Nairobi, KENYA: Kenya Re has announced its 2016 annual financial results where it emerged that profit before tax stood at sh. 4.2 billion .
Announcing the results in Nairobi on Friday ,Kenya Re- managing director Jadiah Mwarania said the net earned premiums grew by 6% from kshs. 12 billion in the year 2015 to kshs.12.6 billion in 2016.
Investment income grew from sh. 3.04 billion to sh. 3.08 billion while net claims dropped by 6% from sh. 7.1 billion in 2015 to sh. 6.6 billion in 2016.
He said operating expenses grew by 39% due to forex losses incurred from foreign markets especially forex losses from the Southern Sudan, due to market owing to the hyper inflation experienced in that country.
Mwarania pointed that shareholders’ funds increased from sh. 21.93 billion in 2015 to sh. 24.13 billion in 2016, which was a 10% growth.
He added that the performance was aided by focusing on efficient internal processes, innovation and development, offering new covers to clients and doing aggressive marketing in key markets.
Even though in 2016 Kenya proposed domestication of marine insurance, Mwarania says the effects of the proposed domestication of marine insurance in 2016 is yet to be fully realized in the insurance industry in Kenya.