And what is your reasoning behind this. please elaborate and don't give blanket responses like "check listed portfolio for each" it will give me better understanding of what to expect between the two.And since we are using a 10 year time frame assuming both stocks are purchase today, what's your estimate of value for Jubilee 10 years from now, considering its selling for
9,405,000,000 while earning you and average of 913,671,000. compared to Kenya re thats selling for 6,660,000,000 while earning 1,328,904,000. Seriously, am i missing something here!
Lets think for a moment, our average pre-profits for the last 5 years for Jubilee have been 792,289,400/- so let us work with that as our worst case expectation of pre-tax profitability while for kenya re it is 1,163,082,805. So assume that in the next 5 years the profits regress around the 5 year average, it would mean that you expect to earn a total of 3,961,447,000 in worst case scenario from Jubilee during the next 5 years while for kenya re it is 5,815,414,025/- that means at present market Cap, you break even on kenya re in year 6 and for Jubilee its year 11. Remember this assumption considers no growth in earning and is based on the past average performance of the two companies.
I need some help to understand what am missing here, because in my eyes, Kenya Re is much better and i looked at the balance sheets of the two, it still shows that kenya re is more efficient, look at pre-tax return on assets for the 2 companies Kenya Re as at 2009 was 10.05% and am using earnings from short term business while for Jubilee am using net earnings and its 4.7%.

My take (simplistic as it is), one has invested in Bujagali Power Project, another has invested in a residential housing estate in Meru. Who would you put your money on?

msimon, brilliant insight on the profit margins

@msimon that is what i meant by listed portfolio for each

If GoK did not force Kenyan insurance firms to re-insure with KenyaRe... KenyaRe would be much smaller!