Mauritius’ GFA sees profit rise by 88% in 2013 on prudent customer management
The financial services major has concluded an agreement with a world renowned supplier to distribute travel insurance policies and has also enhanced the quality of its platinum motor coverage offering, noted Abdel Ruhomutally, Managing Director, GFA Insurance.(Image:Company)
Mauritius-based financial services major GFA Insurance registered a towering increase in profits to the tune of 88% for the year 2013, notching up a net profit before tax of Rs 32.8 million.
This robust performance was primarily on account of 50% improvement in underwriting results, representing the difference between premiums collected and paid-out.
Furthermore, the company attributed its strong financials to a well-thought out strategy which privileges preservation of liquid assets, notably bank deposits – which alone account for two thirds of the total assets of the company – as well as the other types of short-term financial investments.
GFA Insurance has also adopted a conservative dividends payment policy, which consists of reinvesting a significant part of profits for development and to strengthen its base.
Nevertheless, compared to last year’s turnover of Rs 161.7 million, its revenues did not evolve a lot, demonstrating prudent portfolio management.
“We pay a lot of attention to the client quality and do not fire up premiums only to swell our financials. We also take all the necessary precautions not to expose ourselves to risky deals, with a conservative approach that assures a good level of profitability for our business,” said Abdel Ruhomutally, Managing Director, GFA Insurance.
With a profitability margin of 38%, the company can count on smooth growth without compromising the quality of its portfolio.
The assets of GFA Insurance as at 31 December 2013 totaled Rs 512.7 million, an asset base that is much more robust than some operators with at least twice the number of years in business. This provides further evidence that business growth is not achieved at the expense of prudential standards or by sacrificing quality of client portfolio.
Finally, at Group level, profits amounted to Rs 92.5 million, representing a whopping increase of 181% in a year.
GFA also focus on the quality of its growth in various fields of general assurance and is keen to capitalize on new niche markets.
“We have concluded an agreement with a world renowned supplier to distribute travel insurance policies and we have also enhanced the quality of our platinum motor coverage offering,” added Abdel Ruhomutally.
Furthermore, GFA Insurance continues to enhance its customer service proposition, with the opening of new branches through the country and the recruitment of new officers.
GFA Insurance operates a network of 11 branches and 10 accredited officers who have their own operating bases.
GFA Insurance was created in 1996. It was nominated for the first Mauritius Business Excellence Award 2008, which was organised under the aegis of the Ministry of Industry, Science and Research.
As on date it boasts a hundred employees and serves a portfolio of more than 55,000 customers from its headquarters in Port Louis and through its eleven branches.
Aspiring to a preferred position in the auto insurance segment, GFA Insurance remains unquestionably the leading provider of professional indemnity insurance, favoring a management approach based on ethics.
It is one of the leading insurance companies in Mauritius with financial ratios exceeding the insurance industry average and is backed by more than a quarter century of experience.