Kenya Reinsurance Rises to One-Week High as Profit Jumps 46%

Kenya Reinsurance Corp. (KNRE) gained the most in a week after saying profit rose 46 percent last year and that it plans to expand in other African nations.

The stock advanced 1.7 percent to 17.75 shillings by the close in Nairobi, with almost four times the three-month daily average volume of shares traded.

Net income climbed to 2.8 billion shillings ($33 million) from 1.92 billion, Managing Director Jadiah Mwarania told reporters today. Investment income jumped 87 percent to 2.65 billion shillings, while gross premiums increased 20 percent to 7.94 billion shillings, he said.

“The growth in investment income was impressive,” Eva Njuguna, a research analyst at Nairobi-based Sterling Capital Ltd., said by phone.

The company plans to expand within Kenya, which has East Africa’s biggest economy, and open offices in southern Africa including Zambia, Zimbabwe, Botswana and Mozambique, Mwarania said.

“We expect our income from property to increase on plans to put up a 1.5 billion-shilling office block in the next two years” in Nairobi, he said.

Kenya Re has climbed 68 percent this year, outpacing the 24 percent advance on the Nairobi Securities Exchange All-Share Index. (NSEASI)

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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