PSG Insure was the star performer for financial services group PSG Konsult, reporting a 19 percent increase in recurring headline earnings/
DURBAN - PSG Insure was the star performer for financial services group PSG Konsult, reporting a 19 percent increase in recurring headline earnings to R85.23 million for the year to end February.

Overall the group reported a 4percent increase in recurring headline earnings to R591.10m, up from R566.40m compared to last year and a return on equity of 21.5percent.

Chief executive Francois Gouws said the group was satisfied with the division's performance and believed that the costs incurred in the current year to fund growth initiatives would ensure continued growth.

“This division continues to gain market share in the highly competitive short-term insurance market and is starting to achieve economies-of-scale benefits. The division also benefited from the acquisition of Absa Insurance and Financial Advisers during the period, and strong underwriting margins,” Gouws said.

The division achieved gross written premium growth of 36percent as it continues to focus its efforts on growing the commercial lines side of the business, which requires specialist-adviser expertise.

PSG Wealth division's recurring headline earnings were flat at R338.60m while PSG Asset Management reported a 7percent increase in recurring headline earnings to R167.28m despite a 64percent decline in performance fees earned.

Gouws said the 4percent increase in recurring headline earnings was achieved against a backdrop of challenging operating conditions.

The financial services group also reported a 4 percent increase in recurring headline earnings per share to 44.6 cents a share, up from 43c.

The group declared a 14 percent increase in dividends to 20.5c.

During the period, total assets under management increased by 8percent to R222bn. Assets under administration rose by 5percent to R422bn.