The Kenya Reinsurance Corporation (Kenya Re) has today reported a profit after Tax of KES3.62B for the year ended 31 December 2022, representing a 15% growth compared to 2021 full year results of KES3.16B.
The Corporation’s gross written premiums grew by 23% to stand at KES24.98B while net earned premiums of KES22.15B grew by 16% compared to last year’s KES19.04B.
The commendable performance is largely driven by the Reinsurer’s continued improvement in the reinsurance portfolio, enhancing customer-centricity, intensified market engagements to improve visibility, diversification of the portfolios and markets, speedy processing of fully supported claims, inculcating positive culture to support service delivery, enhanced partnership with cedants and intermediaries and market development and segmentation.
Total revenues went up 15% to KES26.68B, supported by growth in investment income and gross premiums written. Additionally Kenya Re’s five-year business strategy has continued to reap dividends with non-funded income expanding and reinforced by strong growth from fire and engineering classes of business.
Speaking about the financial results, Kenya Re’s Board Chairman Catherine Kimura said: “We are pleased to announce this improved financial performance. It is a testament of continued resilience in the face of risks in our operating environment, caused by local and international events, such as the general elections, drought, and post Covid-19 economic impact.”
Acting Managing Director Michael Mbeshi said: “These results are a clear demonstration of our remarkable success in executing our five-year strategic plan, where we outperformed’ our expectations in all the core measures. We have significantly scaled our business via strategic investments in new business lines and innovation with the key focus being Kenya and key countries with East, Southern and Northern Africa setting the stage for the next phase of our strategy.”
The financial year under review has been momentous for the reinsurer in scaling its innovation and digital business, with close to 21% of all claims settled through our digitized process. “Looking ahead, I am confident that we are well placed to expand our business footprint, scale our reinsurance products in markets attractive for investment and make strategic steps to outperform the industry via unique product offerings,“ adds Mr Mbeshi.
Other highlights include:
Efficiency
The Reinsurer’s statutory operating expenses decreased by 16% majorly driven by the decrease in foreign exchange losses, decrease in amortization cost of non-tangible assets and a decrease in corporate and other sundry expenses thus leading to a cost-to-income ratio of 83% freeing up capital for reinvestment and future growth.
Capital & Liquidity
The Reinsurance capital and liquidity ratios remain robust with sufficient headroom above the regulatory requirements. Total capital adequacy ratio closed the year at 875% and liquidity reserve position at 731% against regulatory limits of 200%.
Outlook
Having played a critical role in reinsurance for more than five decades, the Corporation has curated new strategic aspirations in which it aims to become a modern – day business that is holistic in reinsurance services and inclusive to people and businesses alike.
The new strategic horizon necessitates the application of Kenya Re’s competitive advantages in different markets across the continent. In the space of new risks, the management is keen to build a resilient business with strong capital and liquidity, improved customer responsiveness, innovation, and an progressive culture for colleagues.
Nation Building
Anchored on the purpose of Seamless Stability, Kenya Re has also revitalised its flagship Corporate Social Responsibility pillars – Niko Fiti – which has touched and transformed the lives of over 12,000 persons with disability (PWD). Last year, the Reinsurer impacted more than 600 persons with disability with mobility and assistance across Busia and Kwale counties.
This campaign has built on a foundation for inclusivity of persons with disability (PWD) to nation building activities.