World / East Africa
Monday, 30 May 2016 08:57 EATnewsdesk@kenyafreepress.com
The PTA Reinsurance Company, better known as ZEP-RE, recorded a net profit of Sh1.99 billion (USD19.9 million) despite the harsh economic environment in 2015.
Speaking at the Company’s 25th Annual General Meeting in Mombasa, ZEP-RE’s board chairman William Erio said 2015 started off well but the negative pressures like slowdown in China, fall in global commodity prices, uncertainty in the Eurozone and strengthening of US dollar turned the economic environment on its head
“The year 2015 started with great promise but intervening negative pressures namely a slowdown in China (a key trading partner of the COMESA region), a fall in global commodity prices, uncertainty in the Eurozone (due to the Greek debt crisis) and a strengthening dollar turned the economic environment on its head,” he said.
Erio said the global economic situation negatively impacted economies of the region resulting in slowdowns, reduced consumption and a weakening of local currencies against the dollar.
Apart from the economic slowdown, the company had to deal with the effects of two major earthquakes in Nepal, one of its major markets, which resulted in gross losses which amounted to Ksh2.3 billion (USD23 million) while net retained losses stood at Sh400 million (USD 4 million).
“The fact that ZEP-RE withstood such a catastrophe is testament to the Company’s strong financial position and a versatile risk management system that includes an effective reinsurance programme,” the chairman added.
Commenting on the company’s performance, the Secretary General of the Common Market for Eastern and Southern Africa (COMESA), Sindiso Ngwenya said the company had remained true to its developmental role as outlined in its founding objectives.
“I am happy to note that ZEP-RE’s performance is attracting investors from within and outside the African continent. This can only bode well for the company and its growth goals,” Ngwenya said.
Jack is a business and society writer at the Kenya Free Press