KENYA RE ANNOUNCES 9.0 PCT INCREASE IN NET PROFIT FOR 2017

NAIROBI — Kenya Reinsurance Corporation (Kenya Re) has announced a net profit of 3.5 billion shillings (about 34.78 million US dollars) for 2017, an increase of nine per cent over the previous year, mainly because of growth in the retakaful sector and expansion in regional businesses.

Net claims rose by 14 percent to 7.5 billion shillings on account of the earthquake in Nepal and floods experienced in India, the listed reinsurer sai here Thuirsday. The company has proposed a dividend payout of 85 cents per share.

Kenya Re, which recorded an 8.o percent growth in net premiums to 13.7 billion shillings, attributed this performance to steady growth in retakaful sector and a boost in regional businesses through its expansion into southern African markets like Botswana and Mozambique as well as French-speaking West African countries.

The company also said it increased its investment in low-risk and high-yield government securities from 11 billion shillings in 2016 to 14.5 billion shillings in 2017.

It also warned that currently, it is facing stiff competition from domesticated reinsurers in countries like Ethiopia and Uganda. Going forward, Kenya Re plans to leverage on its five-year strategy to invest in foreign reinsurers in efforts to remain relevant in countries it has operations in.

Source: NAM NEWS NETWORK