Kenya Reinsurance Corporation (Kenya Re) posted a 42.8 percent jump in net profit to Sh2.25 billion in the six months to June, lifted by stronger underwriting performance which offset a decline in investment income.
The reinsurer’s net earnings rose from Sh1.6 billion recorded in the same period last year as it benefited from growth in insurance revenue and improved risk selection.
Insurance revenue increased by 14 percent to Sh9.4 billion from Sh8.3 billion, reflecting growth in the corporation’s business during the period.
The biggest improvement was recorded in the insurance service, a key measure of underwriting performance, which more than quadrupled to Sh1.25 billion from Sh302.98 million a year earlier.
The increase in insurance service result points to an improvement in the profitability of Kenya Re’s core business, helping cushion the impact of a 3.2 percent fall in investment income to Sh2.62 billion from Sh2.71 billion during the period.
Kenya Re Group Managing Director, Hillary Wachinga, said the results show the quality of the corporation’s underwriting portfolio.
‘This reflects the quality of our underwriting portfolio, the strength of our regional operations and the dedication of employees,’ he said.
‘We remain focused on strengthening our market leadership, deepening regional diversification and positioning the corporation for long-term growth in an evolving insurance landscape.’
Kenya Re told shareholders during the AGM on June 19, 2026 that it had stepped up the fight against fraud through measures like checking detailed lists of policies and claims for treaties with loss ratios above 30 percent.
It also implemented stringent underwriting controls and treaty wording revisions like the sunset clause and limitations on commercial vehicles as well as riding on historical claims data and AI-based claims processing tools to guide renewals.
During the period under review, operating expenses increased by 22 percent to Sh800 million from Sh600 million.
The company is seeking to deepen its presence outside Kenya as part of a strategy to diversify sources of business and earnings.
Kenya Re has three wholly owned subsidiaries in Uganda, Zambia and Côte d’Ivoire, giving it a presence in East, southern and West Africa.
It has set aside Sh1.5 billion for setting up a subsidiary in Tanzania, a branch office in India’s Gujarat International Finance Tec (Gift) City and a liaison office in Rwanda.
The company’s improved first-half performance comes as insurers and reinsurers continue to navigate changing risk patterns and investment market conditions, increasing the importance of underwriting discipline in protecting earnings.
Kenya’s insurance industry has witnessed increased claims, which have cut underwriting profits of several companies that have published their half-year results.
There has also been pressure on investment earnings due to lower returns on asset classes such as government securities, which are the most popular investment among insurers.