michelle

MICHELLE CALITZ

Executive Head: Finance

“2012 was a financially successful year for the Centriq Group. We grew our net income after tax by 88%, albeit off a low base. We are looking forward to grow the business and we are geared to do just that with our cohesive leadership team, solid infrastructure and an exciting vision for the years ahead.”

Financials

INCOME STATEMENT HIGHLIGHTS (R’000) 31 Dec 2012 31 Dec 2011 31 Dec 2010 31 Dec 2009
GWP 2 265 316 2 246 165 2 140 71 2 034 887
PROMOTER NET INCOME AFTER TAX 51 722 27 469 37 013 39 748
BALANCE SHEET HIGHLIGHTS (R’000) 31 Dec 2012 31 Dec 2011 31 Dec 2010 31 Dec 2009
TOTAL SHAREHOLDER FUNDS (Including cell-owner capital) 886 786 789 708 733 457 780 979
TOTAL ‘PROMOTER’ SHAREHOLDER FUNDS 175 421 154 957 127 488 238 799
STATUTORY SOLVENCY 31 Dec 2012 31 Dec 2011 31 Dec 2010 31 Dec 2009
CENTRIQ INSURANCE COMPANY LIMITED 49.3% 31.0% 30.1% 32.9%
NOVA RISK PARTNERS LIMITED 2433.0% 157.3% 140.5% 198.4%
CENTRIQ LIFE INSURANCE COMPANY LIMITED (Capital adequacy ratio) 4.64 6.04 5.57 4.97
 

F2012 Financial Review

GROWTH

Gross Written Premiums remained static for 2012 overall, largely a result of a deliberate decision to cancel three books totalling R195m in GWP as they were unsustainable from an underwriting perspective. Apart from the cancellation of these books, Centriq’s GWP would have advanced 9.5% in 2012, against an industry growth level of 10% (PWC short-term insurance industry analysis March 2013).

PROFITABILITY

Centriq’s Promoter Net Income after tax increased by 88% in 2012, attributable to the partial write back of underwriting losses booked in 2011, as well as a significant increase in investment income.

SOLVENCY

The main short-term insurance trading licence, Centriq Insurance Company Limited, and the life insurance licence, Centriq Life Insurance Company Limited, are both adequately capitalised with solvency and CAR cover ratios well above the statutory minimum requirements.