Metropolitan Performs Better than Expected

September 14 - Massive retention efforts and a customer-centric approach has led Metropolitan Holdings Limited to report satisfactory financial results in its interim report for the first six months of 2009.

The Chief Executive Officer of Metropolitan, Wilhelm van Zyl, said that "in certain respects we have fared better than expected, given the severity and extended duration of the recession and its impact on the financial position of our clients - both their ability to pay and their inclination to pay."

One of the most impressive results was the steady growth of life businesses. Metropolitan said that it had collected single premium income of R1.6 million in the six month period up to June 30, 2009.

"Although we are undoubtedly seeing the effects of the recession on the persistency of our in force book of business, concerted retention efforts have meant that, overall, our persistency rates did not drop as much as we feared they might," said van Zyl.

On the capital and cash flow side, Metropolitan also performed well.

"Thanks to focused management action, we have strengthened our capital position at all levels," the CEO pointed out. "Our group capital adequacy requirement (CAR) cover of 3.2 times is generous in the present economic climate."

Van Zyl said that the group has succeeded in maintaining its positive cash flow status due to net funds totalling R2 billion received from clients.

Metropolitan Holdings, through its Metropolitan Life brand, develops, distributes and administers individual life investment and risk products to South Africa's middle and lower income markets.

The group describes itself as a "truly African based business that aims to grow wealth and support the health of Africa's people by providing them with specialized medium to long term insurance, administration and investment solutions."