obiero wrote:winston wrote:sparkly wrote:[quote=winston]Just thinking...is there a way Kenya Re can have GOK increase mandatory reinsurance to them from 20% to 25%? In the name of 'Build Kenya'...just as it directed all Marine import insurances to be taken by Kenyan Insurance Companies.
Mandatory Re insurance was to end 7 years ago. GOK has been extending
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GOK knows without it Kenya Re as is currently structured cannot survive without the mandatory reinsurance. Also I think it does not make sense to have mandatory reinsurance to regional country owned reinsurance companies (PTA reinsurance and Africa Reinsurance) and not have the same for your own Reinsurer.
My thinking behind asking for the increase is...increased mandatory reinsurance means that the government gets to get increased earnings from Kenya Re...without putting in additional investment by way of equity or debt...simple win -win.
@winston as per your own analysis, you will notice that KNRE is not a business but largely a collection agency similar to KRA. I once invested in it but honestly speaking there are better companies right now at the NSE
Yeah I was at KNRE very briefly. Sold at a small loss as recently as May and got into simba
The thing is even with the mandatory concessions and holding a majority marketshare, they seem to be just growing ever so slightly. What i find strange is that the insurance sector is at its infancy currently and this period should have the company growing in leaps and bounds.
Alot of revaluation reserves are going into sprucing up the PAT.
I feel the management are not as agile as they should be. They feel lethargic to me, perhaps its my untrained eye.