RESULTS - FOR THE YEAR ENDED 31 DECEMBER 2005 Message from Managing Director Nick Beyers
The Board approved our preliminary results on Wednesday 22 February and the salient figures are given below. Full details, as published in the press, are contained in the attached leaflet.
Rand thousands
Insurance premium revenue
R3,509,671
Net profit attributable to members of the Company
R389,130
Investment income
R175,412
Profit after tax
R390,224
Total assets
R3,857,201
Solvency margin (%)
52.9
Premium revenue continued to grow and resulted in an increase of 10% to R3,509.7 million (2004: R3,191.1 million - restated). This we believe can, in part, be attributed to our advertising campaign which affirms our support of the broker channel. Investment income increased by R18 million to R175.4 million (2004: R157.4 million - restated). The bond portfolio performed positively and the continued equity disposal programme resulted in realised gains of R172.9 million (2004: R70.1 million - restated).
An increase in the incidence of accidents and higher repair costs impacted the motor account and certain weather related events and a number of large fires impacted the fire account. Most other underwriting accounts performed satisfactorily during the period.
Whilst earnings per share increased by 24.2%, headline earnings per share, which excludes net realised gains on disposal of investments, have decreased to 1,933.4 cents per share (2004: 2,037.4 cents per share). The solvency margin has decreased to 52.9% (2004: 57.0% - restated), after payment of the special dividend in March 2005. This remains above the stated policy of maintaining solvency in the 40% to 50% range. SA Eagle remains financially sound and continues to enjoy an AA+ claims paying ability rating with Global Credit Rating.
We would like to thank you, once again, for your loyalty and continued support.
