Company profile: Munich Re of Africa

Although Munich Reinsurance Company of Africa (MroA) saw a 13% reduction in its gross premium income in 1999, it managed to increase pre-tax profits by 130% to R44.9mn. Although the improvement in the pre-tax result was almost entirely due to a 300% increase in investment income to R44.9mn, MroA’s achievements on the underwriting front should not be overlooked. In a notoriously soft market, the company reduced its underwriting losses by 30% from a loss of R31mn in 1998 to a loss of R22mn in 1999. Underwriting losses in the South African non-life market for the first six months of 1999 exceeded the total loss figure for 1998. MroA is one of the companies in the market pushing for significant increases in pricing levels and enhanced risk management.