Kenya Re-insurance has reported a full-year net profit of KSh2.94 billion for the year 2020, down from KSh3.966 billion in 2019, after requesting the Capital Markets Authority (CMA) for more time to release its financial results.
On 11th May 2021, Kenya Re released a public statement saying it would delay publishing its results due to changes in the actuarial valuation method in relation to unearned premium reserves and claims reserves.
The company, which is the oldest reinsurance firm in Eastern and Central Africa, reported net earned premiums amounting to KSh20.85 billion at the end of 2020, an improvement from KSh15.53 billion posted at the end of 2019. Net claims and benefits paid out by the company also went up in the period under review to KSh13.5 billion compared to KSh11 billion a year earlier.
In 2020, Kenya Re managed to cut operating expenses by 4% to KSh1.96 billion from KSh2.04 billion the previous year.
The firm’s asset base grew to KSh53.24 billion at the end of 2020 from KSh50.36 billion in 2019.
AM Best, a US-based credit rating agency, recently issued Kenya Re a Financial Strength Rating (FSR) of B (Fair) with a stable outlook. The American company argued that Kenya Re has a very strong balance sheet, adequate operating performance and a neutral business profile.
Kenya Reinsurance provides reinsurance services to companies in Africa and Asia. Its largest market is in Kenya where it benefits from a 20% compulsory cession from local insurers.
The company’s board of directors recommend a dividend payment of KSh0.20 per share for the year 2020.
Also Read: Kenya Re Delays Release of Earnings Due to Change in Valuation Method
