Kenya Re half year profit hits Ksh.832 million

Reinsurer Kenya Re has posted a 56 per cent rise in earnings through the first six months of the year to June with net profit hitting Ksh.832 million from Ksh.533.7 million previously.

The rise in the company’s profitability is tied to higher income in the period with revenues growing ahead of costs in the period.

Kenya Re’s total income was up by 10.3 per cent in the cycle at Ksh.11.8 billion compared to Ksh.10.7 billion previously.

The higher income was largely contributed to by greater underwriting with gross premiums written in the six months topping Ksh.11 billion from Ksh.9.6 billion previously.

This to cover a negligible change in investment income which stood at a flat Ksh.1.9 billion in the period.

Meanwhile, the reinsurer’s expenditures were only up by seven per cent with total claims, benefits and other expenses standing at Ksh.10.7 billion from a flat Ksh.10 billion.

Kenya Re’s earnings per share have nevertheless declined to 30 cents per share from Ksh.1.05 on an account of fair value losses not classified into the profit/loss account.

Subsequently, Kenya Re Board of Directors has not recommended the payment of interim dividends for the period.