A LOOK AT THE share price history graph for Zurich Insurance Company will hardly inspire any real confidence. Between October 2009 and November 2010 the share was unchanged, before starting to tick up from R176 to trade at around R210. The lack of liquidity in the share is reflected in the “staircase” pattern the graph follows. With less than 10% of the share effectively “in play” we could be excused for writing the share off as a potential investment, especially with the counter trading on a 16 times earnings multiple and only 351 shares changing hands in a week.
However, a recent trading update stating earnings per share and headline earnings per share are expected to be between 170% and 190% higher than the previous period bears some consideration.
Finweek isn’t totally surprised by the sharp turnaround in Zurich’s operating