| Wed 28 Nov 2007, 13:05 | | GMB - Glenrand M I B Limited - AGM Statement |
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GMB
GMB
GMB - Glenrand M I B Limited - AGM Statement
GLENRAND M I B LIMITED
(Incorporated in the Republic of South Africa)
Licensed Financial Services Provider
(Registration number 1997/008001/06)
Share code: GMB & ISIN: ZAE000078010
("the company" or "Glenrand M I B" or "the group")
AGM Statement
After a very challenging year in 2006, the company made much progress in 2007.
Glenrand M I B has now been repositioned as a Risk Services company. This
follows our decision to dispose of our Benefits Services business, as the
provision of retirement fund consulting and administration services is no
longer core to our future. The disposal process is currently ongoing and we
are confident it will be concluded shortly, whilst ensuring that service
delivery is not compromised and that the fiduciary duties to members of the
retirement funds are upheld.
We also sold two underwriting agencies during the year - Holmwoods and Back
and Manson, and Admiral Professional Underwriting Agency - as part of our
repositioning drive.
We made progress in building our risk services business. Earlier in the
financial year we acquired Bymac Insurance Brokers to give us critical mass in
the Eastern Cape area, and more recently Finrite Insurance Administrators,
which adds complementary services to our policy and claims administration
activities, as well as opening up new sales channels in the `emerging` market.
Significantly we also entered into an exclusive trading agreement with Jardine
Lloyd Thompson, giving us international reach and knowledge in order to
service our multinational and large national clients.
Our Risk Services company has a high standing in the market. We are market
leaders in the corporate and specialist sectors and have significant critical
mass in the mid and personal lines markets. We provide short term insurance
broking, risk advisory services and claims and policy administration to over
80 000 clients. We are intent on building that standing and position into the
future.
Last year was also significant in that the group returned to profitability.
This was largely due to strong new business flows and excellent client
retention. We remain focused on returning the company to higher levels of
profitability and are committed to reducing central costs and improving
efficiencies. We have set targets to improve procurement and stamp out
duplication of costs.
The market environment remains highly competitive with continued pressure on
our commission related earnings as a result of soft market conditions. We have
started to see the benefits of a hardening rate environment in the personal
lines sector, driven primarily by insurers` losses on their motor books, but
have yet to see any signs of hardening in the corporate and commercial
segments.
The board is delighted that Andrew Chislett has accepted the position of CEO
with effect from the beginning of this month and has every confidence in his
ability to build on the momentum of last year.
The Board is also pleased to announce that Rick Cottrell was appointed as lead
independent non-executive director and that Nigel Payne, an independent
director, was appointed as member and Chairman of the Remuneration and
Nominations Committee. In addition, Thandeka Mgoduso, alternate director to
Hixonia Nyasulu, will also attend Remuneration and Nominations Committees as a
permanent invitee. We believe that these appointments to the Remuneration and
Nominations Committee have significantly increased the independence of that
Committee. Moss Mashishi has stepped down as a member of the Group Audit, Risk
and Compliance Committee and Gary Harlow, representing the Matemeku group,
will attend those committee meetings, also as a permanent invitee.
As I said in my statement in the Annual Report, 2007 was a year of change. We
are confident that this is change for the good. We are now positioned as a
profitable business with considerable growth prospects. Our future results
should benefit from that focus and management`s attention to group
efficiencies.
Randburg
28 November 2007
Sponsor
Nedbank Capital
Date: 28/11/2007 13:05:57 Produced by the JSE SENS Department.
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