Kenya Re chief executive Jadiah Mwarania. The reinsurer has posted a 24.19 per cent drop in net profit in the half year ended June. PHOTO | FILE | NMG Kenya Reinsurance Corporation (Kenya Re) has posted a 24.19 per cent drop in net profit in the half year ended June weighed down by a decline in its gross written premiums.
Kenya Re’s net profit stood at Sh1.22 billion in the period compared with Sh1.62 billion the year before.
Its net earned premiums reduced 10.12 per cent to Sh6.37 billion during the period under review.
This came as its international business, which contributes 40 per cent of the firm’s reinsurance premiums, took a hit.
“Gross premiums written declined by 16 per cent for the six months period ended 30 June 2018 from Sh7.5 billion to Sh6.33 billion,” said the Nairobi Securities Exchange-listed firm in a statement.
“This is due to overall loss of business across key markets including Ghana, Nigeria, India, Ethiopia and Nepal due to domestication.”
160 insurance companies
Kenya Re, which offers covers to more than 160 insurance companies spread out in over 45 countries in Africa, Middle East and Asia, is eyeing new markets across the globe in the face of stiffening competition.
Kenya Re draws most of its gross premiums from the local market where it will continue to enjoy mandatory cession of 20 per cent until 2020.
The guaranteed cessions to the company are backed by the government which owns 60 per cent of the reinsurer, with the remaining shares held by the investing public at the Nairobi bourse.
The re-insurer was in March this year in the eye of a storm after it sent home Chief executive officer Jadiah Mwarania and replaced him with Mr Michael Mbeshi, the reinsurer’s property management general manager, in an acting capacity.Mr Mwarania who went to court to protest the sacking has since been re-instated by the Employment and Labour Relations Court with Kenya-Re appealing the decision. No resistance Mr Mwarania reported back in office last month without any resistance from the board, which had sacked him.The judge ordered the reinstatement of Mr Mwarania and directed full payment f