Wazua
»
Investor
»
Stocks
»
KenyaRe FY19 - FY23 (Both Inclusive)
Rank: Veteran Joined: 6/2/2010 Posts: 1,066
|
This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked.
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. Kenya Re has land in Upper hill where they intend to put up a building worth nearly ksh.4bn so buying the coca cola building wouldn't have made sense. Construction has been put on hold till real estate recovers Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Veteran Joined: 6/2/2010 Posts: 1,066
|
|
|
|
Rank: Veteran Joined: 6/2/2010 Posts: 1,066
|
Ericsson wrote:My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. Kenya Re has land in Upper hill where they intend to put up a building worth nearly ksh.4bn so buying the coca cola building wouldn't have made sense. Construction has been put on hold till real estate recovers That would be a bad bad move.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
|
My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. 1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example 2) Fire most of the board and management 3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business. 4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer. 5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
VituVingiSana wrote:My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. 1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example 2) Fire most of the board and management 3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business. 4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer. The land they can build real estate has disputes in court e.g
-Kiambu road with Kenyatta kin
-Ngong road with Kenya Forest service
-Shanzu land with Kenya Prisons
JV will even be riddled with greater corruption than them going solo.
As for the Upper Hill they can commence construction once Anniversary towers and Kenya Re Towers attain full occupancy.
5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields. True here the current management has closed their ears and eyes in making such moves.Their portfolio in stocks should be 10% of their assets.Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
My 2 cents wrote:https://www.businessdailyafrica.com/bd/corporate/companies/kenya-re-invests-sh712-million-in-zep-re-subsidiary-3775064 Kenya Re has invested a total of Sh712.8 million in Zep-Re and another unnamed subsidiary in the year ended December, raising its interest in the businesses. The Nairobi Securities Exchange -listed firm invested Sh503.4 million in Zep-Re, raising its stake in the associate to 20.38 percent from the previous 19.15 percent. Kenya Re booked a profit of ksh.400mn as share of associate profit in FY2021. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. They should also think of making acquisitions with the huge cash pile they have. An acquisition can also be having a significant stake in an insurer. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
|
Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. 1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example 2) Fire most of the board and management 3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business. 4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer. The land they can build real estate has disputes in court e.g
-Kiambu road with Kenyatta kin
-Ngong road with Kenya Forest service
-Shanzu land with Kenya Prisons
JV will even be riddled with greater corruption than them going solo.
As for the Upper Hill they can commence construction once Anniversary towers and Kenya Re Towers attain full occupancy.
Wacha stories. I was addressing the UH property when I said they should consider residential (not office space but mixed use with an emphasis on residential). No-one suggested they build anything on disputed land.
On the JV, what part of "with a solid developer" didn't you understand? Not HAFR, Suraya, Cytonn, etc but those who have shown they can deliver projects on time eg Centum.
Going solo, watakula pesa. No accountability.
No, they don't have to build offices in UH even if their other buildings reach full occupancy. Invest in other opportunities. The sort folks of Jubilee chose to buy "below cost".
5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields. True here the current management has closed their ears and eyes in making such moves.Their portfolio in stocks should be 10% of their assets. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. 1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example 2) Fire most of the board and management 3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business. 4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer. The land they can build real estate has disputes in court e.g
-Kiambu road with Kenyatta kin
-Ngong road with Kenya Forest service
-Shanzu land with Kenya Prisons
JV will even be riddled with greater corruption than them going solo.
As for the Upper Hill they can commence construction once Anniversary towers and Kenya Re Towers attain full occupancy.
Wacha stories. I was addressing the UH property when I said they should consider residential (not office space but mixed use with an emphasis on residential). No-one suggested they build anything on disputed land.
The location where their Upper Hill land is has been zoned as commercial and they had already submitted the design plans to all the regulatory authorities and approved.
Changing now to residential will be another long process and be rejected in the end.
Wajenge the twin towers 21 floors commercial building and move their headquarters there.Reinsurance Plaza in CBD they lease it all.
On the JV, what part of "with a solid developer" didn't you understand? Not HAFR, Suraya, Cytonn, etc but those who have shown they can deliver projects on time eg Centum.
Delivery on time does not mean there will be no corruption,the agreement will be drawn to the disadvantage of Kenya Re in terms of revenue share.
Kenya Re doesn't lack the resources to go solo for them to consider JV.
Going solo, watakula pesa. No accountability.
No, they don't have to build offices in UH even if their other buildings reach full occupancy. Invest in other opportunities. The sort folks of Jubilee chose to buy "below cost".
