Kenya-Reinsurance has posted a 20 per cent after-tax profit increase to Sh1.5 billion for the first six months of the year.
“This good performance has been due to efficient claims management, new products and development,” the managing director, Mr Jadiah Mwarania, said during an investor briefing in Nairobi, on Wednesday.
Mr Mwarania said the company has business in Africa, the Middle East and Asia and has a dollar and a shilling count to hedge against currency swings.
Gross premiums grew by 26 per cent, from Sh4.9 billion to Sh6.2 billion, while investment income increased by six per cent to Sh1.45 billion. The net claims incurred grew to Sh2.7 billion in line with the growth in business.
He said cedant acquisition costs went up by 27 per cent to hit Sh1.61 billion, from Sh1.26 billion, in line with the growth of the premium written during the period under review.
Operating expenses increased by nine per cent to Sh453 million. The company is scouting for new markets, said Mr Mwarania.
“We are at advanced stage in setting up a subsidiary in Lusaka, Zambia to serve Zambia, Zimbabwe, Botswana, Lesotho, Namibia, Mozambique and Swaziland. This will be in addition to the subsidiary in Abidjan, Ivory Coast, which serves the West African and Francophone markets.”
The board did not recommend any interim dividend to the shareholders.
Kenya-Re chairman David Kemei said they were working to build capacity to underwrite firms in the oil and gas business in Africa