company background image
KNRE

Kenya ReinsuranceNASE:KNRE Stock Report

Market Cap

KSh6.9b

7D

-1.6%

1Y

9.8%

Updated

16 Oct, 2021

Data

Company Financials
KNRE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends4/6

KNRE Overview

Kenya Reinsurance Corporation Limited underwrites various classes of reinsurance to insurance companies in Africa, the Middle East, and Asia.

Price History & Performance

Summary of all time highs, changes and price drops for Kenya Reinsurance
Historical stock prices
Current Share PriceKSh2.46
52 Week HighKSh2.00
52 Week LowKSh2.94
Beta0.22
1 Month Change-2.77%
3 Month Change-1.99%
1 Year Change9.82%
3 Year Change-37.72%
5 Year Change-51.41%
Change since IPO-29.35%

Recent News & Updates

Shareholder Returns

KNREKE InsuranceKE Market
7D-1.6%-2.5%1.7%
1Y9.8%12.7%30.0%

Return vs Industry: KNRE underperformed the KE Insurance industry which returned 12.7% over the past year.

Return vs Market: KNRE underperformed the KE Market which returned 30% over the past year.

Price Volatility

Is KNRE's price volatile compared to industry and market?
KNRE volatility
KNRE Beta0.22
Industry Beta0.81
Market Beta1

Stable Share Price: KNRE is less volatile than 75% of KE stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: KNRE's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1970n/aJadiah Mwaraniahttps://www.kenyare.co.ke

Kenya Reinsurance Corporation Limited underwrites various classes of reinsurance to insurance companies in Africa, the Middle East, and Asia. The company operates through Short Term Business and Long Term Business segments. The Short Term Business segment offers aviation, engineering, fire, medical, liability, marine, motor, personal accident, theft, workmen’s compensation, employer’s liability, and miscellaneous reinsurance products.

Kenya Reinsurance Fundamentals Summary

How do Kenya Reinsurance's earnings and revenue compare to its market cap?
KNRE fundamental statistics
Market CapKSh6.89b
Earnings (TTM)KSh2.94b
Revenue (TTM)KSh25.04b

2.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KNRE income statement (TTM)
RevenueKSh25.04b
Cost of RevenueKSh18.83b
Gross ProfitKSh6.21b
ExpensesKSh3.27b
EarningsKSh2.94b

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)1.05
Gross Margin24.81%
Net Profit Margin11.75%
Debt/Equity Ratio0.0%

How did KNRE perform over the long term?

See historical performance and comparison

Dividends

8.1%

Current Dividend Yield

19%

Payout Ratio

Valuation

Is Kenya Reinsurance undervalued compared to its fair value and its price relative to the market?

2.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KNRE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KNRE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KNRE is good value based on its PE Ratio (2.3x) compared to the African Insurance industry average (7.5x).

PE vs Market: KNRE is good value based on its PE Ratio (2.3x) compared to the KE market (6.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KNRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KNRE is good value based on its PB Ratio (0.2x) compared to the KE Insurance industry average (0.8x).


Future Growth

How is Kenya Reinsurance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.1%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kenya Reinsurance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Kenya Reinsurance performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNRE has high quality earnings.

Growing Profit Margin: KNRE's current net profit margins (11.8%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: KNRE's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: KNRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KNRE had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Insurance industry average (18.2%).


Return on Equity

High ROE: KNRE's Return on Equity (8.6%) is considered low.


Financial Health

How is Kenya Reinsurance's financial position?


Financial Position Analysis

Short Term Liabilities: KNRE's short term assets (KES14.7B) exceed its short term liabilities (KES14.7B).

Long Term Liabilities: KNRE's short term assets (KES14.7B) exceed its long term liabilities (KES4.2B).


Debt to Equity History and Analysis

Debt Level: KNRE is debt free.

Reducing Debt: KNRE has not had any debt for past 5 years.

Debt Coverage: KNRE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KNRE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Kenya Reinsurance current dividend yield, its reliability and sustainability?

8.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KNRE's dividend (8.13%) is higher than the bottom 25% of dividend payers in the KE market (4.19%).

High Dividend: KNRE's dividend (8.13%) is in the top 25% of dividend payers in the KE market (7.8%)


Stability and Growth of Payments

Stable Dividend: KNRE's dividend payments have been volatile in the past 10 years.

Growing Dividend: KNRE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19%), KNRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Jadiah Mwarania (57 yo)

11.5yrs

Tenure

KSh36,689,938

Compensation

Mr. Jadiah M. Mwarania serves as Managing Director and Director at Kenya Reinsurance Corporation Ltd. since April 11, 2011 and served as its Acting Managing Director since April 11, 2010. He holds a Bachel...


CEO Compensation Analysis

Compensation vs Market: Jadiah's total compensation ($USD330.69K) is about average for companies of similar size in the KE market ($USD263.52K).

Compensation vs Earnings: Jadiah's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: KNRE's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: KNRE's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kenya Reinsurance Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Kenya Reinsurance Corporation Limited
  • Ticker: KNRE
  • Exchange: NASE
  • Founded: 1970
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: KSh6.887b
  • Shares outstanding: 2.80b
  • Website: https://www.kenyare.co.ke

Location

  • Kenya Reinsurance Corporation Limited
  • Reinsurance Plaza
  • Nairobi
  • Kenya

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 14:02
End of Day Share Price2021/10/15 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.