Mutual & Federal, Chief Executive Officer Peter Todd
Mutual & Federal, a member of the Old Mutual group, has reported a solid 6% growth in its gross premiums, despite a softening of rates in the market.
Commenting on the interim results, Chief Executive Officer Peter Todd says: “We continue to see a strong contribution from our credit guarantee and African operations, and good revenue growth in our direct business, iWYZE. We are also working closely with Old Mutual Emerging Markets in identifying opportunities and synergies so as to expand our business operations”.
In addition, our core business is still showing top-line growth, which is encouraging. This is attributable in part to the real benefits starting to flow through from the change programme - which has produced improved service levels, leading to improvement in performance over time. This was matched by the organisation’s cost management strategies, which are all designed to achieve an improvement in the underlying cost to serve our customers as well as an improvement in the customer experience,” says Todd.
“The payoff of the programme is already evident in the growth of policy numbers, which has outpaced revenue growth. This points to just how aggressive and competitive the market has become”, explains Dheven Dharmalingam, Mutual & Federal Financial Director.
“We anticipate that this marked softening in premium rates will continue for the balance of the year, which will have a negative impact on margins at this stage of the underwriting cycle.”
Todd concludes, "We will continue to focus on delivering operational efficiency; collaborate with the wider Old Mutual Group; develop new business in association with our intermediary partners; and grow our market share through improving our product proposition, our systems and service to brokers and customers.”
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