Kenya Reinsurance Corporation Limited, widely known as Kenya Re, has registered Kshs 1.5 billion profit before tax for the first half of 2024, which represents a 10% drop from the previous year’s results.
The drop was primarily attributed to forex losses amounting to Kshs 0.8 billion for the specified period, according to a statement released by the company. In the first half of 2023, the bank booked forex gains of Kshs 0.56 billion.
Despite the drop in profit, the company’s insurance revenue surged from Ksh 8.6 billion to Kshs 10.3 billion, a 20% increase. Insurance services expenses grew by 8% to Kshs. 9.5 billion in H1 2024 from Kshs. 8.8 billion in H1 2023.
In addition, the reinsurer booked a technical profit of Kshs 0.6 billion in this year’s half compared a loss of Ksh 0.2 billion in June 2023, representing a 388% growth in net service insurance.
Investment income for the specified period rose by 24% from Kshs 2.1 billion to Kshs 2.7 billion. However, its operating expenses shot up by 8% to Kshs 1 billion from the last year’s Kshs 0.9 billion.
The shareholders fund for the period surged to Kshs 48.9 billion from Kshs 48.2 billion. Kenya Re’s Board did not recommend interim dividend payment.
Kenya Reinsurance is the oldest reinsurer not only in Kenya, but across the Eastern and Central Africa. Established in 1971, the company provide reinsurance services for vast classes of business. It serves companies distributed across 83 countries in Africa, Asia and Middle East.
The company, listed at NSE under the stock symbol KNRE, has a market capitalization of 3.53 billion.
