Kenya Re had receivables arising from premiums sold amounting to Sh4.6 billion as at June 2017 from Sh3.5 billion a year earlier.
The reinsurer said it had changed its accounting policies to set aside provisions for bad debts on a quarterly basis, unlike previously when it was done annually.
Kenya Re #ticker:KNRE has embarked on an aggressive collection of unpaid premiums as it sets aside Sh104.3 million to cover doubtful debts relating to products sold on credit.
The listed reinsurer had receivables arising from premiums sold amounting to Sh4.6 billion as at June 2017 from Sh3.5 billion a year earlier, a growth of 28.8 per cent.
The reinsurer said it had changed its accounting policies to set aside provisions for bad debts on a quarterly basis, unlike previously when it was done annually.
“Efforts will be put to ensure we collect all unpaid premiums. We have not written them off. We have actually strengthened collections,” said Kenya Re chairman David Kemei.
Provisions for bad debts ate into Kenya Re’s half-year earnings given that they are treated as expenses alongside claims, business acquisition costs, and other operational expenditures.
Half-year after-tax profit stood at Sh1.62 billion compared to Sh1.56 billion a year earlier, a growth of 3.7 per cent. Gross premium grew by 5.75 per cent to Sh7.5 billion.
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