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Kenya Re - what gives?
Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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As we head toward the close of the year what is the opinion from wazuans about the mandatory 18% reinsurance business Kenya Re gets from all insurance companies. I foresee the government extending the mandatory concession for another 5 years Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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mkeiyd wrote:What ails this stock?
Airport fire? Westgate? The impending expiry of its mandatory share of local reinsurance business?
PE of 5.62 Against;
Pan Africa's 13.42,
CiC 16.80,
Jubilee 8.45
@guru and others, What muted the drum beats?
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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mkeiy wrote:mkeiyd wrote:What ails this stock?
Airport fire? Westgate? The impending expiry of its mandatory share of local reinsurance business?
PE of 5.62 Against;
Pan Africa's 13.42,
CiC 16.80,
Jubilee 8.45
@guru and others, What muted the drum beats? Kenya Re has always (post-IPO pop) traded at a discount to its NAV though it is in a different business vs the insurance firms which are financial supermarkets with Asset Management arms. So Kenya Re vs PAI, CIC, JIC is a not an apples to apples comparison. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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Ericsson wrote:As we head toward the close of the year what is the opinion from wazuans about the mandatory 18% reinsurance business Kenya Re gets from all insurance companies.
I foresee the government extending the mandatory concession for another 5 years IMHO, it should NOT extend the compulsory reinsurance. Let Kenya Re fight it out with the rest. That said, if it is anything like what we have seen with Mumias (or sugar firms) then GoK will extend the protection since GoK owns 60% of Kenya Re. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mkeiy wrote:mkeiyd wrote:What ails this stock?
Airport fire? Westgate? The impending expiry of its mandatory share of local reinsurance business?
PE of 5.62 Against;
Pan Africa's 13.42,
CiC 16.80,
Jubilee 8.45
@guru and others, What muted the drum beats? KRA is suing for 1.2 Billion.. Kenya re refutes this amount. Kenya re might provide for this payment come year end! Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Government will settle the dispute. Kenya re is one of the cows Rotich depends on for milk (dividends)received Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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Ericsson wrote:Government will settle the dispute.
Kenya re is one of the cows Rotich depends on for milk (dividends)received GoK gets only 60% of Kenya Re's PAT and 100% of KRA's extortion...! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/1/2014 Posts: 895 Location: sky
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something is happenning here!! a few days ago a big volume of 45m pushed the price to 18 from 16 rage, today a volume of 75m pushes the price to 18.50 from 17 range, some months ago such volumes propelled it to above 20 and they have not exited There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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Business Daily wrote:US rating agency AM Best has assigned Kenya Reinsurance Corporation (Kenya Re) a stable rating, meaning the firm is in a strong financial position in terms of ability to pay claims.
The agency assigned the majority State-owned firm a strong “bbb” (up from “bbb-”) credit rating meaning the listed re-insurer can comfortably pay claims.
AM Best also affirmed Kenya Re’s B+ rating on expectations that the reinsurer will deliver strong 2014 financial results. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 3/26/2012 Posts: 830
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murchr wrote:Business Daily wrote:US rating agency AM Best has assigned Kenya Reinsurance Corporation (Kenya Re) a stable rating, meaning the firm is in a strong financial position in terms of ability to pay claims.
The agency assigned the majority State-owned firm a strong “bbb” (up from “bbb-”) credit rating meaning the listed re-insurer can comfortably pay claims.
AM Best also affirmed Kenya Re’s B+ rating on expectations that the reinsurer will deliver strong 2014 financial results. I personally think Kenya Re is a heavily discounted counter with the only turn off being the meagre dividends and large government shareholding in it. If the government were to reduce its shareholding to a non controlling stake, this would be a counter to watch going forward. Still a good play for a long term investor. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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S.Mutaga III wrote:murchr wrote:Business Daily wrote:US rating agency AM Best has assigned Kenya Reinsurance Corporation (Kenya Re) a stable rating, meaning the firm is in a strong financial position in terms of ability to pay claims.
The agency assigned the majority State-owned firm a strong “bbb” (up from “bbb-”) credit rating meaning the listed re-insurer can comfortably pay claims.
AM Best also affirmed Kenya Re’s B+ rating on expectations that the reinsurer will deliver strong 2014 financial results. I personally think Kenya Re is a heavily discounted counter with the only turn off being the meagre dividends and large government shareholding in it. If the government were to reduce its shareholding to a non controlling stake, this would be a counter to watch going forward. Still a good play for a long term investor. I share the same sentiments. I am looking forward to when gvt will reduce its stake. Btw Kibaki n Kimunya were too good at ofloading gvt stakes to raise cash for infrastructure devt. Jubilee is yet to pull a first one, but will keep waiting. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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This counter I give it a valuation price of 60-65 when it's compared to its peers on a profit-profit basis and total assets. Question is when will it ever reach that price. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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Ericsson wrote:This counter I give it a valuation price of 60-65 when it's compared to its peers on a profit-profit basis and total assets.
