|
CENTRIQ INSURANCE HOLDINGS LIMITED
Financial Highlights
Year Ended 31 December 2009
|
|
2009
R'000 |
2008
R'000 |
% Change |
| Gross
Written Premiums |
2 038 246 |
1 870 027 |
9,7% |
| Nett
Income After Tax |
39 694 |
40 998 |
21,5% |
| Assets
Under Management |
2 129 602 |
2 133 399 |
4,0% |
Reported gross written premium (GWP)
grew by 9.0% for the year, although GWP for 2008 was
abnormally reduced by a premium refund to a client of
R396m. Excluding this refund, GWP would have been
R2.266bn in 2008. The withdrawal of a large crop
underwriting facility during 2009 contributed to the
decline in GWP volumes compared to 2008 together with
some declines attributable to the overall economic
slowdown.
Fee income received from clients was
marginally down compared to 2008 due to the decline in
premium volumes and lower investment fees on the back of
lower investment yields. Net income after tax declined
by 3.2% due to lower investment earnings on shareholder
capital.
Assets under management remained
static at R2.13 billion. The operating environment
continued to grow more complex over the period.
Underwriting margins in commoditised personal lines and
commercial books remain under pressure mainly as a
result of poor motor loss ratios. A concerted industry
response is required to improve the motor portfolio
results including engaging government on improved driver
education, infrastructure maintenance and upgrading and
minimising cost of repairs. Regulatory scrutiny of
outsourcing models has intensified and we await new
regulations in this regard to determine what changes
will be necessary to ensure future compliance and
viability.
An intensified focus on margins,
credit risk and capital management during the period
highlighted a number of required changes and
improvements in our operations and business structures.
In certain cases this has necessitated changes to
business arrangements with clients and further changes
may be required on the back of future regulations.
Sustainability of insurance facilities will depend on
sound underwriting, solvency management, administrative
efficiencies, skills and experience and compliance with
laws and regulations.
Prospects
Centriq is well positioned to
capitalise on opportunities arising from changing
regulatory requirements and a flight to quality. Our
independent positioning in the market, coupled with our
100% shareholding by Santam stands to benefit the group
in the turbulent times ahead.
We wish to thank our clients and
business partners for their continued support as we
strive to become the leading alternative insurance group
in the southern African market.
Click
here for the year end 2008 financials
|
