Despite adverse conditions in the global business environment, SA's largest credit insurance and reinsurance company, Credit Guarantee, managed to produce a strong underwriting surplus of R38.9m compared with R7.1m in the previous year.
According to the company's annual report Credit Guarantee was able to produce an underwriting surplus in a year characterised by a depressed global economy.
The year has seen insolvencies and claims against credit insurers escalate worldwide. Tough market conditions meant that Credit Guarantee paid out claims of almost R400m in the year.
Net income after tax, however, amounted to a loss of R44.3m compared to a profit of R71.3m last year because of revised accounting practices for insurance companies.
Under the new standards, unrealised investment gains and losses are now reflected through the income statement.
