PINS VS AAIC

PINS Peoples Insurance company is relatively undervalued compare to it's pears. Here I try to compare AAIC (Softlogic LIFE ) with PINS. Let's see the price movement of these two shares.






up to November PINS was trading higher price than AAIC and from 30 Th November and on wards we saw AAIC price is increasing steadily due to market attention. But still PINS price is stagnating in the same level. Both counters in the same business and more or less with same fundamentals. (PINS EPS slightly above than AAIC )

Peoples insurance is a well managed Private company with government backing though Peoples's Bank. Also It pays around 10 % dividend (last time Rs 3.00 ) . Over the years it has increased its dividend per share with consistent growth.
Most of investors love to have PINS in their long term portfolio as a retirement fund because of consistent growth and increased dividend payment over the years with capital gain.

Dear CSE Guide , thank you for this write up . I have both shares in fairly large quantities .. earlier I had a much larger share of PINS but later reduced to balance out my portfolio . PINS is a General Insurance company & is a lovely counter , however they have a problem with revenue growth which has either remained flat or reduced slightly - maybe because General Insurance is refered to being at almost saturation point .. On the other hand AAIC is Life Insurance Company & Life Insurance they say has a massive untapped potential in the country + AAIC is highly aggressive and innovative in their marketing and innovative . The reasons which may be why the Share is rocketing up could be based on the rumor of a private placement being made on the share at RS 100/- & or the projected 2023 EPS of rupees 10/-

itTtcseguide wrote:PINS Peoples Insurance company is relatively undervalued compare to it's pears. Here I try to compare AAIC (Softlogic LIFE ) with PINS. Let's see the price movement of these two shares.






up to November PINS was trading higher price than AAIC and from 30 Th November and on wards we saw AAIC price is increasing steadily due to market attention. But still PINS price is stagnating in the same level. Both counters in the same business and more or less with same fundamentals. (PINS EPS slightly above than AAIC )

Peoples insurance is a well managed Private company with government backing though Peoples's Bank. Also It pays around 10 % dividend (last time Rs 3.00 ) . Over the years it has increased its dividend per share with consistent growth.
Most of investors love to have PINS in their long term portfolio as a retirement fund because of consistent growth and increased dividend payment over the years with capital gain.

Thanks for the analysis . I also has some quantity bought long ago. I hope to collect some more.This time they may pay higher dividend. Heared they have better results this time

@ current price of 34.10 PINS is a two bagger for me.
 

cseguide wrote:PINS Peoples Insurance company is relatively undervalued compare to it's pears. Here I try to compare AAIC (Softlogic LIFE ) with PINS. Let's see the price movement of these two shares.






up to November PINS was trading higher price than AAIC and from 30 Th November and on wards we saw AAIC price is increasing steadily due to market attention. But still PINS price is stagnating in the same level. Both counters in the same business and more or less with same fundamentals. (PINS EPS slightly above than AAIC )

Peoples insurance is a well managed Private company with government backing though Peoples's Bank. Also It pays around 10 % dividend (last time Rs 3.00 ) . Over the years it has increased its dividend per share with consistent growth.
Most of investors love to have PINS in their long term portfolio as a retirement fund because of consistent growth and increased dividend payment over the years with capital gain.

 Better comparison would be against LOLC general insurance, since both are in the same segment (general insurance). Both are backed by two biggest finance companies in the country- LOLC & PLC

ErangaDS wrote:

cseguide wrote:PINS Peoples Insurance company is relatively undervalued compare to it's pears. Here I try to compare AAIC (Softlogic LIFE ) with PINS. Let's see the price movement of these two shares.






up to November PINS was trading higher price than AAIC and from 30 Th November and on wards we saw AAIC price is increasing steadily due to market attention. But still PINS price is stagnating in the same level. Both counters in the same business and more or less with same fundamentals. (PINS EPS slightly above than AAIC )

Peoples insurance is a well managed Private company with government backing though Peoples's Bank. Also It pays around 10 % dividend (last time Rs 3.00 ) . Over the years it has increased its dividend per share with consistent growth.
Most of investors love to have PINS in their long term portfolio as a retirement fund because of consistent growth and increased dividend payment over the years with capital gain.

 Better comparison would be against LOLC general insurance, since both are in the same segment (general insurance). Both are backed by two biggest finance companies in the country- LOLC & PLC

I can do that if we compare PINS with LOLC general insurance, sky is the limit for PINS.

cseguide wrote:PINS Peoples Insurance company is relatively undervalued compare to it's pears. Here I try to compare AAIC (Softlogic LIFE ) with PINS. Let's see the price movement of these two shares.






up to November PINS was trading higher price than AAIC and from 30 Th November and on wards we saw AAIC price is increasing steadily due to market attention. But still PINS price is stagnating in the same level. Both counters in the same business and more or less with same fundamentals. (PINS EPS slightly above than AAIC )

Peoples insurance is a well managed Private company with government backing though Peoples's Bank. Also It pays around 10 % dividend (last time Rs 3.00 ) . Over the years it has increased its dividend per share with consistent growth.
Most of investors love to have PINS in their long term portfolio as a retirement fund because of consistent growth and increased dividend payment over the years with capital gain.

