The reinsurance company Kenya Re’s net profits for the first half of 2019 dipped by 12 percent to KSh1.08 billion from KSh1.23 billion in 2018. The reinsurer blames high claims for the dip.
Kenya Re’s gross premiums jumped up by 40 percent to KSh8.86 billion compared to KSh6.33 billion booked in the first half of 2018. Similarly, its claims went up by 47 percent to KSh5.3 billion from KSh3.6 billion.
Kenya Re is 60 percent owned by the government of Kenya. The company collects most of its revenues from local insurers due to the regulation that mandates insurers to cede 20 percent of the reinsurance business to the listed Kenya Re.
The company covers over 160 insurance firms operating in Africa, Asia, and Middle East. According to Kenya Re’s CEO Jadiah Mwarania, they are working to reach new markets throughout the world. The decision follows the tightening competition in the reinsurance sector particularly in foreign markets.
Kenya Re is preparing to give bonus shares to its investors this month. Shareholders who bought their shares before 14th June 2019 will receive three shares for every stock held.
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