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Kenya Re - what gives?
Rank: Chief Joined: 1/3/2007 Posts: 18,155 Location: Nairobi
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Ericsson wrote:@VituVingiSana;The stake/number of shares is not that significant as the majority of the stake is held by the saccos.
I don't see the reason to sell out as CIC is the only insurance company that makes underwriting profit I find the P/B quite high for CIC. And Britam I believe makes or made an underwriting profit too. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,752 Location: NAIROBI
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@VituVingiSana; The P/B is quite high because of the future anticipated growth of the company.Another company with a similar high P/B is ARM,Safaricom,EABL,NMG Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 8/14/2007 Posts: 111
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Any expected News On Kenya-re ? Demand heading North for like 3days ..For those with info is demand more from Local or Foreign Buyers Even In The Most Severe Drought In The Jungle Lions Will Never Feed On Grass.
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Rank: Chief Joined: 1/3/2007 Posts: 18,155 Location: Nairobi
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Ericsson wrote:@VituVingiSana;
The P/B is quite high because of the future anticipated growth of the company.Another company with a similar high P/B is ARM,Safaricom,EABL,NMG True. And I missed out on all of them! ARM, Safcom, EABL [from the 200s], NMG and CIC...! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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@Ericsson,note insurance industry report indicates all listed insurance companies made underwriting profit  Ref: Table 19 on page 29 http://www.akinsure.com/compone...-industry-report?Itemid=
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Rank: Elder Joined: 12/4/2009 Posts: 10,752 Location: NAIROBI
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@mwekez@ji; Check their annual book of accounts report. Kenya re admitted they made an underwriting loss. CIC made an underwriting profit.Most insurance companies make profits from investment income and unrealised gains in quoted equities,bonds etc Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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@Ericsson, Kenya Re was not covered in the report coz it’s a re-insurer . All noted listed insurers made underwriting profit and investment income. Sample Jubilee report which explicitly states their underwriting profit http://www.jubileeinsurance.com...%20Report-2012-Final.pdf
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Rank: Elder Joined: 12/4/2009 Posts: 10,752 Location: NAIROBI
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Kenya Re trading at a high of ksh.16.70. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 8/14/2007 Posts: 111
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there could be some news in the offing on Kenya Re Even In The Most Severe Drought In The Jungle Lions Will Never Feed On Grass.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Demand: 1,220,000
Supply: 100,200
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Meanwhile, its Zim counterpart Zimre Holdings was up this much; ZIMR.zw US1.25c ^0.15 / +13.64% #Jussayin as a btw http://www.zimbabwe-stoc...com/listed-company/ZIMR/
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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mypesa wrote:there could be some news in the offing on Kenya Re If we were to indulge your views then it could be the actualization of any of the following; May 16th 2013: Kenya Re will upgrade its regional office in Abidjan, Ivory Coast, to a subsidiary by the end of the year to meet regulatory requirements and strengthen its presence in the West African market. http://www.businessdaily...08/-/goyed/-/index.html
OR: Aug 14th 2013: Kenya Re to open shops in southern Africa next year http://www.businessdaily.../-/1jf5ggz/-/index.html
Sept 11th 2013: From Zim the latest deal talks in the insurance sector come from First Mutual Holdings Limited as follows; “We are engaging regional investors to supply us with technical knowledge in insurance so that we can compete with other big players. I cannot disclose the name of the partners at this point in time,” https://www.newsday.co.z...11/first-mutual-profit/ (I personally vouch for FML. It has a thorough investment portfolio!)
