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PKoli		#41 Posted : Monday, June 06, 2011 11:36:07 AM
Rank: Elder Joined: 2/10/2007 Posts: 1,587		[quote=the deal]Ladies and Gentlement i present to you the most comprehensive report done on any Kenyan Insurance firm now compare to your brokers research reports British American Investment Company Kenya Compared to its Peers: Our Analysis Its all here and free http://contrarianinvesti...investment-company.html[/quote] @ The deal, I have just gone through your blog. It is very comprehensive and thoughtful indeed. Keep it up.
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guru267		#42 Posted : Monday, June 06, 2011 1:04:18 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		@the deal very good analysis on Britak.. Though from your anaysis one may deduce that their money would be safer In jubilee.. By the way I noticed you do not differentiate investment income and net fair value gains and revaluations on assets.. Capital Returns from stocks held on the NSE and property revaluations fall under fair value gains and revaluations on the income statement and not investment income... Investment income includes rental income, bonds interest earned, divdends earned, profits from asset disposals... Thatz why I said jubilees investment income will shoot through the roof as their investments will pay off because of heir quality investments for example.. 1. 6billion worth of g.o.k bonds (how much does britak have?) 2. They have 5billion in quoted equity shares (britak?) 3. 1billion commercial bonds (britak je?) 4. 3billion worth of real estate ( na britak??) 5. Investments in assiciate companies (10% of diamond trust included) of 4 billion (BRITAK???) 6. Fixed deposits of 3 Billion The average annual rate of return on these investments is conservatively pegged at 15.5% for jubilee Mark 12:29 Deuteronomy 4:16
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the deal		#43 Posted : Monday, June 06, 2011 2:08:30 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		@Guru Jubilee is King in Kenya, Britak is not well diversified thats my main beef with them i.e the Equity Bank share is down 6% in 2011 you can imagined how much losses are on their books aulready but i like CIC too, @PKoli the challenge for them is how they will invest their float otherwise CIC is a very good company....between @Pkoli you have been away who is the next CIC out there?
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guru267		#44 Posted : Monday, June 06, 2011 2:51:38 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		the deal wrote: @Guru Jubilee is King in Kenya, Britak is not well diversified thats my main beef with them i.e the Equity Bank share is down 6% in 2011 you can imagined how much losses are on their books aulready but i like CIC too, @PKoli the challenge for them is how they will invest their float otherwise CIC is a very good company....between @Pkoli you have been away who is the next CIC out there? @the deal on cic me and you agree.. I cannot believe britak has 26% of its portfolio in only 11% of equity bank.... I think its time they sold out. Jubilee holdings owns 10% of diamond trust bank but this makes up only around 5% of their portfolio.. Plus we all know diamond trust is headed for better days judging from commentary and q1 performance... Mark 12:29 Deuteronomy 4:16
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Genghis Khan		#45 Posted : Monday, June 06, 2011 3:07:03 PM
Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi		the deal wrote: 2011 will be a bad year for insurance stocks...only the strong will make it...reason: rising interest rates, low retirns from the equity market and high inflation( people will cancel or delay taking insurance cover)...i have seen this personally when the going gets tough the first thing people remove from their salary slips is Insurance. True... ALSO Saving rates will go down due to high living costs, some people will even liquidate savings... Claims experience will go up in line with inflation... "Rising interest rates" is a double edged sword... insurers can benefit from higher money market returns without necessarily suffering a rise in cost of capital... "I'd rather be lucky than clever... every time!" - ME "The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN "Space we can recover... time never!" - NAPOLEON BONAPARTE
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Genghis Khan		#46 Posted : Monday, June 06, 2011 3:44:16 PM
Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi		@the deal, read your blog... good work Some clarifications: You say: "5.High interest rates means low returns from Government securities." I'm not an economist but how now? Their managers can still trade / get in at higher yields, no? Their cost of capital remains down... the spread can only go up! Also, what is your opinion on the sharp incline in Reserves for Britak... is prudence worth 4B... my understanding is that reserving is akin to the Provisioning done by banks hence in increase in reserves is a cost... am I right? Also, I noticed you say PBT2.87B & PAT2.7B... tax is at 6%... any comments? "I'd rather be lucky than clever... every time!" - ME "The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN "Space we can recover... time never!" - NAPOLEON BONAPARTE
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youcan'tstopusnow		#47 Posted : Monday, June 06, 2011 5:45:27 PM
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa		guru, you are buying Equity yet expect Britak to sell? GOD BLESS YOUR LIFE
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the deal		#48 Posted : Monday, June 06, 2011 6:29:40 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		@Genghis hehehe yes the tax they paid was 6% unbelievable are they exempt from paying the 33%...i'm no tax expert but i think tax for companies in Kenya is 33%...just download their 2010 results and confirm...btwn their tax in 2009 was 25% although they made losses. On reseves yes its a cost...normally insurers increase their reserves in anticipation of future losses...i think i will edit accordingly.
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the deal		#49 Posted : Wednesday, June 08, 2011 8:29:25 AM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		@Geghis Britak didnt have to pay tax because all their profits came from unrealised gains i.e investment income..the 6% was for the asset management firm.
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