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Kenya Re Insurance Undervalued
Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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guru267 wrote:Layman wrote:.....this share is headed to Eveready levels, today at 8.60 per share .... am scared. What exactly is wrong in this counter.... Substandard management.. Heavy GOK control.. Also warren buffet loves insurance but hates re insurance Erm, who says? In fact, BH is one of the world's largest reinsurers! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:guru267 wrote:Layman wrote:.....this share is headed to Eveready levels, today at 8.60 per share .... am scared. What exactly is wrong in this counter.... Substandard management.. Heavy GOK control.. Also warren buffet loves insurance but hates re insurance Erm, who says? In fact, BH is one of the world's largest reinsurers! My bad!! It was hearsay..  Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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guru267 wrote:VituVingiSana wrote:guru267 wrote:Layman wrote:.....this share is headed to Eveready levels, today at 8.60 per share .... am scared. What exactly is wrong in this counter.... Substandard management.. Heavy GOK control.. Also warren buffet loves insurance but hates re insurance Erm, who says? In fact, BH is one of the world's largest reinsurers! My bad!! It was hearsay.. http://en.wikipedia.org/wiki/General_Re
BH subsidiary What was the other 'fact' you put out then asked me to provide the rebuttal? Don't be a QW...!  Google is your friend!  As for KenRe... I am not a fan coz I do not trust the management as much as Jubilee but at a lower price I would consider buying KenRe... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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@guru http://lmgtfy.com/?q=ber...ire+hathaway+reinsuranceGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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This share is definitely undervalued with sustainable earnings streams although it will never shoot the lights out in terms of growth.
However, as long as G.o.K continues to have a majority stake, the share price will not achieve its potential and will continue stagnating or even drop further. The drop in the DPS from Kshs 0.50 to 0.35 was the final nail in the coffin for most investors.
In my view, it can only be rescued by a strategic investor and I cannot see any on the horrizon. MORE IS THE PITY!
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:guru267 wrote:Layman wrote:.....this share is headed to Eveready levels, today at 8.60 per share .... am scared. What exactly is wrong in this counter.... Substandard management.. Heavy GOK control.. Also warren buffet loves insurance but hates re insurance Erm, who says? In fact, BH is one of the world's largest reinsurers! My bad!! It was hearsay.. http://en.wikipedia.org/wiki/General_Re
BH subsidiary What was the other 'fact' you put out then asked me to provide the rebuttal? Don't be a QW...! Google is your friend! As for KenRe... I am not a fan coz I do not trust the management as much as Jubilee but at a lower price I would consider buying KenRe... The management might be suspicious but looking at how the company has performed over the yrs I admire the management in that they have recorded a steady growth on all sectors.the reduction of the dividend payout was as a result of the new insurance act that restrict companies on the amount they should pay as dividends. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Kenya Re is a darkhorse never rule it out completely but I agree with what @Selah has said...in 2010 this guys investment income was up a dismal 56% in fact of all insurers on the NSE Kenya Re is the only one that makes money from its core business and it can withstand an NSE downturn..now with a great management team this company can go places...but the risks remain like in any business I.e what @Selah has written above.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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selah wrote:the reduction of the dividend payout was as a result of the new insurance act that restrict companies on the amount they should pay as dividends. @selah where is this information located?? Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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selah wrote:The management might be suspicious but looking at how the company has performed over the yrs I admire the management in that they have recorded a steady growth on all sectors.the reduction of the dividend payout was as a result of the new insurance act that restrict companies on the amount they should pay as dividends. What exactly was the change in the insurance act? Please provide the actual change or even better a link to support this.
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Rank: Member Joined: 9/21/2006 Posts: 422 Location: Nairobi
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....there has been no such change in the insurance act.
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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I have the insurance act but I have not gone through it yet to quote the exact article. The MD had a press conference just b4 the AGM and gave that as a reason for the reduced Dividend. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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Wacha ma-storos @thedeal KenRe is 'favoured' & gets concessions (by law) from all insurance firms in Kenya. If it had to compete with EA-Re [Jubilee is a shareholder] it would be in trouble! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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@VVS, agreed that KenRe has some concessions that other reinsurers do not. But by the same token they also suffer from being controlled by the Government e.g. having a substandard B.o.D, being saddled with "phantom" properties etc. In my view it would be better not to enjoy the concessions if KenRe could escape from the yoke of the G.o.K. BTW, Only 40% of KenRe's business was local in 2010 with 60% coming from outside Kenya (source - KNRE AGM). FYI, Jubilee is no longer a shareholder in EA-Re. It is controlled by First Chartered Securities. VituVingiSana wrote:Wacha ma-storos @thedeal
KenRe is 'favoured' & gets concessions (by law) from all insurance firms in Kenya. If it had to compete with EA-Re [Jubilee is a shareholder] it would be in trouble!
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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selah wrote:I have the insurance act but I have not gone through it yet to quote the exact article.
The MD had a press conference just b4 the AGM and gave that as a reason for the reduced Dividend. I am not sure that this was the real reason. At the AGM the MD was put to task on this over and over again. His response was that the dividend policy is that KNRE should pay a certain percentage of profits after adjusting for FV gains from revaluation of investment properties and gains from revaluation of financial assets i.e. cash profits.
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Rank: Member Joined: 9/21/2006 Posts: 422 Location: Nairobi
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selah wrote:I have the insurance act but I have not gone through it yet to quote the exact article.
The MD had a press conference just b4 the AGM and gave that as a reason for the reduced Dividend. .....and you bought the story....ha ha haaaaa, that was very clever of him to deceive ignorant shareholders.......like you.
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Rank: New-farer Joined: 8/23/2010 Posts: 63 Location: Kampala
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guru267 wrote:Layman wrote:.....this share is headed to Eveready levels, today at 8.60 per share .... am scared. What exactly is wrong in this counter.... Substandard management.. Heavy GOK control.. Also warren buffet loves insurance but hates re insurance Munich re...interestingly, he bought at 123 and its averaging 109-100 after Tsunami, guess what, he's still buying!
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Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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msimon wrote:guru267 wrote:Layman wrote:.....this share is headed to Eveready levels, today at 8.60 per share .... am scared. What exactly is wrong in this counter.... Substandard management.. Heavy GOK control.. Also warren buffet loves insurance but hates re insurance Munich re...interestingly, he bought at 123 and its averaging 109-100 after Tsunami, guess what, he's still buying! Long-term buyer so he loves buying at a discount but also discount the unforseen loss in Japan. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/21/2006 Posts: 422 Location: Nairobi
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@ below 8 bob, things are thick here!
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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Dead as a dodo...yet fundamentals real good.
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