Life and health insurance have become the key pillars of the GlobalCapital Group’s strategy, with core life insurance value increasing by 14 per cent since 2011 to €3.3 million.
“We are particularly relying on the core life insurance operations to achieve our value generation objectives,” deputy chairman Nick Ashford Hodges told delegates at the recent AGM.
Legacy issues continued to offset the substantial improvements made in operations
CEO Bashar Khatib explained that the growth in value of more than €600,000 in 2012 illustrated that the new products now being embraced by the market were yielding substantial value for both policyholders and the company.
GlobalCapital Life Insurance now holds a competitive advant-age, he said, through the introduction of key new policies such as the variable universal life product (Real Life), in addition to the re-engineering of several of the company’s products which were proving to be attractive to the market. Embedded value of life business rose to its highest level at €12.6 million.
Mr Khatib also informed the AGM that health insurance income grew by 10 per cent over the year before, despite a heavily competitive market, and with alterations to the business model, GlobalCapital Health Insurance Agency Ltd, the exclusive representative of Bupa in Malta, report-ed an increased net profit after tax of €859,798 in 2012 compared to €438,605 in 2011.
He said that on the operational side significant progress was made in improving efficiency and effect-iveness, although financial and property assets did not perform well and impacted negatively on overall results. Legacy issues, he emphasised, continued to offset the substantial improvements made in operations.
He described the last 12 months as “pivotal” in the continued operational evolution of GlobalCapital as a rejuvenated, agile and diversified niche life and health insurance and invest-ments company.
Mr Ashford Hodges, standing in for chairman Dawood Rawat who was indisposed, told the share-holders that the company had enjoyed its best operational results in five years, including a healthy operating profit with the prospect of more sustainable success going forward.
Mr Ashford Hodges said that like other companies in many other industries, in 2012 GlobalCapital had continued to face tough challenges with legacy issues and from a variety of extern-al forces, including low interest rates, currency fluctuations, financial and property markets volatil-ity and regulatory and political uncertainty.
Despite these challenges GlobalCapital continued on its path towards significantly strengthening its core businesses by improving operating revenue and managing expenses downwards.
For further information visit GlobalCapital plc’s office in Testa-ferrata Street, Ta’ Xbiex or GlobalCapital’s website www.globalcapital.com.mt.
GlobalCapital Life Insurance Ltd is authorised to transact long-term insurance business and is regulated by the Malta Financial Services Authority (MFSA). GlobalCapital Insurance Brokers Ltd carries on business of insurance broking and is regulated by the MFSA. GlobalCapital Health Insurance Agency Ltd acts as an insurance agent and is regulated by the MFSA. GlobalCapital Financial Management Ltd is licensed to provide investment services in Malta by the MFSA. Registered address: GlobalCapital plc, Testaferrata Street, Ta’ Xbiex XBX 1403, Malta.
Figures at a glance
The published financial results for the year ended December 31, 2012 showed an improved financial performance on an after-tax basis, with Group losses reducing from €4,193,670 in 2011 to €2,406,685 in 2012.
Cost containment and work efficiencies contributed to over €1 million worth of savings in 2012. The results were, however, also impacted by losses from financial assets, notably the negative shift of 31 per cent in a local equity shareholding which resulted in unrealised losses of €2 million, offsetting GlobalCapital’s positive operating performance. In addition, certain other non-recurring items, particularly provisions of €446,000 and property impairments of €352,680, further reversed a positive operational performance.