Kenya Reinsurance Corporation, has reported a 50 per cent increase in its dividend per share, rising from Sh0.2 in 2022 to Sh0.3 in 2023.
This growth follows rise in net profits to Sh4.9 billion for the year ending December 2023.
In the period under review, the net investment and insurance result saw a growth of 42 per cent from Sh5.78 billion in 2022 to Sh8.19 billion posted last year.
An improvement that the firm attributed to its efforts to attract new business across Africa, the Middle East, and Asia.
Key performance metrics in the year included an 18 per cent increase in shareholder funds, from Sh40.9 billion in 2022 to Sh48.17 billion in 2023, and a rise in total comprehensive income from Sh3.9 billion in 2022 to Sh7.7 billion in 2023.
Additionally, the asset base expanded by 15 per cent, growing from Sh57.45 billion in 2022 to Sh65.98 billion in 2023.
Group Managing Director, Hillary Maina Wachinga, said that the financial results reflect Kenya Re's commitment to delivering value to its shareholders and maintaining its leadership position in Africa.
“Our total assets increased by 15 per cent, from Sh57 billion to Sh65 billion. Simultaneously, shareholders' value rose by 18 per cent, from Sh40.1 billion to Sh. 48 billion. These results were primarily driven by an improved macroeconomic environment across our key markets in Africa, the Middle East, and Asia, where we source business,” said Wachinga.
He also announced that investors would receive one bonus share for every share held.
The announcement complies with the new International Financial Reporting Standard (IFRS17), which mandates full disclosure of obligations (insurance contracts) by reinsurance and insurance companies, as opposed to the previous IFRS 4 standard that recognized premiums paid as profits.
The increase in the asset base is attributed to a rise in investment in associates by Sh2 billion, government securities by Sh1.1 billion, and deposits with financial institutions by Sh4.35 billion.
The growth in shareholders' funds is due to a Sh4 billion increase in retained earnings and a Sh3 billion increase in translation reserves.