Kenya Reinsurance Corporation Limited, commonly known as Kenya Re, is a leading reinsurer in Kenya, with operations extending across Africa, the Middle East, and Asia. Founded in 1970, Kenya Re is the oldest reinsurer in Eastern and Central Africa. The government of Kenya holds a significant majority stake of 60%, while the remaining 40% is publicly traded on the Nairobi Securities Exchange under the ticker symbol KNRE. The company serves over 482 clients in more than 83 countries.
Kenya Re's business model is based on risk transfer and diversification. Bynya Re helps insurers manage significant losses, stabilize their results, and enhance their underwriting capabilities. by allowing direct insurance companies to transfer portions of their risks in exchange for reinsurance premiumsThe company diversifies its risk portfolio across various business lines and geographical regions to mitigate the impact of large claims. Additionally, a substantial part of its revenue is generated from investing the premiums collected before claims are settled, significantly contributing to its overall profitability.
The organization offers a wide range of reinsurance solutions, caegorized into short-term and long-term business lines. Short-term offerings include fire, motor, marine and,ation, engineering, and accident reinsurance. Long-term products encompass individual and group life insurance, as andlth insurance. Furthermore, Kenya Re provides Retakaful services for the Sharia-compliant market and offers advisory and training services to enhance clients' underwriting practices and risk management.
Geographically, Kenya Re primarily focuses on Africa, with Kenya accounting for approximately 48% of its Gross Written Premiums. The company has expanded through subsidiaries in strategic locations such as Côte d'Ivoire, Zambia, and Uganda.
Financially, Kenya Re's recent performance has shown mixed results. In the first half of 2024, net profits decreased by 10% to KSh 1.06 billion, while insurance revenue rose by 20% to KSh 10.3 billion. The net insurance service result has improved significantly, reflecting better underwriting performance. However, the overial foreign exchange losses amounting to KSh 800.3 million. The fi negatively impacted the overall profitrm's solid capital adequacy ratio currently stands at 875%. For the full year 2023, profit before tax was reported at KSh 6.25 billion, a decline from the previous year's KSh 7.03 billion, despite improvements in the insurance service result.
In summary, Kenya Re continues to play a vital role in the insurance sector, demonstrating resilience through strong underwriting practices and strategic investments while navigating challenges related to foreign exchange fluctuations.
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