guru267 wrote:dave.kim wrote:guru267 wrote:Wondergirl wrote:guru267 wrote:Wondergirl wrote:The investment and its "babies"is now safely in Panafrica Insurance
@Wondergirl for pan Africa's case if you have decided to go long term you should really keep a close eye on the NSE perfomance!

Please explain- I'm slow in following the idex....
Pan Africa's perfomance is significantly directly correlated to the perfomance of the NSE because of their huge stock portfolio which is recognised in the P&L... This is unlike Kenya re that does not recognise its stock portfolio in its P&L at all....
Inotherwords the NSE does badly Pan africa does badly and vice versa!
Aii!is there an insurance company that doesnt recognize quoted investments in the P&L?Angalia annual reports vizuri: '
Gain in value on quoted investments'
@dave.Kim if you check properly such a thing does not exist on Kenya re's P&L!
Kenya re only includes it in
"other comprehensive income" and this has no effect on EPS!!
Check the footnotes for the breakdown of investment income for 2011 report. It is indicated as 'Reclassification from equity of accumulated fair value gain on
available for sale quoted equity instruments'. And then the same amount is later deducted through comprehensive income as 'Reclassification adjustments relating to
available-for-sale financial assets disposed in the year'. So it still affects bottom line
Rule No.1 is never lose money. Rule No.2 is never forget rule number one