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Apr 10
South African (JSE) Insurance Industry Analysis
UpdatedMay 04, 2024
DataAggregated Company Financials
Companies7
- 7D2.4%
- 3M-6.1%
- 1Y7.0%
- YTD-8.2%
Over the last 7 days, the Insurance industry has risen 2.4%, driven by gains from Discovery of 4.4%. This means that the industry has gained 7.0% over the past year. As for the next few years, earnings are expected to grow by 13% per annum.
Industry Valuation and Performance
Has the South African Insurance Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 05 May 2024 | R393.8b | R587.7b | R34.6b | 12.1x | 11.4x | 0.7x |
| Tue, 02 Apr 2024 | R403.0b | R587.7b | R34.6b | 12.3x | 11.6x | 0.7x |
| Thu, 29 Feb 2024 | R422.8b | R560.1b | R33.8b | 12.4x | 12.5x | 0.8x |
| Sat, 27 Jan 2024 | R426.0b | R560.1b | R33.8b | 11.9x | 12.6x | 0.8x |
| Mon, 25 Dec 2023 | R427.0b | R560.1b | R33.8b | 12x | 12.6x | 0.8x |
| Wed, 22 Nov 2023 | R423.0b | R560.1b | R33.8b | 11.6x | 12.5x | 0.8x |
| Fri, 20 Oct 2023 | R406.0b | R560.1b | R33.8b | 11.2x | 12x | 0.7x |
| Sun, 17 Sep 2023 | R418.8b | R531.4b | R34.1b | 12.7x | 12.3x | 0.8x |
| Tue, 15 Aug 2023 | R422.7b | R386.2b | R33.7b | 12.6x | 12.6x | 1.1x |
| Thu, 13 Jul 2023 | R399.3b | R386.2b | R33.7b | 11.8x | 11.9x | 1x |
| Sat, 10 Jun 2023 | R382.0b | R386.2b | R33.7b | 10.9x | 11.3x | 1x |
| Mon, 08 May 2023 | R367.3b | R386.2b | R33.7b | 10.1x | 10.9x | 1x |
| Wed, 05 Apr 2023 | R381.7b | R393.3b | R33.7b | 10.1x | 11.3x | 1x |
| Fri, 03 Mar 2023 | R393.8b | R463.2b | R33.1b | 10.5x | 11.9x | 0.9x |
| Sun, 29 Jan 2023 | R382.4b | R463.2b | R33.4b | 10.1x | 11.4x | 0.8x |
| Tue, 27 Dec 2022 | R341.5b | R463.2b | R33.4b | 8.9x | 10.2x | 0.7x |
| Thu, 24 Nov 2022 | R355.6b | R463.2b | R33.4b | 10.1x | 10.6x | 0.8x |
| Sat, 22 Oct 2022 | R323.0b | R463.2b | R33.4b | 9.2x | 9.7x | 0.7x |
| Mon, 19 Sep 2022 | R332.6b | R462.0b | R34.4b | 9.8x | 9.7x | 0.7x |
| Wed, 17 Aug 2022 | R366.4b | R734.3b | R26.3b | 12.7x | 13.9x | 0.5x |
| Fri, 15 Jul 2022 | R333.6b | R734.3b | R26.3b | 11.1x | 12.7x | 0.5x |
| Sun, 12 Jun 2022 | R358.7b | R734.3b | R26.3b | 12.5x | 13.6x | 0.5x |
| Tue, 10 May 2022 | R368.9b | R734.3b | R26.3b | 13.1x | 14x | 0.5x |
| Thu, 07 Apr 2022 | R495.1b | R816.6b | R27.2b | 20.2x | 18.2x | 0.6x |
| Sat, 05 Mar 2022 | R453.5b | R727.6b | R25.6b | 19.6x | 17.7x | 0.6x |
| Mon, 31 Jan 2022 | R452.1b | R721.1b | R22.8b | 22.8x | 19.8x | 0.6x |
| Wed, 29 Dec 2021 | R430.1b | R721.1b | R22.8b | 22.1x | 18.8x | 0.6x |
| Fri, 26 Nov 2021 | R420.6b | R721.1b | R22.8b | 21x | 18.4x | 0.6x |
| Sun, 24 Oct 2021 | R432.6b | R720.9b | R22.7b | 20.5x | 19.1x | 0.6x |
| Tue, 21 Sep 2021 | R412.8b | R719.5b | R21.3b | 22x | 19.4x | 0.6x |
| Thu, 19 Aug 2021 | R413.2b | R719.9b | R21.2b | 21.2x | 19.5x | 0.6x |
| Thu, 03 Jun 2021 | R411.6b | R609.4b | R9.5b | 31.4x | 43.4x | 0.7x |
Price to Earnings Ratio
43.4x
Current Industry PE
- Investors are pessimistic on the South African Insurance industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 11.4x which is lower than its 3-year average PE of 14.7x.
- The industry is trading close to its 3-year average PS ratio of 0.71x.
Past Earnings Growth
- The earnings for companies in the Insurance industry have grown 54% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Financials industry?
| ZA Market | 1.90% | |
| Financials | 2.49% | |
| Insurance | 2.45% | |
| Life and Health Insurance | 3.13% | |
| Property and Casualty Insurance | 0.38% | |
| Insurance Brokers | 0% | |
| General Insurance | 0% | |
| Reinsurance | 0% | |
Industry PE
- Investors are most optimistic about the Property and Casualty Insurance industry, which is trading close to its 3-year average PE ratio of 16.3x.
- Analysts are expecting annual earnings growth of 11.6%, which is lower than the prior year's growth of 35.5% per year.
- Investors are most pessimistic about the Life and Health Insurance industry, which is trading below its 3-year average of 14.4x.
Forecasted Growth
- Analysts are most optimistic on the Life and Health Insurance industry, expecting annual earnings growth of 14% over the next 5 years.
- This is better than its past earnings decline of 2.6% per year.
- In contrast, the Property and Casualty Insurance industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| DSY Discovery | R117.36 | 4.4% +R3.2b | -15.9% | PE14.9x | |
| SLM Sanlam | R68.30 | 1.6% +R2.3b | 24.0% | PE12.1x | |
| OMU Old Mutual | R10.99 | 4.5% +R2.0b | -4.6% | PE6.8x | |
| MTM Momentum Metropolitan Holdings | R21.00 | 4.3% +R1.2b | 15.2% | PE6.4x | |
| OUT OUTsurance Group | R40.39 | 1.3% +R782.0m | 17.4% | PE18.5x |
