Premium increase of 21% for Guardrisk
GUARDRISK released its 2007 annual report, which reflects that the gross premium revenue of its short-term and life insurance businesses increased by 21% to R3.4bn (2006: R2.8bn) for the year ended 31 March 2007.
The world's number one, specialist captive insurance group of its kind (in US dollar terms) reported that total shareholders' funds (including all cell owners' shareholders' funds) increased by 23% to R926m (2006: R747m); and the group's assets grew by 20% to R4.8bn (2006: R4bn).
The group's short-term operation, Guardrisk Insurance's, solvency margin (net written premiums to shareholders equity) increased to 43% (2006: 42%). The solvency margin is a key indicator of the companys ability to meet future claims.
The capital adequacy requirement of the group's life operation, Guardrisk Life, for 2007 was 4.0x (2006: 5.5x). The capital adequacy requirement generally referred to as CAR reflects the company's financial strength. The reason for the decrease relates mainly to exceptional and very profitable growth that one of its specialist cell owners has experienced.
Looking to the future, Herman Schoeman, MD of Guardrisk, said that the country's growth in the construction and infrastructure development industries in the run up to 2010 augurs well for the insurance industry in general, and the alterative risk transfer (ART) industry in particular.
Schoeman also stressed the need for the ART industry to nurture the intermediary network. "Despite the continuous onslaught against intermediaries by the direct insurance industry questioning the value that the intermediary provides for income earned the ART industry can only progress if the intermediary distribution is properly nurtured," he said. Proof of this lies in the fact that Guardrisk increased its new business flow and client base via a number of medium and large intermediaries during the year under review.
Guardrisk is a 100% subsidiary of Alexander Forbes Limited.
