Kenya Re Posts Sh3.1 Billion Net Profit (allAfrica.com)

KENYA Reinsurance has reported a 12 per cent increase in net profit to Sh3.1 billion last year despite a 26 percent growth in claims.
The reinsurer said net incurred claims rose by 26 per cent to Sh5.96 billion due to “severity rather than frequency of claims.”
The company was part of the list of reinsurers exposed to the Jomo Kenyatta International Airport fire claim. While the incident occurred in August 2013, the Sh1.97 billion payout to Kenya Airports Authority was completed in April 2014, by the underwriter APA Insurance.
Kenya Re which has some clients in Asia, also had substantial claims arising from floods caused by a typhoon in Malaysia.
The company’s gross written premiums increased by 20 per cent to Sh11.5 billion from Sh9.6 billion in 2013.
“Aggressive marketing was undertaken in selected markets across the African continent, Middle East and Asia which led to the acquisition of new business and maintenance of existing treaty and facultative reinsurance business in both life and non life portfolios,” said Kenya Re managing director Jadiah Mwaraniah.
Higher income from rent and fixed income assets earned the corporation 26 per cent more invest income to Sh2.59 billion from Sh2.27 billion.
Kenya Re said plans are underway to set up an office in Lusaka, Zambia as its Southern African hub for Zimbabwe, Botswana, Lesotho, Namibia, Mozambique and Swaziland operations.
Source: Business