PSG Konsult raises interim dividend 7% as insurance bet pays off
Recurring HEPS jumped 8% in the six months to end-August, with its insurance unit the star performer
Financial services group PSG Konsult raised its interim dividend 7% in the six months to end-August, boosted by a solid performance by its short-term insurance unit.
The group's recurring headline earnings per share (HEPS) rose 8% to 23.2c, with recurring heps at PSG Insure jumping 50%, the company said on Thursday.
The group said PSG Insure had successfully added more than 10,000 new clients. It had also successfully integrated the Absa Insurance and Financial Advisors commercial and industrial short-term insurance business, having completed its acquisition of that brokerage in December 2018.
Recurring HEPS at PSG Wealth rose 10%, which the company described as a pleasing result due to difficult market conditions.
Clients' assets managed by PSG Wealth rose 6% to R184.5bn.
However PSG Asset Management saw a 7% decline in recurring HEPS, with assets under management falling 8% to R43.6bn.
PSG Konsult said on Thursday the cash-generative nature of its business provided options for further expansion. “As such, the group remains confident about the prospects for continued growth,” the statement read.
“The group will continue to prioritise organic growth in our selected markets where we have a relatively low, but rapidly expanding market share.”
At 12.10pm, PSG Konsult's share price was up 1.79% to R7.94.
Correction: October 11 2019
An earlier version of this story reported that PSG Konsult's recurring headline earnings per share (HEPS) rose 50%; the correct figure is in fact, 8%. It was only PSG Insure’s HEPS that rose by 50%. Business Day regrets the error.