Sharechat Logo

Promina investors reap big rewards

Friday 12th December 2003

Text too small?
Investors who bought into the Promina float this year have more than doubled their money in just over seven months.

At press time the shares were heading toward $4, compared to their issue price of $1.90 a share for retail investors.

Recent gains follow a strong profit announcement from the company and an earnings upgrade for the current year after fewer claims in the four months to October.

Promina, spun off from Britain's Royal & Sun Alliance in May, is New Zealand's second-largest general insurer with about $440 million of gross written premiums.

The company says it is well on track to meet its prospectus forecast for the full year of $A188 million and analysts are forecasting a net profit this year of $A265 million. That assumed a return to a more normal claims environment in the late part of the year. Better-than-expected weather conditions kept claims down in the early part of the year but insurers generally record an increase in claims when the threat of major storms and bushfires in Australia increases in the late part of the year.

Premiums are also on a rising cycle and are expected to climb further as the industry addresses past poor underwriting returns and absorbs the risks of war and terrorism.

Investors are now focusing on the stock's long-term prospects as rival AMP battles uncertainty over its restructuring.

Promina, which has about 3500 New Zealand shareholders, reported a net profit for the six months to June of $A108.5 million.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures
Heritage buys Golden Healthcare; not mystery Metlife suitor
Alliance margins improve as swine fever boosts global meat prices
RBNZ eyes Westpac Australia money laundering failures
Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years

IRG See IRG research reports