KENYA RE SHAREHOLDERS APPROVE KSHS.280 MILLION DIVIDEND PAYOUT

Kenya Reinsurance Corporation Limited (Kenya Re) shareholders have given the nod to a Kshs. 280 million total dividends package for the financial year ended 31st December 2021. This was done during the reinsurer’s 24th Annual General Meeting (AGM) which was conducted virtually.  This year’s AGM was held against the backdrop of London Based rating Company – AM Best, revising the corporation’s outlook of the Long-Term Issuer Credit Rating (Long-Term ICR) to stable from negative and further affirming the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb+” (Fair).

Corrective actions

The outlook of the FSR remained as stable. AM Best attributed the revision of the Long-Term ICR outlook to stable following corrective actions initiated by the  management in 2020, which the firm  expects to lead to more stable underwriting performance. The corrective actions the corporation has taken include the non-renewal of its highly unprofitable crop business originating from the Indian subcontinent, an increased focus on underwriting discipline and a strengthening of credit control procedures.

Speaking after the AGM, Kenya Re board Chairman, Mrs. Jennifer Karina said:  ‘’Today, the shareholders have demonstrated their confidence in the future growth of the company through approving the dividend payout as recommended by the board. We are encouraged that they see a brighter future for the company through a strategic dividend payout.  Despite the uncertainties in 2021, we remain optimistic that 2022 will turn out positively. Going forward, we shall realign our strategies to harness the emerging opportunities. The board remains positive and confident that with strong leadership and committed employees, we are well placed to optimize on the growth opportunities to deliver strong profits in the coming years.”

Strategy

Speaking during the AGM, Mr. Jadiah Mwarania, Kenya Re Managing Director said:  “The business development strategy remained focused on differentiation and profitable growth coupled with appropriate capital allocation to the various classes of business. The corporation’s footprint in 2021 was four hundred and eighty two insurance companies spread out in eighty four countries in Africa, Middle East and Asia. The African markets continue to be the primary focus of the corporation. Kenya was  the biggest single market in the year. A regional approach to service delivery was employed through the corporation’s subsidiaries in Uganda, Zambia and Côte d’Ivoire. We grew both treaty and facultative reinsurance business portfolios across our chosen markets. We pursued new reinsurances and sought to retain the existing business. We grew the business portfolios directly from the ceding companies as well as leveraging partnerships with intermediaries and partners.”

Mr. Mwarania further told the shareholders that the corporation weathered the Covid-19 disruption to register a 10% rise in gross written premiums from Kshs. 18.535 billion in 2020, to Kshs. 20.355 billion in 2021.

The road ahead

Kenya Re will seek to achieve a   strong financial performance through cost efficiency and optimizing resource allocation. Operationalization of the 2022-2026 strategic plan will greatly help the corporation to become more competitive, cost effective and responsive to environmental changes.

Kenya Re currently provides reinsurance security services to more than 482 companies spread out in over 84 countries in Africa, Middle East and Asia in fulfilment of its mandate.  It   is quoted on the Nairobi Securities Exchange, with the Government of Kenya   having a shareholding of 60%, while 40% is held by private investors.