LIFE assurer New Africa Capital (NAC) described trading conditions during the first three months of the year as "perhaps the most challenging ever", yet went on to report respectable new business figures.
In a detailed trading update the group disclosed a 33% increase in its new recurring premium business, with new recurring employee benefits business almost tripling in a market that has been flat pension fund trustees seem to be paralysed by volatile equity markets.
The retail side was down a little because of a fall-off in direct sales, but in its core retail branch network, the group increased new recurring business 24% and single premiums 34%. In contrast to competitors, it recorded positive net cash flows for the first quarter.
The healthy figures reflect work done by NAC last year to cut costs and restructure operations to align products and distribution more closely. This allows it to focus on the lower and middle-income market segments it targets.
A year ago analysts were highly critical of NAC because its new business was in decline and it was writing new business at a loss. The group's life business is still not as profitable as it should be, but a lot has been done to fix it.
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