Investing In Nigerian Insurance Stocks ,how Good Is It ?

egoldman · #1 (**permalink**) 24th January 2007, 01:40 AM

Hello everyone,
1 been reading about some insurance company that is on the Nigerian stock exchange,and i would like to know if its sensible to invest in the stocks of Nigerian insurance companies .
Do you think the current consolidation in the Nigerian insurance sector would make it ideal place to invest as happened with the banking sector ,is it ok to buy insurance stocks now or should one wait till after the consolidation ?
any one with any idea should share please .

paragon · #2 (**permalink**) 24th January 2007, 01:37 PM

hi egoldman,

well, unlike other economies in the world where insurance business is very lucrative, the same cannot be said for Nigerian companies. This is because of the inability to handle huge insurance covers based on their little capital.

Things are however about to change with respect to the ongoing recapitalisation. I believe you should wait until after the exercise. The major players include companies like WAPIC, AIICO, NICON, PRESTIGE,UNIC andso on.

The post consolidation will see mega companies and mergers.

Think and act...

egoldman · #3 (**permalink**) 24th January 2007, 02:16 PM

thanks for that advice man .

Isa Tasiu Isyaka · #4 (**permalink**) 29th January 2007, 12:06 PM

I have read,with key interest all the point you have made
. just to say i injoy most of the things.

thanks

Isa Tasiu Isyaka · #5 (**permalink**) 29th January 2007, 12:15 PM

This is only to say ,it is always good to invest but there is no good return in insurance as in the banks in Nigeria

Davy Dany · #6 (**permalink**) 5th February 2007, 08:35 AM

This is because of the inability to handle huge insurance covers based on their little capital.Things are however about to change with respect to the ongoing recapitalisation. I believe you should wait until after the exercise. The major players include companies like WAPIC, AIICO, NICON, PRESTIGE,UNIC andso on.

ghm · #7 (**permalink**) 5th February 2007, 12:31 PM

Some of the good insurance companies have already been listed. You can do your analysis and find out which one will be good for you to buy NOW or LATER. I did a similar analysis in Q3 2006 and concluded on Unic and Crusader. I bought these too and today, they've both appreciated close to 80 % already.

bwalaman · #8 (**permalink**) 19th February 2007, 07:10 PM

Agree with the wait-and-see approach on the Insurance Sector. A quick review shows it has been relatively flat over the last say 18 months, compared to Banking.

But if you are itching to buy into insurance go for the safe ones: backed by Banks (Union, Intercontinental, Wema, UBA, Zenith, GT- even Unity Bank) all have related insurance companies.

IGi (still Ltd), Niger, Mutual A B, UNIC etc we know are safe. But there are tons of other companies out there that are not.

NICON- has pole position, but it is I think stuck in some partially privatized limbo. If BPE decides to have any IPO with NICON snap as much as possible.

Best is however wait and see. I would put my cash in IGi & NICON (when floated), Mutual A S and pick one or two of the Bank affiliated insurance (Oceanic, Zenith & Union, perhaps).

Prospects remains good.

bwalaman · #9 (**permalink**) 19th February 2007, 07:31 PM

I think 2007 will see movement in the Insurance Sector due to the (1) consolidation exercise (2) greater awareness about the sector and insurance in general (this is a public information/education issue as a result of the consolidation that is bound to increase interest).

(3) Some forward thinking here- competition, thus quality and value will increase 2007/08 as the Bank related insurance company try to muscle themselves into pole position. Note that NICON and IGi are the biggest as of 2004/2005. NICON and IGi have the advantage of experience as market leaders (NICON, I believe is remains undisputed number 1), while the Bank related companies can leverage the advantage of the geographic spread along Bank branches. These Banks have MONIES, which their subsidiaries will tap into. This will play out mostly in the 2nd half of 2007 and 2008 should bring further consolidation.

Winner: the Sector and Nigerians...

Parting headsup:
NICON will hit the market in some form in the next few months- BUY!!!

(Some Bank related companies: Union Assurance, Zenith General Insurance, Guardian Express Assurance, Guaranty Trust Assurance, Oceanic Insurance, UBA/Metropolitan Life Insurance, Great Nigeria Insurance, Law union and rock Insurance and WAPIC).

What do you think???

toyibanj · #10 (**permalink**) 28th February 2007, 02:57 AM

No one is mentioning cornerstone. It has a market cap of over 1.1 billion.

Geeman · #11 (**permalink**) 31st May 2007, 03:50 AM

Continental RE was quoted on the stock exchange yesterday as the first local re-insuarnce company to be so quoted. The stock was introduced at 1.26 kobo and gained 6 kobo on the first day of trading ( not a lot you would say). The insurance sector is not doing badly at the moment. Does anyone has information about this company? Who the directors? Has it got any relationship with Continental Bank?
What is their tract record and whether it would be a good investment? I don't want to wait too long to join the party if expert opinion is that it would be a good buy.

tayogreen · #12 (**permalink**) 2nd June 2007, 02:08 AM

Quote:

Originally Posted by Geeman

Continental RE was quoted on the stock exchange yesterday as the first local re-insuarnce company to be so quoted. The stock was introduced at 1.26 kobo and gained 6 kobo on the first day of trading ( not a lot you would say). The insurance sector is not doing badly at the moment. Does anyone has information about this company? Who the directors? Has it got any relationship with Continental Bank?
What is their tract record and whether it would be a good investment? I don't want to wait too long to join the party if expert opinion is that it would be a good buy.

what do you have if a stock keeps gaining a minimum of 6kobo every day for the next 100 days ? get in now. by the time you finish your research on the company it would have reached its peak and be ripe to sell. just a personal opinion.

FanIce · #13 (**permalink**) 2nd June 2007, 10:32 AM

To the best of our knowledge IGI is to be listed within the next 2months.
IGI is in the process of having a quotation meeting with the Nigerian
Stock Exchange. This is usually the last step before a company is listed.

The prospects for capital appreciation are great, companies with similar
EPS in the insurance sector are all trading above N5. It is safe to say
that the price of IGI, if listed by August will be above N5 by the end of
the year.

Yours Faithfully,
APT Securities and FUnds LImited.

olusolakemmy · #14 (**permalink**) 5th June 2007, 06:44 PM

reserach is good before picking a company, but often at times when companies just got listed they usualy gain irrespective of the fundamental of the companies, then investor will start cashing in on profit.
its a good time to buy continental re-insurance, as a matter of fact paragon once suggested and advice us all to buy into the company.

Avocado · #15 (**permalink**) 6th June 2007, 03:52 AM

FanIce: do you do business with APT Securities, or, do you work for them? My experience with them doesn't show them up as a serious company; but, of course, that may not matter to their prediction.

.

olusolakemmy · #16 (**permalink**) 13th June 2007, 10:29 PM

continental re-insurance is on the rise and to worsen it the situation, it isnot available to buy, that increases demand and force the price up.

the best bet in insurance sector is just private placement, however, i am still looking out for continental, crusader and allied insurance in under stidy for possible investment, IGI will be consider when they make their entry.

Gengen · #17 (**permalink**) 14th June 2007, 07:13 AM

All,

Does someone have a close to accurate number of paid up shares of companies in the Insurance sector? I need it badly.

I do not think the ones in the Cashcraft site (calculated from capitalisation) is correct. Although, I cannot completely say I am correct about this statement.

Thanks and awaiting your urgent feedbacks.