Kenya Reinsurance Corporation reported a 42.8% rise in profit after tax to KSh2.3 billion ($17.8 million) for the six months ended June, helped by higher insurance revenue and a sharp improvement in underwriting performance.

The state-linked reinsurer’s profit increased from KSh1.6 billion in the same period a year earlier, according to its half-year results released on Friday.

The Kenya Re results 2026 showed total insurance revenue rose 14% to KSh9.4 billion from KSh8.3 billion a year earlier, while the insurance service result, which reflects the profitability of insurance activities, jumped 342% to KSh1.3 billion from KSh320 million.

Kenya Re said the stronger performance was driven by growth in insurance revenue, improved underwriting outcomes and favourable net insurance finance results.

Underwriting performance was the main contributor to the improvement, with the insurance service result more than quadrupling during the period.

The company attributed the increase to its underwriting discipline and risk selection strategy, which it said helped improve the quality and profitability of its insurance portfolio.

Operating expenses rose 22% to KSh800 million from KSh600 million, according to the Kenya Re results 2026. The company said the increase was primarily associated with business expansion and growth initiatives.

Despite the higher costs, Kenya Re said expenses remained within manageable levels relative to the growth in revenue and profitability.

The reinsurer also reported a stronger balance sheet during the period. Total assets increased 3% to KSh74.7 billion from KSh72 billion at the end of June 2025.

Shareholders’ funds rose 6% to KSh57.6 billion from KSh54.5 billion, strengthening the company’s capital position, Kenya Re said.

The growth in capital and assets would support the corporation’s capacity to serve cedants, absorb risks and pursue opportunities across its markets, the company said.

“This significant growth reflects the quality of our underwriting portfolio, the strength of our regional operations, and the dedication of our employees,” Group Managing Director Hillary Wachinga said in a statement accompanying the Kenya Re results 2026.

Wachinga said the company would focus on strengthening its market leadership, expanding its regional diversification and positioning the corporation for long-term growth as the insurance industry evolves.

Kenya Re has been pursuing regional expansion as part of its long-term investment strategy, seeking to capture insurance and reinsurance opportunities across Africa and selected international markets.

The corporation currently has three wholly owned subsidiaries in Uganda, Zambia and Cote d’Ivoire in West Africa, according to the statement.

The regional strategy gives Kenya Re exposure to markets beyond its domestic operations while supporting its broader diversification objectives.

The company’s half-year performance comes as insurers and reinsurers continue to balance revenue growth with underwriting profitability, capital requirements and operating costs.

For Kenya Re, the sharp improvement in its insurance service result was significantly larger than the increase in operating expenses, supporting the rise in overall profit during the six months.

The Kenya Re results 2026 also showed that the company’s balance sheet remained relatively stable alongside the improvement in earnings. Total assets increased by KSh2.7 billion year-on-year, while shareholders’ funds increased by KSh3.1 billion.

Kenya Re is one of Africa’s reinsurance companies, providing reinsurance capacity to insurance businesses in Kenya and other markets. Reinsurers provide insurance to insurers, allowing primary insurers to transfer part of the risks they have assumed from their customers.