Credit Guarantee announces good results

Against the backdrop of a very buoyant business climate and significantly lower claims than expected in fiscal 2006, South Africa's largest debtors insurer and subsidiary of Mutual & Federal, reported satisfactory earnings for the 12 months to end December. Insured turnover grew significantly to R157,3 billion in 2006, over the R109,3 billion in 2005, whilst its after-tax profit was R237million in 2006, compared with R254 million in 2005.

Commenting on these results, MD Mike Truter, said, "Credit Guarantee is well positioned to deal with an anticipated increase in company liquidations in 2007, on the back of extremely high levels of debt in the economy, a worrying increase in fuel prices and rising interest rates.  I would emphasise that the company has a solvency margin of over 133%, one of the highest in the insurance industry in South Africa.

"We are also pleased to announce that during 2006, Credit Guarantee paid back to its clients R50,2 million in performance bonuses, even though premium rates are running at the lowest levels since September 2000," concludes Truter.