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Pan Africa Insurance HY 2014 earnings down 51%
Rank: Elder Joined: 9/15/2006 Posts: 3,905
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I read this Pan Africa Insurance Holdings with disbelief. Then I remember why Peter Lynch suspects businesses growing by over 50%, due to the one-off shenanigans. How does this company grow 267% last HY 2013, 108% full year 2013, then just saddle us with a - 51% HY 2014 result. Net written premiums up 32% Total income up 10% Net claims adverse up 31% Profit before tax down 42% Earnings down 51% https://www.nse.co.ke/listed-com...-ltd-half-year-results
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Well @muganda Insurance Firms have 'volatile' earnings so you need to deduct the one-offs from their results. Some like Jubilee, are conservative in locking/reporting unrealized gains so an 'excellent' year is shown as a 'good' year while a 'poor' year can be juiced up. BTW, I like Jubilee & the management is an honest so please don't take this as a criticism. Read Warren Buffett on earnings of Insurance Firms and why you have to look long-term or average not on Quarterly or Annual performances . Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 1/25/2012 Posts: 1,624 Location: Langley
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muganda wrote:I read this PanAfrica Insurance Holdings with disbelief. Then I remember why Peter Lynch suspects businesses growing by over 50%..
Not surprised. That growth rate was unsustainable. If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah #14 Posted : Tuesday, March 04, 2014 4:17:10 AM wrote:Like I stated in the wazua group a few weeks back, this thing is a sell the news and I sold ahead of the news. As long as NSE remains choppy insurance firms that count on equity performance will get a rough income shave. EABL & Uchumi showing consumer purchasing power is dented. The Sanlam buy hype is overdone... Time will tell when 100 handle gets tested and lower.
**DTK too is displaying PAFR buy side weakness. Those chasing above 220... The pigs were being fattened for slaughter, going by the number of posts Wazuans must have jumped 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: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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The highier you climb,the louder the bang,lets wait to hear the falling sound. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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I jumped out of this ship when it zoomed past 120 so I'll watch the show from the sidelines
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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I hope cfci doesnt copy this bad behaviour. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 9/16/2006 Posts: 229
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Expect good results from cfci “I don’t regret the things I’ve done, I regret the things I didn’t do when I had the chance.”
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Rank: Member Joined: 11/7/2013 Posts: 127 Location: Nairobi, Kenya
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uchumi wrote:Expect good results from cfci Roger that... I went into the (Ferry) industry knowing the same thing I knew with all other businesses I went into- Nothing. Then I built it from there. - Sheldon Adelson (Titans at the Table- Giants of Macau)
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Rank: Member Joined: 2/18/2011 Posts: 448
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I was in this bandwagon but I jumped ship with slightly over 100% gain;I still believe insurance in Kenya are good M&A targets for multi-nationals buying the africa rising hype.But am looking more towards CIC,Britam or UAP as they are largely indigenous companies with individual shareholders holding blocks of stocks.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Profit warning pap... possunt quia posse videntur
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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maka wrote:Profit warning pap... Dyer & Blair wrote:Dear Esteemed Client,
Pan Africa Insurance Holdings has issued a profit warning for the year ended 31st December 2014. The company expects profit after tax for the period ending 31 December 2014 to decline more than 25 percent compared to the profit reported for the year ended 31st December 2014. The decline is attributable to the lower profits from sale of property in 2014 compared to 2013 and lower unrealized mark-to-market gains on equity investments in 2014.
The company reported a 42.46 percent drop in profit before tax during the first half of 2014 majorly from lower gains in equity investments in 2014 compared to 2013.
The company’s shareholders, in December 2014, approved the acquisition of at least 51 percent of Gateway insurance company limited. Through this acquisition, the company seeks to enter into the general insurance business.
Pan Africa trades at a price to earnings of 9.1x and a price to book of 3.4x compared to a sector average of 13x and 2.9x respectively.
Risks: Competition within the life business has been edging into the company’s gross premiums. Exposure to the equities market remains key risk.
Upside: The entry into the general business will cushion the overall premium growth for the company which has been under competitive pressure. Insurance penetration remains very low in the operating market, thereby presenting an opportunity for both life and general business.
"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: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Has been a sell since Q1 2014. It's a no brainer CGT confusion will shave the equity porfolio again. If the incoming CBK governor spooks the market... You get the drift. When is short selling starting to reset utopia valuations on some counters? $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 5/21/2014 Posts: 184
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hisah wrote:Has been a sell since Q1 2014. It's a no brainer CGT confusion will shave the equity porfolio again. If the incoming CBK governor spooks the market... You get the drift.
When is short selling starting to reset utopia valuations on some counters? Very true. The CGT thing will really dent the companies that are heavily invested in the stock market. Methinks though that good opportunities are also going to show up due to the same. We need to kaa chonjo!! There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Pan Africa Insurance Holdings Limited - Appointment of the Group CEO  Pesa Nane plans to be shilingi when he grows up.
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Pesa Nane wrote:Pan Africa Insurance Holdings Limited - Appointment of the Group CEO Can he do a repeat of what he did at EA Cables?
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Rank: User Joined: 1/20/2014 Posts: 3,528
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chiaroscuro wrote:Pesa Nane wrote:Pan Africa Insurance Holdings Limited - Appointment of the Group CEO Can he do a repeat of what he did at EA Cables? My thinking  Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
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Pesa Nane wrote:Pan Africa Insurance Holdings Limited - Appointment of the Group CEO If his track record is anything to go by, this is a fantastic appointment. Now my interest in this counter is piqued. The harder you work, the luckier you get
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Let's see his investment skills and how they will be applied as insurance companies are more of investment companies. Me thinks the appointment has also a political alignment. Kenya is a land of deals and connections Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Pan Africa Insurance HY 2014 earnings down 51%
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