Dem Mutual’s nets $100M profit in 2011
… Ranked leading insurance provider in Guyana, Again!
Guyana’s number one insurance provider for the second year running has for 2011, paid out some $300M in claims with almost half linked to deaths.
The Company, Demerara Mutual, has had healthy returns for the audited year, raking in some $411M from investments and other sources of income while premiums realized $1.2B.
This, coupled with several other positive factors, has led the group to realize some $1.7B in revenue and some $101M as profit after taxation.
The total company assets for Demerara Mutual in 2011 rose by more than a billion to $9.4B up from 8.4B the previous year.
The Group held its 120th Annual General Meeting on Friday last where the company’s Chief Executive Officer, Keith Cholmondeley lauded its performance.
He said that despite the crisis that gripped financial institutions over the world, Demerara Mutual “came out virtually unscathed.”
Cholmondeley reported that for the year under review “we remained solid in our quality of service, we managed our fiscal relationships prudently, and we were able to become market leader in both API and the number of Lives Assured.”
While the company’s administrative and employment costs have been on the decline, its management expenses were tagged at some $704M in 2011 as against $594M the previous year.
The company had to make a payout of some $109M as commission payable to insurance agents. This was up by more than $15M from the previous year. In 2010 the company paid out in commissions, some $94.5M.
The company, however does not view being ahead of the pack as enough and according to Keith Cholmondeley, they need to set new industry standards if the successes achieved in recent years continue to bear fruit.
He says that the company has realised that “we are not lean enough, not nimble enough, not grounded in the fundamentals enough to thrive in the coming years.”
Cholmondely hinted that for the company’s future “there are definitive and strategic shifts in the way we do business which will ensure our continued success…We must be able to, like the Greek phalanx, be in locked step as we move forward, each interlocking layer protecting the one to the left, and thus become impenetrable.”
As he addressed the AGM, the CEO warned, “We are not there yet….We still have operational gaps that must be addressed now.”
He warned that the company’s successes in trying times has caused some complacency in that, “we are forgetting the first principles…The time has come for us to consolidate our positions by holding each other accountable.”
Cholmondeley told those gathered that the company’s managers have to be more diligent in ensuring that all functions in their respective departments are executed with efficiency, with no wastage of resources.
“It means that they would have to be proactive by ensuring that the quality standards we set are maintained throughout…We must meet and exceed expectations, if we are to deliver on our promise of world class service.”
At the Annual General Meeting the company also disclosed plans to enhance its customer service. The Demerara Mutual Customer Charter, a document that sets out the company’s commitment to quality and the standards that are adhered was launched.
According to the Chairman, Richard Fields, the document commits to the fact that the customer is the centre of Demerara Mutual business, and the reason the business exists
“It will be the single most important step in the realization of our long-term objective; slow, steady growth which ensures that we are here serving you for the next 120 years and beyond,” Fields said.