Pan Africa Insurance of Kenya Jumps on Buy Rating: Nairobi Mover

Pan Africa Insurance Holdings Ltd. (PAIL), the Kenyan unit of South African insurer Sanlam Ltd. (SLM), gained the most in almost four weeks after it was recommended buy in new coverage by Standard Investment Bank Ltd.

Shares of the Nairobi-based company rose 1.8 percent to 42.25 shillings, the most since Jan. 4, at the close in Nairobi. About 15,800 shares changed hands, or 133 percent of the three- month daily average, according to data compiled by Bloomberg.

Pan Africa is Standard Investment Bank’s top stock pick among publicly traded insurers because its share price has the largest margin for potential growth compared to its peers, research analyst Brenda Kithinji said at a presentation today. The price target for the stock is 74.70 shillings, she said.

The company’s market share for life insurance is estimated to reach 15.1 percent by 2015, compared with 11.8 percent in 2011, according to the report, boosted by products such as a funeral cover package. The life assurance business is forecast to have grown 45 percent to 5.28 billion shillings ($60.3 million) this year.

Sanlam is the largest South African-based life insurer in Africa.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net