RESULTS - FOR THE YEAR ENDED 31 DECEMBER 2004 Message from Managing Director Nick Beyers
The Board approved our preliminary results on Thursday 10 February 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
R3 191 143
Underwriting profit
R235 794
Investment income
R169 033
Net income after tax
R352 322
Total assets
R3 473 603
Solvency margin (%)
57.9
The excellent underwriting result reported in the first half of the year continued into the second half with a full year underwriting profit of R235.8 million which is an improvement of 85%. Gross written premiums were marginally up reflecting the competitive market conditions during the period.
All underwriting accounts have performed well during the year as a result of a strict adherence to underwriting principles, appropriate pricing, rigorous risk assessment and improved claims management. In addition, benign weather patterns resulted in fewer natural catastrophes which has also contributed to the positive result.
Given that the underwriting cycle is expected to flatten in the medium term, the main challenge will be to maintain profitability while continuing to grow. In this regard underwriting discipline will remain a key focus.
The growth in equity values during the year has contributed to an excellent investment performance and the equity disposal programme continued during the year realising gains of R70.1 million.
Headline earnings increased by 45.1% to 2 140.8 cents per share and the solvency margin has significantly improved to 57.9% compared to 47.1% at the end of 2003.
I would, once again, like to take this opportunity to thank you for your loyalty and support towards achieving this result, which we believe to be one of the best in recent years.
