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Kenya Re share slide continues after profit warning

Kenya Re-insurance
Kenya Re-insurance headquarters on Aga Khan Walk in Nairobi. FILE PHOTO | NMG 

Kenya Reinsurance Corporation (Kenya Re) #ticker:KNRE shares slid 2.4 per cent further to Sh12.2 yesterday following Tuesday’s profit warning.

The share slide by the Nairobi Securities Exchange (NSE)-listed reinsurer extended that witnessed a day earlier after the firm said it expects to post at least 25 per cent lower earnings for the year ending December 2018 than what it reported the previous year.

The total price decline in two days amounted to 11.82 percent.

On Wednesday, the stock hit an intraday trading low of Sh11.50 as investors absorbed news of the expected profit decline. The anticipated drop means its net profit for the period is unlikely to surpass Sh2.6 billion.

The performance sets up Kenya Re for a five-year profit low.

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Kenya Re posted a 24.19 per cent drop in net profit in the half year ended June 2018, weighed down by a decline in its gross written premiums.

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