Par Value: 2.50/-
Closing Price: 2.53
Total Shares Issued: 2799796272.00
Market Capitalization: 7,083,484,568
EPS: 1.05
PE: 2.410
Leading reinsurance and insurance provider.
Kenya Re reports 6 months results through 30th June 2021
HY Gross Premiums written 9.588630b versus 9.073816 +6%
Less: retrocession premiums [0.769904b] versus [0.256037b]
HY Net Earned Premiums 8.688950B versus 8.660175b +0.3%
HY Investment Income 1.896506b versus 1.904899b -0.44%
HY Total Income 10.732319b versus 10.613697b
HY Net Claims and Benefits [6.283172b] versus [5.148480b] +22%
HY Cedant Acquisition costs [2.215203b] versus [2.146006b] +3%
HY Operating and other Expenses [1.060138b] versus [0.956943b]
HY Providion for doubtful debts [0.411373b] versus [0.270993b]
HY Total Claims Benefits and other expenses [9.969885b] versus [8.522422b]
HY Profit before Tax 762.434m versus 2.091275b -64%
HY Profit after tax 533.704m versus 1.568456b
HY EPS 0.19 versus 0.56
Asset Base 54.24b +2%
Government Securities 18.354456b
Cash and Cash Equivalents 6.621277b versus 7.722234b
@Kenya_Re results H1 2021 vs H1 2020: @MwangoCapital
https://twitter.com/MwangoCapital/status/1423496021708099584?s=20
Gross written premiums up 6% to Kshss 9.59B
Claims incurred up 22% to Kshs 6.3B
Opex down 11% to Kshs 1.06B
EPS down 66% to 0.19
No interim dividend
Conclusions
HY Net Claims and Benefits [6.283172b] versus [5.148480b] +22% refers
Kenya Re reports FY earnings as at 31st December 2020 versus 31st December 2019
FY Income
FY Gross premiums written 18.535220b versus 17.521343b
FY Net Earned Premiums 20.850266b versus 15.530618b
FY Investment Income 3.791916b versus 3.714696b
FY Fair Value gains on revaluation [36.403m] versus 2.176592b
FY Total Income 25.003287b versus 22.117061b
FY Net Claims and Benefits [13.516578b] versus [11.061940b]
FY Cedant Acquisition costs [5.310496b] versus [4.092047b]
FY Operating and Other Expenses [1.964808b] versus [2.043452b]
FY Provision for doubtful Debts [227.813m] versus [743.428m]
FY Total Claims, Benefits and Other expenses [21.019694b] versus [17.940867b]
FY Profit before Tax 3.983593b versus 4.176194b
FY Profit after Tax 2.942923b versus 3.966379b
FY Remeasurement gains/ [Losses] on defined benefit plans net of Tax [152.013m] versus [60.119m]
FY Net gains [losses] on revaluation of available for sale quoted Equity instruments [396.063m] versus [53.952m]
FY Currency Translation 373.905m versus 7.415m
FY Total Comprehensive Income 2.726581b versus 3.892669b
FY EPS 1.05 versus 2.55
FY Government securities 17.258062b versus 17.112941b
FY Deposits with Financial Institutions 8.306552b versus 6.786635b
FY Cash and Cash Equivalents 10.759878b versus 7.371304b
FY Dividend 0.20
Company Commentary
Gross written premiums grew by 6% from KShs 17.52 billion in the year 2019 to KShs 18.54 billion in 2020.
Net earned premiums grew by 34% from KShs 15.53 billion in 2019 to KShs 20.85 billion in 2020
Investment income grew by 2% from KShs 3.71 billion in 2019 to KShs 3.79 billion in 2020,driven by adhering to the Corporations investment strategy Claims incurred in year 2020 grew by 22% to KShs 13.52 billion up from KShs 11.06 billion in 2019.
Cedant acquisition costs increased by 30% from KShs. 4.09 billion in 2019 to KShs. 5.31 billion in 2020 .
Operating expenses decreased by 4% from KShs. 2,043 million as at 31 December 2019 to KShs.1,965 million as at 31st December 2020. Profit before tax for the year 2020 stood at KShs 3.98 billion, a decrease of 5% from profit before tax of KShs 4 .18 billion in 2019
The asset base increased from KShs 50.36 billion in 2019 to KShs 53.24 billion in 2020, a growth of 6%.
