Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Sovereign Performs Strongly In Difficult Market

11 AUGUST 2004

Sovereign Performs Strongly In Difficult Market

Statement made by Simon Swanson, Managing Director, Sovereign

Healthy profit contributions from our three main areas of operation enabled financial services company Sovereign to lift after tax appraisal value profit by 71% to $124.9 million for the financial year ending 30 June 2004. Sovereign’s Margin on Services Profit increased by 20% to $59.9m.

The combined effect was to produce strong profit growth and market share increases in a year that was challenging for the life insurance and investment sectors.

During the 12 months we grew annual in-force premium by 5% to $550 million. This, combined with more effective claims management, improved our profitability.

We shared in the growth being experienced by all home mortgage lenders, and during the year set a new record by settling mortgages valued at $1.7 billion, an increase of 49%.

Home mortgage lending is now an integral part of the package of protection and savings solutions offered by brokers and advisers.

Along with the industry, our investment operations in the form of lump sum investments and managed funds, struggled against other investment options.

While our new lump sum investment income declined by 35% to $77 million, our funds under management held up well by market standards and showed a modest 3% increase to $3.3 billion.

At present, the regular premium investments sector in which we operate is out of favour with investors.

A major contributor to this is undoubtedly the indecision the community has as to the most effective way to provide for its retirement years.

Even though we are the market leader, our figures demonstrate that too few are prepared to commit to regular savings. Industry statistics demonstrate this all too clearly and we continue to make this point in our representations to decision makers.

While as a company we anticipate the current financial year to be another of steady growth, until there is a change of policy that actively encourages people to save for their retirement years, we do not anticipate the community at large moving to greater self-sufficiency.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news