Ride the wave
WE PUNTED this share at the beginning of the year. It ran spectacularly, peaking at about R26/share by the end of May, until pulling back and dropping to the R19/share level.
Insurance stocks typically serve as a proxy for the stock market so one would argue that this share tracked the JSE Alsi’s downward trend as a consequence of the infamous Bernanke speech about QE tapering in May.
The share has gained some 14.8% since the beginning of September and its full-year results last week, which showed earnings up 10% with new business at 19%, were well wel- comed by the market. It also increased its dividend by 12% to 127c/share.
MMI continues to be quite active on the continent. It recently announced a strategic partnership with Bharti Airtel to sell insurance services through Bharti’s telecommunications networks in Ghana, Kenya, Nigeria, Tanzania and Zambia. While these are onlyfive of the 12 African countries MMI currently operates in, finding new, strategic and innovative ways to enhance distribution is definitely a plus in the financial services.