Kenya Reinsurance Corporation Limited Audited Financial Statements & Other Disclosures for the Year Ended 31 Dec 2020 @tradingroomke
https://twitter.com/tradingroomke/status/1399602049394876417?s=20
@Kenya_Re 2020 results: @MwangoCapital
https://twitter.com/MwangoCapital/status/1399570303316004868?s=20
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%)
Conclusions
On a PE of 2.38 This is by any standard an egregiously priced share
A Dividend yield of 8% also surely underpines the price
Kenya Re H1 2020 Earnings through 30.06.2020
H1 Net Earned Premiums 8.660175b versus 7.429247b
H1 Investment Income 1.904899b versus 1.945421b
H1 Total Income 10.613697b versus 9.420657b
H1 Net claims and Benefits [5.148480b] verssus [4.995268b]
H1 Total Claims benefits and other expenses [8.522421b] versus [8.041312b]
H1 Profit before Tax 2.091276b versus 1.379345b +52%
H1 Profit after Tax 1.568457b versus 1.075802b
H1 EPS 0.56 versus 1.54
Commentary
FIRE recorded the highest gross premium +71%
Life Business grew 17%
Investment Income 1.905b -2.00% attributed to COVID19
Conclusions
Its a very cheap share but it always has been.
Kenya Reinsurance Corporation Limited FY 2019 results through 31st December 2019 vs 31st December 2018
FY Gross premiums written 17.521343b vs. 14.838393b +18.081%
FY Less retrocession premiums [1.077455b] vs. [823.408m] +30.853%
FY Net earned premiums 15.530618b vs. 14.205976b +9.325%
FY Investment income 3.714696b vs. 3.386177b +9.702%
FY Fair value gains on revaluation of investment properties 2.176592b vs. 397.211m +447.969%
FY Share of associates 587.444m vs. 180.865m +224.797%
FY Total income 22.117061b vs. 18.266334b +21.081%
FY Gross claims incurred and policyholder benefits [11.447721b] vs. [9.456217b] +21.060%
FY Reinsurer share of claims and policyholder benefits 385.781m vs. 625.967m -38.370%
FY Net claims and benefits [11.061940b] vs. [8.830250b] +25.273%
FY Cedant acquisition costs [4.092047b] vs. [3.890255b] +5.187%
FY Operating and other expenses [2.043452b] vs. [2.019834b] +1.169%
FY Provision for doubtful debts [743.428m] vs. [424.145m] +75.277%
FY Total claims, benefits and other expenses [17.940867b] vs. [15.164484b] +18.308%
FY Profit before tax 4.176194b vs. 3.101850b +34.636%
FY Income tax expense [209.815m] vs. [823.568m] -74.524%
FY Profit for the year 3.966379b vs. 2.278282b +74.095%
EPS (Basic and diluted) 2.55 vs. 3.25 -21.538%
Dividend per share 0.10 vs. 0.45 -77.778%
Total Equity 31.950725b vs. 28.373033b +12.609%
Government securities 17.112941b vs. 14.314752b +19.548%
Total Assets 50.362970b vs. 44.362634b +13.526%
Cash and cash equivalents at 31st December 7.371305b vs. 5.797260b +27.152%
2,799,796,272 shares
3 1 bonus share to the shareholders existing in the register as at 14th June 2019
PERFORMANCE COMMENTARY
FINANCIAL HIGHLIGHTS
Gross written premiums grew by 18% from KShs 14.84 billion in the year 2018 to KShs 17.52 billion in 2019.
Net earned premiums grew by 9% from KShs 14.21 billion in 2018 to KShs 15.53 billion in 2019
Investment income grew by 10% from KShs 3.39 billion to KShs 3.71 billion,driven by adhering to the Corporations investment strategy
Claims incurred in year 2019 grew by 25% to KShs 11.06 billion up from KShs 8.83 billion in 2018.
Cedant acquisition costs increased by 5% from KShs. 3.89 billion to KShs. 4.09 billion in line with an increase of 18% in gross premium written.
Operating expenses increased by 1% from KShs. 2,020 million as at 31 December 2018 to KShs.2,043 million as at 31st December 2019.
