Kenya-Re half year profit sinks to Ksh.534 million

Regional based re-insurer Kenya-Re has seen its half year profit sink by 69 per cent to Ksh.533.7 million from a greater Ksh.1.6 billion last year.

The significant drop in earnings is heavily attributed to rising claims paid out to policyholders over the period.

Kenya-Re’s net claims and benefits for instance rose to Ksh.6.3 billion in the six months too June from a lower Ksh.5.1 billion.

This to push up total claims, benefits and other expenses to the Ksh.10 billion mark from a lower Ksh.8.5 billion.

Nevertheless, the re-insurer retained its net earned premiums at Ksh.8.7 billion, the same level as last year, this to slightly push total income earned to Ksh.10.7 billion from Ksh.10.6 billion.

During the period Kenya-Re assets rose marginally to Ksh.54.2 billion from Ksh.53.2 billion last year.

Subsequent to the profit decline, the board of the company has not recommended the payment of an interim dividend covering the half year cycle.

Kenya-Re’s earnings per share have declined to 19 cents from 56 cents.