Kenya Re-insurance Corporation Ltd. · NSEKE:KNRE
Kenya Re-insurance — Shareholder Meeting (2022)
19 slides from Kenya Re-insurance's shareholder meeting presentation, 2022
Slide 1: Kenya Re FY21 AGM Questions
Kenya Re FY21 AGM Questions NO. QUESTION RESPONSE 1 1) Why didn't Kenya Re post the The entire booklet containing the Corporation’s Financial Statements for the FY 2021 was ANNUAL REPORT on its website 21 posted on the website on 31st March 2022 after the accounts were approved by the days prior to
Slide 2: EPS from FY2012 to FY2021 and financial performance
3. Please provide the EPS for Kenya Re from Year Profit EPS FY 2012 to FY2021. Before tax Why has Kenya Re's financial (KShs) performance stagnated for the past 9 2012 2.94B 4.00 years? 2013 3.27B 3.99 2014 3.92B 4.48 2015 4.51B 5.10 2016 4.22B 4.70 2017 4.56B 5.11 2018 3.10B 1.46 2019 4.18B 2.55 20
Slide 3: Special dividend and Board satisfaction with performance
4. Why hasn’t the Board considered a Companies pay a special dividend when they have sold off a large asset while going Special Dividend instead of reinvesting through a corporate restructuring or on achievement of supernormal profits. in a business that is providing sub-par Another reason a company
Slide 4: Dividend policy and inflation-adjusted returns
in 2012 is worth at most KES 0.40 (down keen to sustain this. 60%) after inflation but the Board seems happy to earn 60% less in real terms. 6. Why doesn't the Board follow its The Corporation’s dividend provides a paid-out ratio not exceeding 30% of the after-tax short-term business profits after n
Slide 5: AM Best rating outlook and report request
AM Best has revised the Issuer Credit Rating Outlook to Stable and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb+” (Fair) The final Certificate will be received in due course, usually within four weeks. 11 Has Kenya Re responded to Dr. No. AM Best was at that
Slide 6: ROE, shareholder value and receivables
under Business Review schedule below has been achieved given inflation has on average been below 7% over the last ten years. What is Kenya Re's Board commitment to ROE FOR KENYA REINSURANCE CORP Shareholders to grow shareholders' value? Does the Board aim to match inflation? Does the Board feel Keny
Slide 7: Receivables collection and impairment
Receivables in good time? What is Net reinsurance receivable 2,255,813 3,320,655 considered a reasonable period to collect Receivables? c) Kenya Re is collecting Receivables in good time as stipulated in agreement with clients. Considered reasonable period to collect Receivables is follows; d) What
Slide 8: Dividend payout versus profit and executive remuneration
compared to Kshs 2.074 billion for year The Corporation’s dividend payout provides a paid-out ratio not exceeding 30% of the 2020." after-tax company short-term business profits after non-cash adjustments (property revaluations, share of profits from associates) and planned capital expenditures for
Slide 9: Land disputes and investment property not in use
KAA Board of Directors. 2. Ngong Road Land On dispute with Kenya Forest Service we have engaged the National Land Commission who have proposed a joint survey to establish forest boundaries. 3. Shanzu Land Regarding Shanzu property, there is no court case. We have asked the Attorney General to give a
Slide 10: Key audit matters and Kisumu property sale
case for FY21? In the auditor’s report it is clearly indicated how these matters were addressed in the context of the audit of the 2021 financial statements as whole, and in forming their opinion therein. For each matter a description of how the audit addressed the matter is given. See page 4 to 6 o
Slide 11: Property valuation and impairment
d) If No, then why not impair the values d) Kenya Re does not therefore have a reason to impair the values as they are to realistic levels? considered to be realistic. e) Currently one of the properties, Reinsurance Plaza Kisumu, is up for sale. e) If yes, then why not sell one of the properties at
Slide 12: Provision for receivables and collections
huge (909mn) provision in FY21? a) What are the components of the a)The components of the provisions is all outstanding reinsurance premiums. Gross provisions? receivable as at 31st December 2021 stood at Kshs 6.14 billion against provisions of Kshs 3.89 billion as compared to 31st December 2020 whe
Slide 13: Investment in Zep Re
23 Why does Kenya Re keep investing “new” The Corporation has since resolved to divest and take profits from the Zep-Re investment, cash (KES 503mn) into Zep Re? but there are some bottlenecks being addressed before the sale can take place. As the engagement with the key stakeholders progress with a
Slide 14: Subsidiary profitability and share price drivers
25 Under Note 20, the investment in each For the FY 2021 the subsidiaries reported the profit before tax as follows. subsidiary is provided but please • Uganda - Kes 118.69 million, provide the profitability of each • Zambia – Kes 87.86 million subsidiary • West Africa- Kes5.93million 26 This schedu
Slide 15: Liquidity, investment returns and Board governance
liquid financial instruments to cater for the firm’s urgent liquidity needs like settlement of claims, statutory and supplier payments and in meeting regulatory ratios. Those invested in liquid financial assets are yielding returns above the inflation adjusted benchmarks. The Board has put in place
Slide 16: ROE table and retained capital policy
Shareholders? profits in order to support the business growth programs and to also support enhanced credit rating by A.M Best which is critical on attracting and retaining quality business Please provide a table that shows the portfolios. RoE from 2012 to 2021 so shareholders It is expected that as
Slide 17: Board performance and subsidiaries' results
are doing themselves and shareholders a disservice, therefore it is better they resign and run non-profits and charities. Will the Chairperson take a poll of what each director’s views are? 31 Mr. Warren Buffett explains the 3 main Thank you for sharing this information, which has been received by t
Slide 18: Commercial property vacancy and rental rates
33 The level of vacancy in the commercial The occupancy level in Kenya Re buildings is currently at an average of 87%. Reinsurance properties Kenya Re owns is increasing, a Plaza Nairobi is at 99%, Anniversary Towers Nairobi is at 93%, Kenya Re Towers Upperhill major reason is that Kenya Re rent is
Slide 19: Competition and 2022-2026 strategy initiatives
wanted to put weren't shared to plans. shareholders. Can the corporation share the plans of what was put on hold? 37 What is the corporation doing to keep As set out in the Corporation’s 2022-2026 strategy, We are implementing initiatives that up with competition locally. Some would keep us up with