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South African (JSE) Insurance Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies9
  • 7D-4.8%
  • 3M-5.7%
  • 1Y11.3%
  • YTD3.0%

Over the last 7 days, the Insurance industry has dropped 4.8%, and Old Mutual contributed the most with a 11% decline. This takes the industry's 12 month performance to a gain of 11%.

Industry Valuation and Performance

Has the South African Insurance Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Tue, 30 Nov 2021R390.4bR721.1bR22.8b20x
Thu, 28 Oct 2021R441.1bR720.9bR22.7b21.1x
Sat, 25 Sep 2021R430.3bR720.9bR22.7b20.3x
Mon, 23 Aug 2021R416.1bR719.9bR21.2b21.5x
Sat, 10 Jul 2021R398.4bR719.9bR21.2b19x
Fri, 02 Apr 2021R388.1bR609.4bR9.5b29.1x
Mon, 04 Jan 2021R398.2bR499.2b-R2,281,581,000.0037.3x
Thu, 08 Oct 2020R352.6bR470.8b-R1,340,380,000.0031.2x
Wed, 01 Jul 2020R368.6bR442.0b-R389,179,000.0082.9x
Sat, 04 Apr 2020R326.7bR520.7bR16.6b16.4x
Tue, 07 Jan 2020R491.4bR599.1bR33.7b12.6x
Mon, 30 Sep 2019R471.2bR548.6bR33.4b12.2x
Thu, 04 Jul 2019R520.5bR498.1bR33.0b13.5x
Sun, 07 Apr 2019R494.5bR438.3bR29.6b13.7x
Wed, 09 Jan 2019R532.3bR378.6bR26.2b14x
PE Ratio

14.3x

Total Market Cap: R527.0bTotal Earnings: R25.4bTotal Revenue: R446.8b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 25.3x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Insurance industry have declined 3.4% per year over the last three years, while revenues for these companies have grown 17% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the South African Insurance industry?

General Insurance10.00%
Property and Casualty Insurance4.31%
Life and Health Insurance-5.48%

Industry PE: Investors are most optimistic about the Life and Health Insurance industry even though it's trading below its 3-year average PE ratio of 28.9x. However analysts are expecting annual earnings growth of 26%, which is lower than the prior year's growth of 140% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Property and Casualty Insurance industry, which is trading below its 3-year average of 22.4x.

Forecasted Growth: Analysts are most optimistic on the Life and Health Insurance industry, expecting annual earnings growth of 26% over the next 5 years. However this is lower than its past earnings growth rate of 140% per year. Meanwhile, the Property and Casualty Insurance industry is expected to see its earnings grow by 20% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
SNT Santam4.3%+R1.2b7.1%PE20x
CND Conduit Capital10.0%+R48.2m327.8%PS0.5x
Simply Wall St
Simply Wall Street Pty Ltd
17-21 Bellevue Street, Surry Hills, Sydney
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CLI

R9.55

Clientèle

7D

-2.6%

1Y

14.4%

SLM

R55.32

Sanlam

7D

-5.3%

1Y

-0.9%

OMU

R12.46

Old Mutual

7D

-10.6%

1Y

6.6%

SNT

R259.74

Santam

7D

4.3%

1Y

7.1%