News and Events

KENYA RE RECORDS 3.5 BILLION PROFIT

The core purpose of an Investor’s Briefing in a Business to Business (B2B) organization is to maintain strong, transparent relationships with investors. The Corporation held its Full Year Investor Briefing on 29th March 2018 from 7:00 am at the Hilton Hotel, Nairobi. The purpose of Investor Briefings has been to improve the growth of business and create awareness and transparency to shareholders and interested parties. 

 

During the Investor Briefing, Kenya Re’s Ag. Managing Director, Mr Michael Mbeshi, announced the full year results for the financial year 2017. The Corporation recorded a Ksh. 3.5 Billion profit before tax for the financial year 2017. Gross premiums written grew by 12% from Ksh. 13.244 Billion in 2016 to Ksh. 14.827 Billion as at 31st December 2017. The net earned premium grew by 7.9% from Ksh. 12.68 Billion in 2016 to Ksh. 13.679 Billion as at 31.12.2017. 

As of 31st December 2017, the investment income stood at Ksh. 3.165 Billion compared to Ksh. 3.079 Billion in 2016, an increase of 3%. The net claims incurred increased by 14% to Ksh. 7.598 Billion as at 31st December 2017 from Ksh. 6.680 Billion in 2016. The asset base grew by 11% from Ksh. 38.494 Billion in 2016 to Ksh. 42.732 Billion as at 31st December 2017. 

 

Speaking at the Investors Briefing, Kenya Re’s Board Chairman, Mr David Kemei said that the profit realized in the year was made possible by the relentless dedication by the Kenya Re team to attain its set five-year strategic plan. “Challenges the Corporation continues to aggressively pursue our robust five year strategic plan that is in place. The five key objectives address financial performance, business processes, business development, risk management as well as people and culture. The implementation of the strategy has seen the Corporation’s success in the year 2017.” 

 

While presenting the full year results, the Ag. Managing Director, Mr. Michael Mbeshi said that the Corporation’s performance was aided by focusing on efficient internal processes, innovation and development, offering new covers to our clients in addition to aggressive marketing in key markets. He also highlighted that the Corporation faced a number of challenges during the year 2017. These challenges ranged from mergers and acquisitions of insurance companies that led to larger reinsurance capacities within the multinationals, which in turn reduced their reinsurance needs. In addition, competition intensely increased. Another challenge was the domestication of our International markets which locked the Corporation out from business opportunities in those markets.

 

“In response to the challenges and to address growth and development objectives, the Corporation is better prepared to cope with these challenges as envisioned in its five year corporate strategy anchored on five pillars, namely: financial performance, business process improvement, business development, risk management as well as development of people and culture.” Kenya Re has been on a steady growth over the years. The Ag. MD expressed that the reinsurance industry was evolving in Kenya and the world over. He also reiterated that the Corporation endeavors to offer a variety of products and services that are bound to address the ever-changing needs of our customers.

 

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