Kenya Reinsurance Corporation, one of the biggest and oldest reinsurance companies in Eastern and Central Africa, says that it has delayed the release of its full year financial results for the year that ended on 31st December 2020 due to a change in its valuation method.
In a statement to investors, the company said, “The delay occurred due to a change in actuarial valuation methodology, in respect to unearned premium reserves and claims reserves, to an approach recommended by the Insurance Regulatory Authority of Kenya.”
The Capital Markets Authority requires all listed companies to release their audited full-year financial results within four months after the end of the financial year.
Kenya Re’s financial year ended on 31st December 2020 and it was expected to publish audited results by 30th April 2021 as per the CMA guidelines. The company received approval from the Capital Markets Authority to delay publishing its results.
So far, five companies listed on the Nairobi Securities Exchange (NSE) namely, Home Afrika, Crown Paints, EA Cables, WPP Scangroup, and Kenya Re have delayed publishing their results for the year that ended on 31st December 2020. Investors have raised concern about the growing trend of delaying the release of financial results, saying that it erodes investors’ confidence in the NSE.
Kenya Re said that it is making every effort to ensure the results are released before 31st May 2021.