According to Kenya Reinsurance Corporation’s financial reports, the reinsurance business in Kenya has remained elevated despite the current economic slowdown, which has affected many sectors of the economy. The sector’s revenue grew by 12.2% to Kes 309.8 billion in the financial year 2022 from Kes 276.1 billion registered in 2021.
Read more: Kenya Reinsurance Corporation Announces Kshs 3.6 billion Net Profit
The managing director of the reinsurance corporation in Kenya, Dr. Wachinga, said that despite continued economic shocks such as the tightening of the monetary policy by the central bank to ease inflation, increased oil prices, and other global shocks, revenue expansion in the sector is expected to continue, supported by GDP growth, technological innovation, a well-established regulatory framework, and product diversification. Data from the Association of Kenyan Insurers (AKI) shows that the reinsurance business from five regulated reinsurance companies looks promising, manifesting the same for the future of the overall reinsurance sector in the country.
Read more: Insurance Companies Continue To Showcase Resilience
The data shows that the aforementioned reinsurers recorded audited net premium income of Kes 2.57 billion in the last financial year, and related gross loss stood at 108.8%, equivalent to Kes 2.80 billion, with the management expense ratio registering a 37.1% equivalent to Kes 955 million. Group Life, one of the reinsurers, recorded the bulk of this performance at 94.7% of the sector’s portfolio.
Read more: GCR Rates Insurance Companies in Kenya with a Stable Outlook
The main business of insurance firms is risk distribution as well as management, with surplus funds from clients’ premiums being invested in varied investment options. The money that the insured gives as premium payments is invested by the insurance company in areas such as real estate, placements in commercial banks, government securities, and dividend-paying stocks, which helps the company generate revenue.
Email your news TIPS to editor@thesharpdaily.com
