Kenya Reinsurance Corp. (KNRE), the state- owned reinsurer, rose the most in two months on speculation the company will benefit from gains in the equity market.
Kenya Re advanced 5.4 percent to 9.85 shillings by the close in Nairobi, the biggest gain since May 17, according to data compiled by Bloomberg.
“The stock has gained as investors expect good performances from insurance companies due to their investment in the equity market as it has rebounded by 20 percent year to date,” Eric Musau, an analyst at Nairobi-based Standard Investment Bank, said by phone today. “Kenya’s insurance companies are required to invest a third of their premium in quoted equities for purposes of liquidity.”
The Nairobi Securities Exchange All Share Index has gained 26 percent this year. Kenya Re’s full-year net income climbed 24 percent to 1.91 billion shillings ($22.6 million), it said on April 23.
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