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New Insurer on the Block Conquers Growing Market for Brits Abroad

By Malcolm Stacey | Monday 19 June 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Hello Share Bottlers. You may, or may not, have noticed that I currently favour insurance companies. And following my own advice for once, I am now sitting on cracking profits on two of the biggest, Legal & General (LGEN) and RSA (RSA). I would still commend both these entities to your further inspection. However, I now turn the spotlight on a smaller, newer and more specialised insurance player.

This is Global Benefits Group (GBGI). It only floated on AIM four months ago, but its future already looks rosy. And it's not too late to join the bandwagon, if that’s what it turns out to be. The float price was 150p a pop. But for some time, it failed to rise higher than that. There was a recent improvement to 196p, but now it's fallen back a little to 185p.

What’s different about this insurer, apart from it being smaller than some powerful rivals?

Well, it insures travel, health and lives for Brits now living and working abroad. Because it's not the biggest insurer in most popular areas of cover, it can tailor its policies more closely to what its customers - mostly the better off, I suppose - actually want.

If I dare quote the Daily Mail on this mind-blowing website, income for the year to the end of June is expected to rise by 29% to $13.4 million. It may encourage you to know that most of the stock is still held by investors who acquired it before the float.

Being a new insurer, Global Benefits Group will not have historical fines or compensation claims to threaten it. And as this old world seems to become more uncertain and perilous by the minute, insurance is a growing market which can only get bigger and stronger.

And now it’s time to strengthen myself in the Punter’s Return.


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