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


Sovereign's $102.6 Million Profit a Record


17 August 2006

Sovereign’s $102.6 Million Profit a Record

Statement made by Jon Raby, Acting Managing Director, Sovereign

Sovereign today announced a record after tax profit of $102.6 million, up 27%, for the year ending 30 June 2006.

The result reflects Sovereign’s focus on improving the service it delivers to its customers and its key distribution partners – independent financial advisers, institutional partners and specialist workplace brokers. These improvements are best illustrated by Sovereign’s leap from 5th= in 2004, to 2nd in 2005, in the independent W A Taylor survey of adviser satisfaction, which compares Sovereign against its competitors.

During the year we increased our new risk annual premiums by 9% to $51.7 million lifting our 12-month rolling average market share by just under 1% to 32.7%. Our in force annual risk premiums increased by 13% to $316 million. This growth increased our share of the annual risk premium in force business to 31.4%. In the risk area, Sovereign’s long established partnerships with the country’s leading independent financial advisers, combined with our focus on value-for-money, innovative products is strengthening our market position.

Our health insurance business increased in force annual premiums by 14% to $50.7 million. New Zealanders are continuing to realise the wisdom of insuring against the cost of major medical care whilst paying their primary care costs out of their own pocket. This has resulted in a clear market trend away from comprehensive medical cover to the kinds of major medical products that Sovereign offers.

Sovereign strengthened its position as the country’s leading non-bank home loan lender, and during the year the level of loans we settled increased by 24% to $2.43 billion.

At period end – 30 June 2006, the size of Sovereign’s home loan portfolio stood at $5.74 billion, an increase of 26%.

Sovereign’s funds under management at year-end remained relatively stable at $3.2 billion.

This is the first full year that Sovereign has reported under the new International Financial Reporting Standards, therefore some of the financial data cannot strictly be compared to previous year’s figures.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>