Clientèle’s share price surges 10% following record earnings report

THE share price of Clientèle, the JSE-listed insurance group, leaped over 10% on Monday after it reported a 100% increase in attributable headline earnings to R659.9 million for the year to June 30.

- EDWARD WEST

The performance included the first-time reported earnings of 1Life of R132.5m, as well as positive earnings contributions from Clientèle Life, Clientèle General and CBC Rewards. The impact of the recently acquired Emerald on group operating results was insignificant at the year-end.

The share price was trading at R14.88 on Monday afternoon, up from R11.25 a year ago.

A dividend of 132 cents (125 cents) per share was declared. The company said there was a modest sense of optimism in the economy fueled by a reduction in load shedding, declining inflation and the improved stock market performance, particularly in the last quarter.

However, it would take time to see an improvement in the high unemployment rate and for positive change to reflect in the lives of the group's target market.

“As a result, the group continues to experience high levels of withdrawals, suspension of debit order mandates, and disputes. As a consequence, the group has strengthened the withdrawal assumptions underpinning the reported results,’ the directors said.