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, 08 May 2024	R396.3b	R587.7b	R34.6b	12.3x	11.4x	0.7x
Fri, 05 Apr 2024	R393.1b	R587.7b	R34.6b	11.7x	11.3x	0.7x
Sun, 03 Mar 2024	R432.0b	R573.9b	R33.6b	13.5x	12.9x	0.8x
Tue, 30 Jan 2024	R422.7b	R560.1b	R33.8b	11.7x	12.5x	0.8x
Thu, 28 Dec 2023	R434.5b	R560.1b	R33.8b	11.9x	12.9x	0.8x
Sat, 25 Nov 2023	R426.0b	R560.1b	R33.8b	11.7x	12.6x	0.8x
Mon, 23 Oct 2023	R401.8b	R560.1b	R33.8b	11.2x	11.9x	0.7x
Wed, 20 Sep 2023	R424.2b	R531.5b	R34.1b	12.7x	12.4x	0.8x
Fri, 18 Aug 2023	R414.7b	R386.2b	R33.7b	12.4x	12.3x	1.1x
Sun, 16 Jul 2023	R407.4b	R386.2b	R33.7b	12.2x	12.1x	1.1x
Tue, 13 Jun 2023	R381.2b	R386.2b	R33.7b	10.8x	11.3x	1x
Thu, 11 May 2023	R356.0b	R386.2b	R33.7b	9.7x	10.6x	0.9x
Sat, 08 Apr 2023	R383.5b	R386.2b	R33.7b	10.3x	11.4x	1x
Mon, 06 Mar 2023	R396.7b	R464.8b	R32.8b	10.6x	12.1x	0.9x
Wed, 01 Feb 2023	R381.4b	R463.2b	R33.4b	10.1x	11.4x	0.8x
Fri, 30 Dec 2022	R338.3b	R463.2b	R33.4b	8.7x	10.1x	0.7x
Sun, 27 Nov 2022	R352.3b	R463.2b	R33.4b	9.9x	10.6x	0.8x
Tue, 25 Oct 2022	R323.0b	R463.2b	R33.4b	9.2x	9.7x	0.7x
Thu, 22 Sep 2022	R333.1b	R462.0b	R34.4b	9.8x	9.7x	0.7x
Sat, 20 Aug 2022	R355.8b	R734.3b	R26.3b	12.3x	13.5x	0.5x
Mon, 18 Jul 2022	R341.8b	R734.3b	R26.3b	11.6x	13x	0.5x
Wed, 15 Jun 2022	R346.9b	R734.3b	R26.3b	11.8x	13.2x	0.5x
Fri, 13 May 2022	R376.3b	R734.3b	R26.3b	13.5x	14.3x	0.5x
Sun, 10 Apr 2022	R488.4b	R816.6b	R27.2b	20.3x	18x	0.6x
Tue, 08 Mar 2022	R441.5b	R727.3b	R25.6b	19.1x	17.3x	0.6x
Thu, 03 Feb 2022	R461.4b	R721.1b	R22.8b	23.4x	20.2x	0.6x
Sat, 01 Jan 2022	R434.3b	R721.1b	R22.8b	22.3x	19x	0.6x
Mon, 29 Nov 2021	R390.4b	R721.1b	R22.8b	20x	17.1x	0.5x
Wed, 27 Oct 2021	R440.9b	R720.9b	R22.7b	21.1x	19.5x	0.6x
Fri, 24 Sep 2021	R430.3b	R720.9b	R22.7b	20.3x	19x	0.6x
Sun, 22 Aug 2021	R409.2b	R719.9b	R21.2b	20.9x	19.3x	0.6x
Fri, 09 Jul 2021	R398.4b	R719.9b	R21.2b	19x	18.8x	0.6x

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 11.4x which is lower than its 3-year average PE of 14.7x.

The industry is trading close to its 3-year average PS ratio of 0.71x.

Past Earnings Growth

The earnings for companies in the Insurance industry have grown 54% per year over the last three years, while revenues have remained mostly flat.
This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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


ZA Market	1.41%
Financials	0.88%
Insurance	0.26%
Life and Health Insurance	0.45%
Insurance Brokers	0%
General Insurance	0%
Reinsurance	0%
Property and Casualty Insurance	-0.33%

Industry PE

Investors are most optimistic about the Property and Casualty Insurance industry, which is trading close to its 3-year average PE ratio of 16.3x.

Analysts are expecting annual earnings growth of 11.6%, which is lower than the prior year's growth of 35.5% per year.

Investors are most pessimistic about the Life and Health Insurance industry, which is trading below its 3-year average of 14.4x.

Forecasted Growth

Analysts are most optimistic on the Life and Health Insurance industry, expecting annual earnings growth of 13% over the next 5 years.
This is better than its past earnings decline of 2.6% per year.

In contrast, the Property and Casualty Insurance industry is expected to see its earnings grow by 12% per year over the next few years.

Company	Last Price	7D	1Y	Valuation
SLM Sanlam	R69.18	1.7% +R2.3b	27.0%	PE12.3x
MTM Momentum Metropolitan Holdings	R21.40	3.8% +R1.1b	17.0%	PE6.5x
CLI Clientèle	R10.19	1.8% +R60.4m	-1.3%	PE8.5x

Company

Last Price

Valuation

SLM Sanlam

R69.18

1.7%
+R2.3b

27.0%

PE12.3x

MTM Momentum Metropolitan Holdings

R21.40

3.8%
+R1.1b

17.0%