The eagle has not landed…

* Underwriting profit of R235.8m (2003: R127.7m) * Growth in gross written premiums was marginally up - R3 191m

* Headline earnings increased by 45.1% to 2 140.8 cents per share

* Investment income increased to R169.0 million (2003: R152.8 million)

* The equity disposal programme continued, resulting in a surplus on these disposals of R70.1m (2003: R49.9m).

* The company’s solvency margin has improved to 57.9% (2003: 47.1%).

MD Nick Beyers attributed the positive performance to a consistent focus on underwriting discipline, appropriate pricing and rigorous risk assessment.

Improved claims management and benign weather conditions resulted in fewer natural catastrophes also contributed to the strong result.

Taking the above into account the directors declared a special dividend of 2 300 cents per share which is payable on 14 March 2005.

“A final dividend of 470 cents per share in line with our normal dividend payment pattern will be paid on 18 April 2005, making the total dividend for the year 650 cents per share (2003: 450 cents per share),” says Beyers.

Beyers: “Given that the underwriting cycle is expected to flatten in the medium term and that there has been limited growth in the market for a while now, there will be significant challenges ahead.

“The main challenge will be to maintain profitability while continuing to grow. Sustaining our underwriting performance and delivering consistent operating results will be our primary focus going forward, but recent global events remind us not to expect this favourable experience to continue indefinitely.”

Editor’s thought:

The last paragraph typifies the challenge that all listed financial services providers and holding companies face – meeting shareholders demands, while at the same time providing products and services to the broker and consumer markets.