Oh my. Im looking at Jubilee numbers and I see what msimon means. Jubilee definitely passes tests 2 & 3 but fails on the first one which @msimon clims is the most crucial. I however do know that even Berkshire Harthaway makes underwriting losses sometimes yet it has recorded tremendous growth over the years. Isnt the fact that Jubilee is recording massive growth without necessarily having a huge underwriting margin more reason for us to buy the stock? Just wondering.
Funny thing is that no one seems to dispute that Jubilee has good management. The issue here seems to be that few believe the growth exhibited last year can be sustained.
@thedeal...How does your Britak compare, they are extremely exposed to Equity aren't they? Insurance as a business is tough (hence the smartest guys in the world working there, actuaries) but in Kenya its more than tough because it remains such a vague concept for most Kenyans. The only thing an insurance company can do to keep shareholders happy is manage costs and make aim for supernormal returns from investment. On this basis, I think Jubilee has done very well. Is it sustainable? I do not know, @guru help here....