MAF - Mutual & Federal - Quarterly operational update for the 3 months ended 31
MAF
MAF
MAF - Mutual & Federal - Quarterly operational update for the 3 months ended 31
March 2009
MUTUAL & FEDERAL INSURANCE COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1970/006619/06
Share code: MAF ISIN No: ZAE000010823
("Mutual & Federal" or "the company")
Quarterly operational update for the 3 months ended 31 March 2009
The text of Mutual & Federal`s business update for the three months ended 31
March 2009, released on 7 May 2009, can be accessed on Mutual & Federal`s
website http://www.mf.co.za
Growth proved particularly challenging during the period, with gross premiums
declining by 7% over the comparative period as detailed in the table below. This
was largely due to a 43% reduction in personal schemes premiums, following the
cancellation of a number of unprofitable portfolios in 2008. In addition, Risk
Finance premiums contracted by 16% due to a reduction in reinsurance received
from furniture retailers.
Following the decline in premiums, the solvency margin (the ratio of net assets
to net premiums) increased to 42% at 31 March 2009 from 41% at 31 December 2008.
The company has successfully completed a reorganisation to move operations from
a fully decentralised structure to a regionalised basis. This was accompanied by
the partial implementation of a new sophisticated insurance system which is
expected to produce substantial service and economic benefits when employed for
all portfolios.
3 months to 31 2009 2008 Change
March Rm Rm Rm
Rm %
Gross written 2 385 2 566 (181) (7)
premiums
Net earned 1 854 2 086 (232) (11)
premiums
Johannesburg
07 May 2009
Sponsor
Nedbank Capital
Date: 07/05/2009 08:00:04 Produced by the JSE SENS Department.
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