Results - for the six months to June 30, 2007 Message from Chief Executive Officer Nick Beyers
The Board approved our half-year results on August 1, 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
R2,183,457
Net profit attributable to members of the Company
R122,686
Investment income
R100,463
Total assets
R4,488,446
Solvency margin (%)
55.0
Notwithstanding that the industry continues to operate in a competitive market, with an increased claims pattern, we achieved an improvement in the underwriting result for the current period. Premium revenue increased by 14.6% compared to 2006, which reflects satisfactory growth.
The first six months were characterised by both a higher incidence of claims and increased claims costs on the property and motor accounts and, the effects of severe flooding in Kwa-Zulu Natal in late March, also affected the account.
In spite of corrective action taken on the motor account, which included premium increases of more than 20%, the result continues to be negatively affected by market developments. The frequency of motor vehicle accidents has increased primarily as a result of a greater volume of vehicles on the road, poor driving standards and road conditions. Motor repair costs, especially the cost of repairing imported vehicles, continue to escalate well above the official inflation rate. We will, however, continue to take the steps necessary to limit the effect on the underwriting result.
Gains on disposal of available-for-sale investments were lower at R35.4 million. Headline earnings of R89.7 million were 24.5% higher and earning per share of 1,007 cents were 6.0% lower, mainly as a result of an increased tax charge and reduced gains on the disposal of available-for-sale financial assets.
I’d like to take this opportunity to thank you, our business partners, for your loyalty and continued support.
