Kenya Reinsurance Corporation Limited (Kenya Re)

Founded in December 1970, Kenya Re is the oldest reinsurance company in East Africa. Endowed with 225 million USD in shareholders’ equity and a turnover of nearly 130 million USD by the end of 2014, the company is overwhelmingly dominating reinsurance at the regional level. Its outsiders Zep Re, East Africa Re and Tan Re are lagging far behind.

After a period of uncertainty, Kenya Re has in recent years managed to exhibit positive results in steady growth.
Over the past five years, the premiums, the net result and the shareholders' equity have been increasing from year to year. From 2010 to 2014, premiums went twofold while non life management expenses rose from 14.5% in 2010 to 8.7% in 2014.

Coupled with a loss ratio maintained within acceptable standards, these management fees sharply down yielded a combined ratio of 66.3% in 2013 and 68.3% in 2014. The dream for many reinsurers would be to settle with a combined ratio of 95%.

This command over the fundamentals of reinsurance allows Kenya Re to adopt a more aggressive development strategy. The company is no longer focused solely on East African markets. With the establishment of its subsidiary in Abidjan, it has opened to French-speaking Africa, pending further similar initiatives.

Nelius Kariuki	Jadiah Mwarania
Chairman of the board	Managing director

Main technical highlights: 2010 - 2014

in thousands USD

	2010	2011	2012	2013	2014
Gross written premiums	63 805	79 102	92 788	113 331	129 932
Written premiums net of reinsurance	60 219	74 726	88 299	108 127	123 997
Net earned premiums	54 749	68 587	82 394	100 837	115 820
Non life net earned premiums	47 161	58 364	71 833	89 139	104 428
Life net earned premiums	7 588	10 223	10 561	11 698	11 392
Net incurred losses	26 222	35 160	47 439	55 497	66 903
Non life net incurred losses	22 052	30 007	44 493	50 601	62 271
Life net incurred losses	4 170	5 153	2 946	4 896	4 632
Life and non life management expenses	8 945	9 246	12 663	11 924	12 271
Net non life loss ratio	46.8%	51.4%	61.9%	56.8%	59.6%
Non life expenses ratio(1)	14.5%	12.1%	14.1%	9.5%	8.7%
Non life combined ratio	61.3%	63.5%	76%	66.3%	68.3%
Net result	19 745	22 898	32 726	32 811	35 230

⁽¹⁾ non life expenses ratio = non life management expenses / non life gross written premiums

Evolution of premiums, losses and results: 2010-2014

in thousands USD

Turnover’s breakdown per class of business: 2010-2014

in thousands USD

	2010	2011	2012	2013	2014	2014 shares
Motor	4 220	4 770	4 721	5 433	5 611	4.3%
Property damage (1)	35 293	41 070	44 746	51 245	56 511	43.5%
Marine (2)	5 188	6 213	6 152	7 859	7 026	5.4%
Health	-	5 641	13 129	17 036	19 202	14.8%
Personal accident	6 104	4 608	6 169	9 392	20 251	15.6%
Third party liability	600	933	975	1 420	1 182	0.9%
Miscellaneous accident (3)	3 508	4 113	4 602	8 140	7 684	5.9%
Total non life	54 913	67 348	80 494	100 525	117 467	90.4%
Life	8 892	11 754	12 294	12 806	12 465	9.6%
Grand total	63 805	79 102	92 788	113 331	129 932	100%

Turnover’s breakdown per class of business in 2014

⁽¹⁾ including fire, engineering and theft classes of business
⁽²⁾ including aviation
⁽³⁾ including workmen’s compensation

Non life net earned premiums: 2010-2014

in thousands USD

	2010	2011	2012	2013	2014
Motor	4 001	4 438	4 696	5 160	5 443
Property damage (1)	30 130	35 780	40 669	45 733	48 521
Marine (2)	4 103	5 225	5 826	7 120	7 040
Health	-	3 384	10 081	15 505	18 034
Personal accident	4 762	5 045	5 502	8 118	15 741
Third party liability	635	784	949	1 244	1 253
Miscellaneous accident (3)	3 530	3 708	4 110	6 259	8 396
Grand total	47 161	58 364	71 833	89 139	104 428

⁽¹⁾ including fire, engineering and theft classes of business
⁽²⁾ including aviation
⁽³⁾ including workmen’s compensation

Non life net incurred losses: 2010-2014

in thousands USD

	2010	2011	2012	2013	2014
Motor	- 3 544	1 736	3 793	3 353	3 873
Property damage (1)	17 556	17 997	20 525	20 080	22 949
Marine (2)	2 439	2 265	2 739	2 764	4 359
Health	-	3 029	10 787	14 890	15 117
Personal accident	4 184	4 321	5 306	6 339	13 756
Third party liability	103	- 101	338	324	- 44
Miscellaneous accident (3)	1 314	760	1 005	2 851	2 261
Grand total	22 052	30 007	44 493	50 601	62 271

⁽¹⁾ including fire, engineering and theft classes of business
⁽²⁾ including aviation
⁽³⁾ including workmen’s compensation

Non life loss ratio: 2010-2014

in thousands USD

	2010	2011	2012	2013	2014
Motor	88.6%	39.1%	80.8%	65%	71.2%
Property damage (1)	58.3%	50.3%	50.5%	43.9%	47.3%
Marine (2)	59.4%	43.3%	47%	38.8%	61.9%
Health	-	89.5%	107%	96%	83.8%
Personal accident	87.9%	85.6%	96.5%	78.1%	87.4%
Third party liability	16.2%	12.9%	35.6%	26%	3.5%
Miscellaneous accident (3)	37.2%	20.5%	24.5%	45.5%	26.9%
Grand total	46.8%	51.4%	61.9%	56.8%	59.6%

⁽¹⁾ including fire, engineering and theft classes of business
⁽²⁾ including aviation
⁽³⁾ including workmen’s compensation

Evolution of non life ratios: 2010-2014

Figures extract from the different balance sheets of Kenya Re

Exchange rate KES/TND as at 31/12	2010	2011	2012	2013	2014
	0.01281	0.01196	0.01168	0.01175	0.01123