Kenya Reinsurance Rises to Record on Peer Profit: Nairobi Mover

Kenya Reinsurance Corp. (KNRE) rose to a record after other insurers in East Africa’s biggest economy posted profit increases in 2012.

The stock surged 5.9 percent to 17.15 shillings by the close in Nairobi, the highest since at least August 2007 when Bloomberg began compiling the data. About 342,600 shares traded, 1.4 times the three-month daily average. British American Investment Co., the country’s biggest insurer, rose 3.3 percent to 9.45 shillings, while Pan Africa Insurance Holdings Ltd. (PAIL) added 2.5 percent to 62 shillings today.

Kenya Re’s rise “is all about speculation on their 2012 numbers because the insurance companies have so far announced good results,” Augustine Misoka, a research analyst at Nairobi- based Sterling Capital Ltd., said by phone. “We actually estimated that profit after tax will be 2.9 billion shillings” ($34 million). Net income was 1.91 billion shillings in 2011, it said last year.

British American reported on March 14 a 2012 profit of 2.52 billion shillings from a year-earlier loss of 1.96 billion shillings while Pan Africa said on Feb. 21 its net income rose 57 percent.

Kenya Re’s profit climbed 36 percent in the first half of 2012 as premiums and investment income increased, the Nairobi- based company said in August. It will announce full-year results later this month.

The stock has climbed 60 percent this year, outpacing the 27 percent advance on the Nairobi Securities Exchange All-Share Index. (NSEASI)

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

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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