Shares in insurance group Clientèle rose sharply in early trade on Monday after it said it expects to report higher full-year earnings as generates strong positive cash flows.
At 10am on the JSE, the group’s shares were up 12.4% to R14.39.
Headline earnings per share (HEPS) for the year to end-June were expected to be 39%-59% higher at between 136.88c and 156.56c, it said on Monday.
Earnings per share (EPS) are expected to rise 129%-149% due to the effect of a one-off recognition of a bargain purchase gain of R403m arising from the fair value measurement at the date of acquisition of 1Life.
Clientèle said the acquisition of Emerald Life, which became effective on June 24, had had no effect on the group’s income, given the timing of the transaction. However, the acquisition resulted in the recognition of goodwill of about R130m arising from the first-time recognition of Emerald’s fair value balances on its statement of financial position at year-end.
Business Day reported previously that Clientèle had ramped up its strategy of bulking up its mass market segment with the proposed acquisition of Emerald Life, shortly after it purchased 1Life.
Emerald Life is a fast-growing licensed life micro-insurer and was established on the premise of supplying affordable funeral insurance products to the lower- to middle-income market segments via a national adviser distribution channel.
At the time of the acquisition, Clientèle said Emerald Life had a well-established footprint with more than 18 branches nationwide and a head office in Bellville, Western Cape. It had an established and experienced management team with 380 permanent employees and about 3,500 independent sales advisers, nationwide.
Clientèle’s acquisition of Emerald Life added to Clientèle’s expertise in the mass market segment and presented a number of strategic benefits, it said.
In 2024 Clientèle completed the acquisition of 1Life, creating a group with 1.5-million policies with an estimated embedded value of nearly R8bn.
Update: August 25 2025
This article was updated to reflect share movement.
With Kabelo Khumalo
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