Has the South African Insurance Industry valuation changed over the past few years?
|Tue, 30 Nov 2021||R390.4b||R721.1b||R22.8b||20x|
|Thu, 28 Oct 2021||R441.1b||R720.9b||R22.7b||21.1x|
|Sat, 25 Sep 2021||R430.3b||R720.9b||R22.7b||20.3x|
|Mon, 23 Aug 2021||R416.1b||R719.9b||R21.2b||21.5x|
|Sat, 10 Jul 2021||R398.4b||R719.9b||R21.2b||19x|
|Fri, 02 Apr 2021||R388.1b||R609.4b||R9.5b||29.1x|
|Mon, 04 Jan 2021||R398.2b||R499.2b||-R2,281,581,000.00||37.3x|
|Thu, 08 Oct 2020||R352.6b||R470.8b||-R1,340,380,000.00||31.2x|
|Wed, 01 Jul 2020||R368.6b||R442.0b||-R389,179,000.00||82.9x|
|Sat, 04 Apr 2020||R326.7b||R520.7b||R16.6b||16.4x|
|Tue, 07 Jan 2020||R491.4b||R599.1b||R33.7b||12.6x|
|Mon, 30 Sep 2019||R471.2b||R548.6b||R33.4b||12.2x|
|Thu, 04 Jul 2019||R520.5b||R498.1b||R33.0b||13.5x|
|Sun, 07 Apr 2019||R494.5b||R438.3b||R29.6b||13.7x|
|Wed, 09 Jan 2019||R532.3b||R378.6b||R26.2b||14x|
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.
Which industries have driven the changes within the South African Insurance industry?
|Property and Casualty Insurance||4.31%|
|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.
Momentum Metropolitan Holdings
Rand Merchant Investment Holdings