the period.

Cash generated from operations however declined to Ksh.2.1 billion from Ksh.4.3 billion last year on lower receipts from corporate bonds, government securities and staff mortgages.

Cash and cash equivalents at the end of the period however increased to Ksh.9.2 billion from Ksh.7.4 billion on the lower use of funds in investments.

The board of Kenya Re has opted out of the declaration of an interim dividend for the half year period.

Previously, Kenya Re has cautioned of COVID-19 impact on operations predicting a worst scenario; Ksh.1 billion hit on revenues over the calendar year.

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Story By Kepha Muiruri
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