5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields. True here the current management has closed their ears and eyes in making such moves.Their portfolio in stocks should be 10% of their assets. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
|
Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. 1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example 2) Fire most of the board and management 3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business. 4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer. The land they can build real estate has disputes in court e.g
-Kiambu road with Kenyatta kin
-Ngong road with Kenya Forest service
-Shanzu land with Kenya Prisons
JV will even be riddled with greater corruption than them going solo.
As for the Upper Hill they can commence construction once Anniversary towers and Kenya Re Towers attain full occupancy.
Wacha stories. I was addressing the UH property when I said they should consider residential (not office space but mixed use with an emphasis on residential). No-one suggested they build anything on disputed land.
The location where their Upper Hill land is has been zoned as commercial and they had already submitted the design plans to all the regulatory authorities and approved.
Changing now to residential will be another long process and be rejected in the end.
Wajenge the twin towers 21 floors commercial building and move their headquarters there.Reinsurance Plaza in CBD they lease it all.
Zoning can be changed. There is no need for more office space in UH at the moment. UH used to be primarily (senior civil servant housing) residential and some government offices. So the "rejected in the end" is false. There are residential projects planned in the area. 88 is under construction. https://en.wikipedia.org...irobi_Condominium_Tower[/color]
On the JV, what part of "with a solid developer" didn't you understand? Not HAFR, Suraya, Cytonn, etc but those who have shown they can deliver projects on time eg Centum.
Delivery on time does not mean there will be no corruption,the agreement will be drawn to the disadvantage of Kenya Re in terms of revenue share.
Kenya Re doesn't lack the resources to go solo for them to consider JV.
More false assertions. "the agreement will be drawn to the disadvantage of Kenya Re in terms of revenue share" is patently false if the management is not corrupt or daft.
As I said earlier, the chances of corruption and going over budget are HUGE if done by themselves. It is known as creep. Low quality materials. Kickbacks. Favored suppliers.
Going solo, watakula pesa. No accountability.
No, they don't have to build offices in UH even if their other buildings reach full occupancy. Invest in other opportunities. The sort folks of Jubilee chose to buy "below cost".
5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields. [color=blue]True here the current management has closed their ears and eyes in making such moves.Their portfolio in stocks should be 10% of their assets. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
|
https://www.businessdail...in-space-supply-3778164 Office, mall rents plunge on jump in space supply >>> Seems only those with fingers in the cookie jar are pushing for more office space in Upper Hill. "office rent in top-grade buildings has dropped by an average of 16.9 percent over the past four years on increased supply." "The completion of the 42-floor Global Trade Centre (GTC)—a mixed-use development that comprises office, retail, hotel and residential property — has injected about 625,000 square feet of new office space in Nairobi. Other buildings that have recently introduced bulk office space in Nairobi are the National Social Security Fund (NSSF)-owned Hazina Trade Centre in the central business district at 234,000 square feet, the Convex (250,000 square feet) and Riverside Square (94,000 square feet) in Riverside area." "Demand for commercial properties in business districts like Upper Hill and Westlands dropped during the pandemic lockdowns" Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
Kenya Reinsurance corporation has advertised for the post of ADMINISTRATIVE OFFICER, PROPERTY- who will be in-charge of Kisumu Reinsurance Plaza. Seems they now want to put focus on maximizing of rental income and tenancy in the building. https://www.kenyare.co.k...20-%20MARCH%202022_0.pdfWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,501 Location: nairobi
|
Pesa Nane wrote:VituVingiSana wrote:I am very disappointed that KenyaRe shares are holding up in price. It it very hurtful. I am waiting for @Obiero's prediction of sub-3 but based on his record should I reconsider? On this one, I am Obiero damu. I sold every last one of them xd, db. Waiting for Obiero's prediction to buy back.  KES 1.94.. The exchange bar is the exchange bar
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,501 Location: nairobi
|
Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Ericsson wrote:obiero wrote:Ericsson wrote:VituVingiSana wrote:No results and it's already June!
