They are finally here... Talk about last minute!

www.nation.co.ke/busines...02/-/f81hhe/-/index.html

7bob DPS & no bonus..

No goodies for shareholders to celebrate the 75th anniversary!!nkt

To be honest, I expected better. It is no wonder they delayed in reporting considering that their performance was somewhat lacklustre in comparison to peers.

Lacklustre results. I'm on the sell side and take my 39% gains.

Hakuna bonus! I think they got spooked when last year they announced a higher profit but a lower EPS because of the bonus effect!

The yield on this stock has now fallen from an average of 12% (including bonus) to a meagre 2%

I sense a short term slaughter in the horizon!

Looks like it will fall back to 200 or below levels!!

#FA, Jubilee Insurance FY12 performance comes out below peer >>> Jubilee insurance posts 16.37% rise in FY12 EPS. Jubilee insurance released its FY12 performance figures posting a 16.37% y/y rise in EPS to KES 35. Net earned premium climbed 27.7% to KES 15.4bn. Due to the upturn in the equities market as well as a high interest rate environment, investment income rose 17.3% y/y while fair value changes turned positive to KES 444m (-329m FY11). Claims payable climbed 40% with loss ratio deteriorating significantly to 91% vs. 83% FY11. Jubilee’s loss ratio is higher than our sector average at 63.4% due to the nature of its business. Jubilee primarily writes medical insurance (29% of total premiums) which suffers from high loss ratios due to among other things fraudulent claims. As at 2011, the medical insurance class suffered a loss ratio of 83.8% in the insurance industry vs. a 59% loss ratio for the industry’s short term insurance segment average. Jubilee accounts for 21% of total industry’s medical insurance premiums. Total operating expenses rose 24.82% with underwriting expense ratio declining to 23.51% (vs. 24.58% FY) and acquisition expense ratio flat at 22%. The underwriter proposed a final dividend of KES 6 and had earlier paid an interim of KES 1 bringing total dividend to KES 7 (vs. KES 5 FY11). At its current price Jubilee is trading at PE of 7.36x, PB of 1.94x and dividend yield of 2.63%. (Company filing, Standard Investment Bank)

Here is how I'm looking at the numbers

1. Private Equity didnt perform well despite Bujagali being commissioned.

2. Quoted Investment-performed well. Bounced from a loss position

3. Insurance-performed dismally as indicated by the y/y surge in claims. Change of strategy needed here i.e reduce the medical book. High morbidity rates & fraud makes Medical underwritting bad business.

Overall

Still good company but fundamentals took a knock...At the current price it remains a BUY due to +ve outlook.

The return on their pension scheme is quite good 12.75%