Kenya-Re Records Positive Growth HY2020 as Net Profit Earnings Rise to Kes 1.6 Billion
Kenya Reinsurance Company has reported a gross net profit increased by 2% from 8.8 million to 9.1 million as compared to last year’s half year earnings.
The increase in profit was due attributed to the fire reinsurance business which recorded the highest gross premium of Kes 2.6 million in 2020 which was 71% increase from 2019 followed by an Increase in the gross premium from bonds by 17% from Kes 7.8 million to Kes 9.1 million.
Non-life business premiums also increased by 2% from Kes 8 billion to Kes 8.2 billion.
Despite the increase in the net profits it is important to note that Kenya Re has also been a victim of the economic constrain facing the country due to COVID-19 pandemic. This saw the investment income take a slight decline from Kes 1.95 million to 1.91 million.
Net claims incurred also positive change of 3% from Kes 4.99 million to Kes 5.15 million. Cedant acquisition also increased by 6% from Kes 2.03 million to Kes 2.15 million in the same period last year hence resulting to an increase in commission ratio of 25%.
The management expenses also recorded an increase by 4% from Kes 9.57 million to Kes 9.17million.
In addition to this, the company recorded a steep increase in the profit before tax of 52% from Kes 1.38 million to Kes 2.09 million in the same period last year.
The balance sheet recorded a 6% increase from Kes 50.36 million as at the period ending 31st December 2019, to Kes 53.35 million for the period ending 30th June.
Shareholders’ funds which were at Kes 31.9 billion in the period ending 31st December 2019, also increased by 3% as at the period ending 30th June 2020, to Kes 33.1 billion.
Kenya Re has not declared a dividend for the Half Year Results.