Premiums push reinsurer’s profits up 37pc

• Reinsurance company records Sh1.1bn in the first half up from Sh845m last year

Kenya Reinsurance Corporation has recorded a 37 per cent growth in profits after tax for the first half of the year buoyed by increased premiums and investment income.

Profit after tax for the six months to June clocked Sh1.1 billion up from Sh845 million recorded over same period last year.

Investment income grew 40 per cent to Sh999 million from Sh722 million last year while net premiums increased 22 per cent to 2.8 billion.

Sale of a building in Nairobi’s South C estate for Sh310 million during the period, boosted the the total net income to Sh1.3 billion.

Net claims increased significantly by over 55 per cent to Sh1.5 billion from Sh986 million in June 2011.

“The performance is attributed to our pro-active investment portfolio management and prosperity rental income in Africa, the Middle East and Asia,” said Kenya Re managing director Jadiah Mwarania at an investor briefing on Friday.

Reinsure oil business

A vibrant local insurance industry where it reinsures over 45 insurance companies and their businesses also played a key role.

Going forward, Kenya Re says it is planning to start reinsuring oil businesses.

Last week it announced that it had retained the services of Total Risks Solutions to help it in technical advice in developing products targeting oil business.

“Oil and gas is the most lucrative but a very risky sector.

“The exposure is huge and we are seeking experts to aid us while we contemplate to invest in that market,” Mr Mwarania noted.