Rapidly growing life assurance and financial services group, Assupol, today reported strong results for the year ending 30 June 2015. The Group reported an impressive increase in its adjusted operating profit1 by 16%, compared to 2014. This in spite of headwinds from an ongoing slowdown in the South African economy and low investment market returns.
Highlights
In the previous financial year a refinement of the reinsurance modelling boosted profits by R278 million. This was not repeated in 2015 as a result the 2015 net profit after tax of R463.3 million showed a decrease of 19%.
Commenting on the Group’s results and its outlook, Group CEO Rudi Schmidt said, “Exceptional growth in new individual policies sales were achieved. The value of new business grew by a commendable 70%. This was as a result of efficient expense management, a better than expected mortality experience and exceptional sales volumes. Assupol has more than 640 000 policies and this number increased by 11%.”
The price of the Group’s over-the-counter (OTC) traded shares also performed exceptionally well over the financial year with a 57% increase. An ordinary dividend of 38c per qualifying share has been declared, as well as a special dividend of 61c per qualifying share. The special dividend was as a result of actuarial releases relating to the positive mortality experience and the efficient management of expenses. The record date for participation in the dividend is 16 October 2015 and the dividend payment date is 23 October 2015.
One of the highlights for the Group was being awarded the “Best Life Assurer, Southern Africa 2015” award by Capital Finance International (CFI), a leading London-based business and finance magazine and online publication. It was nominated for this prestigious award by the International Finance Corporation, one of Assupol’s core shareholders.
In conclusion Schmidt said, “Although the 2016 financial year is expected to be just as challenging as 2015, Assupol is confident in achieving further real growth through its highly focused sales strategies, dedicated workforce, cost efficiency efforts, and plans to continue diversifying and growing its products and distribution channels.”
1The adjusted operating profits are reported earnings adjusted to exclude non-core or non-recurring transactions.
*2014 net profit included a refinement of the reinsurance modelling which resulted in a once-off increase in profit of R278 million
*2014 net profit included a refinement of the reinsurance modelling which resulted in a once-off increase in profit of R278 million
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