The public reinsurance company Kenya Reinsurance Corporation (Kenya Re) has reported a significant decrease in results for the year ending December 31, 2025. The group posted a net profit after taxes of $25.6 million, down by 26.9% compared to 2024, in a context marked by the deterioration of the technical performance of its insurance activities.
Total insurance revenues declined by 9.6% year-on-year to $111.9 million. After deducting reinsurance commissions, net insurance revenues amounted to $82.1 million, a decrease of 12.3%.
Pressure on technical profitability has significantly increased. Insurance service expenses rose by 20.5% to reach $76.8 million, while net expenses related to reinsurance contracts saw a sharp increase. As a result, the insurance segment swung into the red with a loss of $4.75 million, compared to a profit of $24.4 million a year earlier.
Investments soften the blow
In the face of deteriorating underwriting, investment performance acted as a buffer. Net investment income increased by 46.1% to reach $48.3 million.
This increase is mainly explained by improved gains on financial assets, the growth of contributions from associated companies, and a significant reduction in exchange losses.
Overall, the combined result of insurance and investment activities amounts to $41.5 million, a decrease of 20.1%.
Rising operating expenses have intensified pressure on margins. Pre-tax profit stands at $31.5 million, down by 28.9%. After taxes, net profit amounts to $25.6 million, confirming a contraction of 26.9% for the year.
Despite the decline in profitability, Kenya Re’s balance sheet strength continues to strengthen.
Total assets increased by 6.9% to exceed $528 million by the end of 2025, while equity rose by 7.8% to reach $405.6 million, supported by the positive evolution of fair value reserves.
These results illustrate a mixed year for the Kenyan reinsurer, marked by significant pressure on technical activities, partially offset by the strong performance of financial revenues.