Profit before tax for the year stood at KShs 4.18 billion, an increase of 35% from last year profit before tax of KShs 3 .1 billion.
The growth was due to high gross premiums written, significant growth in the share of profit from our investment in associate in Zep Re and gains on revaluation of investments property
The asset base increased from KShs 44.36 billion in 2018 to KShs 50.36 billion in 2019, a growth of 14%.
The Shareholders funds increased from KShs 28.37 billion in 2018 to KShs 31.95 billion in 2019 a growth of 13%.
DIVIDENDS
The Board of Directors recommend a payment of Kes 0.10 dividend per share
AUDIT OPINION
The audit of the financials statements for the full year ended 31 December 2019 is not complete pending the appointment of the Auditor General
KEY AUDIT MATTERS
Evaluation whether the disclosures made in the consolidated and separate financial statements reflect the Groups credit risk and impairment provision on the receivables.
Assessment of the completeness of the disclosures regarding the reinsurance contract liabilities in the consolidated and separate financial statements
Determination of the adequacy of the premium revenue recognition and un earned premium reserves are well supported.
Conclusions
The growth was due to high gross premiums written, significant growth in the share of profit from our investment in associate in Zep Re and gains on revaluation of investments property
The PE Ratio speaks to a level of scepticism which has been there for many years.
Kenya Reinsurance Corporation Limited H1 2019 results through 30th June 2019 vs. 30th June 2018
H1 Gross premiums written premium 8.859809b vs. 6.332446b +39.911%
H1 Net earned premiums 7.429247b vs. 6.371661b +16.598%
H1 Investment income 1.945421b vs. 1.904552b +2.146%
H1 Total income 9.420658b vs. 8.311997b +13.338%
H1 Gross claims incurred and policyholder benefits [5.280607b] vs. [3.581015b] +47.4661%
H1 Reinsurers share of claims 285.339m vs. 218.858m +30.376%
H1 Net claims and policyholder benefits [4.995268b] vs. [3.362157b] +48.573%
H1 Cedant acquisition costs [2.028322b] vs. [1.828188b] +10.947%
H1 Total claims, benefits and other expenses [8.040918b] vs. [6.555211b] +22.665%
H1 Profit before tax 1.379739b vs. 1.756786b -21.462%
H1 Profit for the period after tax 1.076197b vs. 1.229751b -12.487%
EPS 1.54 vs. 1.76 -12.500%
Kenya Reinsurance Corporation Limited FY 2018 results through 31st December 2018 vs 31st December 2017
FY Gross premiums written 14.838393b vs. 14.827296b +0.075%
FY Less retrocession premiums [823.408m] vs. [547.481m] -50.399%
FY Net earned premiums 14.205976b vs. 13.679576b +3.848%
FY Investment income 3.386177b vs. 3.165314b +6.978%
FY Fair value gains on revaluation of investment properties 397.211m vs. 672.077m -40.898%
FY Total income 18.266334m vs. 18.189734b +0.421%
FY Gross claims incurred and policyholder benefits [9.456217b] vs. [8.110686b] +16.590%
FY Reinsurer share of claims and policyholder benefits 625.967m vs. 512.144m +22.225%
FY Net claims and benefits [8.830250b] vs. [7.598542b] +16.210%
FY Cedant acquisition costs [3.890255b] vs. [3.928700b] -0.979%
FY Operating and other expenses [2.019834b] vs. [1.709036b] +18.186%
FY Provision for doubtful debts [424.145m] vs. [394.905m] +7.404%
FY Total claims, benefits and other expenses [15.164484b] vs. [13.631183b] +11.248%
FY Profit before tax 3.101850b vs. 4.558551b -31.955%
FY Profit for the year 2.278282b vs. 3.577340b -36.314%
EPS (Basic and diluted) 3.25 vs. 5.11 -36.399%
Dividend per share 0.45 vs. 0.85 -17.059%
Total Equity 28.373033b vs. 27.205084b +4.293%
Government securities 14.314752b vs. 14.562840b -1.704%
Total Assets 44.362634b vs. 42.732667b +3.814%
Cash and cash equivalents at 31st December 5.797260b vs. 3.635590b +59.459%
BUSINESS REVIEW
We delivered on our commitment to continue growing the shareholders value. The gross written premiums, investments income, shareholders funds and assets base registered growth, however there was significant drop in profits for year ended 31st December 2018 due to high claims posted, impairment of an asset held for sale, significant devaluation of forex in one of our markets and significant drop in the share of profit from our investment in associate in Zep Re.
