Listed underwriter Kenya Reinsurance Corporation recorded a KSh 1.6 Billion net profit for the half-year period ended 30th June 2020. This is compared to KSh 1.1 Billion posted in the same period last year.
Its life business grew 17% from KSh 776 Million in 2019 to KSh 909 Million, Fire business expanded to KSh 2.6 Billion underwritten premiums from KSh 1.5 Billion-a 71% increase, while non-life business premiums increased by 2% from KSh 8 Billion to KSh 8.2 billion in the half-year period ending 30th June 2020.
The COVID-19 pandemic affected its business, causing a slight decline in investment income from KSh 2 billion the six months of 2019 to KSh 1.9 Billion at the end of June this year.
Gross Premiums rose to KSh 9.1 Billion in June 2020 compared to KSh 8.9 Billion in the half-year period of 2019. These amounts were made up of KSh 8.2 Billion in short-term business and KSh 909.7 Million in long term business.
Net Claims incurred as well as policyholders benefit by the Corporation increased from KSh 4.9 Billion to KSh 5.1 Billion during the period under review.
Kenya Re’s Balance Sheet size grew from KSh 50.4 Billion as at end of June 2019 to KSh 53.3 Billion at the close of the first six months of this year, an increase of 6%. The reinsurer realised a pre-tax profit of KSh 2.1 Billion from KSh 1.4 Billion at the end of six months period in 2019.
Shareholders’ equity rose to KSh 33 Billion from KSh 31.9 Billion in 2019.
Listed on the Main Investment Segment at the Nairobi bourse, Kenya Re provides reinsurance and risk management solutions services to insurance companies and most classes of business in Kenya, Africa, the Middle East and Asia.
Outside the core business of offering reinsurance services to the market, Kenya Re has a significant property portfolio.
These properties comprise office building and land acquired for the development of office property and housing projects for rental or capital appreciation.