Munich Reinsurance Co. of Africa – the largest reinsurer in Sub-Saharan Africa – posted positive underwriting results for 2007.
MRoA announced a 25.4 percent increase in gross premium income to R3, 2billion, and net income after tax amounting to R230, 2million.
[1 South African 1 South African Rand = 0.13012 U.S. Dollar ]
“These results are indeed pleasing as 2007 saw an overall decrease in reinsurance spend by the South African direct insurance market,” said CEO Junior Ngulube. “To achieve a healthy growth in gross premium and net income in such a climate is very satisfactory,” he added.
These results follow the announcement that parent company – Munich Re Group – achieved a record result for the fourth consecutive year, posting a profit of €3.9billion in the 2007 financial year. This far exceeded its earlier profit guidance of €3.5billion- €2.8billion.
Ngulube maintained that the above average financial performances of MRoA and its parent company meant the corporation was well-positioned to weather the tougher economic climate predicted for the years ahead.
“Our disciplined approach to business will ensure that we are not severely affected by the current slide into a soft market cycle,” said Ngulube. “We are also working on other ways to build our competitive advantage in the market – both through constant innovation and a commitment to Transformation.”
Ngulube said that a severe skills shortage threatened to slow growth in the South African financial services sector, and if not addressed could hamper the country’s economic growth and international competitiveness.
He added that transformation in the labour market should begin at the level of people development, not just employment.
“At MRoA we recognise that Transformation is one of the major challenges facing the financial sector in this country. The opportunity now exists for companies to invest in skills development to ensure that the industry has the relevant expertise it will need in five or 10 years’ time. Financial, actuarial and leadership skills – already so severely in demand – if not developed today will leave the sector in a critical situation and unable to meet the demands of an increasing client base in the future,” said Ngulube.
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