Question is when will it ever reach that price. It is not an exact peer of Jubilee, PAN African, Britam and other insurance companies out there who run the general, life and other businesses. But your point is worth noting, in that the value is higher than 17 currently being manifested. So instead of watching from far, karibu kwenye kiti, tungojee dereva. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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@Gatheuzi The corporation has the following divisions; General Life Property And has subisidaries in west Africa and in the process of opening one for southern Africa. Huyo derevaa atakuja siku gani.Hii mambo inatakanga vitu zifanywe chap chap Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Ericsson wrote:@Gatheuzi
The corporation has the following divisions;
General
Life
Property
And has subisidaries in west Africa and in the process of opening one for southern Africa.
Huyo derevaa atakuja siku gani.Hii mambo inatakanga vitu zifanywe chap chap Free advice. Get in a take a seat!!! When it takes off it takes off. And then you will be left mourning and saying I wish I knew. But in your case you will be lying because you know! I'm in this bus. I know it is taking too long at the stage like those Leyland buses of them days but I'm not panicky. I am a long termer. If you are a speculator, then this one will test your patience big time! When you hear akina Joe Wanjui and Kirubi selling shares worth billions, don't think they bought shares worth billions! Get my drift? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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@MaichBlack; A company that listed just recently (CIC Insurance)has twice market capitalization of Kenya Re and yet it makes half the profits of Kenya Re.Hii market iko na mashetani. Joe Wanjui and Kirubi sold their stakes in UAP because competition has really dug into UAP business and they couldn't be able to match their speed so take a bow and let a deep pocketed suitor steer the company Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Ericsson wrote:@MaichBlack;
A company that listed just recently (CIC Insurance)has twice market capitalization of Kenya Re and yet it makes half the profits of Kenya Re.Hii market iko na mashetani.
Joe Wanjui and Kirubi sold their stakes in UAP because competition has really dug into UAP business and they couldn't be able to match their speed so take a bow and let a deep pocketed suitor steer the company My points are: - 1) Identify value/bargains. When you do, invest and relax. 2) Think long term. If what you have now is valuable you can relax. Thousands will turn to millions and millions to billions. Do you know how much James Mwangi's stake at equity is worth? Do you know much he has already pocketed in sale of some of the shares he held. And now, and this is the best question, do you know how much he had put in? And all along people have been waiting for Equity to collapse. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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After what Old mutual paid Kenya re is a diamond! All we need is like Munich re to come in and acquire 40% of G.O.K stake and unlock some value... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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MaichBlack wrote:Ericsson wrote:@MaichBlack;
A company that listed just recently (CIC Insurance)has twice market capitalization of Kenya Re and yet it makes half the profits of Kenya Re.Hii market iko na mashetani.
Joe Wanjui and Kirubi sold their stakes in UAP because competition has really dug into UAP business and they couldn't be able to match their speed so take a bow and let a deep pocketed suitor steer the company My points are: - 1) Identify value/bargains. When you do, invest and relax. 2) Think long term. If what you have now is valuable you can relax. Thousands will turn to millions and millions to billions. Do you know how much James Mwangi's stake at equity is worth? Do you know much he has already pocketed in sale of some of the shares he held. And now, and this is the best question, do you know how much he had put in? And all along people have been waiting for Equity to collapse. @Maich, @Ericsson Owns some KNRE. He's just complaining that the thing never moves. I feel him. This one, is almost dormant on my portfolio infact i never look at the price changes. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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murchr wrote:MaichBlack wrote:Ericsson wrote:@MaichBlack;
A company that listed just recently (CIC Insurance)has twice market capitalization of Kenya Re and yet it makes half the profits of Kenya Re.Hii market iko na mashetani.
Joe Wanjui and Kirubi sold their stakes in UAP because competition has really dug into UAP business and they couldn't be able to match their speed so take a bow and let a deep pocketed suitor steer the company My points are: - 1) Identify value/bargains. When you do, invest and relax. 2) Think long term. If what you have now is valuable you can relax. Thousands will turn to millions and millions to billions. Do you know how much James Mwangi's stake at equity is worth? Do you know much he has already pocketed in sale of some of the shares he held. And now, and this is the best question, do you know how much he had put in? And all along people have been waiting for Equity to collapse. @Maich, @Ericsson Owns some KNRE. He's just complaining that the thing never moves. I feel him. This one, is almost dormant on my portfolio infact i never look at the price changes. We are many. I am also in the bus. I'm thinking of buying some for my daughter. She is an [extremely] long term investor only that she hasn't know it yet! It's very difficult picking counters for her. I'd hate to lose her money - it's a psychological thing. But this might be a safe bet as any. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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