Operational performance
Gross written premiums grew by from KShs 14.83 billion in the year 2017 to KShs 14.838 billion in 2018. Net earned premiums grew by 4% from KShs 13.68 billion in 2017 to KShs 14.2 billion in 2018. Investment income grew from KShs 3.17 billion to KShs 3.39 billion. The profit before tax for the year stood at KShs 3.1 billion, a decline of 32% from last year profit before tax of KShs 4.56 billion.
Our accomplishments are the outcome of disciplined execution of our five year strategy which is grounded on the following five pillars financial performance, business process improvement, business development, risk management and people and culture.
Financial overview
Financial overview of the Group continues to deliver positive results to shareholders and has maintained a good performance despite the challenging business environment experienced during the year which affected the revenue streams, investment income.
Our investment portfolio grew to KShs 36.6billion in 2018 up from KShs 35.47 billion in 2017. The asset base increased from KShs 42.73 billion in 2017 to KShs 44.2.billion in 2018, a growth of 4%.
The Shareholders funds increased from KShs 27.2 billion in 2017 to KShs 28.38 billion in 2018 a growth of 5%.
The Key performance drivers that are responsible for positive financial state of the organization include, aggressive collection of the reinsurance receivables and real time market intelligence which guided our response to market changes and the uptake of investment opportunities.
Conclusions
Its never traded above a P/E of 5.00 ever. with speaks to an in built scepticism in the markets.
Leading reinsurance and insurance provider.
Kenya Reinsurance Corporation Limited H1 2018 results through 30th June 2018 vs. 30th June 2017
H1 Gross premiums written premium 6.332446b vs. 7.504451b -15.617%
H1 Outward reinsurance premiums [396.646m] vs. [172.483m] +129.962%
H1 Net written premium 5.935800b vs. 7.331968b -19.042%
H1 Net earned premiums 6.371661b vs. 7.089182b -10.121%
H1 Investment income 1.904552b vs. 1.671447b +13.946%
H1 Total income 8.311996b vs. 8.805540b -5.605%
H1 Claims and policyholder benefits [3.581015b] vs. [3.617066b] -0.997%
H1 Reinsurers share of claims 218.858m vs. 9.916m
H1 Net claims and policyholder benefits [3.362157b] vs. [3.607150b] -6.792%
H1 Cedant acquisition costs [1.828188b] vs. [2.101120b] -12.990%
H1 Total outgo [6.555212b] vs. [6.511216b] +0.676%
H1 Profit before tax 1.756784b vs. 2.294324b -23.429%
H1 Profit for the period after tax 1.229749b vs. 1.622097b -24.188%
EPS 1.76 vs. 2.32 -24.138%
Total Equity 28.140232b vs. 25.908013b +8.616%
Government securities 16.687974b vs. 11.924950b +39.942%
Total Assets 43.614395b vs. 40.736039b +7.066%
Cash and cash equivalents at end of period 3.175156b vs. 5.459451b -41.841%
Conclusions
Remains inexpensive on a PE Basis but has been that way for Eternity.
Kenya Reinsurance Corporation Ltd H1 2017 results through 30th June 2017 vs. 30th June 2016
H1 Gross written premiums 7.504451b vs. 7.096326b +5.751%
H1 Net written premium 7.331968b vs. 6.718950b +9.124%
H1 Net earned premium 7.089182b vs. 6.475500b +9.477%
H1 Investment income 1.671447b vs. 1.720906b -2.874%
H1 Total income 8.805540b vs. 8.224865b +7.060%
H1 Claims and policyholder benefits [3.617066b] vs. [3.555123b] +1.742%
H1 Net claims and policyholder benefits [3.607150b] vs. [3.549674b] +1.619%
H1 Cedant acquisition costs [2.101120b] vs. [1.905152b] +5.399%
H1 Total outgo [6.511216b] vs. [6.012590b] +8.293%
H1 Profit before tax 2.294324b vs. 2.212275b +3.709%
H1 Profit for the period after tax 1.622097b vs. 1.564088b +3.709%
EPS 2.32 vs. 2.23 +4.036%
Total Shareholders Funds 25.908013b vs. 24.133297b +7.354%
Total Assets 40.736039b vs. 38.494310b +5.824%
Cash and cash equivalents at the end of the period 5.459451b
KenyaReinsurance @Kenya_Re The first half of 2017 has presented its own set of challenges with the most prominent being premium undercutting within the Kenyan market.
https://twitter.com/Kenya_Re/status/893341960945250304
Conclusions
Plenty of headroom for the price off a PE pf 4.574.
