thanks for the comments guys, please keep them coming...
.
Nigerian Insurance Stocks
Nigerian insurance stocks are currently the flavour of the month. They have taken over from bank shares which have shown explosive growth over the past few years. Insurance stocks may not be as explosive but may offer equally if not more attractive long term gains.
.
Considering the very low market penetration of insurance in Nigeria (sub sectors include motor, fire, general accident, oil and gas, marine and aviation and life). Add to this, the growth in credit financing and mortgages and the need to insure life as part of credit risk mitigation and government policies leading to the taking up of various kinds of insurance, you begin to see that there is a lot of upside potential for insurance and premium growth. Add to this, the poor state of asset management of the traditional (government) insurance operators and the potential for asset management improvement and attendant asset value growth where new and savvy private sector owners take over and you begin to see a strong potential growth picture for insurance stocks.
.
Hence you have a sector that is supported by two strong fundamentals, potential core insurance business growth generating greater premium cashflow and potential asset value growth. Both are dependent on new management stepping into traditional stodgy boardrooms and shaking things up.
.
There is some risk in that insurance has shown historical under-penetration in Nigeria and there is no guarantee that new management will step into the shoes of old, but overall the return profiles definitely outweigh the risks.
.
Renaissance Capital has just published an Insurance research report and buy recommendations were placed on the following insurance stocks;
.
AIICO
Continental Re
Standard Alliance
Intercontinental WAPIC
Subscribe to:
Post Comments (Atom)
5 comments:
Nice post,
In my view i think the Nigerian insurance industry would explode soon(proper policy implentation).
In a review recently i noted that what an upstream major pays in platform facility insurance annually is more than the gross premium of the entire insurance industry curently.
Asides this, there are huge opportunites in the aviation/telecoms industry plus the huge underpenetration of the motor/life insurance market.
The challenge now is to master the art of picking the rite insurance stock and watch it grow...
My friend, I'm eager to get more news....please give us. May God bless u.
Yes O you've been away from your blog for too long we want current news or are they working you to the ground in the bank
i still think the insurance sector is a very long term investment, we just need more awareness and perhaps the govt can make it mandatory for vehicles and multinational to get covered by local insurance companies to a certain extent.
whats your take on the nse last week-no downward movement?
just cataching up, no comments yet.. but keep it up. you never no you may convince an english man to take of his coat and come over..
tundej
Post a Comment