March 27 (Bloomberg) -- Jubilee Holdings Ltd., Kenya’s second-biggest insurer by market value, advanced to the highest level on record after competitor CIC Insurance Group Ltd. said 2012 profit doubled.
The stock jumped 5.1 percent to 249 shillings by the 3 p.m. close in Nairobi, the capital, the highest since at least May 1997, according to data compiled by Bloomberg. It gained for an eighth day, the longest winning streak since December 2007, while 2.7 times the three-month daily average volume of shares were traded. CIC Insurance jumped to a one-week high, adding 1.8 percent to 5.55 shillings.
CIC Insurance, the third-largest insurer on the Kenyan bourse, said today 2012 profit surged to 1.38 billion shillings ($16 million) from 584 million shillings. British American Investment Co., the biggest insurer, said on March 14 net income was 2.52 billion shillings last year, compared with a loss of 1.09 billion shillings a year earlier. Britam’s shares added 0.6 percent to 8.45 shillings today.
“Its peers like CIC and Britam have all recorded exceptional results and investors believe this trend will continue with Jubilee,” Moses Waireri, head of research at Nairobi-based Sterling Capital Ltd., said by phone today.
Jubilee was rated buy with a target price of 203.93 shillings in new coverage by Sterling Capital last month. Profit in 2012 is estimated to have risen to 2.09 billion shillings from 1.91 billion shillings a year earlier, according to Sterling Capital. Jubilee has said it will announce results next month.
To contact the reporter on this story: Eric Ombok in Nairobi at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org