NAIROBI, Kenya, Aug 10 – Kenya Reinsurance Corporation’s (Kenya Re) first-half net profit rose 37 percent to Sh1.2 billion, driven by growth in gross written premiums and investment income.
Kenya Re Managing Director Jadiah Mwarania said the company’s profit growth was also supported by market diversification, regional expansion and domestication of its Life Business.
“We acquired quite a bit of new business both in the Kenya market and the other markets we operate in Africa, the Middle East and Asia. We saw increased shares and increase in rental incomes, maintaining high occupancy in our buildings up to 98 percent,” he said.
The insurer’s gross premiums rose to Sh3.36 billion from Sh2.74 billion in the same period in 2011, while investment income was up 40 percent to Sh979.4 million.
Earnings per share rose by 36 percent to Sh1.92 from Sh1.41.
Total assets increased by 10 percent from Sh19 billion in December 2011 to Sh21 billion in June 2012.
Mwarania added that the company was also looking to venture in the country’s budding oil and gas sector.
“Oil and gas insurance and re-insurance is very intricate. The entire market can participate in it, which will include drillings and installations of pipelines. We have already started training in underwriting for the sector,” he said.
The insurer is eyeing Southern Africa as the next region to set up shop following the launch of its newest branch in Abidjan, Ivory Coast in March of this year.
It is also in the process of forming a Sharia advisory board to handle its plans to re-insure Islamic business.