  Great... only thing in AAIC is increase of profit it around 160% up consider with previous year. PINS has a decrease. this may cause to huge uptrend of AAIC. But I keep PINS in my bag.

Nandun wrote:

cseguide wrote:PINS Peoples Insurance company is relatively undervalued compare to it's pears. Here I try to compare AAIC (Softlogic LIFE ) with PINS. Let's see the price movement of these two shares.






up to November PINS was trading higher price than AAIC and from 30 Th November and on wards we saw AAIC price is increasing steadily due to market attention. But still PINS price is stagnating in the same level. Both counters in the same business and more or less with same fundamentals. (PINS EPS slightly above than AAIC )

Peoples insurance is a well managed Private company with government backing though Peoples's Bank. Also It pays around 10 % dividend (last time Rs 3.00 ) . Over the years it has increased its dividend per share with consistent growth.
Most of investors love to have PINS in their long term portfolio as a retirement fund because of consistent growth and increased dividend payment over the years with capital gain.

  Great... only thing in AAIC is increase of profit it around 160% up consider with previous year. PINS has a decrease. this may cause to huge uptrend of AAIC. But I keep PINS in my bag.

Here what we want to consider mostly is last 3 months quarter on quarter profit growth. Last quarter
It has been increased compare to 2020 .

Then can we compare PINS with this

** compare the growth

Nandun wrote:Then can we compare PINS with this

** compare the growth

Life & General are very different . Life will hit the moon & General will hit the 3rd floor

Can we compare any other share with this. The share growth should be consistent over the years and year on year they have increased their dividend as well.

Biggy wrote:

Nandun wrote:Then can we compare PINS with this

** compare the growth

Life & General are very different . Life will hit the moon & General will hit the 3rd floor

That is not correct. In a very high inflation situation like today, the disposable income of people reduces since every person want to spend more on consumption. on the other hand investment in life insurance is not worth due to money value in future will reduce with high inflation instead people will go for other investments like invest on real property and stock market etc. On the other hand due to high value of vehicle and vehicle parts every person try to go for full insurance cover for their vehicles and properties.

Life Insurance mainly covers the risk of a family from getting into financial difficulty & ruin in the unfortunate sudden & unexpected demise of it's Bread Winner - the lump sum at the end is a secondary benefit .

STARTED TO REALIZE PINS VALUE.  

I got 30% from PINS @cseguide  what is your idea will it go further or jump to JINS will make better ?

https://island.lk/peoples-insurance-enters-medical-insurance-market-with-the-most-comprehensive-medical-insurance-cover-available-in-sri-lanka/

Are they coming to Life insurance market ?

Nandun wrote:I got 30% from PINS @cseguide  what is your idea will it go further or jump to JINS will make better ?

PINS has more value. This is only the start of a long Journey.It deserves a higher valuation compare to its earnings and future potential  However it is up  to you decide the entry and exit point.

K.R wrote:https://island.lk/peoples-insurance-enters-medical-insurance-market-with-the-most-comprehensive-medical-insurance-cover-available-in-sri-lanka/

Are they coming to Life insurance market ?

 earlier there was a restriction that general insurance and life insurance should not carried out by one institution. According to my knowledge this law was recently changed and now they can do both general and life insurance. Better somebody with insurance sector confirm this.

kk

As we witnesses today low liquidity nature of PINS will remain for sometime. We can’t expect a share split anytime sooner, further 93% is held by top 20 including ETF and two brothers of Mr Dammika perera ,can’t see them selling in the market either. This will be the opportunity for retailers and a nightmare for big boys.

cseguide wrote:

K.R wrote:https://island.lk/peoples-insurance-enters-medical-insurance-market-with-the-most-comprehensive-medical-insurance-cover-available-in-sri-lanka/

Are they coming to Life insurance market ?

 earlier there was a restriction that general insurance and life insurance should not carried out by one institution. According to my knowledge this law was recently changed and now they can do both general and life insurance. Better somebody with insurance sector confirm this.

AAIC moved from 30's to 70s very short period of time, will there be a similar journey for PINS?
What will be the fair value of PINS?

AAIC . . There's a rumour of a private place to be made when the price reaches 100/- + a JV for SHL with Adani India .. RUMOR ... + AAIC projected future EPS next 3 years is 6.6 , 8.0 & 10.0 according to the last Life Insurance Report . PINS price will adjust according to EPS .

Next move PINS and JINS

AAIC 11(PER)
JINS 13
COOP 15
LGIL. 20

-PINS-
9months EPS - 4.16 (last 4Q - 5.40)
PER 6.8

*PINS is trading at a deep discount to its peers, share price should adjusted to 9+ PER going forward.

“Low liquidity factor will decide the ultimate destination for PINS”

People's Insurance
PINS.N0000
Share Price 7 Day 1 Year
40.2 19.3% 46.2%


Investor sentiment improved over the past week

After last week's 19% share price gain to LK₨40.20, the stock trades at a trailing P/E ratio of 7.4x.

Average trailing P/E is 11x in the Insurance industry in Sri Lanka.

Total returns to shareholders of 161% over the past three years.