https://www.businessdail...588404-snfn7/index.html

Nairobi-based reinsurer Zep-Re is eying a Sh464.4 million (R74.5 million) investment in multinational property developer Grit Real Estate Income Group.

The shares will be bought on the Johannesburg Stock Exchange (JSE) from which Grit intends to delist, citing high regulatory and compliance costs.

Grit says in a circular that it wants to sell five million shares to ZEP-Re and another two million to Botswana Development Corporation Limited (BDC), a development finance institution.

Zep-Re has applied to acquire the five million shares for a cash consideration of Sh92.90 (R14.90) per share. The offer to Grit shareholders were open for acceptances from last Friday and closes on July 24.
The deal will see the two institutional investors acquire a combined 12.75 percent of the total Grit shares held on the JSE register or an equivalent of 2.21 percent of the total issued shares.

Kenya Re, the top shareholder of Zep-Re with a 19 percent stake, will have an indirect exposure to Grit’s portfolio in the ongoing transaction.

Global Credit affirms Kenya Re’s stable outlook on strong capital, liquidity

Global Credit Ratings (GCR) has affirmed Kenya Reinsurance Corporation (Kenya Re) a national scale financial rating of AA+ with a stable outlook, citing strong capital base and healthy liquidity.

The South African rating agency said the reinsurer has demonstrated a strong financial profile both in Kenya and the international markets it serves.
“The entity demonstrated a strong financial profile, while business profile remained at intermediate levels, with small and risky presences in foreign markets diluting entrenched strong domestic market position,” said GCR.

GCR, however, downgraded Kenya Re’s international scale financial strength rating to B, from B+ on Kenya’s risks revisions. It, however, retained the stable outlook too.
The agency said the international scale financial strength rating was lowered to reflect higher operating risk in jurisdictions where gross premiums are derived.

Notably, Kenya and India accounted for 75 per cent of gross premiums in the financial year ended 2019, up from 70 per cent in the previous year.
GCR said the capital adequacy ratio was maintained at about three times the minimum, reflecting a sizeable capital base relative to the growing quantum of the insurance market and credit risks.


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This is the stock to watch this week. Foreign participation was extremely high last week.

Eti reject... You should have said they will meet to accept or accept. That is what our parliament has become, an appendage of the executive.

Parliament approves the appointment

Half year results 2020 are out.
Profit before tax increased by 51.6% from ksh.1.379bn to 2.091bn
Profit after tax increased by 45.8% from ksh.1.075bn to 1.568bn
Total assets increased to ksh.53.346bn as at June 30 2020 compared to 50.362bn as at December 31 2019

They still have a big potential to grow especially on the life/long term business.

Virtual AGM will be held on 9 October 2020.
To approve payment of dividend of ksh.0.10 per share for the financial year ended 31st December 2019 to the shareholders registered in the books as at 9th October 2020 to be paid on or about 20th November 2020.

https://youtu.be/rvGC7t4o6B8

Interview yesterday on Business Redefined

Mwarania is a stabilizing force in Kenya Re.It was only the board politics that was threatening stability.