Kenya Re’s share of its associate Zep Re’s profit rose 36.1 percent to Sh551.1 million in December 2022, contributing to the bottom-line of the Nairobi Securities Exchange-listed firm.
Its share of the associate’s profit rose from Sh404.7 million the year before.
Kenya Re said the increased profitability at Zep Re, coupled with release of substantial reserves at the associate, saw the value of its investment in the regional reinsurer rise by Sh1 billion to Sh7.8 billion but without an increase in shareholding.
Kenya Re holds a 20.38 percent interest in Zep-Re which underwrites all classes of life and non-life reinsurance risks.
The NSE-listed firm had invested an extra Sh503.4 million in Zep-Re last year, raising its stake in the associate to 20.38 percent from the previous 19.15 percent.
Zep-Re’s policies include cover for risks in property, casualty, motor vehicle, marine, life, and medical.
Its main market is Kenya where Kenya Re also draws most of its business.
Zep-Re reported a Sh2.1 billion comprehensive income in the year ended 2021 from Sh1.3 billion in the year before, according to its latest available financial statements.
The share of profit declared by Kenya Re indicates that the associate had a higher overall net income in the year ended December 2022.
