NAIROBI, Kenya, Mar 30- Kenya Reinsurance Corporation (Kenya Re) has signed 12 new deals with multinational companies bringing to 26 companies the businesses under its cover in the African region.
Among the major deals include reinsurance covers of 30 percent of both Tropical Re and ZB Re of Zimbabwe, 10 percent of SOGEAR Burundi and 7.5 – 10 percent of Madison insurance company of Zambia.
Other new reinsurance contracts include 20 percent cover for Cooperative Insurance services (CIS) of Egypt and 15 percent of MGEN Tanzania.
Kenya Re has also signed up with Namibia Re, Islamic insurance company ltd of Sudan, and Phoenix Insurance Company Ltd in Tanzania, Rwanda and Uganda, SCR of Morocco, Leads of Nigeria and Shiekhan Insurance which commands 60 percent of the market share in Sudan.
“The move is part of Kenya Re’s wider business strategy that aims at helping the corporation to consolidate its market share and ensure high profit margins,” said the firm’s General Manager in charge of Reinsurance Operations Jadiah Mwarania.
The reinsurer has also increased its retrocession share in the insurance treaties of 13 of the 43 insurance companies operating in the country.
Meanwhile the company is forecasting a Sh3.5 billion growth for 2008 compared to Sh3.2 billion for the same period in 2007.
“The Company’s aggressive marketing and acquisition of new businesses in the region paid off last year resulting in impressive financial results,” a statement from Kenya RE indicated.
“To sustain profitability and growth, the company is keen on aggressive marketing to penetrate new markets and increase the existing market share, prudent underwriting, analyzing the business and scaling down in loss making regions (Asia and Middle East).”
The company’s financial year comes to an end in March with the reinsurer expected to announce its results in a month’s time.
Last year, Kenya Re invested Sh163 million in the regional PTA Reinsurance Company (ZEP-RE), a specialised 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.
The corporation has also announced plans to embrace new business opportunities in commercial mortgage financing, and secondary market trading in bonds.
Under the new deal, Kenya Re will be helping the general public to purchase already developed houses by financing 80 percent of the deal.