NAIROBI, Kenya, Oct 18 – Jubilee Holdings is the most attractive insurance company, according to the latest Cytonn Investments report.
Cytonn, in its half year (H1) Kenya Listed Insurance Sector Report shows that the insurance firm emerged top in the country for its strong franchise as well as intrinsic score measure.
While franchise score measures the broad and comprehensive business strength of an insurance firm across 8-different metrics, intrinsic score measures investment return potential.
“Jubilee Holdings maintained position 1 in H1’2022 as was in FY’2021 mainly due to an improvement in the franchise scores as well as a high intrinsic score in H1’2022, driven by reduction in expense ratio to 33.7 per cent in H1’2022, from 41.3 per cent in FY’2021,”
“As a result, the combined ratio also improved to 133.0 per cent in H1’2022, from 149.7 per cent in FY’2021,” Cytonn said.
According to Cytonn, Liberty maintained position 2 in the H1, after improving its franchise score.
“Loss and Expense Ratios across the sector eased, and consequently, the weighted average Combined Ratio improved to 126.8 per cent in H1’2022, from 146.6 per cent in H1’2021,” Cytonn Investments Investments Analyst Kevin Karobia said.
Titled “Improved Efficiency Cushions Insurance Sector’s Core Earnings Growth”, the report analyzed H1 results of listed insurance companies, excluding Kenya Re Insurance Corporation Ltd.
However, Britam Holdings and Sanlam recorded drops to position 4 and 5 respectively.
“Britam Holdings declined to position 4 in H1’2022 from position 3 in FY’2021 driven by a weak franchise score attributable to the deterioration in the loss ratio to 73.5 per cent, from 66.9 per cent,”
“However, the combined ratio improved to 151.5 per cent from the 164.2 per cent in FY’2021. Sanlam declined to position 5 in H1’2022 from position 4 in FY’2021 mainly due to deterioration in both the franchise score and intrinsic value score,” Cytonn added.
