Kenya Reinsurance subscribers can remain confident that the company will provide quality services regardless of a few bumps along the road. According to the company’s half-year results, Kenya Re spent KES 2.7 billion on operating costs, claims, benefits, commissions and other expenses. This is more than half of its total income for the half-year ended June 2012 which stood at KES 4.2 billion.
Judd Murigi, Head of Research at African Alliance said that, regardless of the outflow, the company would continue to meet customer demands based on how well equities have been doing at the Nairobi Securities Exchange.
The company, which has pledged to provide international service standards, paid 39% more claims and policy holder benefits for the six months to June 2012. This was up KES 1.5 billion worth of claims and benefits, as opposed to KES 1.1 billion in 2011. However, it still managed to post a 37% profit since the same period last year.
The insurer, which has maintained a B+ rating over the past 5 years, recently launched an Islamic insurance policy known as Re Takaful. Kenya Re believes that the initiative will ensure its continued success and attract an even larger customer base.
The Africa Trade Insurance Agency has since adopted the move by agreeing to use the Re Takaful policy for imports and exports into Africa and the Middle East.
Kenya Re’s underwriting portfolio covers life, vehicle, fire, theft and personal accident insurance among others. The company has branches in some parts of Africa, the Middle East and Asia. A company report states that Kenya Re intends to expand its reach within the African region in order to increase returns on its assets. It has already launched a West African branch in the Ivory Coast.