Disappointing. Kenya Re 2020 results: - Gross written premiums up 5.7% - Net earned premiums up 34.2% - Claims incurred up 21.7% - Cedant acquisition costs up 29.8% - Profit b4 tax down 4.6% - Total Assets up 5.7% - Dividend of Kshs. 0.20 (DPR:20%) Book closure 30 June 2021 Payment date 13 August 2021 Registration for the AGM opens on 2 June and closes on Monday 28 June at 11am Link to the full results; https://mwangocapital.fi...21/06/kenya-re-2020.pdf
That dividend yield is decent. Not interested though, because of the trap It's a better counter compared to KQ and HFCK. A taller dwarf compared to those other two dwarfs. The results are quite good under the circumstances. From the earlier press release it seems KenyaRe might have had take some additional hits/provisions relating to new rules/IFRS. I am waiting to read the Chairman and CEO's letters. A few notes from the CEO letter -Kenya contributes 40% of its premiums while 60% comes from the regional business -The dividend policy is 30% of the cash profit.In FY2020 cash profit was ksh.2.1bn Of course, things can change in 2H2021 given the drama around COVID (delta variant for now) but from what he said, I think the dividend (0.20) will be maintained or higher for FY2021. Medical expenses/claims were huge since IRA forced KE insurance firms to pay for COVID even with exclusions for pandemics. These policies will be repriced in 2021. Loss of business with shutdowns/lockdowns as factories, hotels, etc didn't take/need insurance. Opening up in 2021 will help. Loss of life business as people were let go. Perhaps a change for the better in 2021. Life business in 2021 will be tough as more people have been let go. I'm waiting to see HY2021 which will be out end of July or early August to give direction of FY2021. The Uganda subsidiary made a loss in FY2020,will wait to see if it will have made a turnaround. Zep Re also had a more than 50% reduction in profit in FY2020 compared to FY2021. Will see if there is a jump in 2021. Chairman Chiboli Shakira was retired during the AGM A stitch in time saves nine
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
|
obiero wrote:Pesa Nane wrote:VituVingiSana wrote:I am very disappointed that KenyaRe shares are holding up in price. It it very hurtful. I am waiting for @Obiero's prediction of sub-3 but based on his record should I reconsider? On this one, I am Obiero damu. I sold every last one of them xd, db. Waiting for Obiero's prediction to buy back. KES 1.94.. The exchange bar is the exchange bar KenyaRe has disappointed. Didn't the Exchange Bar warn you about KQ and HFCK? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,501 Location: nairobi
|
VituVingiSana wrote:obiero wrote:Pesa Nane wrote:VituVingiSana wrote:I am very disappointed that KenyaRe shares are holding up in price. It it very hurtful. I am waiting for @Obiero's prediction of sub-3 but based on his record should I reconsider? On this one, I am Obiero damu. I sold every last one of them xd, db. Waiting for Obiero's prediction to buy back. KES 1.94.. The exchange bar is the exchange bar KenyaRe has disappointed. Didn't the Exchange Bar warn you about KQ and HFCK? Check my ABP on the two.. I can exit HF anytime! But I am still buying. Remember Obiero is a trader. I'm not the dividend type of man, I prefer capital gains. Pole on KNRE, at least the exchange bar warned you
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
.. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
|
https://www.businessdail...new-board-chair-3883852
Kenya Reinsurance Corporation has elected Dr Catherine Kimura as the chair of the board effective July 15. “The Board of Directors of Kenya Reinsurance Corporation is pleased to announce the election of Dr Catherine Kimura as the Chairman of the Board of Directors with effect from July 15 in accordance with its Memorandum and Articles of Association,” the reinsurer said in a statement. Dr Kimura has previously served as director of KCB Bank Kenya, KTDA, Kenya Sugar Authority, Kenya Sugar Development Fund, Mumias Sugar Company, Busia Sugar Company, Kephis among others. She has also held several positions in the government and public finance including Investment Secretary, Ministry of Finance, Member of Parliament at East Africa Legislative Assembly and was the first chancellor of Multimedia University of Kenya. Dr Kimura is a specialist in Public Finance and policy and management with over 37 years of experience. She holds a Bachelor of Arts degree from the University of Nairobi, a Diploma in Tourism and International Relations from the University of Paris and a certificate in Public Finance from the University of Connecticut. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Member Joined: 9/14/2011 Posts: 834 Location: nairobi
|
Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked. 1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example 2) Fire most of the board and management 3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business. 4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer. The land they can build real estate has disputes in court e.g
-Kiambu road with Kenyatta kin
-Ngong road with Kenya Forest service
-Shanzu land with Kenya Prisons
JV will even be riddled with greater corruption than them going solo.
As for the Upper Hill they can commence construction once Anniversary towers and Kenya Re Towers attain full occupancy.
5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields. True here the current management has closed their ears and eyes in making such moves.Their portfolio in stocks should be 10% of their assets. Will our new government change the fortunes of these non performing entities like Kenya Re?
|
|
|
Wazua
»
Investor
»
Stocks
»
KenyaRe FY19 - FY23 (Both Inclusive)
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|