JKIA Fire Compensation Eats All of APA Insurance Profits

November 19, 2013

The insurer and reinsurer that covered Jomo Kenyatta International Airport prior to the big fire are finding it hard to come to terms with the total amount they have to part with as compensation.

Kenya Reinsurance managing director Jadiah Mwarania says that compensation for the airport fire will wipe out all the profit expected this year by JKIA insurer and reinsurer.

“If the opinion of JKIA’s arrivals terminal damage cost is correct, the insurers and reinsurers will have to settle it as a direct payoff of the profits they would have made, which is estimated to be in the region of Sh 2.5 billion.”  Said Mwarania.

APA insurance which is Kenya Airport Authority insurer, recorded a pre tax profit of Sh 309 million in 2012. Kenya RE on the other hand recorded a first half pre tax profit of Sh 1.6 billion.

The payoff will therefore leave both APA and Kenya Re with almost zero profits this year.

© nairobiwire.com
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