RESULTS - SIX MONTHS ENDED 30 JUNE 2004 Message from Managing Director Nick Beyers
The Board approved our interim financial results 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 572 138
Underwriting profit
R105 686
Investment income
R64 427
Net income after tax
R138 305
Total assets
R3 094 960
Solvency margin (%)
49.7
We are pleased to report a substantial increase in our underwriting performance returning a profit of R105,7 million up from R21,8 million for the same period last year.
Although all underwriting accounts performed satisfactorily, the motor account in particular has had a remarkable turnaround from a loss of R27 million in 2003 to a profit of R33 million this year.
The absence of major weather related events, large claims combined with lower inflation and crime stability have enabled the Company to hold premiums at current levels while maintaining the improved level of underwriting performance.
Gross written premiums increased marginally to R1 572 million. However, taking into account the cancellation of unprofitable business in 2003, the continued adherence to strict underwriting principles and appropriate product pricing, the premium volume is considered satisfactory.
Investment income stands at R64,4 million and the equity disposal programme continues with the surplus arising on the disposal of investments amounting to R23,0 million compared to R5,7 million in 2003.
Headline earnings increased to 940,0 cents per share and the solvency margin currently stands at 49,7%. This result has enabled the Directors to declare a dividend of 180 cents per share.
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 further improve our financial performance and service offering.
