Kenya Reinsurance Company (Kenya Re) is gearing up for a major expansion of its life reinsurance business, targeting a remarkable 50% growth in premiums within the next year. This ambitious projection follows the firm’s launch of a dedicated international life reinsurance unit, designed to cater to long-term clients across Africa, the Middle East, and Asia.
The move marks a strategic pivot for Kenya Re, which has primarily focused on general reinsurance for decades. By venturing into the international life reinsurance space, the firm seeks to capitalize on the rising demand for life coverage in emerging markets. Kenya Re Managing Director Hillary Wachinga highlighted the significant growth potential, noting that markets across Africa, Asia, and Latin America are witnessing a surge in life insurance penetration.
“We have been receiving numerous requests for life reinsurance from our existing general reinsurance clients,” Wachinga said. “With the demand rising fast in almost all our key markets, we are confident this new unit will help us boost our revenue from life reinsurance by 50% within the first year.”
As of December 2023, revenue from Kenya Re’s long-term business, including individual and group life reinsurance, stood at Ksh2.58 billion, representing only 15.2% of its total revenue of Ksh19.57 billion. This underscored the firm’s heavy reliance on short-term and general reinsurance services.
Kenya Re’s new strategy involves deepening its footprint in international markets where life reinsurance is rapidly gaining traction. Until now, its life business presence outside Kenya has been limited to a small operation in Côte d’Ivoire. The company aims to broaden this reach significantly through its new unit.
With a 60% ownership by the Kenyan government, Kenya Re currently serves over 80 markets worldwide, supported by its head office in Nairobi and subsidiaries in Côte d’Ivoire, Zambia, and Uganda. The firm’s expansion into life reinsurance signals its commitment to diversifying revenue streams and strengthening its position as a leading player in the global reinsurance industry.
