HomeAboutTech & BusinessLIFESTYLEPhotography/FashionPOETRY Tech & Business Kenya Re announces Financial Results for Financial Year 2016. April 10, 2017
Kenya Re announced positive financial results for financial year 2016. This was attributed by continuous review and implementation of their corporate strategy which enabled them to achieve the positive results amidst the fiercely competitive and dynamic reinsurance business environment in Africa, Middle East and Asia.
The profit before tax for the year 2016 stood at 4.2 billion. In the year 2016, 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 Kshs. 3.04 Billion to Kshs.3.08 billion. Net claims dropped by 6% from Kshs. 7.1 Billion in 2015 to Kshs. 6.6 Billion in 2016. Operating expenses however grew by 39% due to forex losses incurred from foreign markets, this included, unrealized losses from the Southern Sudan market owing to the hyper inflation experienced in the country.
The corporation’s investment portfolio grew to Kshs. 28.28 Billion in 2016 up from Kshs. 27.06 Billion in 2015. The asset base increased from Kshs. 35.95 Billion in 2015 to Kshs. 38.49 Billion in 2016, a 7% growth. Shareholders funds increased from Kshs. 21.93 Billion in 2015 to Kshs. 24.13 Billion in 2016, a 10% growth.
Its performance was aided by;
Focusing on efficient internal processesInnovation and developmentOffering new covers to their clientsAggressive marketing in key markets.Consistency in service deliveryStrong partnerships with the Kenyan insurance Industry
The Challenges Experienced were;
Slow economic growth around the worldIncreased competitionPremium undercutting and consequent slowed market expansionSetting up of national reinsurance companies in some marketsCapping of interest rates in Kenya
In response to these challenges, the corporation has put in place a five year strategic plan to cover 2017-2021.
The objectives include,
Financial performanceBusiness process improvementBusiness developmentrisk managementPeople and Culture
Kenya Re has come up with a new statement of purpose, new vision and new mission for the corporation.
STATEMENT OF PURPOSE : SEAMLESS STABILITY
VISION : GLOBAL PARTNER SECURING THE FUTURE
MISSION : PROVIDE RISK MANAGEMENT SOLUTIONS THAT SECURE THE FUTURE AND CREATE VALUE FOR STAKEHOLDERS
The corporations willingness and responsiveness to satisfy market needs contributed significantly to the 2016 financial results. It is cognizant of the emerging reinsurance needs in Kenya and the continent as a whole and the continuous requirement to address those needs effectively.
The Managing Director of Kenya Reinsurance Corporation, Mr Jadiah Mwarania said, “we are committed to constantly reinvent themselves to meet stakeholders and market requirements for purposes of achieving sustainable growth and profitability in years to come. We will continuously endevour top seek to provide unique service offerings to their customers. Our Zambia subsidiary was incorporated last in 2016 and began operations in November. Now we have a fully operational office with all the key staff. This was proceeded by the first ever TAKAFUL and RETAKAFUL conference in Kenya which was organized in Nairobi. It attracted delegates from Sudan, Malaysia and Uganda. We partnered with the Alhuda Centre of Islamic Banking and Economics(CIBE) and INCEIF Malaysia to bring together experts and players in TAKAFUL and RETAKAFUL from across the globe. The conference theme was ” Synergy of TAKAFUL and RETAKAFUL to Create Awareness” and involved various delegates deliberating on Takaful framework in Africa and how Retakaful plays a role in increasing Takaful market share. It also addressed the challenges of Retakaful in Africa and the prerequisites for its growth and development. It made clear that takaful products are for both Muslim and non Muslim populations.”
Kenya Re has a quality management system in place; The ISO 9001:2008 under which they were re-certified in 2016. They are in the process of adopting the new ISO 9001:2015 standard this year while adopting an information security management system (ISMS) ISO certification, the ISO 27001 standard. Both processes are hinged on ensuring that Kenya Re service delivers aspects are bench marked against global based practice.
The corporation risk management maturity index has grown from 5% in 2012 to 73% in 2016. This growth is a result of continued strengthening of risk management frameworks and control environment. Among other things , to this end, they have put in place an independent actuarial department, internal audit department and risk management department.
Their brand equity index has been on a steady rise. In the year 2012 it stood at 48% and rose to 62% in 2013, 70% in 2014, 75% in December 2015 and 87% as at December 2016. This has been as a result of increased and continuous visibility of the corporation, enhanced visibility of the corporation, enhanced publicity,their Niko Fiti Corporate Social Responsibility Initiative, market presence an strong financial performance.
Kenya Re recognizes technological advancements as the backbone of businesses today. As a result, they completed the full implemented and integrated Enterprise Resource Planning (ERP) in 2016. This is a robust platform for integration of their internal operations. The corporation is now implementing a new reinsurance system that is aimed at improving controls, eliminating manual interfaces, consolidating business applications and enhancing data integrity among other benefits. They believe this system will improve their service delivery and enhance efficiency and effectiveness of their business processes.
The corporation fully appreciates that its greatest resource is the human capital,competent and loyal human resource is the driver of other factors of production fro the corporation. It therefore continues to invest in human capital development through training, performance management, active succession planning and professional development among other things.
Kenya Re’s major arm for achieving objective in giving back to the society is their CSR initiative in the area of disability. The Niko Fiti ability beyond disability campaign, Good Corporate Citizenship is one of the corporations six core values.
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I am a lover of art and music. A free spirit and thinker who finds life in expressing herself through her writing. Welcome to my subconscious mind.
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