Leading reinsurance and insurance provider.
Kenya Reinsurance Corporation Limited FY 2016 results through 31st December 2016 vs 31st December 2015
FY Gross premiums written 13.244591m vs. 13.060341m +1.411%
FY Less retrocession premiums [604.722m] vs. [494.546m] +22.278%
FY Net earned premiums 12.686760b vs. 12.016078b +5.582%
FY Investment income 3.079298b vs. 3.041138b +1.255%
FY Fair value gains on revaluation of investment properties 813.513m vs. 729.599m
FY Total income 17.031238b vs. 16.411126b +3.779%
FY Gross claims incurred and policyholder benefits [7.013734b] vs. [7.391724b] -5.114%
FY Net claims incurred [6.680518b] vs. [7.061610b] -5.397%
FY Cedant acquisition costs [3.635256b] vs. [3.402811b] +6.831%
FY Operating and other expenses [1.832360b] vs. [1.318950b] +38.926%
FY Provision for doubtful debts [665.018m] vs. [113.619m] +485.305%
FY Total outgo [12.813152b] vs. [11.896990b] +7.701%
FY Profit before tax 4.218086b vs. 4.514136b -6.558%
FY Profit for the year 3.287284b vs. 3.554250b -7.511%
EPS (Basic and diluted) 4.70 vs. 5.10 -7.843%
Dividend per share 0.80 vs. 0.75 +6.667%
Total Equity 24.133297b vs. 21.932865b +10.033%
Total Assets 38.494310b vs. 35.954134b +7.065%
Cash and cash equivalents at 31st December 4.545481b vs. 6.276010b -27.574%
Number of outstanding shares 699,949,068
Kenya_Re Managing Director, Jadiah Mwarania highlights there was increase in the net assets by 6% from 21B 24.1B KenyaReInvestorBriefing
Conclusions
Its an inexpensive share on a PE Basis.
H1 16 Earnings versus H1 15
H1 Gross written premium 7.096326b vs. 6.203753b +14.388%
H1 Outward reinsurance premium [377.376m] vs. [306.425m] +23.154%
H1 Net written premium 6.718950b vs. 5.897328b +13.932%
H1 Change in unearned premiums [243.450m] vs. [465.037m] -47.649%
H1 Net earned premium 6.475500b vs. 5.432291b +19.204%
H1 Investment income 1.720906b vs. 1.433081b +18.828%
H1 Total income 8.224865b vs. 6.900292b +19.196%
H1 Claims and policyholder benefits [3.555123b] vs. [2.740243b] +29.738%
H1 Less reinsurers share of claims 5.449m vs. 26.054m -79.086%
H1 Net claims and policyholder benefits [3.549674b] vs. [2.714189b] +30.782%
H1 Cedant acquisition costs [1.905152b] vs. [1.607565b] +18.512%
H1 Operating and other expenses [557.764m] vs. [453.337m]
H1 Total out go [6.012590b] vs. [4.775091b] +25.916%
H1 Profit before tax 2.212275b vs. 2.125201b +4.097%
H1 Profit for the period after tax 1.564088b vs. 1.501944b +4.138%
EPS 2.23 vs. 2.15 +3.721%
Total shareholders funds 23.257495b
Total assets 38.009016b
Cash and cash equivalents at the end of the period 5.712654b
Conclusions
Inexpensive share on a PE of less than 4.
