| Thu 4 Apr 2002, 0:00 | | Sage Life Achieves Strong New Business |
|
SAGE GROUP LIMITED
In a period characterized by sluggish new business growth in the life
assurance sector in South Africa in general, Sage Life has produced superb
new business results for the year ended 31 March 2002.
Addressing a group of intermediaries, Sage Life CEO Janssen Davies,
disclosed that Sage Life's total new business for the year (domestic and
international) increased by an exceptional 125,3% from R1,3 billion to a
record R3,0 billion, in sharp contrast to the muted industry trend. Single
premiums increased by 171,4% and recurring premiums by a competitive 6,7%.
"Sage Life's results reflect the continued expansion of business in South
Africa and the impact of the rapidly growing offshore initiatives of the
Group through both its United States and Bermuda divisions, incorporating
international business marketed in South Africa," says Davies.
Sage Life's achievements in the single premium field in South Africa have
been particularly notable, says Davies, with total individual single
premiums for the year almost doubling to R1,2 billion.
"The company has become a market leader in meeting the demand for
international investment products catering to the R750 000,00 foreign
exchange allowance," says Davies.
"The Global Investment Plan (GIP), developed together with Sage
International and TriAlpha of the UK, and The International Investor, a
similar product developed between Sage in South Africa, Sage International
and LPL of the United States, have proved to be highly successful in
expanding Sage Life's penetration of the single premium market, through both
its broker and agency channels."
Throughout the South African industry, individual recurring new premium
business has been under pressure and Sage Life has shown limited growth in
this area. Nonetheless, total individual recurring new business reached a
record R327,1 million compared to R314,9 million in the previous year.
The impressive results in individual business have been matched by a strong
resurgence in the Employee Benefits division where total new business
increased by 37,8% to R219,5 million. Recurring premiums in this division
rose by 23,1% and single premiums by 45,3%.
Total new business (individual and employee benefits) generated within South
Africa was 61,4% ahead of the previous year at R1,7 billion. "These
results reflect a combination of continuing product innovation, competitive
investment performance results and the ongoing success of the company's
distribution strategies," says Davies.
"Predictably Sage Life's sustained new business growth is reflected in the
latest South African market share statistics published by the Life Offices'
Association," says Davies. "Measured against the country's large life
offices, Sage Life's single premium market share shows a near five-fold
increase over the past 5 years while recurring premium market share has
trebled over the period".
Sage Life's international activities, operating out of Stamford Connecticut
USA and Bermuda have also made excellent progress despite exceptionally
difficult conditions in the financial sector in the US post the events of
September 11. In the first full year of trading, total international new
business (incorporating the R762,4 million generated through Sage Life South
Africa's Bermuda branch) increased five-fold to R2,0 billion.
Davies emphasised that the encouraging new business figures should not be
interpreted in isolation as a profit indicator for the current year, as the
profitability on new business only emerges over time.
Ends
DISTRIBUTED ON BEHALF OF SAGE BY CATHY FINDLEY PUBLIC RELATIONS ON (011)
463-6372 OR EMAIL cathy@findleypr.co.za
