Tuesday, January 23, 2018 7:16:48 AM- Nigerian Stock Exchange.

  Insurance stocks providing some stability


Dec 1 (Lagos) - As we enter the final month of 2015, it is clear that there will not be a recovery at the stock market and things will probably get worse going because of the policies of the CBN.

One sector that has not done badly so far this year in the Insurance sector. One of the reasons for that is the under performance in the sector for the past 4 years when the rest of the market was riding high without any real reasons.

Investors punished Insurance stocks for the last 4 years and that is the reason these stocks were stable in 2015.

Going in to 2016 these stocks could provide value to investors because they are already beaten down, trading well below their book values (most Insurance stocks) and foreign investors looking to boost Nigeria's insurance penetration.

So take a look a these stocks if you feel Insurance stocks is something worth considering but you should also keep in mind that there are no guarantees in the stock market and these stocks could well selloff in 2016.

AIICO Insurance Plc ( AIICO ) - an established player in the sector having the largest life Insurance portfolio in Nigeria. Is among the top 3 Insurance Companies of Nigeria and recently received major investment from the International Finance Corporation to boost its retail Insurance business in Nigeria. Stock price trades at a heavy discount to its book value.

Custodian & Allied Insuance Co Ple ( CUSTODYINS ) - Also among the top 3 Insurance Companies of Nigeria with a strong balance sheet. It is also a well established Company. Its stock price is the highest among Insurance stocks and also trades at a premium to its book value.

AXA Mansard Insurance Plc ( MANSARD ) - Erstwhile GT Assurance, Company is relatively a new player in the sector. Known in the industry for driving Insurance premiums lower it received major investment from AXA Insurance of France. Its stock price also trades at a premium to its book value probably due to foreign investors. The Company is emerging as a major Company but is currently well behind the leaders in terms of Premium written or claims paid.

Apart from the above three some other Insurance Companies that can be considered for investment are Nem Insurance Plc ( NEM ) and Royal Exchange Insurance Plc ( ROYALEX ) both of which are trading at a discount to book value.

reporting for easykobo.com on Tuesday, Dec 1 2015 from Lagos, Nigeria

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