October sales Vardia Insurance Group

Vardia Insurance Group presented strong sales figures for October this week, 11th November. The total new sales in Sweden, Norway and Denmark in October were 106.4 million NOK (66.4 million NOK) which is an increase of 60.2% from October 2013. Norway contributed with 59.4 million NOK, Sweden with 43.3 million NOK and Denmark with 3.6 million NOK.

For me personally it's a bit under my estimation since I expected total sales for fiscal year 2014 to be 1112 million NOK. I really thought sales for October should have been around 113-117 million NOK with Denmark contributing with atleast 9-10 million NOK to the sales. It's no panic yet about the numbers for my forecast, but it would have been nice to be on the right side. To get my sales forecast of 1112 million NOK Vardia has to close business of 252 million NOK in the two upcoming months, which I think  could be hard because of christmas holidays.

Since Denmark was a disappointment I really hope they are steeping up now for the last two months of the year. If they do I am sure Vardia will show profit for at least some month this year and the concern about the cash problem will go away and we could see a more normal valuation for Vardia.

Here are the actual sales for 2014 up to October (rounded),

I also bought some more companies, Mc Donalds (MCD) and Protector Forsikring (PROTCT). Mc Donalds for a price of 95.3 USD per share and Protector for a price of 36.2 NOK per share. More info and analysis will come in the upcoming weeks.


Over and out,

EWI