New business written during the nine months to March at MMI’s second-largest business by premiums, the corporate and public-sector segment, plunged as the insurer adjusted the way it calculates this number and took corrective action in its institutional sales force. The value of new policies written in this segment, which provides employee benefits services to corporate entities, fell 88% to R15m during the period, it said on Tuesday. Sales were minimal as it rebuilt its institutional teams. "The decline was mainly due to downward margin pressure on large corporate risk business," said Regard Budler, managing executive of the corporate segment. "Given the fixed cost of distribution, that has seen a relatively higher new business expense given lower volumes."
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