Shares of Pan Africa Insurance hit a new all year high on Thursday after the insurer, one of Kenya’s largest said that it will increase its dividend payout for the period ended December last year by 50 per cent.

The counter hit a high of Ksh48.50 ($0.55) from Ksh45 ($0.51) on Wednesday at the Nairobi Securities Exchange (NSE).

The company said that it will pay Ksh3 ($0.03) in dividend for the period ended December 2012 compared to Ksh2 ($0.02) paid for a similar period in 2011 after its profitability rose on account of an increase in its core business and an upturn of the stock exchange that saw its investments rise in in value.

“Our life business delivered positive results on the back of new business acquisitions in the corporate business and improved performance by investments in the life business,” said Pan Africa Insurance in a statement.

Profit after tax rose by almost 14 times to Ksh322.81 million ($3.68 million) as at the end of December 2012 from Ksh23.16 million ($272,300) in December 2011 on account of fair value gains and increased insurance premiums.

Pan Africa Insurance said its gross written premiums rose by 49 per cent to Ksh5.44 billion ($63.03 million) compared to Ksh3.64 billion ($22.05 million) written the previous year.

Its net claims however rose by almost three times to Ksh5.52 billion ($63.03 million) compared to Ksh1.87 billion ($22.05 million) over the same period.

The company also recorded fair value gains of Ksh879.86 million ($10.04 million) for the period ended December last year compared to fair value losses of Ksh895.66 million ($10.52 million) for the same period in 2011.

“Our focus this year will be to implement our alternative business distribution strategy initiated last year through partnerships with various stakeholders in the microfinance sector and mobile telephony,” said the insurer in the statement, adding that infrastructure development on its Runda Phase 3 project began this month.

The insurer will pay the dividend on July 1 this year for shareholders who will be on the register on May 17 subject to shareholders approval during the company’s annual general meeting whose date will be announced later.