South African (JSE) Insurance Industry Analysis

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
Wed, 30 Nov 2022	R348.8b	R463.2b	R33.4b	9.9x	10.4x	0.8x
Fri, 28 Oct 2022	R333.3b	R463.2b	R33.4b	9.5x	10x	0.7x
Sun, 25 Sep 2022	R327.8b	R462.0b	R34.4b	9.4x	9.5x	0.7x
Tue, 23 Aug 2022	R358.9b	R734.3b	R26.3b	12.5x	13.6x	0.5x
Thu, 21 Jul 2022	R340.6b	R734.3b	R26.3b	11.7x	12.9x	0.5x
Sat, 18 Jun 2022	R350.4b	R734.3b	R26.3b	11.7x	13.3x	0.5x
Mon, 16 May 2022	R375.9b	R734.3b	R26.3b	13.4x	14.3x	0.5x
Wed, 13 Apr 2022	R463.1b	R735.3b	R26.2b	15.3x	17.7x	0.6x
Fri, 11 Mar 2022	R453.7b	R727.3b	R25.6b	19.7x	17.7x	0.6x
Sun, 06 Feb 2022	R464.6b	R721.1b	R22.8b	23.8x	20.4x	0.6x
Tue, 04 Jan 2022	R439.0b	R721.1b	R22.8b	22.6x	19.2x	0.6x
Thu, 02 Dec 2021	R413.9b	R721.1b	R22.8b	21.1x	18.1x	0.6x
Sat, 30 Oct 2021	R441.1b	R720.9b	R22.7b	21.1x	19.5x	0.6x
Mon, 27 Sep 2021	R430.3b	R720.9b	R22.7b	20.3x	19x	0.6x
Wed, 25 Aug 2021	R419.4b	R719.9b	R21.2b	21.9x	19.7x	0.6x
Thu, 01 Jul 2021	R398.4b	R719.9b	R21.2b	19x	18.8x	0.6x
Sun, 04 Apr 2021	R388.1b	R609.4b	R9.5b	29.1x	40.9x	0.6x
Wed, 06 Jan 2021	R398.2b	R499.2b	-R2,281,581,000.00	37.3x	-174.5x	0.8x
Sat, 10 Oct 2020	R352.6b	R470.8b	-R1,340,380,000.00	31.2x	-263x	0.7x
Fri, 03 Jul 2020	R368.6b	R442.0b	-R389,179,000.00	82.9x	-947x	0.8x
Mon, 06 Apr 2020	R326.7b	R520.7b	R16.6b	16.4x	19.6x	0.6x
Thu, 09 Jan 2020	R491.4b	R599.1b	R33.7b	12.6x	14.6x	0.8x

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 10.4x which is higher than its 3-year average PE of -105x.

Past Earnings Growth

The earnings for companies in the Insurance industry have remained mostly flat over the last three years.
Meanwhile revenues for these companies have declined 5.5% per year.
This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

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


ZA Market	0.17%
Financials	-1.36%
Insurance	-1.44%
Insurance Brokers	0%
General Insurance	0%
Reinsurance	0%
Life and Health Insurance	-1.28%
Property and Casualty Insurance	-3.15%

Industry PE

Investors are most optimistic about the Property and Casualty Insurance industry even though it's trading below its 3-year average PE ratio of 22.4x.

Analysts are expecting annual earnings growth of 19.0%, which is lower than the prior year's growth of 88.7% per year.

Investors are most pessimistic about the Life and Health Insurance industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.

Forecasted Growth

Analysts are most optimistic on the Property and Casualty Insurance industry, expecting annual earnings growth of 19% over the next 5 years.
However this is lower than its past earnings growth rate of 89% per year.

In contrast, the Life and Health Insurance industry is expected to see its earnings grow by 16% per year over the next few years.

	Company	Last Price	7D	1Y	Valuation
	MTM Momentum Metropolitan Holdings	R17.78	0.5% +R110.4m	-1.3%	PE6.6x
	CLI Clientèle	R10.80	2.5% +R87.2m	12.5%	PE8.3x

Company

Last Price

Valuation

MTM Momentum Metropolitan Holdings

R17.78

0.5%
+R110.4m

-1.3%

PE6.6x

CLI Clientèle

R10.80

2.5%
+R87.2m

12.5%

PE8.3x

Oct 22

Industry Valuation and Performance