Guardrisk Group turns in solid performance
In an economic environment characterised by a global financial crisis and worldwide recession, Guardrisk – the world’s number one specialist captive insurance group of its kind (in US dollar terms) – turned in a solid performance for the financial year ended
Gross premium income, excluding reinsurance inwards, increased by 17% to R3,9 billion (2008: R3,4 billion) while cells’ gross premium income increased by 15% to R2,6 billion (2008: R2,3 billion). The group’s total assets grew by 8% to R6,2 billion (2008: R5,8 billion) and cell shareholders’ funds climbed 21% to R1,3 billion (2008: R1,1 billion). During the year under review, the underwriting profit of Guardrisk Insurance – the group’s short-term business – decreased from R58 million to R35 million, mostly due to an increase in claims incurred in our first party cells. “This decrease is in fact a positive indicator: affirming that first party cell clients are getting maximum benefit from their cells by using the capacity in their facilities to pay for their own losses,” says MD, Herman Schoeman. The group’s investment income increased by 27% as a result of both the increase in assets and the high interest rate environment that prevailed for most of the financial year, resulting in a healthy operating profit (before tax) of R510 million (2008: R492 million) for the year. Despite tough trading conditions, both the short-term and life operations remain financially sound. Guardrisk Insurance’s solvency margin increased to 56% (2008: 46%), which is well above the minimum statutory requirement – the solvency margin is a key indicator of the company’s ability to meet future claims. Guardrisk Life’s Capital Adequacy Requirement (CAR) remains stable at 3,5 times (2008: 3,6 times), which substantially exceeds the statutory requirement of 1,0 times – CAR reflects the company’s financial strength.
Gross premium income, excluding reinsurance inwards, increased by 17% to R3,9 billion (2008: R3,4 billion) while cells’ gross premium income increased by 15% to R2,6 billion (2008: R2,3 billion). The group’s total assets grew by 8% to R6,2 billion
(2008: R5,8 billion) and cell shareholders’ funds climbed 21% to R1,3 billion (2008: R1,1 billion).
During the year under review, the underwriting profit of Guardrisk Insurance – the group’s short-term business – decreased from R58 million to R35 million, mostly due to an increase in claims incurred in our first party cells.
“This decrease is in fact a positive indicator: affirming that first party cell clients are getting maximum benefit from their cells by using the capacity in their facilities to pay for their own losses,” says MD, Herman Schoeman.
The group’s investment income increased by 27% as a result of both the increase in
assets and the high interest rate environment that prevailed for most of the financial year, resulting in a healthy operating profit (before tax) of R510 million (2008: R492 million) for the year.
Despite tough trading conditions, both the short-term and life operations remain financially sound. Guardrisk Insurance’s solvency margin increased to 56% (2008: 46%), which is well above the minimum statutory requirement – the solvency margin is a key indicator of the company’s ability to meet future claims.
Guardrisk Life’s Capital Adequacy Requirement (CAR) remains stable at 3,5 times (2008: 3,6 times), which substantially exceeds the statutory requirement of 1,0 times – CAR reflects the company’s financial strength.
