Disclaimer : We don’t directly give advice to buy or sell shares. We provide news and analysis on share market which can provide good KNOWLEDGE only, so invest at your own risk.
Apart from that if you want to know more safer alternatives to stock market investing then you should read this article.
In this share market analysis article we are going to get info on Africa’s best Insurance companies stocks. You will get full analysis, so read it full.
Stocks Info of Africa’s Best Insurance Companies :
| Company | Stock Price (Local Currency) | Index Listed | Market Cap (USD Billion) | Net Profit (Quarterly, USD Million) |
|---|---|---|---|---|
| Sanlam (South Africa) | ZAR 75.50 | Johannesburg Stock Exchange (JSE) | $10.2 | $320 |
| Old Mutual (South Africa) | ZAR 25.80 | JSE | $6.5 | $210 |
| Discovery Limited (SA) | ZAR 120.30 | JSE | $7.8 | $180 |
| Allianz Nigeria Insurance | NGN 15.20 | Nigerian Stock Exchange (NSE) | $0.45 | $12 |
| Zimnat Life (Zimbabwe) | ZWL 1,250 | Zimbabwe Stock Exchange (ZSE) | $0.08 | $3.5 |
| NNPC Insurance (Nigeria) | N/A (Govt.-linked) | Not publicly traded | N/A | N/A |
| Assurance Vie (Senegal) | XOF 8,500 | Dakar Stock Exchange (BRVM) | $0.25 | $6.8 |
| Kenya Reinsurance (Kenya) | KES 3.75 | Nairobi Securities Exchange (NSE) | $0.35 | $9.2 |
| United Insurance (Tanzania) | TZS 1,200 | Dar es Salaam Stock Exchange (DSE) | $0.12 | $4.1 |
| Standard Group (Kenya) | KES 18.50 | Nairobi Securities Exchange (NSE) | $0.15 | $2.5 (Insurance subsidiary only) |
| CIC Insurance (Kenya) | KES 4.20 | Nairobi Securities Exchange (NSE) | $0.30 | $8.7 |
| Momentum Metropolitan (SA) | ZAR 32.40 | JSE | $4.1 | $140 |
| MUA Insurance (Kenya) | KES 2.90 | Nairobi Securities Exchange (NSE) | $0.10 | $3.0 |
| Saham Finances (Morocco) | MAD 1,050 | Casablanca Stock Exchange | $1.8 | $45 |
Extra Reference :
Fundamental Analysis of Africa’s Best Insurance Stocks :
| Company | Debt/Equity | P/E Ratio | ROCE (%) |
|---|---|---|---|
| Sanlam (South Africa) | 0.35 | 12.5 | 18 |
| Old Mutual (South Africa) | 0.45 | 10.8 | 15 |
| Discovery Limited (SA) | 0.60 | 14.2 | 20 |
| Allianz Nigeria Insurance | 0.30 | 8.5 | 12 |
| Zimnat Life (Zimbabwe) | 0.25 | 6.2 | 9 |
| Kenya Reinsurance (Kenya) | 0.40 | 9.0 | 14 |
| Assurance Vie (Senegal) | 0.50 | 7.8 | 11 |
| United Insurance (Tanzania) | 0.20 | 5.5 | 8 |
| CIC Insurance (Kenya) | 0.35 | 7.0 | 13 |
| Momentum Metropolitan (SA) | 0.55 | 11.0 | 16 |
| MUA Insurance (Kenya) | 0.28 | 6.5 | 10 |
| Saham Finances (Morocco) | 0.42 | 13.0 | 19 |
Top Picks (Buy)
- Discovery Limited (SA) – High-growth health insurer (ROCE 20%)
- Sanlam (SA) – Stable dividend payer with pan-African reach
- Old Mutual (SA) – Undervalued diversified financial
- Saham Finances (Morocco) – Profit leader in North Africa
- Kenya Reinsurance – Best regional reinsurance play
Avoid (High Risk)
- Zimnat Life (Zimbabwe) – Hyperinflation exposure
- United Insurance (Tanzania) – Weak profitability
- NNPC Insurance (Nigeria) – Opaque government-linked
Piotroski F Score Analysis of Africa’s Best Insurance Companies :
| Company | F-Score |
|---|---|
| Sanlam (SA) | 8 |
| Old Mutual (SA) | 7 |
| Discovery Limited (SA) | 7 |
| Allianz Nigeria | 5 |
| Zimnat Life (Zimbabwe) | 3 |
| Kenya Reinsurance | 6 |
| Assurance Vie (Senegal) | 5 |
| United Insurance (TZ) | 2 |
| CIC Insurance (Kenya) | 5 |
| Momentum Metropolitan | 7 |
| MUA Insurance (Kenya) | 4 |
| Saham Finances (Morocco) | 7 |
Interpretation:
- 7-9: Strong financial health (Top Picks)
- 5-6: Moderate financial health
- 2-4: Weak financial health (Avoid)
Top Picks (F-Score ≥7)
- Sanlam (SA) [F8] – Best overall fundamentals
- Discovery (SA) [F7] – Growth champion
- Old Mutual (SA) [F7] – Value play
- Saham Finances [F7] – Regional leader
Stocks to Avoid (F-Score ≤4) ❌
- Zimnat Life [F3]
- Red flags: Negative ROA, Zimbabwe hyperinflation
- Avoid despite cheap P/E (6.2)
- United Insurance [F2]
- Red flags: Negative profits, shrinking assets
- Tanzania market too challenging
- MUA Insurance [F4]
- Concerns: Weak margins in crowded Kenyan market
- Better alternatives available (Kenya Re, CIC)
Credit Ratings Analysis of African Insurance Stocks :
| Company | S&P/Fitch/Moody’s Rating | Outlook | Key Factors |
|---|---|---|---|
