On Mar 12, 2014, shares of
) reached a new 52-week high of $9.42, shortly after the company
reported solid fourth-quarter 2013 results. In fact, the share
price has escalated almost 19% since the company reported its
fourth quarter results on Mar 10.
Its fourth-quarter operating earnings of 8 cents per share
improved 24% year over year. The improvement was driven by the
company's strong performance at the property and casualty
insurance and claims adjusting businesses, and effective expense
In terms of revenues, CNinsure delivered a 15.6% year-over-year
improvement. Growth in net revenues across the P&C insurance
(fueled by higher sales volume and commission rates received from
insurance writers) and claims adjusting business segments mainly
led to the upside. For 2014, the company expects revenues to
increase further by 15%.
The company has also strengthened its operations through an
expansion in its distribution and service network. At the end of
2013, CNinsure's sales and services outlets increased by nearly
2% year over year to 480, while the number of sales agent and
representatives, and claims adjustors grew almost 10% and 6%,
CNinsure also boasts a strong cash position with an increase in
cash and cash equivalents at end-2013 from 2012-end. This will
help the company in enhancing shareholders' value through share
repurchases and dividend payouts.
The stock gained almost 43% in the 1-year period. CNinsure's
1-year return of 52.06% was higher than that of the other
industry players, with
Brown & Brown Inc.
Marsh and McLennan Companies, Inc.
Arthur J Gallagher & Co.
) recording 1.20%, 33.2% and 20.9% returns, respectively. The
Zacks Consensus Estimate for 2014 is pegged at 45 cents per
share, up 40.6% year over year while the same for 2015 stands at
65 cents per share, up 44.4% year over year.
CNinsure currently carries a Zacks Rank #4 (Sell). Marsh &
McLennan is a better-ranked stock in the sector with a Zacks rank
#2 (Buy) and is worth considering.
GALLAGHER ARTHU (AJG): Free Stock Analysis
BROWN & BROWN (BRO): Free Stock Analysis
CNINSURE IN-ADR (CISG): Free Stock Analysis
MARSH &MCLENNAN (MMC): Free Stock Analysis
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