Kenya Reinsurance Corporation Ltd (Kenya Re) has announced a profit after tax of Sh1.2 billion for the half-year period ended June 30 2018, a 24 per cent drop from Sh1.6 billion it posted in a similar period last year.
It blamed the dip on a decline in gross written premiums as well as increased competition in the underwriting business caused by some reinsurers buying shares into insurance companies.
The corporation saw a 16 per cent drop in gross premiums written from Sh7.50 billion to Sh6.33 billion during the period under review, despite recording growth in its investment income which jumped by 14 per cent from Sh1.72 billion in June 2017 to Sh1.94 billion in June 2018.
“In response to these challenges, the corporation has put in place various measures that will see it respond to market needs with focus on product development and increased operations by opening new offices to deal with competition while closely following up on all outstanding returns,” Chairman, David Kemei said.
Kenya Re, he added, will also pursue new markets for its reinsurance and Retakaful businesses with eyes set on northern Africa, Middle East and Asia while increasing its risk appetite in a bid to attain fruitful results in the remaining half year.
Kemei said the reinsurer also aims to focus on new product development so as to be more responsive to market needs.
Managing director Jadiah Mwarania – reinstated last month as the boss after a court order – said the corporation is making steps to set up additional offices to remain ahead of the competition.