RESULTS - SIX MONTHS ENDED 30 JUNE 2003 Message from Managing Director Nick Beyers
The Board approved our interim results on Wednesday 30 July and the salient figures are given below. Full details, as published in the press, are contained in the attached sheet.
Rand thousands
Gross written premium
R1 543 845
Underwriting profit
R21 787
Investment income
R73 695
Net income after tax
R74 392
Total assets
R2 741 708
Solvency margin (%)
41,5
We are pleased to report a significant improvement in our underwriting result. Together with improved claims management, our strategy of adherence to stricter underwriting principles and addressing pricing levels through appropriate rating initiatives is beginning to yield benefits. Gross written premium also continued to grow during the first half of the year.
Although most classes of business showed an improvement, the motor account is still a source of concern. The cost of repairs continue to escalate as do the number of accidents. Further remedial action, in particular exiting poor performing business, will have to be taken to improve the performance of this account. We are also investigating proactive initiatives aimed at reducing accident repair costs.
Investment income increased by R8,9 million and a surplus of R5,7 million was realised on the disposal of investments. Although the solvency margin is down from 43,3 percent reported at year-end, the Company remains financially strong, as evidenced by a recently reaffirmed AA claims paying ability rating by Global Credit Rating.
I’d like to take this opportunity to thank you for your loyalty and continued support. We look forward to working with you as we strive to improve our financial performance and service offering.
