Indequity Group Limited. JSE: IDQ

Indequity shares

Background of Indequity

  • Indequity Group Limited is a specialised insurance company which was established as an insurance broker writing personal lines business on behalf of larger companies in South Africa. Indequity shares were first put up for sale on the Johannesburg Stock Exchange in 1998, when the company was earning small but stable fixed broker commissions. The company expanded its operations with the purchase of a short-term insurance company in 2000, and began to offer personal lines and business insurance products to high net worth clients.

  • The group was restructured in 2010 into two completely independent groups, one focusing on short-term insurance (Indequity Specialised Insurance) and the other on asset management (Heiden Grimaud Asset Management). Today, Indequity offers a broad spectrum of personal and business insurance services for sale to affluent, risk-aware professionals who have been traditionally disadvantaged by conventional insurance policies. The group’s product portfolio is offered under Uniq-Cover and Probiz. Indequity has a JSE market cap of R120 million, with the live online JSE stocks chart showing that Indequity share price enjoying solid upside growth over the past five years.

Indequity Shares Growth Driver

  • Between October 2010 and August 2016, Indequity share price grew from R1 per share to more than R10, representing remarkable annual compounded growth of 47%. Against a backdrop of difficult market conditions, Indequity has managed to consistently outperform its industry sector peers due to its strategy of attracting quality business at sensible premiums. For the 2015 financial year, the group increased profits by 25%, with headline earnings per share increasing by 27%. Despite a highly competitive sector and pressured consumers, gross premiumincome increased by 9%. Shareholders received dividends of 21 cents per share.

  • The primary yardstick used to measure the group’s performance is return on capital, an area where Indequity achieved an outstanding 47.6% return. The group’s latest interim data, covering the six months ended March 2016, reflects the same positive trend, with return on capital standing at 44%.

  • The group has attributed its growth to focused and savvy management, striking a sensible balance between premium collections and claims, and success with cost efficiency improvements. Indequity shareholders enjoyed interim dividends of 10.5 cents per share for the period.

Indequity Investor Tip

  • Indequity has performed exceptionally well considering the constrained conditions in the insurance trade, with Indequity shares remaining a popular buy. The high-end target market seems increasingly keen to buy Indequity’s products, and the growth of Indequity share price has continued unabated.

  • Indequity’s conservative business strategy has served it very well, and should continue to do so in future. As the economy starts to improve, the forecast is that Indequity shares could potentially experience a further price boost. Indequity is therefore a small-cap financial services stock with great potential.

Indequity Major Shareholders

Indo Atlantic Investment Corporation (Pty) Ltd, Heiden Grimaud Ltd. and Heiden Grimaud Asset Management (Pty) Ltd.

  • Sector

    Financials

  • Industry

    Insurance

  • Sub industry

    Insurance

How to buy Indequity Shares

  • Indequity : How to buy Indequity Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Indequity shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Indequity and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Indequity shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Indequity.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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