Mutual & Federal - Operational Update For The Quar
Mutual & Federal - Operational Update For The Quarter Ended 31 March 2005
MUTUAL & FEDERAL INSURANCE COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1970/06619/06)
Share code: MAF ISIN: ZAE000010823)
(`Mutual & Federal ` or `the company`)
OPERATIONAL UPDATE
FOR THE QUARTER ENDED 31 MARCH 2005
The short-term insurance industry has remained competitive during 2005 as the
positive underwriting results experienced during 2004 have resulted in
aggressive rate cutting by a number of insurers in an attempt to gain market
share. Mutual & Federal has actively resisted this trend and remains committed
to prudent underwriting standards and the achievement of satisfactory
underwriting returns.
The company has not been able to achieve premium growth in the Commercial
Division (including the Corporate Business Division) whilst growth in the
Personal Division was in line with inflation levels. The Risk Finance Division
has, however, continued to grow strongly.
Underwriting profitability nevertheless remained satisfactory and was again
positively impacted by generally low levels of commercial and industrial claims.
The Board accordingly remains cautiously optimistic regarding the outturn for
the year but advise that short-term insurance results fluctuate and those for
the first three months are not necessarily indicative of the outturn for the
remainder of the half-year. Results for the half-year will be published on or
about 25 July 2005.
Johannesburg
11 May 2005
Sponsor
Nedbank Capital
Date: 11/05/2005 08:47:06 AM
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