It is not surprising that Alexander Forbes points the market towards the normalised operating profit over the year to March. At a 5% increase to R986m, it is an improvement on the 1% increase the year before. The accounting profit, though, was down 80% to R327m, after several write-offs — R317m from AF Life alone — and a hefty 50% effective tax rate. Not that there weren’t some good trading results. There was a 20% increase in the profit of the core retirement division. The umbrella fund, in spite of increased competition, with Allan Gray entering the market and Discovery coming in a few weeks, increased membership by 12% to 352,000. In the short term the decision to bring its asset manager Investment Solutions in-house and rename it Alexander Forbes Investments is paying off and profit, which had been stagnating, was up 29% to R398m. It increased the overall margin by bringing in alternative investments in housing development and infrastructure. And it launched an income-focused pr...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.