Our opinion on the current state of CLIENTELE(CLI)Clientele Life (CLI) is a small insurance company that offers short- and long-term policies and underwrites insurance products. These products are sold through agents, brokers, and tele-sales. On 3rd November 2023, the company announced its acquisition of 1Life Insurance for R1.914 billion, paid through the issuance of 117,815,756 ordinary shares in Clientele.
In its results for the year ending 30th June 2024, Clientele reported a 4% decline in headline earnings per share (HEPS) and net profit. The company stated, "The total net insurance service result increased by 4% to R171.6 million. The total net investment result of R254.9 million is double the prior year figure. Net insurance finance income is 19% higher than the prior year at R207.3 million. Revenue from contracts with customers increased by 11% to R380.4 million."
Clientele Life trades at a price-to-earnings (P/E) ratio of 10.3, which appears relatively cheap. The share is also heavily traded enough to accommodate most private investors. In our view, the share continues to offer reasonable value at this P/E ratio. It stands to benefit from an improving South African economy, particularly with the formation of the newly appointed government of national unity (GNU).
