FANews
FANews
RELATED CATEGORIES

F2018 ends on a high note for MMI’s Guardrisk

05 September 2018Herman Schoeman, Guardrisk
Herman Schoeman, CEO of Guardrisk.

Herman Schoeman, CEO of Guardrisk.

South Africa’s biggest cell captive insurer, Guardrisk, which is a subsidiary of the JSE-listed MMI-Holdings, grew its revenue by 17% for the financial year ending 30 June 2018, despite the challenging business environment.

Guardrisk, which celebrates its 25th anniversary in 2018, recorded gross premium income before premium refund of R19,6bn and now has assets of R22,5bn and 300 cells.
“Effective management of costs in an ever increasing regulatory environment, together with sound growth in revenue, helped the business maintain its profit margin, which resulted in a 28% growth in earnings,” says Herman Schoeman, CEO of Guardrisk.

“New business has improved satisfactorily, showing a 40% increase year-on-year. The strategy to focus and grow our underwriting capabilities has started to pay off and, together with the acquisition of C&G and Marine Underwriting Managers; we managed to double the contribution of underwriting profits to revenue.” To increase its presence in this market and to further build on taking selected underwriting risks, Guardrisk is in the process of acquiring additional underwriting (including pricing), claims skills and expertise.

In recent years, and particularly in the past financial year, Guardrisk has strengthened its position in the MMI group and has achieved the targets that were set when the company was acquired in 2014 for unlocking synergies across the group.

Schoeman says F2019 will see two initiatives gaining momentum: the digital platform business, and unlocking the potential in the cell captive business model as a strategic enabler for transformation.

“With an eye on excellent client service, sound cost management and sustainable top line growth, Guardrisk will strengthen its operational support capabilities and resources, by investing especially in the areas of underwriting and claims, risk management and compliance.”

Quick Polls

QUESTION

A new year brings new opportunities. Do you feel that 2019 will be a good year for the industry?

ANSWER

Yes. This year will be a great year!
No. There are still to many challenges in the market.
Maybe. It is to soon to tell.
AE fanews magazine
FAnews November 2018Get the latest issue of FAnews

This month's headlines

Could face-to-face become obsolete?
Where do I send my CPD records?
Can you spot the fraud? Yes, now you can...
Taking an elephant to court - It's not easy
Marijuana ruling… should we be worried?
Medical schemes' average increases for 2019
Subscribe now