Metropolitan once again stood out in its ability to increase the inflow of funds from clients, with net funds received from policyholders in 2006 of R4 billion compared to R769 million in 2005. The group has maintained a robust positive cashflow position throughout its 110 year history, in sharp contrast to strained industry cashflows in recent times. Total premium income increased by 40%. Total assets under management reached the R86 billion mark. Headline earnings and core headline earnings per share showed healthy increases of 28% and 20% respectively.
Dividend
An interim dividend of 29cps was declared in September and paid in October 2006. On 13 March 2007 a final dividend of 48cps was declared. In addition, a once-off special dividend of 77cps was also declared.
Prospects
Metropolitan remains the largest long-term financial services group in Africa focused primarily on the low and middle income markets. The benefits of this focus, together with Metropolitan's commitment to black economic empowerment and its brand, will continue to give the group a competitive advantage. Metropolitan continues to capitalise on its focused market status, in line with its strategy to create prosperity for Africa's people, by providing accessible, affordable and appropriate products. Despite the increase in general consumption, the outlook in the group's target markets remains positive. Higher interest rates and debt levels during 2006 are being mitigated by lower inflation, rising employment rates, an improved GDP outlook, further reductions in taxation and growing business confidence. The board is satisfied that the business is sustainable, with a renewed focus on client service, product innovation, business retention, cost management and ongoing capital management.
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