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CENTRIQ INSURANCE HOLDINGS LIMITED
Financial Highlights
Year Ended 31 December 2010
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2010
R'000 |
2009
R'000 |
% Change |
| Gross
Written Premiums |
2 140 711 |
2 038 246 |
5,0% |
| Nett
Income After Tax |
38 258 |
39 694 |
(3.6%) |
| Assets
Under Management |
2 034 181 |
2 129 602 |
(4.5%) |
Reported gross written premium (GWP) grew by 5.0% for
the year. The core business continued to grow strongly
but was offset by the cancellation and refund of a large
risk finance policy as well as the cancellation of MiWay
on the registration of their own licence during the
period.
Fee and underwriting income earned from clients was
approximately 21% higher compared to 2009 due to
improved underwriting results, active repricing to
appropriate profit margins and favourable investment
returns. Net income after tax declined by 3.6% due to
lower investment earnings on shareholder capital
following the repatriation of surplus capital to our
shareholder during the year, as well as the full annual
impact of increased headcount commenced late 2009 to
gear up capacity to meet growth.
Assets under management declined marginally by 4.5% over
the period, mainly attributable to the capital
repayments to our shareholder and the refund of a large
risk finance policy during the year.
The operating environment continued to grow in
complexity. The regulator published draft binder
regulations which focused attention on outsourcing and
remuneration. Conflict of interest received increased
scrutiny and regulatory constraints were imposed during
the period. The SAM process got underway to align the
local regulatory environment to Solvency II initiatives
underway in the European Union. Numerous acts and
regulations have been published which have affected or
will impact on all industry participants going forward.
The increasingly complex environment has intensified the
focus on underwriting profitability, margins, credit
risk and capital management as the costs of compliance
continue to rise steeply. Improvements and changes to
our operations and business structures, as well as those
of business partners, will be required going forward.
Sustainability of insurance facilities will depend on
sound underwriting, solvency management, robust risk
management, administrative efficiencies, skills and
experience and compliance with laws and regulations.
Prospects
Centriq remains well positioned to capitalise on
opportunities arising from increasing governance and
regulatory requirements and a flight to quality. Our
independent positioning in the market, coupled with our
100% shareholding by Santam gives our clients
flexibility and choice backed by financial security.
We wish to thank all 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
Click
here for the year end 2009 financials
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