Kenya Re has announced a robust financial performance for the year 2023, with gross profit surging by 53% to Sh7.03 billion compared to the previous year, showcasing strong growth buoyed by prudent underwriting and business diversification efforts.
The re-insurer’s profit before tax for the year stood at Sh4.59 billion, underscoring its effective management and operational efficiency.
In its latest financial statement, Kenya Re reported a significant increase in net investment and insurance proceeds to Sh8.19 billion, marking a 42% rise from Sh5.78 billion in 2022. This growth was fueled by the firm’s aggressive investment drive across Africa, the Middle East, and Asia.
Looking ahead, Hillary Maina Wachinga, Group Managing Director of Kenya Re, highlighted the company’s strategic focus on leveraging technology to enhance operational efficiency and expand its footprint in emerging markets.
“As part of our growth trajectory, we are exploring innovative risk management solutions and product offerings to cater to the evolving client needs, while utilizing technology to enhance customer satisfaction and relationships,” said Wachinga.
Kenya Re also reported an 18% decline in claims and other insurance service expenses, totaling Sh18.21 billion, down from Sh22.32 billion in the previous year. This reduction was attributed to prudent underwriting and effective claims management practices.
The company’s asset base grew by 15% to Sh65.98 billion, with shareholder’s funds increasing by 18% to Sh48.17 billion. This growth in asset base and shareholder funds was primarily driven by increased investments in associates, government securities, and deposits with financial institutions.
“The increase in the asset base and shareholders’ funds underscores our commitment to strengthening our financial position and delivering sustainable value to our stakeholders,” Kenya Re stated.
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