Kenya Re posts a 40% hike in Gross Written Premiums to hit $88.6 million

Kenya Re posts a 40% hike in Gross Written Premiums to hit $88.6 million

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• The higher performance is attributed to the Corporation tapping into agricultural business whose premiums stood at 2.962 Billion.
• Kenya Re’s total assets increased from Ksh 44.362 Billion as at 31st December 2018 to Ksh 45.828 Billion as at 30th June 2019 which is a 3%% increase.
• Kenya Re has enhanced its capital to enable it access business in the middle east, north Africa and some jurisdictions in West Africa.

               
           
               
                   

Kenya Reinsurance Corporation has posted a 40% rise in gross written premiums from Ksh. 6.332 Billion to Ksh 8.860 Billion ($88,600,000) compared to the same period in the 2018 financial year.

               
           
               
                   

The higher performance is attributed to the Corporation tapping into agricultural business whose premiums stood at 2.962 Billion, contributing to 72% of the total premium in international business and 33% of the overall premium.

               
           
               
                   

The rise was also a direct result of aggressive fair sourcing of business. Most business line’s marginal growth was positive compared to same period in 2018, the marginal growth overall stood at 28%.

               
           
               
                   

Kenya Re managing director, Mr. Jadiah Mwarania announced the financial results months after the Corporation received an ISO 27001:2013 certification marking it as the sixth organization in the country to receive the accreditation.

               
           
               
                   

                                   

Kenya Re Managing Director Mr. Jadiah Mwarania (L), Dry Associates Investment Bank GM, Mr. Ewart Salins (C)  and Kenya Re Chairman Mr. Chiboli Shakaba (R) discuss some figures during the Kenya Re Half Year Investor briefing held at the Intercontinental Hotel on the 2nd of August 2019.

               

               
           
               
                   

Speaking at an investor briefing, Mr. Mwarania cited some of the challenges the corporation faced during the first half of the year 2019.

               
           
               
                   

“Our challenges ranged from increased competition, premium undercutting, domestication of reinsurance business in some of our key markets and changing reinsurance treaty structures towards excess of loss as opposed to proportional treaties and devaluation of currency in some of our markets.” Said Mr. Mwarania.

               
           
               
                   

This comes exactly a year after the corporation was re-certified as an ISO 9001:2015 organization in 2018. The certification will help the corporation identify any risks to information thus enabling it to put the appropriate measures in place to manage and reduce these risk.

               
           
               
                   

                                   

Delegates following proceeding of a past Kenya Re meeting.

               

               
           
               
                   

The Corporation’s cedant acquisition costs increased by 11% from Ksh 1.828 Billion to Ksh 2.028 Billion, attributed to the increase in the gross written premiums compared to the same period in 2018. Investment income for the period under review stood at Ksh 1.975.6 Billion which is 2% higher than the prior year (Ksh 1.940 Billion), this is attributed to higher interest from investments in government securities and fixed deposits. Net claims incurred increased by 49% to stand at Ksh 4.995 Billion compared to Ksh 3.362 Billion in 2018.