National General Insurance Co. (P.J.S.C.)'s (DFM:NGI) largest shareholders are public companies who were rewarded as market cap surged د.إ76m last week

Key Insights

• National General Insurance (P.J.S.C.)'s significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 2 shareholders own 66% of the company
• Institutional ownership in National General Insurance (P.J.S.C.) is 24%

Every investor in National General Insurance Co. (P.J.S.C.) (DFM:NGI) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit د.إ812m market cap following a 10% gain in the stock.

Let's delve deeper into each type of owner of National General Insurance (P.J.S.C.), beginning with the chart below.

See our latest analysis for National General Insurance (P.J.S.C.)

What Does The Institutional Ownership Tell Us About National General Insurance (P.J.S.C.)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that National General Insurance (P.J.S.C.) does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at National General Insurance (P.J.S.C.)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in National General Insurance (P.J.S.C.). Dubai Investments PJSC is currently the company's largest shareholder with 48% of shares outstanding. In comparison, the second and third largest shareholders hold about 18% and 5.8% of the stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of National General Insurance (P.J.S.C.)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in National General Insurance (P.J.S.C.). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 48% of the National General Insurance (P.J.S.C.) shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand National General Insurance (P.J.S.C.) better, we need to consider many other factors. For example, we've discovered 3 warning signs for National General Insurance (P.J.S.C.) (2 are potentially serious!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.