Pan Africa Insurance has issued a profit warning for the year ending 31 December 2015. They expect profits after tax to be 25% lower than the profits made in the financial year ending 2014.
The significant decline is attributed by adverse equity market conditions experienced during the year. This will result to unrealized marked-to-market losses on quoted equities in Pan Africa’s Life Business. The General Insurance business acquired early in the year (Gateway Insurance) is expected to have an underwriting loss.
Share Price
The Graph below clearly shows the current state of insurance industry. As you can see below Britam and Pan Africa lead at the bottom, followed by CIC and CFCI (Liberty Kenya Holding).
Jubilee Insurance gained positive returns during the year but the trend has changed and is on the downward path. Kenya Reinsurance Company experienced positive returns during the year due to foreign investor demand on the counter.
Profit Warning Checklist (Listed Companies)
- BOC Gases
- ARM Cement
- Standard Chartered
- Uchumi Supermarkets
- Mumias Sugar
- Express Kenya
- A Cables
- Standard Group
- Atlas Development and Support Services
- Sameer Africa
- Car & General
- Crown Paints
- BRITAM
- TPS Serena
- Pan Africa Insurance
Source: (Abacus, Kenyan WallStreet, Pan Africa Insurance, NSE)
