the deal wrote:The Kenyan Insurance sector is marked by fraud,intense competition and pathetic margins imagine covering a Matatu...without the income from investment no insurance would survive thats why you see this wild swings between profitability-it all depends on the NSE and how it performs...my quick analysis of CIC tells me that its combined ratio is way too high and i think to say they will repeat last years perfomance is a lie...no insurer will repeat their 2010 perfomance...well that does not mean the share price wont go to 200 bob coz price involves many things i.e sentiment
From their annual report:
Net Earned Premiums 3.46B
Investment Income 235Million
That disqualifies your statement above.Also,why do you compare Net Premiums Earned with Total claims,commissions payable & operating expenses without including Investment Income,Commissions Earned & Other Gains?
Even if they made zero investment income, they would still make a PBT of more than 369M considering that their costs would also go down if they didn't invest.
Formally employed people often live their employers' dream & forget about their own.