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Famguard Net Profits Up 26% As Annuities Double

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Family Guardian’s BISX-listed parent has unveiled a 26 per cent net income increase for the nine months to end-September 2013, aided by annuity deposits more than doubling year-over-year.

Addressing shareholders after the life and health insurer produced $3.9 million in net income for the first nine months of 2013, a rise of $791,000, Norbert Boissiere, FamGuard’s chairman, said: “Total income for the period increased by $4.3 million or 5.5 per cent, mainly due to strong growth in our annuity deposits, which increased by $5.4 million or 109 per cent over prior year-to-date, ending the quarter at $10.3 million.

“Total income was also positively impacted by $291,000, or a 3.7 per cent growth, in investment income. Net premium income fell by 2.9 per cent, principally reflecting fluctuations in group health coverage related to risk-adjusted premium rates.”

The annuity deposit growth forced FamGuard to increase net policyholder benefits by 5.8%, so that reserves matched the increase.

Policyholder benefits attributed to life and health insurance business lines declined against 2012 comparatives by almost 5 per cent, while operating expenses were flat year-over-year.

“Our results for the three months ending September 30, 2013, reflect continued improvements with net income increasing by 68 per cent or $423,00 over the same period in 2012,” Mr Boissiere said.

“Total assets grew over the nine months ended September 30, 2013, by $14.4 million, and total equity increased by $2.1 million to end the quarter at $68.8 million.”

FamGuard’s earnings per ordinary share increased by 28 per cent, from $0.28 at September 30, 2012, to $0.36 at September 30, 2013.

Comments

Reality_Check 7 years, 11 months ago

Significant growth in profits from annuity deposits reminds me of another insurer that relied on the sale of such products for big profits: CLICO!

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