One of Aladdin Software’s listed clients, Indequity Group Limited, recently announced exceptional results for their financial year ending 30 September 2014.
They reported a pre-taxation return on capital of an outstanding 43.5% compared to 40.4% in the previous year. Their insurance operations managed to grow its profit before taxation by 17.6% from R6.8 million in 2013 to R8 million in 2014 and headline earnings per share by 19.4%, against the backdrop of a very tough year for the short term insurance industry which included severe floods in the Western Cape as well as two large hailstorms in Gauteng in October and November 2013. These hail storms had a material impact on the insurance industry and their financial results. It is estimated the two hailstorms cost the industry close to R2 billion.
Indequity managed to achieve a net claims ratio of 47.1% (2013:47.4%), significantly outperforming its industry sector peers who reported an average claims ratio of approximately 65%.
Bearing testimony to Indequity’s ever improving efficiency, the profit before tax margin as a percentage of gross written premiums for the financial year improved from 17.9% in 2013 to 19.4% for 2014.
We wish to congratulate Indequity on these results!