HomeBusiness DigestTA group insurance portfolio buoys income

TA group insurance portfolio buoys income

INVESTMENT holding company, TA Holdings’ insurance portfolio led the group’s 234% growth in operating income for the full-year ended December 31, 2012, contrary to a poor showing by the company’s agrochemicals division, and reasonable performance in its flagship hotel business.

Staff Writer

The short-term insurance assets, led by Botswana Insurance Company (BIC) posted a combined US$7,327 million profit before tax, with BIC contributing US$6,088 million, including US$2,935 million, in investment income. Gross written premium of US$35,319 million came out of Botswana.

Zimnat Lion Zimbabwe added US$820,000 in net profit after a marginal dip in investment income against an underwriting profit of US$827 000 from gross written premium of US$14,11 million.

From Uganda, Lion Assurance company’s pretax profits amounted to US$420 000 extracted from a gross premium base of US$6,39 million earned on the back of an improved operating environment.

Overall, the insurance cluster posted a US$55,83 million topline, almost unchanged from 2011’s US$55,775, million while pre-tax profit was up 52% at US$7,32 million.

TA Group CEO Gavin Sainsbury said pleasing results were obtained by the life assurance business.

The Life Assurance cluster posted a US$1,33 million pre-tax profit, albeit this was a 68% decline from the previous year.

He said the life company was increasing its focus on key accounts.

Presenting the investment group’s trading results for 2012, Sainsbury told analysts earlier this week there was an improvement in operating income in the insurance business, leading to a 234% growth in group operating income to US$5,5 million.

Sainsbury said the overall improvement in revenue per available rooms at all hotels in the group as well as reduced corporate costs following last year’s restructuring had also contributed to the company’s performance.

“There has been a pleasing growth in RevPars in the Zimbabwe units. RevPar has grown 16% to 49% while the forecast for 2013 is US$57,” he said.

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