Short-term insurers experience slow performance in Summer - 29 Mar 2010 18:29
Insurance companies like Zurich South Africa, Santam and Glenrand MIB took a bit of a dip in performance during the first quarter as a result of the rainy season, according to a recent Business Report article. The summer rains and ensuing floods around the Vaal River could have a negative impact on bi-monthly performances until June.
Incidences such as floods cause an increase in claims, but, as such perils are not usually ongoing, short-term insurers can afford to take the beating. Hollard Select Brokers reported between 20 and 30 percent increase in claims as a result of lightning and water damage.
Such an increase comes after a very successful 2009 for Zurich, despite the financial troubles beginning end 2008 as a result of the global recession.
The Swiss insurer reported a six-percent increase in annual net profit to R24 billion. Despite gross premiums and policy fees dropping by a large eight percent, the group managed to increase their overall operating profit by eight percent.
The effect was great for Shareholders who saw an extra five Swiss Francs per share than the previous year, seeing an increase in share price from 4.75 to 242.8 Swiss francs in the beginning of the year.
Insurance companies like Zurich South Africa, Santam and Glenrand MIB took a bit of a dip in performance during the first quarter as a result of the rainy season, according to a recent Business Report article. The summer rains and ensuing floods around the Vaal River could have a negative impact on bi-monthly performances until June.
Incidences such as floods cause an increase in claims, but, as such perils are not usually ongoing, short-term insurers can afford to take the beating. Hollard Select Brokers reported between 20 and 30 percent increase in claims as a result of lightning and water damage.
Such an increase comes after a very successful 2009 for Zurich, despite the financial troubles beginning end 2008 as a result of the global recession.
The Swiss insurer reported a six-percent increase in annual net profit to R24 billion. Despite gross premiums and policy fees dropping by a large eight percent, the group managed to increase their overall operating profit by eight percent. The effect was great for Shareholders who saw an extra five Swiss Francs per share than the previous year, seeing an increase in share price from 4.75 to 242.8 Swiss francs in the beginning of the year.