Mutual & Federal - Operational update for the quar
MAF
MAF
Mutual & Federal - Operational update for the quarter ended 31 March 2006
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 2006
Trading conditions within the short-term insurance industry remain highly
competitive and the positive underwriting results achieved during 2005 have
resulted in continued downward pressure on rates by a number of insurers in an
attempt to gain market share.
Despite the cancellation of a number of under-performing schemes, premium growth
in the Personal division has been broadly in line with inflation. Whilst there
has been similar growth in the Commercial division this has been partly offset
by a decline in premiums in the credit and crop portfolios.
Following extensive rains during January and February the underwriting ratio for
the quarter has declined to 3,7% compared to 8,4% for the twelve months ended 31
December 2005. The impact on profit has however been ameliorated by significant
gains on equity shares.
It should be noted that short-term insurance results and investment levels
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 in the first week of August 2006.
QUARTERLY PREMIUM SUMMARY
2006 2005 %inc
Gross premiums (Rm)
First quarter 2,151 2,060 4%
Second quarter 1,902
Third quarter 2,042
Fourth quarter 2,001
Full year 8,005
Net earned premiums (Rm)
First quarter 1,782 1,648 8%
Second quarter 1,675
Third quarter 1,785
Fourth quarter 1,774
Full year 6,882
Johannesburg
10 May 2006
Date: 10/05/2006 08:00:05 AM Produced by the JSE SENS Department
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