NAIROBI, Kenya- In an exciting turn for Kenya Reinsurance Corporation (Kenya Re), shareholders have given a thumbs up to a record Sh0.30 per share dividend, totaling Sh839.9 million.
This represents a substantial 50 percent increase from the previous year’s Sh0.2 per share, highlighting the company’s impressive financial performance in 2023.
Kenya Re’s financial success is evident in its recent performance, posting a 44.6 percent surge in profit after tax to Sh4.9 billion for the year ended December 2023, up from Sh3.5 billion in 2022.
This remarkable growth is largely attributed to a significant increase in investment income, which rose from Sh4.6 billion to Sh6.5 billion.
This rise was driven by higher interest revenue, which climbed from Sh2.9 billion to Sh3.6 billion.
The overall net investment and insurance result also grew by 42 percent, reaching Sh8.19 billion from Sh5.78 billion the previous year.
Kenya Re’s strategic business decisions played a crucial role in this financial upswing.
Notably, the company made a deliberate move to scale down on loss-making classes of business, particularly its agricultural and medical insurance segments in India.
This decision was spurred by substantial losses due to adverse weather conditions, such as tropical cyclones, impacting the Indian agricultural sector.
“The corporation’s deliberate move to scale down on loss-making classes of business eg agriculture business from India and medical classes of business,” said Kenya Re.
Kenya Re’s Group Managing Director, Hillary Maina Wachinga, emphasized the company’s strategic withdrawal from the Indian market, which resulted in a Sh2 billion reduction in premiums but ultimately stabilized overall profitability.
Shareholder Benefits and Future Prospects
In addition to the generous dividend payout, shareholders have also approved a bonus share issue, allowing them to receive one additional share for each currently held.
This bonus issue, valued at Sh6.69 billion, reflects Kenya Re’s strong financial health and commitment to rewarding its investors. The listing of these additional shares on the Nairobi Securities Exchange further strengthens the company’s market position.
