the deal wrote:Aguytrying wrote:the deal wrote:Aguytrying wrote:mkonomtupu wrote:The insurance industry is the last place I would invest. The entire industry 43 companies makes only 7-9 billion in profits compared to the banks 100 billion. There is low penetration with most individuals and companies only buying motor, fire, personal accident and group medical cover. Any insurance company doing group medical cover is just bleeding itself because the claims are huge. The kenya population has a bad attitude towards insurance and the prefer "tunaomba serikali.." plus a bad savings culture.
I had tried to speculate with CFCI/liberty last year until I realized they preferred to keep 3 billion in cash, owed a huge loan to NIC and the MD was talking about investing in real estate when the stock market was down
Ghai. I wish i knew this before i speculated recently. And the chairman is mentioned with the CMC drama.
Investors are always advised not to invest in a business they dont understand.
is that aimed at me? i understand this company and insurance in general.
interesting u respond to this after failing to in so many questions in the cfci rise thread
Not really...I will post a blog on this today...I think its much better that way btwn I hope u didnt sell because of what @Mkono said above?
Guys,
You ought to be bullish for some of the insurance companies over the long haul.
What you dont realize is that the top 3-4 insurance companies are going to be strong power holds over the next 4-5yrs across the region.
Now to consider which compant in particular, look at the historical combined ratio for the past 10 years. Look for those that have had atleast 3/10 years of underwriting profits.
Then consider the performance of the investment portfolio (excluding property). Consider how it has performed over the years with incremental funds. if it has averaged 12%+ then that is ok, the more the better.
Finally, look at the management from the holdings level to the subsidiaries. Look at the reputations of these managers over the years and from othe companies they were in and see how they have performed. That can be an indicator of what to expect over the next 3-5 years.
Finally for the companies that look most attractive, you may consider entering at prices close to or less than book. The premiuim above book should be warrantied..
Since your holding for a long period, buy in bits. Remember the goal is to own as much as you can of these businesses. Diversify among 2-4 at most. And keep buying. If price isnt good, ignore. Remember you dont need to own everything to do well. You will do well.
I dnt know why the SIB guys ignored Jubilee. But that is a great business