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37 Pages«<34353637>
KenyaRe FY19 - FY23 (Both Inclusive)
Ebenyo
#701 Posted : Saturday, September 25, 2021 9:19:55 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,992
Location: Kitale
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?




Cash reserve is so healthy
Towards the goal of financial freedom
Ericsson
#702 Posted : Saturday, September 25, 2021 10:14:32 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ebenyo
#703 Posted : Sunday, September 26, 2021 8:31:25 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,992
Location: Kitale
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.


Yes.because many claims have been already settled.
Towards the goal of financial freedom
Ericsson
#704 Posted : Monday, September 27, 2021 12:32:20 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.


Yes.because many claims have been already settled.

Let's compare notes in 5.5 months.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#705 Posted : Monday, September 27, 2021 9:36:36 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,646
Location: Nairobi
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.


Yes.because many claims have been already settled.
Whereas I do hope they maintain the dividend given they have the cash but I am not as optimistic as you are that they can make the same cash PAT for FY2021 as for FY2020.

Claims are still coming through with COVID.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#706 Posted : Monday, September 27, 2021 9:49:04 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
South Africa insurance industry records surge in claims due to covid-19 pandemic,riots.

Kenya Re also does reinsurance business in South Africa through its Zambia subsidiary.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#707 Posted : Tuesday, September 28, 2021 5:25:20 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,646
Location: Nairobi
Ericsson wrote:
South Africa insurance industry records surge in claims due to covid-19 pandemic,riots.

Kenya Re also does reinsurance business in South Africa through its Zambia subsidiary.
Where did you read that?
I think most of their business out of Zambia is in "southern Africa" ex-SA.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#708 Posted : Tuesday, September 28, 2021 7:47:30 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
South Africa insurance industry records surge in claims due to covid-19 pandemic,riots.

Kenya Re also does reinsurance business in South Africa through its Zambia subsidiary.
Where did you read that?
I think most of their business out of Zambia is in "southern Africa" ex-SA.

Drool 😂😂😂
Check on their website the countries which the Zambian subsidiary serves.
To quote what is there
"The Zambia subsidiary serves the following countries;
-Angola
-Botswana
-Eswatini
-Lesotho
-Malawi
-Mozambique
-Namibia
-South Africa
-Zambia
-Zimbabwe."
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ebenyo
#709 Posted : Tuesday, September 28, 2021 9:38:21 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,992
Location: Kitale
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.


Yes.because many claims have been already settled.

Let's compare notes in 5.5 months.


Agreed.
Towards the goal of financial freedom
Ebenyo
#710 Posted : Tuesday, September 28, 2021 9:45:44 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,992
Location: Kitale
VituVingiSana wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.


Yes.because many claims have been already settled.
Whereas I do hope they maintain the dividend given they have the cash but I am not as optimistic as you are that they can make the same cash PAT for FY2021 as for FY2020.

Claims are still coming through with COVID.


The huge claims affected HY 1 performance.
These will definitely reduce in HY 2
Towards the goal of financial freedom
Ericsson
#711 Posted : Monday, October 04, 2021 9:30:20 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
Ebenyo wrote:
VituVingiSana wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
Ebenyo wrote:
Last year the dividend was 0.10.
They can afford 0.20 this year.


Unless they do a major turnaround in H2,a profit warning and dividend cut is inevitable.


I doubt

So according to you Kenya Re will be able to reverse the 64% drop in first half profit and avoid a profit warning?


Cash reserve is so healthy

Answer Yes or No.


Yes.because many claims have been already settled.
Whereas I do hope they maintain the dividend given they have the cash but I am not as optimistic as you are that they can make the same cash PAT for FY2021 as for FY2020.

Claims are still coming through with COVID.


The huge claims affected HY 1 performance.
These will definitely reduce in HY 2


"We have placed turnaround strategies in addition to the strategies articulated in our 2017-2021 business strategy plan to address the challenges that we identified in the year 2021."
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#712 Posted : Monday, October 11, 2021 12:56:55 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
Ebenyo wrote:
heri wrote:
Has anyone received the dividends ?


I have not yet received mine


They started paying from yesterday.
Delay was due to switching banks

Why did they switch banks at the last minute?

The contract for the other bank came to an end which coincided with the dividend payment date
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#713 Posted : Thursday, October 14, 2021 11:24:03 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
https://www.standardmedi...robi-dip-by-27-per-cent

Land and property prices in Nairobi and it's environs are self-correcting due to market forces with a report revealing a drop of upto 27%.

A recent Macro Strategy Report published by EFG Hermes, a financial service company, which analysed land prices in the high-end market segment, upper-middle and satellite towns found that the pricing was significantly lower in the first quarter of 2021 compared to the past four years.

It notes that prices of residential and commercial property in Nairobi’s satellite towns have dipped since quarter four of 2019. “Could this represent the early signs of a deeper correction in high-end property prices?” posed the report.

