Insurance sector rewards investors with 1.27% earnings growth

The Nigerian insurance subsector of the finance sector has sustained investor’s interest garnered in the first quarter to the second quarter, development which has elevated year to date performance to 1.27 per cent.

The sector which comprised of mainly low priced stocks listed on the Nigerian Stock Exchange (NSE) outperformed the NSE All Share-Index weekly change with 0.48 per cent, while the NSE ASI weekly change stood at -0.28 per cent.

The insurance stocks which cross section of analysts have predicted will become the market driver in the NSE based on vast earning opportunities and under-priced nature of its stocks, year to date has maintained positive returns on investments.

Analysis of the transactions on listed insurance stocks showed that the sector under the NSE Insurance index opened the week ended 19th May 2017 at 127.41 points and closed the week higher at 127.89 posting 0.48 per cent weekly change

The positive performance which has trailed the sector since the beginning of the year capped the week to date (WTD) change at 0.38 per cent, while for a month’s transaction, the sector recorded growth by 3.23 per cent, this increased slightly on a three months trading period at 3.29 per cent, while the year to date, NSE Insurance index has rewarded investors with 1.27 per cent growth,

Eddie Efekoha, Managing Director of Consolidated HallMark Insurance Plc recently revealed that the Insurance sector has sustained dialogue with the government on ways of growing the economy which he said provided great opportunity for the industry.

“You have seen that the minister recently engaged the market and has continued to engage the market to unlock its potential” he added that the government through actions and meetings with the sector has demonstrated that in its bid to get the economy out of recession, the insurance sector can no longer be neglected and this provided greater opportunity for the players in the industry.