FY Gross premiums written 13.060341b vs. 11.570090b +12.880%
FY Net earned premium 12.016078b vs. 10.313408b +16.509%
FY Investment income 3.041138b vs. 2.591935b +17.331%
FY Fair value gains on revaluation of investment properties 729.599m vs. 684.798m +6.542%
FY Total income 16.411126b vs. 13.761038b +19.258%
FY Gross claims incurred [7.391724b] vs. [6.394214b] +15.600%
FY Net claims incurred [7.061610b] vs. [5.957540b] +18.532%
FY Cedant acquisition cost [3.402811b] vs. [3.017738b] +12.760%
FY Profit before taxation 4.514136b vs. 3.919732b +15.164%
FY Profit after taxation 3.554250b vs. 3.137172b +13.295%
EPS 5.10 vs. 4.48 +13.839%
Cash and cash equivalents at 31st December 6.276010b vs. 6.732020b -6.774%
Dividend 0.75 vs. 0.70 +7.143%
A Selection of Tweets from @Kenya_Re
KenyaReinsurance We have set up a Subsidiary in Zambia to operate as a regional hub to Southern African markets such as Botswana
https://mobile.twitter.com/Kenya_Re/status/715052081367945218?p=v
KenyaReinsurance #KenyaReFinancialResults Investment Portfolio grew to Ksh26.86Billion up from Ksh25.81Billion in Dec 2014
https://mobile.twitter.com/Kenya_Re/status/715047175756115968?p=v
Conclusions
It remains seriously inexpensive on a PE Basis.
Seems to have navigated the Mark to Market Imbroglio better than others
Its a BUY at a Price of 19.85
First Half Total Income 6.900293b versus 5.522901b
Net Written Premium 5.897328b versus 4.472360b
First Half Net Earned Premium 5.432291b versus 4.154312b
First Half Investment Income 1.433082b versus 1.333295b
First Half Total Outgo [4.775091b] versus [3.793571b]
First Half Profit before Tax 2.125202b versus 1.729330b +22.89%
First Half Profit after Tax 1.501945b versus 1.248290b +20.32%
First Half EPS 2.15 versus 1.71 +25.73%
Company Commentary
Gross written premiums grew by 26% achieved due to aggressive marketing efforts in the international market
Investment Portfolio grew by 4% from 25.35b in Dec 2014 to 26.48b in June 2015
Total Assets increased 6% to 34.19b in June 2015
Conclusions
Its a cheap share on a PE Basis and Earnings have further room to steepen
Full Year Earnings through 31st December 2014 versus through 31st December 2013
FY Income 11.570090b versus 9.645151b +19.95%
FY Net Earned Premium 10.313408b versus 8.581830b +20.177%
FY Investment Income 2.591935b versus 2.277749b +13.793%
Full Year Fair Value gains on revaluation of investment Properties 684.798m versus 441.588m +55.076%
FY Net Income 13.761038b versus 11.404605b +20.662%
FY Gross Claims incurred [6.394214b] versus [5.246003b] +21.887%
FY Net Claims Incurred [5.957540b] versus [4.723170b] +26.13%
FY Cedant Acquisition Costs [3.017738b] versus [2.493960b]
Full Year Total Expenses [4.159660b] versus [3.669632b] +13.35%
FY share of Profit of Associate 275.894m versus 257m
Full Year Profit Before Taxation 3.919732m versus 3.268803m +19.913%
Full Year Profit After Taxation 3.137172b versus 2.792466b +12.344%
Full Year Earnings Per Share 4.48 versus 3.99 +12.28%
FY Cash and Cash Equivalents 6.732020b versus 4.415833b
Conclusions
Its a very cheap stock on a PE Basis.
The curious thing is that FY 2013 EPS has been rebased lower with any note in the Accounts.
First Half Earnings through 30th June 2014 versus through 30th June 2013
First Half Net Written Premium 4.472360b versus 3.663045b +22.094%
First Half Investment Income 1.333295b versus 1.22361ob +8.964%
First Half Total Income 5.522901b versus 4.653250b +18.689%
First Half Claims and Policyholders benefits [2.410590b] versus [1.751897b] +37.5988%
First Half Total Outgo [3.793571b] versus [3.024765b] +25.4170%
First Half Profit before Tax 1.729330b versus 1.628485b +6.19256%
First Half Profit After Tax 1.248290b versus 1.193655b +4.577%
First Half Earnings Per Share 1.78 versus 1.71 +4.0935%
Conclusions
Revenues +22.094% but First Half claims outpaced that at +37.5988%
Its a Cheap share versus its peers on a PE of 4.126.
