Promina declares sturdy first year profit

insurance chief executive APRA

25 February 2004
| By Craig Phillips |

ProminaGroup, formerly Royal & SunAlliance, has reported solid performance in its first year as a listed and rebranded entity, with each of its three business units contributing to a $298 million net profit for the 2003 calendar year.

The group is also set

to undertake a $250

million to $300 million non-dilutive capital raising in the first half of this

year, although it is subject toAustralian Prudential Regulation Authority(APRA) and other regulatory approval.

The group’s financial services division, which includesAsteron,Tyndall, New Zealand Guardian Trust and Guardian Trust Funds Management, chipped in by posting a collective $77 million in net profit for the broader group.

Meanwhile, its direct insurance division, which includes AAMI and Australian Pensioners Insurance, reported a net profit after tax of $99 million despite operating in a tough sector of the market.

Its third area of operations, Promina’s intermediated general insurance business — Vero — made a significant contribution to the group’s overall performance with a net profit of $147 million.

“Our 2003 results clearly demonstrate that our strategy of specialisation creates advantage, with all of our uniquely focused and autonomous businesses contributing significantly to the overall profit of the group,” Promina chief executive Michael Wilkins says.

The $298 million net profit figure was generated from total revenue of $2.4 billion.

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