Christine Kagendo 
- Kenya Re posts 53% increase in Profit Before Tax of Kshs 7.03 Billion in 2023
Performance highlights:
- 2023 Profit before tax in 2023 stood at KShs 7.03 billion, a 53%rise from KShs 4.59 billion in 2022
- Total comprehensive income stood at KShs 7.7 billion in 2023 from KShs 3.9 billion in 2022
- Net Investment and insurance results increased by 42%to Kshs 8.19 billion in 2023 from Kshs 5.78 billion in 2022
- Insurance service expenses decreased by 18%from Kshs 22.32 billion in 2022 to Kshs 18.21 billion in 2023
- The asset base increased by 15%from KShs 57.45 billion in 2022 to KShs 65.98 billion in 2023.
- The Shareholders funds increased by18% from KShs 40.9 billion in 2022 to KShs 48.17 billion in 2023
- The dividend per share increased by 50% from 0.2 per share in 2022 to 0.3 per share in 2023.
Publicly listed Kenya Reinsurance Corporation (Kenya Re) has announced a profit before tax of Ksh 7.03 billion, being a 53% rise compared to last year’s Ksh 4.59 billion. Net investment and insurance result rose from Kshs 5.78 billion realised in 2022, being a 42 percent hike to stand at Kshs 8.19 billion revealing the company’s investment drive to attract new business across Africa, Middle East and Asia. The good performance was attributed to:
- Prudent underwriting (practices for both premium and claims).
- Diversification in strategic regions and product lines.
- Favourable macro – economic environment and product investment decisions.
This announcement conforms with the new International Financial Reporting Standard (IFRS17) that requires all reinsurance and insurance companies to make full disclosures of their obligations (insurance contracts) as opposed to the previous standard, IFRS 4 that recognises premiums paid as profits.
The Corporation incurred claims and other insurance service expenses arising from insurance contracts now referred to as insurance service expenses, which decreased by 18 percent from Kshs 22.32 billion in 2022 to Kshs 18.21 billion in 2023. This was mainly due to a reduction in the claims outstanding and claims paid in the year due to prudent underwriting and claims management.
Further, its asset base increased by 15 percent from KShs 57.45 billion in 2022 to KShs 65.98 billion in 2023 while its shareholder’s funds increased by 18 percent from KShs 40.9 billion in 2022 to KShs 48.17 billion in 2023. The increase in the asset base was mainly attributable to the increase in investment in associate by KShs 2billion, Increase in government securities by Kshs 1.1 billion and increase in deposits with financial institutions by Kshs 4.35 billion.
The growth in the shareholders funds was as a result of increase in the retained earnings by KShs 4 billion and increase in the translation reserves by KShs 3 billion.
Group Managing Director, Dr Hillary Maina Wachinga said that Kenya Re’s strategic focus during the next financial year will revolve around customer centricity leveraging technology to enhance operational efficiency, expanding footprint in emerging markets, and deepening the commitment to conduct sustainable business practices.
The financial year under review saw the formation and activation of Kenya Re Academy, a platform for training and sharpening the skills of young insurance professionals on emerging trends in the sector.
During the past year, the listed reinsurer also opened Kenya Re Uganda offices which enhances Kenya Re’s capacity to tap into new reinsurance and investment-related businesses in Uganda and the region.
“As part of our growth trajectory, we are exploring innovative risk management solutions and product offerings to cater to the evolving client as well as the use of technology in enhancing customer satisfaction and relationships,” adds Dr Wachinga.
Other highlights include:
Outlook
Having played a critical role in reinsurance for more than five decades, the Corporation has curated new strategic aspirations in which it aims to become a modern – day business that is holistic in reinsurance services and inclusive to people and businesses alike.
The new strategic horizon necessitates the application of Kenya Re’s competitive advantages in different markets across the continent. In the space of new risks, the management is keen to build a resilient business with strong capital and liquidity, improved customer responsiveness, innovation, and a progressive culture for colleagues.
Nation Building
Anchored on the purpose of ‘’Seamless Stability’’, Kenya Re has also revitalised its flagship Corporate Social Responsibility pillars – Niko Fiti – which has touched and transformed the lives of over 9,500 persons with disability (PWD). Last year, the Reinsurer impacted more than 1,000 persons living with disability with mobility and assistance across Uasin Gishu, Trans Nzoia and Nyeri counties.
In partnership with Affecto Foundation, Kenya Re contributed funds towards the disbursement of education scholarships, purchase of school uniforms and textbooks for needy secondary school students.
