Diversified insurer Esure (LSE: ESUR) is well placed to enjoy the end of the low-premium era, in my opinion. A backdrop of rising policy costs underpinned a 30% uptick in pre-tax profits last year, to £134m, and further hefty gains would appear to be on the cards.
Gross written premiums advanced 6.3% in 2015, and Esure expects premiums to advance between 10% and 15% in the current period. As well as benefitting from rising prices, Esure is also growing its customer base in the critical Motor segment.
The business was forced to cut the dividend in 2015 to build its capital pile, reducing the payment to 11.5p per share from 16.8p the previous year.
But with market conditions steadily improving, the City has chalked-in dividends of 13.2p for 2016 and 15.5p for next year. These figures create gigantic yields of 4.9% and 5.8%, respectively.
Esure Group PLC with EPIC/TICKER LON:ESUR had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘HOLD’ this morning by analysts at Peel Hunt. Esure Group PLC are listed in the Financials sector within UK Main Market. Peel Hunt have set their target price at 260 GBX on its stock. This is indicating the analyst believes there is a potential upside of 12.5% from the opening price of 231.2 GBX. Over the last 30 and 90 trading days the company share price has decreased 23.1 points and decreased 16.6 points respectively.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.