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what next for KENRE & KQ?
PKoli
#91 Posted : Friday, July 16, 2010 1:28:55 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
@StatMeister,

Joining SACCO for you is imminent. I ng'ethiad during CIC private placement. The shares were going for 22.5 a piece and I just too a few. I have been chasing them but it is difficult getting them.
PKoli
#92 Posted : Friday, July 16, 2010 1:40:49 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
StatMeister,
I am amzed that the actuarial models do not capture weather events. It would be understable for earthquakea due to unpredictability nature of such events. I thought that models should look at frequency of occurence of certain extreme weather events and price premiums accordingly. We live with nature and its extreme occurences.
StatMeister
#93 Posted : Friday, July 16, 2010 3:49:27 PM
Rank: Veteran

Joined: 5/23/2010
Posts: 868
Location: La Islas Galápagos
PKoli wrote:
StatMeister,
I am amzed that the actuarial models do not capture weather events. It would be understable for earthquakea due to unpredictability nature of such events. I thought that models should look at frequency of occurence of certain extreme weather events and price premiums accordingly. We live with nature and its extreme occurences.


@pkoli, the models would capture it, and price the premium at high levels, say 70% of insured loss (does it make sense to part with so large sums when you can just put it in t bills?)

What insurance does not do is insure correlated risks.

Example: consider an employer having 100 employees insured for 1m each, and having a fleet of 50 vehicles insured for 2m each.

If one person dies (1m life cover) does not mean another person dies. Hence remaining 99 continue to pay premiums which pay for 1st person's loss.

Now think of PEV, if they burn 1 vehicle, why would they not burn the remaining 99? If that happens, no premiums hence losses have to be paid from capital account (remember the 500m minimum).

Its this herd effect that makes such un-insurable, atleast at the enterprise level.
A bad day fishing is better than a good day at work
PKoli
#94 Posted : Friday, July 16, 2010 4:15:56 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
@StatMeister,


Thanks for the info and illustration. This is complicated no wonder they have to employ actuaries.
StatMeister
#95 Posted : Friday, July 16, 2010 4:50:53 PM
Rank: Veteran

Joined: 5/23/2010
Posts: 868
Location: La Islas Galápagos
PKoli wrote:
@StatMeister,


Thanks for the info and illustration. This is complicated no wonder they have to employ actuaries.


@pkoli, thats why am not looking at Kenya Re before referendum.

After that, I'll be into them up to my neck! Ask me why . . .
A bad day fishing is better than a good day at work
the deal
#96 Posted : Friday, July 16, 2010 5:36:25 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
amazing Kenya Re and KCB are the worst perfoming counters on the NSE between January-JULy 2010...
StatMeister
#97 Posted : Friday, July 16, 2010 5:49:30 PM
Rank: Veteran

Joined: 5/23/2010
Posts: 868
Location: La Islas Galápagos
KCB moved steadily from 30 backwards to 23 (rights) backwards to 17 (rights) - 75% decrease in each case. I assume if they want another rights, the price will be 75%*17 = 12.75 . . . .No wonder I lost interest in this counter.

As for Kenya Re (and all insurances), revaluations of investments (mostly quoted stocks) will show appreciation which show on the P&L as profit . . .fantastic virtual growth as we saw in centum
A bad day fishing is better than a good day at work
PKoli
#98 Posted : Friday, July 16, 2010 6:46:02 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
StatMeister,

True KCB in particular has been panished by investors the same way CFC. The guys who stayed put in CFC, I included have reaped about 90%. I will wait for 50%
qw25041985
#99 Posted : Friday, July 16, 2010 7:12:36 PM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
@staitmeister. Why ?
Your future depends on your dreams so go to sleep !
qw25041985
#100 Posted : Friday, July 16, 2010 8:15:01 PM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
@staitmeister. Why ?
Your future depends on your dreams so go to sleep !
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