Kenya Reinsurance Corporation Limited (Kenya Re) shareholders have given the nod to a KES280M total dividends package for the year ended 31st December 2021. This was done during the Corporation’s 24th Annual General Meeting (AGM) conducted on Friday, 17th June 2022 through electronic means.
This year’s AGM was held against the backdrop of London Based rating Company - AM Best, revising the Corporation’s outlook of the Long-Term Issuer Credit Rating (Long-Term ICR) to stable from negative and further affirming the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb+” (Fair). The outlook of the FSR remained as stable. AM Best attributed the revision of the Long-Term ICR outlook to stable following corrective actions initiated by Management in 2020, which AM Best expects to lead to more stable underwriting performance. The corrective actions the Corporation has taken include the non-renewal of its highly unprofitable crop business originating from the Indian subcontinent, an increased focus on underwriting discipline and a strengthening of credit control procedures.
Speaking after the AGM, Kenya Re Board Chairman, Mrs. Jennifer Karina said, ‘’Today, the shareholders have demonstrated their confidence in the future growth of the Company through approving the dividend payout as recommended by the Board. We are encouraged that they see a brighter future for the Company through a strategic dividend payout. Despite the uncertainties in 2021, we remain optimistic that 2022 will turn out positively. Going forward, we shall realign our strategies to harness the emerging opportunities. The Board remains positive and confident that with strong leadership and committed employees, we are well placed to optimize on the growth opportunities to deliver strong profits in the coming years.”
Mr. Jadiah Mwarania, Kenya Re Managing Director, speaking during the AGM said, “The business development strategy remained focused on differentiation and profitable growth coupled with appropriate capital allocation to the various classes of business. The Corporation’s footprint in 2021 was 482 insurance companies spread out in 84 countries in Africa, Middle East, and Asia. The African markets continue to be the primary focus of the Corporation. Kenya is the biggest single market in the year. A regional approach to service delivery was employed through the Corporation’s subsidiaries in Uganda, Zambia, and Côte d’Ivoire. We grew both treaty and facultative reinsurance business portfolios across our chosen markets. We pursued new reinsurances and sought to retain the existing business. We grew the business portfolios directly from the ceding companies as well as leveraging on partnerships with intermediaries and partners.”
Mr. Mwarania told shareholders, “The Corporation weathered the COVID-19 disruption to register a 10% rise in gross written premiums from KShs18.535 billion in the year 2020 to KShs 20.355 billion in 2021.”
At this Annual General Meeting, an election of directors was conducted of which the results are as follows:
The following directors were elected to the Board and they are:
1. Dr. Catherine Ngima Kimura
2. Mrs. Thamuda Omar Hassan
3. Mrs. Eunice Atieno Nyala
4. Mr. Robert Kariuki Waruiru
Subsequently, the following Directors retired from the Board of Directors:
1. Mrs. Jennifer Karina
2. Mr. Gitonga Mugambi