A report by Cytonn Investment puts Kenya Re Insurance in the top as far as franchise value rankings are concerned, while Sanlam Kenya has been ranked last.
Dubbed ‘Kenya’s Listed Insurance Companies analysis report’, the report put Jubilee Holdings second, Britam Holdings third and CIC Group fourth.
Investment Analyst Caleb Mugendi said Kenya Re’s performance was backed by a low combined ratio as well as a high solvency ratio.
On the other hand, Sanlam’s performance was attributed to poor return on tangible equity, low solvency ratio and high reserve leverage among other factors.
“CIC dropped from top position to position 4, affected by a poor return on average tangible equity, low levels of diversification and high reserve leverage,” reads the report.
As far as rankings on total potential returns is concerned, Liberty Holdings was the leader in intrinsic value ranking, followed by Britam Holdings with total potential returns of 21.3 per cent and 20.8 per cent respectively.Despite low penetration of insurance in the country, – 3 percent compared to Africa’s 3.5 per cent – , Kenya ranks high in premium growth globally and is leading in sub-Saharan Africa.