Kenya Re H1 premiums up 14pc as profits almost flat

Kenya Re has posted a four per cent rise in profits for the six months ended June driven by new business.

The reinsurer  reported an after tax profit of Sh1.56 billion compared to Sh1.5 billion in a similar period last year.

Its gross premiums rose by 14 per cent to Sh7 billion as the company booked more business from its regional operations.

“Our Kenya business now contributes 48 per cent of premiums with 52 per cent being non-Kenyan,” said the company’s managing director Jadiah Mwarania.

Kenya Re has opened regional branches in Cote d’ivoire to search for business in West Africa and Zambia with a target of the South African market.

International business was cited for a 34 per cent rise in claims following two earthquakes in Nepal which saw it pay claims of Sh450 million.

Kenya Re is set to recover Sh400 million of the paid amount from the insurers as its liability is capped at Sh50 million.

The reinsurer paid Sh3.5 billion in claims up from Sh2.7 billion in June last year.