Picture: ISTOCK
Picture: ISTOCK

Insurance group Conduit Capital posted an interim profit of R53.3m in the six months to end-December from a loss of R34.4m in the comparative period.

However, the board has not recommended any dividend payment to ordinary shareholders.

The owner of Constantia Insurance Group launched medical malpractice business EthiQal in January.

As at December 31, the group’s total equity was R1.35bn, an increase of 155.4% from the previous year. Total assets grew 70.7% to R2.22bn.

The health-related portfolio comprising medical gap cover, primary health, medical evacuation and medical malpractice is fast approaching R1bn in annual premiums. It is expected that once sufficient reserves have been built up in the medical malpractice book, the health-related portfolio will contribute to underwriting profits.

Its life insurance operations achieved growth of more than 200% in revenue and were also expected to contribute to underwriting profits.

Conduit, which also maintains an equity portfolio, said the top-five investments at December 31, represented about 99.2% of equity invested capital.

These are investments in Taste Holdings, Trustco, Finbond, Calgro M3 and Combined Motor Holdings.

The group said the JSE-listed companies it had selected were undervalued, so well positioned for a high rate of future return.