Kenya Re chief executive Jadiah Mwarania. The reinsurer has posted a
24.19 per cent drop in net profit in the half year ended June. PHOTO |
FILE | NMG
Kenya Reinsurance Corporation (Kenya Re) #ticker:KNRE has posted
a 24.19 per cent drop in net profit in the half year ended June weighed
down by a decline in its gross written premiums.
Kenya Re’s net profit stood at Sh1.22 billion in the period compared with Sh1.62 billion the year before.
Its net earned premiums reduced 10.12 per cent to Sh6.37 billion during the period under review.
This came as its international business, which contributes 40 per cent of the firm’s reinsurance premiums, took a hit.
“Gross
premiums written declined by 16 per cent for the six months period
ended 30 June 2018 from Sh7.5 billion to Sh6.33 billion,” said the
Nairobi Securities Exchange-listed firm in a statement.
“This
is due to overall loss of business across key markets including Ghana,
Nigeria, India, Ethiopia and Nepal due to domestication.”
160 insurance companies
Kenya
Re, which offers covers to more than 160 insurance companies spread out
in over 45 countries in Africa, Middle East and Asia, is eyeing new
markets across the globe in the face of stiffening competition.
Kenya
Re draws most of its gross premiums from the local market where it will
continue to enjoy mandatory cession of 20 per cent until 2020.
The
guaranteed cessions to the company are backed by the government which
owns 60 per cent of the reinsurer, with the remaining shares held by the
investing public at the Nairobi bourse.
The re-insurer
was in March this year in the eye of a storm after it sent home Chief
executive officer Jadiah Mwarania and replaced him with Mr Michael
Mbeshi, the reinsurer’s property management general manager, in an
acting capacity.
Mr Mwarania who went to court to
protest the sacking has since been re-instated by the Employment and
Labour Relations Court with Kenya-Re appealing the decision.
No resistance
Mr Mwarania reported back in office last month without any resistance from the board, which had sacked him.
The judge ordered the reinstatement of Mr Mwarania and directed full payment f
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