Kenya Re half-year profits sink 13 per cent

In Summary

• The firm has been reporting subdued results in the past three years.

• The firm's gross premiums however rose by 40 per cent due to rising opportunities found in agriculture which contributed Sh2.9 billion to revenues.

Kenya-Re MD Jadiah Mwaraniah. /Moses Mwangi
Kenya-Re MD Jadiah Mwaraniah. /Moses Mwangi

Kenya Re profits for the half year ended June 30 are down by 13 per cent to Sh1.07 billion compared to Sh1.23 billion same period last year.

Speaking while presenting the results, Kenya Re managing director Jadiah Mwarania attributed the drop to an upsurge in claims that rose by 49 per cent during the period under review.

Most of the claims are as a result of DusitD2 attack and the Ethiopian Airline crash.

The firm has been reporting subdued results in the past three years, with half year results for 2018 being 24.17 per cent compared to the previous year.

''Our preference is a reflection of what is happening in the global economy. We have seen World Bank downgrading global growth for the year to 2.6 per cent from 2.9 per cent,' Mwarania said.

He added there has been a general slowdown in uptake of insurance products with penetration in Kenya only at 2.8 per cent.

The firm's gross premiums however rose by 40 per cent due to rising opportunities found in agriculture which contributed Sh2.9 billion to revenues.