NAIROBI, May 28- Kenya Reinsurance Corporation (Kenya Re) Wednesday announced a Sh163 million investment in the regional PTA Reinsurance Company.,
Kenya Re Managing Director Eunice Mbogo said the move was part of a wider investment strategy by the international re-insurer that aims at helping the corporation consolidate its market share in the industry and ensure high profit margins this financial year.
She noted that PTA Reinsurance Company (ZEP-RE) is a specialized institution of the Common Market for Eastern and Southern (COMESA) established to service and develop the needs of the insurance and reinsurance industry within the Sub-Region.
“In our last year’s financial results, Sh68 million of the profits we announced was from PTA Re. We will in future consider increasing our current stake in PTA Re from the current 22 to 30 percent,” Mbogo revealed.
The investment strategy would also see the corporation embrace new business opportunities in commercial mortgage financing, and secondary market trading in bonds.
Kenya Re, she added, was also set to dispose off its idle and low yielding assets for instance the Mombasa Plaza, which is being sold at Sh190 million.
The corporation will also give up some office space to attract rental income.
Mbogo said the corporation was also looking for a partner to develop a transit hotel at the Jomo Kenyatta International Airport (JKIA) before the end of 2008.
Kenya Re has already allocated land for the purpose and currently reaching out to potential partners to set up the facility.
“We believe there is a dire need for a transit hotel at JKIA. The facility will not only give service to our people and tourists but will also earn us some revenue,” she said.
Mbogo further revealed that the venture into French-speaking countries in West Africa was on course and that the corporation had set aside Sh10 million for the same.
Kenya Re is already in the process of setting up a liaison office to spearhead its business interests.