Financials:Kenya Re declares KES560Mn dividends pay-out,earnings grows 7pc Q12023

Shareholders Earn Ksh 560 million in Dividends Windfall as Kenya Re Records a 7% Rise in Profit Before Tax to stand at Ksh 4.59 billion

FINANCIAL HIGHLIGHTS:

• Gross written premiums up 23% from KES 20.30 billion in 2021 to KES 24.98 billion in 2022.
• Net earned premiums up 16% from KES 19.04 billion in 2021 to KES 22.15 billion in 2022
• Investment income up 2% from KES 3.66 billion in 2021 to KES3.74 billion in 2022C laims incurred up 30% in 2022 to KES 13.87 billion from KES 10.64 billion in 2021Cedant acquisition costs up 17% from KES 5.26 billion in 2021 to KES 6.14 billion in 2022
• Operating expenses down 16% from KES2.10 billion as at 31 December 2021 to KES1.75 billion as at 31st December 2022Profit before tax in 2022 up 7% to KES 4.59 billion from KES 4.27 billion in 2021Asset base up 26% to KES 70.13 billion in 2022 from KES 55.63 billion in 2021.

The Shareholders funds up 10% to KES40.77 billion in 2022 from KES37.10 billion in 2021.

Kenya Reinsurance Corporation(Kenya Re) has declared a Shs.560 million dividend pay-out up 100% from KES 280 million paid out last year.Each shareholder will earn 0.20 dividend per share held up from 0.10 dividend per share paid out a year earlier.This comes after the firm reported a Profit after Tax of KES 3.62 billion for the year ended 31 December 2022, representing a 15% growth compared to 2021 full year results of KES 3.16 billion.

The Corporation attributes its commendable performance to continued improvement in its reinsurance portfolio, enhanced customer-centricity, speedy processing of fully supported claims, positive culture in service delivery, enhanced partnership with cedants as well as intermediaries, market development and segmentation.

Managing Director Dr.Hillary Maina Wachinga adds that 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. “The financial year under review has been momentous for Kenya Re in scaling its innovation and digital business, with close to 21% of all claims settled through our digitised process.”

Profit before tax in 2022 was up 7% to KES 4.59 billion from KES 4.27 billion in 2021 while the asset base went up 26% to KES 70.13 billion in 2022 from KES 55.63 billion in 2021. The shareholders’ funds went up by 10% to KES 40.77 billion in 2022 from KES 37.10 billion in 2021.

Intensified market engagements, diversification of portfolios and markets saw gross written premiums rise by 23% to stand at KES 24.98 billion while net earned premiums of KES 22.15 billion grew by 16% compared to last year’s KES 19.04 billion.

Investment income rose from KES 3.66 billion in 2021 to KES3.74 billion in 2022 while claims incurred were up 30% in 2022 to KES 13.87 billion from KES10.64 billion in 2021 while cedant acquisitions rose 17% to KES 6.14 billion in 2022.

Operating expenses were down 16% from KES2.10 billion as at 31 December 2021 to KES1.75 billion as at 31st December 2022.