Guardrisk's premium income rises by 18%

THE GUARDRISK group today announced that the gross premium revenue of its short-term and life insurance businesses increased by 18% to R4 billion (2007: R3,4 billion) for the year ended 31 March 2008.

The world's number one, specialist captive insurance group of its kind (in US dollar terms) reported that total shareholders funds (including all cell owners' shareholders' funds) increased by 20% to R1,1 billion (2007: R926 million); and the group's assets grew by 19% to R5,7 billion (2007: R4,8 billion).

The group's short-term operation, Guardrisk Insurance's solvency margin (net written premiums to shareholders equity) increased to 46% (2007: 43%). The solvency margin is a key indicator of the company's ability to meet future claims.

The capital adequacy requirement of the group's life company, Guardrisk Life, decreased slightly in 2008 to 3.6x (2007: 4.0x). The capital adequacy requirement generally referred to as CAR reflects the company's financial strength. The reason for the decrease can be attributed to a 65% growth in gross premium revenue and dividend distributions to existing cell clients. Despite the decrease, Guardrisk Life's CAR remains well above the industry norm of 1,5 x.

Guardrisk is a 100% subsidiary of Alexander Forbes Limited.


About Guardrisk
Guardrisk pioneered the cell captive concept, introducing cell captives to the short-term insurance industry in 1993 and extending the structure to the life industry in 1999. Cell captives provide underwriting, reinsurance, claims management, investment and accounting functions for clients (cell owners) who effectively enjoy all the benefits of owning their own insurance company. This keeps costs down and gives clients access to a broad base of insurance skills.

Contact:
Herman Schoeman
Guardrisk
Tel: 011 669-1002 or 082 376 3821

Prepared by:
Melanie Davis
PR at Work CC
Tel: 011 615-3309 or 083 225 7450