CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
Resolution Insurance has announced a 21 percent increase in its total income for the 12 months ended December 31, 2015.
The company’s gross written premiums grew from Sh 2.5 billion to Sh 2.9 billion on the strength of a growing SME and retail portfolio even as total assets went up 37 percent to stand at Sh 6.3 billion from Sh 4.6 billion
“In December last year, the shareholders approved an injection of Kshs 1.1 billion additional capital which is part of Kshs 2.5 billion investment to be completed by the end of the year in order to comply with the Risk-Based Capital requirements by the regulator that takes effect in June 2016,” said Resolution Insurance Group CEO Peter Nduati.
This is the second time that the group will be raising new capital as part of a four-year strategy to move it to the top tier of the industry. The firm raised Sh 1.67 billion (US$ 18.7 million) in November 2014.
Total income increased from Sh 1.4 billion to Sh 1.7 billion on the strength of gross earned premium, commissioned earned, net earned premium and new written premium.
Nduati said that the insurer made significant investments in structures, IT systems and human resource talent in order to support its diversification strategy which also involved increasing branch network from three to 10 in the course of the year.
“These investments had a one-off effect on the bottom line with returns expected in 2016 onwards. The company also made a one-off recognition of excise duty tax on reinsurance commissions of Kshs 136 million and restated the prior year numbers accordingly,” he said.
Consequently, the insurer registered an after tax loss of Sh 246 million against a loss of Sh 140 million posted in 2014.
The insurer forecasts a positive outlook for this year given the expansion of branch network in the counties with a growth plan to grow the business from Sh3 billion to Sh 5 billion and a strategy to attract new consumers to insurance.
Subsequent to LeapFrog Investments acquisition of a majority stake the business has been consolidated to focus on both medical and general insurance with operations in the wider East African region.
LeapFrog Investments is on course to inject Sh 1.1 billion new capital injections to support diversification strategy as a fully-fledged general insurance business. This financing is part of Sh 2.5 billion investment due to be completed by the end of the year.
In November 2014, Resolution Insurance announced a major deal worth Kshs 1.67 billion (US$18.7million) for a majority stake by LeapFrog Investments.