The report says the property market in the country is overvalued, noting that the Covid-19 pandemic has seen distressed properties sale for less than their initial valuation.

The survey notes that the current land prices in the high-end segment are significantly lower than their peak levels over the past four years. “Notably, Quarter One (Q1) of 2021 land prices in Runda were 27 per cent below their recent peaks in Q4 of 2017,” reads the report in part.

“In the middle-income segment, current land prices are also lower than their peak levels over the past four years, but not by as much as the high-end segment.”

Prices in Runda have dropped way below the initial prices in Q4 of 2014. The report notes that while current land prices in Parklands and Westlands have changed from their peak levels over the past four years, current land prices in Upper Hill - Nairobi’s most expensive suburb are 13 per cent below their peaks in Q4 2017.

“Donholm stands out within the other segment for being the only suburb that has continued to see its land prices materially appreciate since Q4 2017,” noted the survey.

The report says on the performance of suburb land prices in Nairobi, between Q4 2017 and Q1 of 2021 all have underperformed the Consumer Price Index (CPI) which is 20 per cent.

“This has to be concerning for the outlook of the property market in Nairobi’s suburbs,” it reads.

Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#714 Posted : Sunday, October 24, 2021 7:51:58 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
Kenya Re should buy the stake that Blue Shield Insurance under statutory management owns in Zep Re.
This will be a way of them increasing their shareholding to above 20%.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#715 Posted : Tuesday, October 26, 2021 3:21:56 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
https://www.businessdail...kisumu-property-3595824

Kenya Re will launch a fresh bid to sell its Reinsurance Plaza building in Kisumu before the end of the year.

The firm's earnings could be boosted if significant gains are realised from the sale.
During the half year results it reported a 64% drop in profits.
Property portfolio constitutes 27% of its total investments.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#716 Posted : Tuesday, October 26, 2021 10:01:40 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,646
Location: Nairobi
Ericsson wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/kenya-re-reopen-sale-of-its-sh1bn-kisumu-property-3595824

Kenya Re will launch a fresh bid to sell its Reinsurance Plaza building in Kisumu before the end of the year.

The firm's earnings could be boosted if significant gains are realised from the sale.
During the half year results it reported a 64% drop in profits.
Property portfolio constitutes 27% of its total investments.
It's unlikely they will get anything close to the 1bn from a private buyer. I think the building has been over-valued by the valuer. The only hope to get anything close to 1bn is from GoK/County but I shall not hold my breath.

Firms need to be realistic about property values shown on balance sheets.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#717 Posted : Tuesday, October 26, 2021 10:51:42 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/kenya-re-reopen-sale-of-its-sh1bn-kisumu-property-3595824

Kenya Re will launch a fresh bid to sell its Reinsurance Plaza building in Kisumu before the end of the year.

The firm's earnings could be boosted if significant gains are realised from the sale.
During the half year results it reported a 64% drop in profits.
Property portfolio constitutes 27% of its total investments.
It's unlikely they will get anything close to the 1bn from a private buyer. I think the building has been over-valued by the valuer. The only hope to get anything close to 1bn is from GoK/County but I shall not hold my breath.

Firms need to be realistic about property values shown on balance sheets.


100% true they need to be realistic.
And with falling rental yields, the valuations have to be adjusted downwards.
They still haven't breached the 30% mark of investment in property, why can't they wait till market recovers to sell the property.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#718 Posted : Tuesday, October 26, 2021 10:53:55 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
https://youtu.be/fLgxkcD1Iz4

Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#719 Posted : Wednesday, October 27, 2021 4:30:11 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,078
Location: NAIROBI
Ericsson wrote:
https://youtu.be/fLgxkcD1Iz4


Operational challenges of 2021
-Slowdown in collecting premiums
-An increase in claims in certain lines of businesses.Certsin claims under policies which needs to be accommodated which resulted in claims costs going up.

Investment side;
-Slowdown in returns that they earn from investments such as bank deposits and other vehicles of investment.
-On the rental side of things,Kenya Re being a landlord.The market rates have had to go down.Things like escalation clauses on contracts have had to be removed or at least frozen for the time being.
A hit in the bottom line in terms of profitability.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#720 Posted : Wednesday, October 27, 2021 10:44:53 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,646
Location: Nairobi
Ericsson wrote:
Ericsson wrote:
https://youtu.be/fLgxkcD1Iz4


Operational challenges of 2021
-Slowdown in collecting premiums
-An increase in claims in certain lines of businesses.Certsin claims under policies which needs to be accommodated which resulted in claims costs going up.

Investment side;
-Slowdown in returns that they earn from investments such as bank deposits and other vehicles of investment.
-On the rental side of things,Kenya Re being a landlord.The market rates have had to go down.Things like escalation clauses on contracts have had to be removed or at least frozen for the time being.
A hit in the bottom line in terms of profitability.

Awful RoE.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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