Kenya Reinsurance Corporation has reported a profit of Sh4.97 billion in the financial year ended December 2023 up from Sh3.5 billion posted a year earlier.
The performance has been boosted by the company’s net investment and insurance results that increased by 42 percent to Sh8.19 billion, up from Sh5.78 billion in the previous year.
The corporation attributed its strong performance to prudent underwriting practices, strategic diversification, and favorable macro-economic conditions.
Kenya Re Group managing director Hillary Wachinga said that in the period the reinsurer reported a decrease in insurance service expenses by 18 per cent, from Sh22.32 billion to Sh18.21 billion in 2023, due to improved claims management.
“As part of our growth trajectory, we are exploring innovative risk management solutions and product offerings to cater to the evolving client as well as the use of technology in enhancing customer satisfaction and relationships,” said Wachinga.
Additionally, the company's asset base grew by 15 per cent to Sh65.98 billion, driven by increased investments in associates, government securities, and deposits with financial institutions.
Shareholders' funds increased by 18 per cent to Sh48.17 billion, bolstered by higher retained earnings and translation reserves.
Total comprehensive income doubled to Sh7.7 billion, compared to Sh3.9 billion the previous year.
Net investment and insurance results rose by 42 per cent, reaching Sh8.19 billion from Sh5.78 billion in 2022.
This growth was achieved despite a notable 18 per cent decrease in insurance service expenses, which fell to Sh18.21 billion from Sh22.32 billion, indicating more efficient claims management.
Kenya Re’s asset base expanded by 15 per cent, from Sh57.45 billion to Sh65.98 billion.
Shareholders’ funds also saw an 18 per cent rise, to Sh48.17 billion from Sh40.9 billion in the previous year. Reflecting this robust performance, the dividend per share increased by 50 per cent, from Sh0.2 in 2022 to Sh0.3 in 2023.
Looking ahead, Kenya Re says it aims to modernize its reinsurance services, cater to new risks, and strengthen its capital and liquidity. The company remains committed to customer responsiveness, innovation, and fostering a progressive corporate culture.
These results align with the new International Financial Reporting Standard (IFRS 17), which mandates comprehensive disclosure of insurance obligations.