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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OK. The alleged revelation came as a flash when reading the Report-of-the-Presidential-Task-force-on-Parastatal-Reforms released on Tuesday in the pm. On page 139 it says; There is also a need for the Ministry of Health to accord the Board operational autonomy and ensure that it operates the Fund like any other medical scheme. In this regard it is recommended that: i. The National Hospital Insurance Fund should be allowed to operate like any other medical insurance service provider for its members and should be restructured to fully comply with the Insurance Act. ii. The Fund should be regulated by Insurance Regulatory Authority. Proposed Timeline: By December 2013 So what popped in my mind was whether NHIF being reformed and regulated under the Insurance Act means it has to re-insure like all other players? Is it already re-insured in its current form or are shortfalls covered by the exchequer? (needs answers, help!) So you see it is speculative as the recommendations could go either way, but I believe it will be implemented as one of Jubilee's pledges of universal health care for all - Obama, sorry, Jubilee Care smile Look here for NHIF's latest numbers, not bad: http://www.nhif.or.ke/he...=default&page=&
And the task force report: http://www.scribd.com/do...e-on-Parastatal-Reforms
Your thoughts? Thanks.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Cde Monomotapa wrote:OK. The alleged revelation came as a flash when reading the Report-of-the-Presidential-Task-force-on-Parastatal-Reforms released on Tuesday in the pm. On page 139 it says; There is also a need for the Ministry of Health to accord the Board operational autonomy and ensure that it operates the Fund like any other medical scheme. In this regard it is recommended that: i. The National Hospital Insurance Fund should be allowed to operate like any other medical insurance service provider for its members and should be restructured to fully comply with the Insurance Act. ii. The Fund should be regulated by Insurance Regulatory Authority. Proposed Timeline: By December 2013 So what popped in my mind was whether NHIF being reformed and regulated under the Insurance Act means it has to re-insure like all other players? Is it already re-insured in its current form or are shortfalls covered by the exchequer? (needs answers, help!) So you see it is speculative as the recommendations could go either way, but I believe it will be implemented as one of Jubilee's pledges of universal health care for all - Obama, sorry, Jubilee Care smile Look here for NHIF's latest numbers, not bad: http://www.nhif.or.ke/he...=default&page=&
And the task force report: http://www.scribd.com/do...e-on-Parastatal-Reforms
Your thoughts? Thanks. CDE I see you've been reading these press releases eh...I too have been following every task-force, cabinet meeting briefs and those coalition of the willing joint communiques. This kutenda govt seems to know what their objective is. Am also following the recommendation of having state org investing into the region. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@murchr Yes Sire. Mmmm...the sound track ought to be Freddie McGregor's Big Ship "..sailing on the ocean, we don't need no commotion." Let's see...
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Am with you in this ship "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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murchr wrote: Am with you in this ship Cool. Meanwhile in China, "Investors applaud China reforms, stocks up a bunch. Biggest winners--baby related stocks." (easing of 1 child policy)  Snap of the reforms: http://reut.rs/17X2hU6
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Rank: Member Joined: 8/14/2007 Posts: 111
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Kenya Re seems stuck and price change is + or - 20cents or so .resistance both sides.If one had 9k shares or so is it time to sell and use the proceeds on a diff counter with better prospects or to wait for their full yr results. Their last div was also lower than in previous yrs. Wazuans your thoughts much appreciated. Even In The Most Severe Drought In The Jungle Lions Will Never Feed On Grass.
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Rank: Veteran Joined: 3/26/2012 Posts: 985 Location: Dar es salaam,Tanzania
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mypesa wrote:Kenya Re seems stuck and price change is + or - 20cents or so .resistance both sides.If one had 9k shares or so is it time to sell and use the proceeds on a diff counter with better prospects or to wait for their full yr results. Their last div was also lower than in previous yrs.
Wazuans your thoughts much appreciated. Compensation for the Jomo Kenyatta International Airport fire will wipe out all the profit expected this year by its insurer, reinsurer and brokerage firm, Kenya Reinsurance managing director Jadiah Mwarania has said. - See more at: http://www.the-star.co.k...rd#sthash.OmRaPUth.dpuf
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Metasploit wrote:mypesa wrote:Kenya Re seems stuck and price change is + or - 20cents or so .resistance both sides.If one had 9k shares or so is it time to sell and use the proceeds on a diff counter with better prospects or to wait for their full yr results. Their last div was also lower than in previous yrs.
Wazuans your thoughts much appreciated. Compensation for the Jomo Kenyatta International Airport fire will wipe out all the profit expected this year by its insurer, reinsurer and brokerage firm, Kenya Reinsurance managing director Jadiah Mwarania has said. - See more at: http://www.the-star.co.k...rd#sthash.OmRaPUth.dpuf
We had earlier covered the following in this thread so it's inline with management that under-writing profits are under threat but looking to outperform on the investment arm: Mwarania added that going forward insurers will focus more on investment income rather than underwriting income so as to mitigate losses coming from compensation of damages.
“We trying to increase returns and reducing risks from compensations, by employing investment vehicles like treasury bills and bonds.”Looking at Kenya-Re's half year, it had Treasuries worth 5B & 2.1B for short & long businesses respectively - cumulatively up from 5.5B at end FY 2012. Equity portfolio, 2.7B. (Also on this thread, @Ericsson has contributed greatly in identifying the holdings) Interest rate trends favor fair-value/capital gains for the treasury portfolio while stocks have continued to rally post June 2013. Unless the country is very unlucky, then any adverse claims from JKIA are a one-off which by H1 & FY 2014 under-writing earnings will have recovered aggressively. Also covered here earlier is how Westgate turned out to be the "opportunity in the crisis" going forward: Emergence of Terrorism cover by local insurers. Let's play...
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