Reinsurance company Kenya Re posted a 66% decline in half-year profit for the period that ended on 30th June 2021 despite a 6% growth in gross written premiums. The company’s annual net profit dropped to KSh533.7 million on 30th June this year, from KSh1.57 billion in June last year, as claims and benefits, and other expenses grew sharply during the period under review.
Its gross written premiums rose to KSh9.6 billion on 30th June 2021 from KSh9.1 billion in June 2020. Net earned premiums grew by 0.3% to KSh8.69 billion from KSh8.66 billion.
Kenya Re booked KSh6.5 billion in gross claims and policyholder benefits during the year, up 24% from KSh5.2 billion in the previous financial year. Operating and other expenses jumped to KSh1.1 billion at the end of June this year from KSh 957 million a year ago.
Its total assets climbed to KSh54.2 billion from KSh53.2 billion the previous year, while liabilities increased to KSh19.2 billion from KSh18.8 billion.
Kenya Re is one of the largest and oldest reinsurance companies in Eastern and Central Africa. It provides reinsurance services to more than 265 insurers in Africa, Middle East and Asia.