Friday, June 01, 2007

Kenya Re 2006

Kenya Re published their 2006 results in preparation for IPO planned for June. Assets were up from Kshs. 11.6 billion in 2005 to 12.8 billion ($183 million) in 2006 and net insurance premium revenue rose from 2.1 to 2.8 billion over the same period. The year also saw management expenses increase from Kshs. 290 to 453 million resulting in a reduction of pre-tax profit from Kshs. 947 million in 2005 to 762 million ($10.9 million) in 2006.

Kenya Re accounts are straight forward, but insurance reporting is tricky. Once a year, usually between March & May), insurance companies publish their year end results. But there is no rhyme, some report only total assets, some don't report profit/loss, or net asset positions while others have more/less detail – making it difficult to compare and see which companies are performing better. I wish their reporting could be harmonized.

8 comments:

MainaT said...

The International Accounting Standards have taken care of the harmonisation bit, the question is whether Kenyan Insu Cos are/will report under these stds.
They have a a lot of strange stuff like embedded value which i believe causes P&L volatility, but can only be calculated by an actuary...

bankelele said...

Hi. I don't think it's an IAS issue. The local insurance regulator must define how their reports should be presented - in the same way all bank reports are in a standardized format

Anonymous said...

banks quick question , i have been waiting for kenya Re shares for a while.with all the over subcription that goes on what would be the best way to ensure i get the total number of shares i want .For kengen i got other people -family members to buy the shares in their names and i still didnt get the number i wanted .whats your advice on this

Anonymous said...

Is there any possible way for Kenyans living in the U.S and her diaspora to participate in the Kenya RE IPO and how may faccilitation of openingup of CDs accounts be made possible

Maishinski said...

On a light note (pure speculation):

How to open multiple CDS accounts?

Get your messengers, labourers and 100 semi-literate people from your shags and open CDS accounts and then buy the shares in their names.

Pay them 20/= for each transaction (the buy and the sell).

Cross your fingers in between and hope they don't wise up and scatter with your shares before you cash in hehehe...

Heard that's what clever chutiz do with messengers and laborers. They just give them kidogo K and the dudes sign anything without reading (some messengers are millionaires without knowing it!).

MainaT said...

Banks-Were the 2005 numbers restated? According to Kenya Re's website, there PBT was 681m for 2005 and you seem to have a different number.

bankelele said...

Maishinski & Anon: wait for secondary market, when you can be sure to get all the shares you can afford (chasing down refunds from a dozen applications/family members is not fun)

MainaT: These are 2006 numbers against 2005 numbers (from teh newspaper ad THEY put last month). I don't know if the 2005 were restated, but that is an intruiging point. hmmm...

Anonymous said...

it doesn't matter how many accounts you open up you will still get the same amount of shares if you use just one account. I tried 10 accounts with access kenya and after I did the math I might as well have used 1 account. Throw in the headache of chasing down 10 refund cheques and trying to convince the guys at the stockbroking office about YOUR 10 refund cheques

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