Kenya Reinsurance Corporation Limited is eyeing the establishment of a retakaful subsidiary in Egypt, according to a report on Business Daily Africa.
The Nairobi-based reinsurer started its retakaful window in 2013 against the backdrop of a growing Muslim population in Kenya, it says on its website. Its retakaful business also falls under its strategy to enter new markets in Africa, Middle East and Asia.
The state-controlled company boosted its capital last year, selling additional shares that quadrupled its base from 1.75 billion Shillings to 6.99 billion Shillings, according to the report.
Business Daily Africa quoted Kenya Re managing director Jadiah Mwarania as saying that increasing the capital base was necessary to access some markets.
The report said the reinsurer did feasibility studies for Sudan and Nigeria but will be giving priority to Egypt. It also operates in Uganda, Ivory Coast and Zambia.
The move into Egypt will help increase the company’s retakaful premiums beyond the 1 billion Shillings registered last year, said the news agency.
State-run Kenya News Agency reported in October last year that Kenya Re was looking to develop and penetrate new markets and expand its existing base in order to increase market share, spread business risks and increase return on shareholders’ funds.
The reinsurer’s gross written premiums reached 14.84 billion Shillings ($144.85 million) in 2018, almost flat from 14.83 billion Shillings in 2017. Net profit dropped 36% from 3.577 billion Shillings to 2.278 billion Shillings, according to its latest available annual report.
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