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CIC Insurance group H1 2012 Results
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FUNKY
#1 Posted : Thursday, August 30, 2012 9:49:07 AM
Rank: Veteran

Joined: 4/30/2010
Posts: 1,635
Profits down 17 percent due to one off listing at the NSE bourse costs!!

http://af.reuters.com/ar...ws/idAFL6E8JU13J20120830
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StatMeister
#2 Posted : Thursday, August 30, 2012 10:09:32 AM
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Joined: 5/23/2010
Posts: 868
Location: La Islas Galápagos
Some optimist want to by 500k shares at 1.00
A bad day fishing is better than a good day at work
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mwekez@ji
#3 Posted : Thursday, August 30, 2012 10:52:56 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Net claims and policyholders benefits (an expense) jumped by a whopping 61% while earned premiums (an income) grew by 32%. The insurance business is growing by reducing profit margins/underwriting profits.
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Ericsson
#4 Posted : Thursday, August 30, 2012 11:00:07 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
If you look at the results and profits before exceptional items compared to last year it shows that the profits grew by ksh.14 million.
The company also needs to be active in the stock market to increase the returns and not solely rely on government securities with interest rates now falling.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#5 Posted : Thursday, August 30, 2012 11:12:34 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
@Ericsson, agreed. Government securities are low risk, low return investments. CIC needs to pick some quoted and unquoted stocks. If they cant stomach stock market risk, they need do real estate big time. Otherwise, a growing insurance company cannot rely on the underwriting profits and government securities. They need to make better use of the float.
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maka
#6 Posted : Thursday, August 30, 2012 11:56:18 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
mwekez@ji wrote:
@Ericsson, agreed. Government securities are low risk, low return investments. CIC needs to pick some quoted and unquoted stocks. If they cant stomach stock market risk, they need do real estate big time. Otherwise, a growing insurance company cannot rely on the underwriting profits and government securities. They need to make better use of the float.

I tend to disagree if played well bonds give an oppurtunity for some nice returns especially as interest falls...stocks on the other hand are a high risk though also have the element of high return...they should pick some mid-term maturity bonds and trade them when the rates are low kabisa...thats where we are heading.
Late 2010 early 2011 a ten year bond was trading at 2%...
possunt quia posse videntur
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mwekez@ji
#7 Posted : Thursday, August 30, 2012 12:00:35 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
maka wrote:
mwekez@ji wrote:
@Ericsson, agreed. Government securities are low risk, low return investments. CIC needs to pick some quoted and unquoted stocks. If they cant stomach stock market risk, they need do real estate big time. Otherwise, a growing insurance company cannot rely on the underwriting profits and government securities. They need to make better use of the float.

I tend to disagree if played well bonds give an oppurtunity for some nice returns especially as interest falls...stocks on the other hand are a high risk though also have the element of high return...they should pick some mid-term maturity bonds and trade them when the rates are low kabisa...thats where we are heading.
Late 2010 early 2011 a ten year bond was trading at 2%...


I dont understand what you are disagreeing.

FACT: Stock and Real Estate returns beat Bills/Bonds returns BIG time! Bills/Bond are for the lazy/risk averse investors so they equally get low returns!
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mwekez@ji
#8 Posted : Thursday, August 30, 2012 12:02:11 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
NAV KES 2.07
Trailing EPS 0.27

At yesterday’s VWAP of KES 3.90
P/B 1.88 (most expensive in the industry; industry average 1.3)
P/E 14.44 (most expensive in the industry; industry average 4.4)
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StatMeister
#9 Posted : Thursday, August 30, 2012 12:29:00 PM
Rank: Veteran

Joined: 5/23/2010
Posts: 868
Location: La Islas Galápagos
mwekez@ji wrote:
NAV KES 2.07
Trailing EPS 0.27

At yesterday’s VWAP of KES 3.90
P/B 1.88 (most expensive in the industry; industry average 1.3)
P/E 14.44 (most expensive in the industry; industry average 4.4)


If you exclude CIC from industry, should you get a comparative industry average of 4.0 or thereabouts?

That makes it 3.6 costlier than other insurers.
A bad day fishing is better than a good day at work
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mzalendomoja
#10 Posted : Thursday, August 30, 2012 12:40:13 PM
Rank: New-farer

Joined: 7/17/2012
Posts: 14
Better prospects expected in H2.
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