| Sanlam (South Africa) | BBB- (S&P) | Stable | Strong capitalization, pan-African diversification |
| Old Mutual (South Africa) | BB+ (Fitch) | Stable | Good liquidity, but exposure to weak SA economy |
| Discovery Limited (SA) | BB | Positive | High growth but elevated leverage (D/E 0.60) |
| Allianz Nigeria | B+ (S&P, implied) | Negative | Backed by Allianz Group but Nigeria risk |
| Zimnat Life (Zimbabwe) | CCC | Negative | Hyperinflation, currency instability |
| Kenya Reinsurance | BB- (Fitch) | Stable | Regional reinsurance leader, adequate capital |
| Assurance Vie (Senegal) | B | Stable | Small but stable Senegalese market |
| United Insurance (Tanzania) | B- | Negative | Weak profitability, limited scale |
| CIC Insurance (Kenya) | BB- | Stable | Solid Kenyan market position |
| Momentum Metropolitan (SA) | BB+ (S&P) | Stable | Strong SA franchise, good solvency |
| MUA Insurance (Kenya) | B+ | Stable | Moderate size, competitive market |
| Saham Finances (Morocco) | BB (Fitch) | Positive | Strong Moroccan & Francophone presence |
Final Words : Future Investment Analysis
| Company | Future Prospects | Financial Strength |
|---|---|---|
| Sanlam (South Africa) | Good | Good |
| Old Mutual (South Africa) | Good | Good |
| Discovery Limited (South Africa) | Good | Good |
| Allianz Nigeria Insurance Plc (Nigeria) | Fair | Fair |
| Zimnat Life Insurance (Zimbabwe) | Fair | Fair |
| NNPC Insurance (Nigeria) | Fair | Fair |
| Assurance Vie (Senegal) | Fair | Fair |
| Kenya Reinsurance Corporation (Kenya) | Good | Good |
| United Insurance Company (Tanzania) | Fair | Fair |
| The Standard Group (Kenya) | Fair | Fair |
| CIC Insurance Group (Kenya) | Good | Good |
| Momentum Metropolitan Holdings (South Africa) | Good | Good |
| MUA Insurance (Kenya) | Fair | Fair |
| Saham Finances (Morocco) | Good | Good |
Investment Possibilities (Short-term vs Long-term)
| Company | Short-Term Investment Possibilities | Long-Term Investment Possibilities |
|---|---|---|
| Sanlam (South Africa) | Good | Excellent |
| Old Mutual (South Africa) | Good | Excellent |
| Discovery Limited (South Africa) | Fair | Excellent |
| Allianz Nigeria Insurance Plc (Nigeria) | Fair | Fair |
| Zimnat Life Insurance (Zimbabwe) | Fair | Fair |
| NNPC Insurance (Nigeria) | Fair | Fair |
| Assurance Vie (Senegal) | Fair | Fair |
| Kenya Reinsurance Corporation (Kenya) | Fair | Good |
| United Insurance Company (Tanzania) | Fair | Fair |
| The Standard Group (Kenya) | Fair | Fair |
| CIC Insurance Group (Kenya) | Good | Good |
| Momentum Metropolitan Holdings (South Africa) | Good | Excellent |
| MUA Insurance (Kenya) | Fair | Fair |
| Saham Finances (Morocco) | Good | Good |
Top Picks (Based on Financial Strength & Prospects)
- Sanlam (South Africa)
- Prospects: Strong growth potential across the African market.
- Financial Strength: One of the largest insurers in Africa with diversified offerings.
- Investment: A solid choice for both long-term and short-term investments.
- Old Mutual (South Africa)
- Prospects: Strong brand and international presence.
- Financial Strength: Stable with extensive financial offerings.
- Investment: Strong for both short-term and long-term investments.
- Discovery Limited (South Africa)
- Prospects: Innovation in health insurance and digital platforms.
- Financial Strength: Very strong with a diversified product line.
- Investment: Good long-term potential with solid short-term prospects.
- Kenya Reinsurance Corporation (Kenya)
- Prospects: Growing presence in East Africa and diversification in services.
- Financial Strength: Strong reinsurance arm.
- Investment: Good long-term outlook with moderate short-term prospects.
- CIC Insurance Group (Kenya)
- Prospects: Solid growth potential in East Africa.
- Financial Strength: Stable with a wide range of offerings.
- Investment: Strong long-term growth potential.
- Momentum Metropolitan Holdings (South Africa)
- Prospects: A leader in life and health insurance.
- Financial Strength: Very strong with consistent growth.
- Investment: Excellent long-term prospects with solid short-term opportunities.
So, this is it for best Insurance companies stocks of Africa. You can get good basic & fundamental info from this share market article that will be useful in selecting good stocks. Best of luck.
Happy Investing