SAN­LAM

Finweek English Edition - - INVESTMENT -

Ned­bank Pri­vate Wealth re­cently up­dated its rat­ings on the in­surance sec­tor in­clud­ing San­lam. Ned­bank ad­vised clients: “San­lam has at­tracted the in­ter­est of in­vestors, and the share has re-rated from a 8% dis­count to EV to a 27% pre­mium over the last year. This makes it the sec­ond high­est rated in­surer in SA. Based on its track record, San­lam is prob­a­bly the high­est-qual­ity com­pany among its peers. How­ever, large parts of its busi­ness are still ex­posed to the low­growth tra­di­tional SA life in­surance mar­ket, which has held EV growth back over the years. We ex­pect the growth rate over the next few years to be sim­i­lar to the 14% achieved over the last five years. Whilst we main­tain our pos­i­tive view on the com­pany’s fun­da­men­tals, the ex­pected growth rates do not jus­tify the cur­rent pre­mium to EV, in our view.”

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