Clientèle: A small player, but an intriguing proposition
It’s not been easy for Clientèle with increased pressure on its clients’ disposable income, which hampers their ability to pay insurance premiums
The life assurance sector might not be the most obvious place to scour for value. The prolonged lockdown has meant salary cuts, job losses and increased pressure on disposable income. This is bound to see policyholders rethinking their policies, maybe even having to let policies lapse.However, Clientèle is an intriguing proposition.The share is fairly illiquid, with about 87% of the issued shares owned by two shareholders. IM started taking an interest in Clientèle when noticing that financial director Iain Hume has been a persistent buyer of the share since end-April. By IM’s calculations Hume has snapped up shares worth around R11m — which would suggest the company’s main number cruncher sees upside in the stock.Investors will need to speculate why Hume does not share the market’s jaundiced view on Clientèle’s prospects. The share has more than halved from the R20 levels seen in mid-2018.The key statistics from the weak interim results to end-December showed the value of new busin...
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