UNIC INSURANCE Plc

[pumping]

Originally Posted by wanaj0

Now this is looking GOOD!!!

Growth in PAT low since Q-1. I hope Q-4 comes out much better.

Q-1 - N226m
Q-2 - N313m
Q-3 - N372m

Just about N60m PAT in Q-3.

[wanaj0]

Originally Posted by pumping

Growth in PAT low since Q-1. I hope Q-4 comes out much better.

Q-1 - N226m
Q-2 - N313m
Q-3 - N372m

Just about N60m PAT in Q-3.

Even if ALL they have left is the Q3 profit that will be 100% over the 2008 figure!

[knightofdelta]

Originally Posted by pumping

Growth in PAT low since Q-1. I hope Q-4 comes out much better.

Q-1 - N226m
Q-2 - N313m
Q-3 - N372m

Just about N60m PAT in Q-3.

Stock is selling at a forward PE of 4.32x. Not bad... such bargains are getting scarce in the market.

[pumping]

Originally Posted by wanaj0

Even if ALL they have left is the Q3 profit that will be 100% over the 2008 figure!

Well, this is my concern. As at Q-3, 2008, they had made N370m PAT but only ended up with N150m PAT by FY. So, it is anyone's guess what they will declare FY 2009.

[pumping]

Originally Posted by knightofdelta

Stock is selling at a forward PE of 4.32x. Not bad... such bargains are getting scarce in the market.

Based on current valuation, Unic is very okay, but sustainability is questionable and this is where my concern lies.

NEM, Lawunion and Goldlink are examples of stocks with better PE ratio in insurance at the moment but I will have the same concerns here. The insurance companies have not been consistent in the last 2 years when it comes to results.

[wanaj0]

Originally Posted by pumping

Based on current valuation, Unic is very okay, but sustainability is questionable and this is where my concern lies.

NEM, Lawunion and Goldlink are examples of stocks with better PE ratio in insurance at the moment but I will have the same concerns here. The insurance companies have not been consistent in the last 2 years when it comes to results.

Just like the banks, they made provisions in their 2008 result that made nonsense of their interim results. I dont expect same to repeat itself in 2009. Moreover, UNIC for a while had shown the willingness to clean their books.

[nosa2]

Originally Posted by wanaj0

Just like the banks, they made provisions in their 2008 result that made nonsense of their interim results. I dont expect same to repeat itself in 2009. Moreover, UNIC for a while had shown the willingness to clean their books.

From the little i know i believe that the provisions made in the insurance industry in 08 was due to falling valuations of investments they made, particularly investments in the NSE, if this is true then we should expect further write offs because the index closed negative in 09.

[wanaj0]

Originally Posted by nosa2

From the little i know i believe that the provisions made in the insurance industry in 08 was due to falling valuations of investments they made, particularly investments in the NSE, if this is true then we should expect further write offs because the index closed negative in 09.

You are right BUY not that straight forward. It is a function of the equities in their portfolio and what they did with those stocks. Some have sold and taken the loss so nothing to write off again. Some held stocks that gained in value in 2009. Only those holding shares of banks and insurance are in trouble.

That said, some insurance companies are growing market share. Some like AIICO did not invest in the capital market as they would have loved to.

By and large, I see UPSIDE in this sector.

[nosa2]

Originally Posted by wanaj0

You are right BUY not that straight forward. It is a function of the equities in their portfolio and what they did with those stocks. Some have sold and taken the loss so nothing to write off again. Some held stocks that gained in value in 2009. Only those holding shares of banks and insurance are in trouble.

That said, some insurance companies are growing market share. Some like AIICO did not invest in the capital market as they would have loved to.

By and large, I see UPSIDE in this sector.

insurance stocks are looking good right now, but i need to start seeing some audited results before i can commit

[wanaj0]

Originally Posted by nosa2

insurance stocks are looking good right now, but i need to start seeing some audited results before i can commit

Blessed are those who have not SEEN but yet believed.

By the time the results are out, the risks is reduced so is the gain.

[savvy]

Originally Posted by wanaj0

Blessed are those who have not SEEN but yet believed.

By the time the results are out, the risks is reduced so is the gain.

Wanaj0 going philosophical..
Well said buy what you are willing to wait say 1-2yrs (or even less in this jet age) to reap benefts

[nosa2]

Originally Posted by wanaj0

Blessed are those who have not SEEN but yet believed.

By the time the results are out, the risks is reduced so is the gain.

financial sector results tend to follow a pattern, by the time 2 to 3 audited results are released a pattern can be established. I know this sounds too cautious but personally My portfolio would have been beautiful last year if not for an almost 50% loss in crusader, now this year is starting on a good note for me, caution is King in my world.

[wanaj0]

Originally Posted by nosa2

financial sector results tend to follow a pattern, by the time 2 to 3 audited results are released a pattern can be established. I know this sounds too cautious but personally My portfolio would have been beautiful last year if not for an almost 50% loss in crusader, now this year is starting on a good note for me, caution is King in my world.

Great my brother. Follow your strategy since it WORKS for you.