Kenya Re-Insurance Corporation Limited reported a 10% decline in after-tax profits for the first half of 2024, totaling KSh 1.06 billion, down from KSh 1.17 billion during the same period in 2023.
The company's financial performance for the six months ending June 30, 2024, shows a 20% increase in insurance revenue, rising to KSh 10.3 billion from KSh 8.6 billion in June 2023.
However, insurance service expenses also increased by 8%, reaching KSh 9.5 billion, up from KSh 8.8 billion a year earlier. Despite these expenses, the net insurance service result improved significantly, moving from a loss of KSh 210.6 million in June 2023 to a technical profit of KSh 606.7 million in June 2024, a 388% increase.
Investment income also saw a rise, growing by 24% to KSh 2.7 billion in June 2024, compared to KSh 2.1 billion in the previous year. Operating expenses increased by 8%, from KSh 931.9 million in June 2023 to KSh 1.01 billion in June 2024.
As a result, the company’s profit before tax decreased by 10% to KSh 1.51 billion, down from KSh 1.67 billion in the prior year. This decline was largely attributed to foreign exchange losses of KSh 800.3 million in June 2024, a reversal from the foreign exchange gains of KSh 561.9 million reported in June 2023.
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Kenya Re’s asset base experienced a slight decrease of 0.5%, dropping to KSh 65.68 billion as of June 2024, compared to KSh 65.9 billion in December 2023.
Meanwhile, shareholders’ funds increased by 1.5%, reaching KSh 48.9 billion as of June 2024, up from KSh 48.2 billion in December 2023.
Key financial ratios for the period included a capital adequacy ratio of 875%, unchanged from the previous year, a combined ratio of 94%, down from 102%, and an expense ratio of 10%, slightly lower than the 11% reported in June 2023.
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