Kenya Re's half year results have come in with EPS growing from Kshs 1.65 to 1.71 y/y.

PAT grew from Kshs 1.115B in 2012 to 1.194 in 2013.
Gross Premiums Written were up by 20%, while investment income grew by 25%. However overall operating expenses rose by 34% partly due to what the firm referred to as crystallization of of past taxes amounting to Kshs 82 million.

Steady results in my view but rather disappointing on the back of the huge increase in the PAT for PanAfrica Insurance.

Good performance save for the one off expense.

Here's the summary from Standard Investment Bank...


Kenya Reinsurance Corporation released its 1H13 performance figures, posting a 3.3%y/y rise in PAT. The slower growth was due to a one off expense relating to a tax liability provision as well as the absence of a one off gain on sale of one of its properties recorded in its 1H12 figures. Net earned premium grew 17.50%y/y with management attributing the growth to aggressive marketing of its products within Kenya and its regional business. Management indicated that they intend to turn their representative office in Cote d’ivoire to a subsidiary (and are well capitalized to do so) due to the vast opportunity with in West and North Africa. In addition, in order to better serve their clients within the southern Africa region management plans to open a representative office in either, Zimbabwe, Mozambique, Zambia or Malawi. With increased competition and with the end of mandatory cessations set for 2015, diversification is important for the reinsurer in order to ensure continued growth. Investment income grew 25% y/y driven by the strong performance of the equities market YTD, as well as high yields within long term government bonds. Net claims remained relatively flat though the company faces exposure from the recent fire at the Jommo Kenyatta international Airport which could see claims increase in the second half of the year. Operating expenses grew 34% y/y largely driven by a one off provision of tax liabilities amounting to KES 82m. Profit before tax was up 13%y/y, though because of the end of 20% concessionary rate that the company enjoyed PAT was up only 3.36% (The re-insurer will start paying tax at 30% corporate tax rate). (Company filing, Standard Investment Bank)

The PBT grew to 1.6B from 1.4B(13%) these guys are being economic with the truth as the PAT is 1.193 from 1.154 which is a megre 3.4% Let us wait for this share at 13.50

Those are good result.They managed a profit growth inspite of having a one-off gain last year and increase in taxes.
Splendid results in my view