Reinsurance company Kenya Re posted a 66% decline in half-year profit for the period that ended on 30th June 2021 despite a 6% growth in gross written premiums. The company’s annual net profit dropped to Kes533.7 million on 30th June this year, from Kes1.57 billion in June last year, as claims and benefits, and other expenses grew sharply during the period under review.
Its gross written premiums rose to Kes9.6 billion on 30th June 2021 from Kes9.1 billion in June 2020. Net earned premiums grew by 0.3% to Kes8.69 billion from Kes8.66 billion.
Read: Kenya Reinsurance Posts 26% Decline in After Tax Profits to Kes 2.80 Billion For FY2020
Kenya-Re booked Kes6.5 billion in gross claims and policyholder benefits during the year, up 24% from Kes5.2 billion in the previous financial year. Operating and other expenses jumped to Kes1.1 billion at the end of June this year from Kes 957 million a year ago.
Its total assets climbed to Kes54.2 billion from Kes53.2 billion the previous financial year, while liabilities increased to Kes19.2 billion from Kes18.8 billion.
Kenya Re is one of the largest and oldest reinsurance companies in Eastern and Central Africa. It provides reinsurance services to more than 265 insurers in Africa, Middle East and Asia.
Miriam Wangui of The Kenyan Wallstreet contributed to this article
