CBL : shares top $3.00 mark

CBL shares top $3.00 mark

Positive response to strong result sees insurer double in value since listing

A positive response to CBL Corporation's half-year results has pushed the specialist insurance provider's share price through the $3.00 mark.

CBL, which listed on the ASX and NZX in October last year, recently reported a half-year operating profit of $35.1 million, up 45 percent on the first six months of 2015.

Managing Director Peter Harris says while his team's focus is on managing the business rather than managing the share price, the rising share price is a tangible sign that the market understands and appreciates CBL's business model.

'Having the share price double in less than a year is a real vote of confidence in the company,' says Mr Harris.

'We believe our performance to date justifies that confidence, and we have the right strategies to generate continued growth in shareholder value over the long term.'

Mr Harris said CBL's future growth would come from a mix of organic growth and acquisitions. CBL had added three new businesses to the Group in the past year, all of which had potential for further growth, and its planned acquisition of Securities and Financial Solutions Europe SA, France's largest specialist producer of construction-sector insurance and CBL's largest single client, was tracking well through the regulatory process and expected to conclude by early 2017.

Forsyth Barr's Guy Williams and UBS's Chris Simcock, who both worked on CBL's listing, said that while stock markets were experiencing considerable turbulence at that time, the company's share price had performed strongly from the outset.

'The shares went up by nearly 15 percent on day one, and have really never looked back,' Mr Williams said.

Mr Williams said CBL's shares appealed to the type of investor that was able to look past short-term market conditions and assess the company on its fundamentals, which appear very sound.

Mr Simcock said the continued involvement of CBL's prior owners, including Mr Harris, as shareholders and operators, also gave investors confidence.

'This was never about maximising the share price on Day One. Peter and his team were very clear that they were staying in the business, and that they wanted a capital structure that would enable sustainable growth over the long term.'

Mr Harris said that CBL looked forward to continuing the successful implementation of its business plan.