Q3 2022 Earnings Forecast for Insurance Firms

  • Price/Earnings to Growth Ratio Analysis

A few companies last week published their Q3 2022 earnings on the website of the Nigerian Exchange. We expect to see more results been released this week and coming weeks.

Just like we have always advised that investment should be done against expectation and not on realities. Though, the market has been on a bearish mode, it is actually creating entry opportunities for discerning investors.

In our previous editions, we did Q3 2022 forecast for the banking and manufacturing sectors. Our Q3 2022 earnings forecast for this edition is focused on the insurance sector, using Price/Earnings to Growth (PEG) ratio analysis.

AIICO INSURANCE

Q3 earnings per share (EPS) of AIICO Insurance over the last 5 years has a growth rate of 14.42%.

At the current share price of 57 kobo and Q3’21 earnings per share of 12 kobo, P.E ratio is calculated as 4.75x.

PEG ratio against the expected Q3 2022 earnings is 0.33; being less than 1 implies that AIICO Insurance at current price is underpriced. 

Q3 2022 earnings per share of 14 kobo is projected for AIICO Insurance.

PRESTIGE ASSURANCE

Prestige Assurance over the last 5 years have reported EPS ranging between 7 kobo and 3 kobo with earnings growth rate of 23.59%.

At the current share price of 46 kobo and Q3’21 earnings per share of 7 kobo, P.E ratio is calculated as 6.57x.

PEG ratio against the expected Q3 2022 earnings is 0.28.

Q3 2022 earnings per share of 9 kobo is projected for Prestige Assurance.

AXA MANSARD INSURANCE

Q3 earnings per share (EPS) of the company over the last 5 years has a growth rate of 20.38%.

At the current share price of N1.64 and Q3’21 earnings per share of 42 kobo, P.E ratio is calculated as 3.90x.

PEG ratio against the expected Q3 2022 earnings is 0.19.

Q3 2022 earnings per share of 51 kobo is projected for AXA Mansard.

NEM INSURANCE

NEM Insurance over the last 5 years have reported EPS ranging between 51 kobo and 6 kobo for Q1, Q2 and Q3.

Q3 earnings per share (EPS) of the company over the last 5 years has a growth rate of 5.42%.

At the current share price of N4.91 and Q3’21 earnings per share of 21 kobo, P.E ratio is calculated as 23.38x.

PEG ratio against the expected Q3 2022 earnings is 4.31.

Q3 2022 earnings per share of 54 kobo is projected for NEM Insurance.

LASACO ASSURANCE

Q3 earnings per share (EPS) of the LASACO Assurance over the last 5 years has a growth rate of 3.25%.

At the current share price of 84 kobo and Q3’21 earnings per share of 25 kobo, P.E ratio is calculated as 3.36x.

PEG ratio against the expected Q3 2022 earnings is 1.03.

Q3 2022 earnings per share of 26 kobo is projected for LASACO Assurance.

CORONATION INSURANCE

Coronation Insurance (formerly WAPIC Insurance) over the last 5 years have reported EPS ranging between 4 kobo and -3 kobo with negative earnings growth rate of -35%

At the current share price of 35 kobo and Q3’21 earnings per share of -3 kobo, P.E ratio is calculated as -11.67x. 

Based on its Q2 2022 earnings per share of 2 kobo, an EPS of 2 kobo is projected for Coronation Insurance.

CORNERSTONE INSURANCE

Earnings history of the Cornerstone Insurance for Q1, Q2 and Q3 for the past 5 years has ranged between 17 kobo and -12 kobo

Q3 earnings per share (EPS) of the company over the last 5 years has a growth rate of 18.92%.

At the current share price of 52 kobo and Q3’21 earnings per share of 8 kobo, P.E ratio is calculated as 6.50x.

PEG ratio against the expected Q3 2022 earnings is 0.34; being less than 1 implies that Cornerstone Insurance at current price is underpriced. 

Q3 2022 earnings per share of 9 kobo is projected for Cornerstone Insurance.

CONSOLIDATED HALLMARK INSURANCE

Consolidated Hallmark Insurance over the last 5 years have reported EPS ranging between 5 kobo and 1 kobo with earnings growth rate of 25.74%

At the current share price of 58 kobo and Q3’21 earnings per share of 5 kobo, P.E ratio is calculated as 11.6x.

PEG ratio against the expected Q3 2022 earnings is 0.45.

Q3 2022 earnings per share of 6 kobo is projected for Consolidated Hallmark Insurance.

SOVEREIGN TRUST INSURANCE

Sovereign Trust Insurance over the last 5 years have reported EPS ranging between 6 kobo and 2 kobo with earnings growth rate of 5.74%

At the current share price of 28 kobo and Q3’21 earnings per share of 5 kobo, P.E ratio is calculated as 5.6x.

PEG ratio against the expected Q3 2022 earnings is 0.98.

Q3 2022 earnings per share of 5 kobo is projected for Sovereign Trust Insurance.

VERITAS KAPITAL ASSURANCE

Earnings history of the Veritas Kapital Assurance for Q1, Q2 and Q3 for the past 5 years has ranged between 3 kobo and -1 kobo

Q3 earnings per share (EPS) of the company over the last 5 years has a growth rate of 18.92%.

At the current share price of 20 kobo and Q3’21 earnings per share of 2 kobo, P.E ratio is calculated as 10x.

Q3 2022 earnings per share of 2 kobo is projected for Veritas Kapital Assurance.

REGENCY ASSURANCE

Earnings history of the Regency Assurance for Q1, Q2 and Q3 for the past 5 years has ranged between 10 kobo and 3 kobo with earnings growth rate of 3%.

At the current share price of 24 kobo and Q3’21 earnings per share of 9 kobo, P.E ratio is calculated as 2.67x.

PEG ratio against the expected Q3 2022 earnings is 0.89.

Q3 2022 earnings per share of 9 kobo is projected for Regency Assurance.

UNIVERSAL INSURANCE

Universal Insurance over the last 5 years have reported EPS ranging between 5 kobo and -1 kobo with earnings growth rate of 40%

At the current share price of 20 kobo and Q3’21 earnings per share of 2 kobo, P.E ratio is calculated as 10x.

PEG ratio against the expected Q3 2022 earnings is 0.53.

Q3 2022 earnings per share of 6 kobo is projected for Universal Insurance.

MUTUAL BENEFIT ASSURANCE

Mutual Benefits Assurance over the last 5 years have reported EPS ranging between 18 kobo and -17 kobo with earnings growth rate of 31.6%

Q3 2021 earnings per share of the Company came down to -17 kobo from the EPS of 12 kobo. However, the company reported fantastic earnings in Q1 and Q2 of 2022.

Based on the consistent growth in earnings in Q1 and Q2 2022, an EPS of 24 kobo is projected for Mutual Benefits Assurance in Q3 2022.

Source: Q3 2022 Earnings Forecast for Insurance Firms – StocksWatch (stocksng.com)

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