Old Mutual says Mutual & Federal FY hit by lower underwriting profits |
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Thu, 08 Feb 2007 10:34
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LONDON (AFX) - Old Mutual PLC said Mutual & Federal Insurance Company Ltd reported pretax profit for the year to Dec 31 2006 of 1.7 bln rand, down from 1.9 bln the prior year.Gross premiums from the unit were 8.55 bln rand, up from 8.01 bln.Mutual & Federal said profit for the year fell following the anticipated decrease in underwriting profits, reduced returns on listed equities and the payment of a special dividend.The underwriting result was hit substantial weather-related losses and large commercial and industrial claims during the year.It added that trading conditions within the motor portfolio continue to be unfavourable with an increase in the number of vehicle claims and escalating repair costs. These factors have been exacerbated by the competitive environment with a number of insurers attempting to gain market at sub-economic pricing, it said.The net asset value per share was 13.42 rand at the end of December 2006, down from 19.43 rand at the end of 2005.There are indications of a return to more favourable trading conditions in the market and on the strength of this management are accordingly 'cautiously optimistic' that prospects are favourable for underwriting surpluses in 2007, the unit said.newsdesk@afxnews.comslmCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Old Mutual sees 2006 EPS at M&F down 40-50 pct 