The business

African Unity Insurance provides illness benefit management and a range of life assurance and funeral schemes for groups and individuals.

Performance

African Unity has maintained its momentum to generate a much improved R10,5 million in headline earnings over the past the year. The change in focus from sickness and retrenchment benefits to assistance benefits (funeral policies) has been beneficial and yielded strong returns for the 2011 year. The increase in headline earnings is mainly due to a better than expected claims experience from its Road Freight Administrators’ scheme.

Prospects

African Unity will continue to expand its client base through organic and acquisitive growth. The company will also aim to grow its group life, disability and medical aid gap cover products.

Financial highlights

Year ended February	2009	2010	2011
Premium income (Rm)	22,3	42,0	86,2
Underwriting profit (Rm)	11,6	16,1	52,3
Underwriting margin (%)	3,7	6,3	15,2
Headline earnings (Rm)	2,3	4,6	10,5
Growth in headline earnings per share (%)	(34,8)	100,0	128,3