Investment income boosts Indequity’s profits by a quarter
Specialist insurer Indequity says it is upping its investments in the US to hedge against a weaker rand, even as investments helped boost its profits by more than a quarter in its year to end-September.
The group invested a further R7.5m in its US subsidiary during its financial year, as it continues deploy additional cash internationally to hedge against a weaker rand.
This strategy paid off the full-year results, the company said, when pretax profit rose 26.2% to R15.18m. Investment income surged to R4.2m, from R1m previously.
The company upped its dividend 23.8% to R29.72c.
Indequity said the insurance industry in SA remained “exceedingly” competitive during the period, while SA economic climate had also become challenging.
The company saw no major natural disasters during the year, with net premium income rising about 7.3% to R62.18m during the period.