Kenya Reinsurance Limited has reported a 10% decline in profit after tax for the first half of 2024, totalling Ksh1.06 billion, down from Ksh1.17 billion during the same period in 2023.

The company’s financial results for the six months ended June 30, 2024 showed a 20% increase in insurance revenue, rising to Ksh10.3 billion from Ksh8.6 billion in June 2023.

However, insurance services expenses also increased by 8% to Ksh 9.5 billion, up from Ksh 8.8 billion the previous year. Despite these expenses, the net insurance services 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, an increase of 388%.

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Investment income also increased 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, compared to Ksh 1.67 billion in the previous year. This decrease was largely due to foreign exchange losses of Ksh 800.3 million in June 2024, which was a reversal of foreign exchange gains of Ksh 561.9 million recorded in June 2023.

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Kenya Re’s asset base saw a slight decline of 0.5%, falling to Ksh65.68 billion as of June 2024, compared to Ksh65.9 billion in December 2023.

Meanwhile, shareholders’ funds increased by 1.5% to Ksh48.9 billion as of June 2024, compared to Ksh48.2 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% recorded in June 2023.

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