correction, current issued shares are 420 million. After the offer the total will be 1070 million shares. About the dilution effect, thats not our problem furthermore the stake they are selling to us is 30%.

Their 11% stake in Equity Bank, Makes up 26% of their assets now this is subject to alot of market risk I.e 1H 2011 the Equity share is down by over 10%...do the math and you will see how much the balance sheet has taken a knock aulready....also their insurance arm has been posting underwriting losses year in and out leaving them at the mercy of the stock market for income...in 2010 90% of their profits of Sh 2.7 bln came from the NSE...the Asset managememt firm only contributed Sh 230 Mln...Of all the insurance firms I have looked at this is the least diversified and one thing for sure their profits will swing year in year out depending how the NSE performs....my 2 cents...check my blog for details...

@Mwanahisa thanks for the correction....i will update my blog accordingly...uhmm there is nothing cheap then

Thanks man for this, so its the investment arm floating the shares....centum and olympia capital will be its peers huh?

So noted. BTW, you have done some very good work on this company. I am generally in agreement with your sentiments on the company given the variable nature of the company's profits over the year with its over reliance on investment income (and especially on Fair Value Gains on Financial Assets through Profit & Loss which is the worst of the lot in terms of its unreliability).