Despite what it says was a “sharp decline” in demand for services in the insurance sector last year, the Demerara Mutual Life Assurance Society Ltd has reported an impressive 35 per cent increase in life insurance sales in 2009 over the previous year.
At its 118th Annual General Meeting held on Friday July 2, the society reported sales totalling 1,269 lives valued at $99,989,976 in annualized premium income. Overall income secured from group life and pension grew by 40 per cent, from $32.9 million in 2008 to $46.1 million last year. Demerara Mutual has attributed the society’s growth in premium income to significant growth in its group life portfolio which currently has an estimated membership of 1,526, which attracts an estimated premium income of $14.1 million.
Meanwhile, Demerara Mutual is also reporting that last year saw a modest 9.3 per cent increase in the number of policies issued, an increase which it attributed “mainly to the improved performance of the Grenada and St Vincent branches.” Guyana, however, maintained its position as the top producing territory, issuing 548 new policies last year.
2009 also witnessed an increase of more than $15 million in the value of claims paid by Demerara Mutual with total payouts amounting to $207,923,604 last year compared with $192,295,760 in 2008. Last year, payment of claims on matured policies increased by more than $43 million, mounting from $87,596,770 in 2008 to $131,862,559 in 2009. Annuity claims more than doubled from $9,022,756 in 2008 to $25,730,678 last year. Overall death claims fell from $76,827,975 in 2008 to $45,501,139 last year.
While, according to Chairman of the society’s Board of Directors Richard Fields Demerara Mutual recorded “consistent growth over the last two years,” revenue growth fell marginally last year compared with 2008, dipping to $1,367,664,278, down from $1,309,482,261 in the previous year. Overall, the company recorded a profit after taxation of $240,416,928 in 2009 compared with 338,730,162 in 2008. The society’s 2009 performance was also impacted by increased taxes last year with taxation jumping from $18,515,557 in 2008 to $22,048,056 last year.
Meanwhile, Demerara Mutual, in its 2009 corporate performance review said it continues to be focused on enhancing its financial position while ensuring compliance with regulatory requirements. The society said it has introduced new accounting standards designed to “impact the company’s financial information and presentation.” These changes, the review said, are geared towards “enhancing” the information disseminated to persons interested in the performance of the society.
