The Kenya Reinsurance Corporation (Kenya Re) has reported a net profit of Ksh. 3.62 Billion for the year ended 31 December 2022, representing a 15% growth as compared to 2021 full year results of KSH. 3.16B.
The rise in profitability was on the back of a 15% rise in the total revenues to KSH. 26.68 Billion, supported by growth in investment income and gross premiums written. Additionally Kenya Re’s five-year business strategy has continued to reap dividends with non-funded income expanding and reinforced by strong growth from fire and engineering classes of business. The Corporation’s gross written premiums grew by 23% to stand at KES24.98B while net earned premiums of KES22.15B grew by 16% compared to last year’s KES19.04B.
On the other hand, operating expenses decreased by 16% to Ksh. 1.5 Billion majorly driven by the decrease in foreign exchange losses, decrease in amortization cost of non-tangible assets and a decrease in corporate and other sundry expenses thus leading to a cost-to-income ratio of 83% freeing up capital for reinvestment and future growth.
The commendable performance is largely driven by the Reinsurer’s continued improvement in the reinsurance portfolio, enhancing customer-centricity, intensified market engagements to improve visibility, diversification of the portfolios and markets, speedy processing of fully supported claims, inculcating positive culture to support service delivery, enhanced partnership with cedants and intermediaries and market development and segmentation.
Kenya Re’s Board Chairman Catherine Kimura said: “We are pleased to announce this improved financial performance. It is a testament of continued resilience in the face of risks in our operating environment, caused by local and international events, such as the general elections, drought, and post Covid-19 economic impact.”
Acting Managing Director Michael Mbeshi said: “These results are a clear demonstration of our remarkable success in executing our five-year strategic plan, where we outperformed’ our expectations in all the core measures. We have significantly scaled our business via strategic investments in new business lines and innovation with the key focus being Kenya and key countries with East, Southern and Northern Africa setting the stage for the next phase of our strategy. Looking ahead, I am confident that we are well placed to expand our business footprint, scale our reinsurance products in markets attractive for investment and make strategic steps to outperform the industry via unique product offerings.“