Kenya Re willing to extend further globally
Kenya Reinsurance is willing to expand its business area and conquer new markets. The objective is to increase its revenues which are threatened by local and international competition. The target markets are mainly North Africa, the Middle East and Asia. New regional offices could also be opened in existing countries.
The creation of State-owned reinsurance companies in several countries such as Uganda, Ethiopia, Zimbabwe and Ghana has affected the activity of the kenyan reinsurer. The establishment of new regional offices will help to increase the company’s proximity and improve its competitiveness. The diversification of the reinsurance offer is also a solution that the company intends to consider.
The latest results reported by Kenya Re show a significant decline in premiums and net income. The latter dropped by 24.19% in the first half of 2018, while gross premiums weny from 1.62 billion KES (15.89 million USD) to 1.22 billion KES (12.17 million USD) one year later. The company’s net premiums also decreased during the same period (-10.12%).
Kenya Re will continue to benefit in Kenya, its main market, from of a legal cession of 20% up to 2020. As a reminder, the Kenyan government controls 60% of the company’s capital, the rest of the shares is listed on the Nairobi Securities Exchange.