Promina sets profit personal best

Trans-Tasman financial services firm Promina Group improved profits by more than 50 per cent for the 2004 financial year after reporting a net profit of $204 million - a result buoyed by strong performance in the group’s funds management and risk insurance businesses.

Promina financial services division which includes Asteron, Tyndall and New Zealand-based Guardian Trust saw a 61 per cent rise in net profit to A$53 million, compared with A$33million for the previous corresponding period.

Promina managing director and chief executive officer Michael Wilkins says the improvement is attributable to a combination of improved process efficiencies and stronger income performance.

“The results highlight the diversification benefits our business model enjoys,” Wilkins says.

The life risk business contributed particularly strongly to the group, benefiting from a favourable claims experience and strong investment returns.

Promina says it remains committed to the execution of its strategy to be a specialist-focused, trans-Tasman insurance and financial services organisation.

“However, given Promina’s strong half year result, it is likely that the 2004 full year result will outperform our longer-term expectations,” Wilkins says.

“The dividend payout ratio is likely to be at the higher end of the 40 - 60 per cent range,” he adds.

A half year fully franked dividend has been declared of 10 cents per share, compared the 3.5 cents paid for the same period last year.

Back in February, Promina, which was formally Royal & SunAlliance posted a $298million net profit for the 2003 calendar year - the first year of operation for the group as a listed a re-branded entity.