FY Earnings through 31st December 2013
FY Gross Premium Written 9.645151b versus 7.944183b +21.411%
FY Net Earned Premium 8.581830b versus 7.054315b +21.65%
FY Investment Income 2.277749b versus 2.651422b -14.093%
Fair Value gains on revaluation of investment properties 441.588m versus 523.008m
FY Net Income 11.404605b versus 10.393193b
FY Net Claims incurred [4.723170b] versus [4.061577b]
FY Total Expenses [3.669632b] versus [3.592915b]
FY Profit before Tax 3.268803b versus 2.944635b +11.008%
FY Profit after Tax 3.000431b versus 2.801892b +7.085%
FY EPS 4.29 versus 4.00 +7.25%
Conclusions
On a PE Basis Kenya Re is the least expensive insurance share by a wide margin
H1 2013 through June 2013 versus June 2012
Gross Written Premium 4.033647b versus 3.360163b +20.043%
Net Earned Premium 3.375845b versus 2.877703b
Investment Income 1.223610b versus 0.979425b +24.931%
Total Income 4.653250b versus 4.203721b
Operating and other Expenses [512.735m] versus [382.406m] +34%
Total OutGo [3.024765b] versus [2.760192b]
H1 PBT 1.628485b versus 1.443530b +12.812%
H1 PAT 1.193655b versus 1.154824b +3.36%
H1 EPS 1.71 versus 1.65 +3.63%
No Interim Dividend.
Company Commentary
Growth was achieved on the back of an expansion in insurance Premiums in Kenya and the rest of the Africa.
Conclusions
On a Trailing PE of 4.088, this is a very cheap share even after a Strong Rally in 2013.
FY Earnings through December 2012 versus December 2011
FY Gross Written Premium 7.944183b versus 6.613884b +20.113%
FY Net Earned Premiums 7.054315b versus 5.734678b
Investment Income 2.651422b versus 1.419902b +86.737%
Net Income 10.393193b versus 7.938373b
Net Claims incurred [4.061577b] versus [2.939855b]
Total Expenses [3.592915b] versus [3.149518b]
FY PBT 2.944635b versus 2.036777b +44.57326%
FY PAT 2.801892b versus 1.914584b +46.344%
Total Comprehensive Income 3.296670b versus 1.162983b
FY EPS 4.00 versus 2.74 +45.985%
Conclusions
On a PE of 4.4125, it remains an inexpensive share even after rallying 64.935% in 2013.
H1 2012 versus H1 2011
Gross Written Premium 3.360163b versus 2.740215b +23%
Net Earned Premium 2.877703b versus 2.316790b
Investment Income 0.979425b versus 0.699754b
Gain on Sale of Asset 310.271m versus 0
Total Income 4.203721b versus 3.052226b
Claims and Policy Holder Benefits [1.588771b] versus [1.143244b] +39%
Profit Before Tax 1.443529b versus 1.028542b +40%
Profit After Tax 1.154824b versus 0.845774b +37%
Earnings Per Share 1.92 versus 1.41
Conclusions
Its a very cheap Counter on a Classic PE Calculation.
FY 2011 versus FY 2010
FY PBT 2.036777b versus 1.660016b +22.696%
FY PAT 1.914584b versus 1.541391b +24.211%
Total Comprehensive Income For The Year 1.162983b versus 1.773577b -34.427%
Gross Premiums written 6.613884b versus 4.980900b +32.784%
Gross Claims incurred 3.263744b versus 2.198438b +48.457%
Fair Valuation Gains on Revaluation of Investment Properties 684.498m versus 378.064m
Final Dividend 35 Cents a share
Bonus Share 1 for Every 6 Held
Fair Value Mark to Market on Available for Sale Financial Assets .544462b
Earnings Per Share 3.19 versus 2.57 +24.1245%
Conclusions
FY PBT 2011 increased +22.696% FY PAT +24.211% Total Comprehensive Income -34.427%. For Further Analysis we really have to look at the Portfolio Composition.
Gross Premiums written 6.613884b versus 4.980900b +32.784% versus Gross Claims incurred 3.263744b versus 2.198438b +48.457% The Underwriting Expansion Rate is beneath the Claims Incurred Trajectory. |
