OREANDA-NEWS. Alexander Forbes Group Holdings ("the group") reported a solid set of half-year results to September 2014 in which operating income net of direct expenses increased by 17% to R2.4 billion and profit from operations advanced by 16% to R544m. The results are the first to be reported by the Group since it re-listed on the Johannesburg Stock Exchange ("JSE") on 24th July 2014.

The results also provide further impetus for the group to pursue its expansion in South Africa and select markets in sub-Sahara Africa, where proposed savings and pension reforms provide business opportunities, Group Chief Executive Edward Kieswetter says.

The addition of 70 000 new members under administration from a year ago was particularly pleasing for the group and equally so the retail (individual client) business that achieved 12% growth in revenue from markets across Africa.

"The successful re-listing of Alexander Forbes on the JSE provided fundamental shareholder support for our strategic goals. The results, both financial and non-financial, confirm the relevance of our strategic choices. Our continued Higher Purpose orientation ensures that we deliver a positive impact for all our stakeholders," says Kieswetter.

"Although we acknowledge the challenges that lie ahead, our bias for top-line growth, striving for greater operational efficiencies and building sustainable organisational integrity, remains unchanged. We are committed to building a great company by doing the right things, and doing things right," he says.

Reviewing the results, Kieswetter says the 14% increase of assets under management and administration to R300 billion at Investment Solutions compared to a year ago is particularly pleasing.

Income from operations at Investment Solutions, net of underlying asset manager fees, increased by 16% to R388 million for the six months ended 30 September and profit from operations grew by 17% to R196 million, driven primarily by growth in equity markets and improved asset accumulation.

AfriNet's growth in sub-Sahara Africa improved the division's net operating income from continuing operations by 23% to R138 million. Profit from continuing operations increased by 56% to R25 million.

"This very satisfying result was driven by strong revenue building initiatives while maintaining our focus on governance and cost control measures. The sub-Saharan financial services market remains an attractive proposition for the group with the team actively investigating acquisition opportunities in select markets across this region," says Kieswetter.

Income from operations in Alexander Forbes Financial Services, net of direct product costs, grew by 11% to R936m compared to the same period in 2013. Profit from operations increased by 5% to R193m following continued investment in growth and initiatives to strengthen technical competence.

"The Institutional business had good growth in revenue of 11% which continues to attract new clients with 129 new client wins during the six month period. Client retention remained high. "The number of active member records administered within the South African institutional businesses exceeded one million at reporting date for a 4% growth since September 2013 in a slow job-growth environment " Kieswetter says.

Alexander Forbes Insurance benefited from several initiatives implemented to reduce loss ratios in the business as well as other growth strategies, which saw an increase of 10% in gross written premium to R657 million for the division and a 76% increase in gross written premium to R19 million from the business insurance practice, while net operating income, net of reinsurance, increased by 13% to R200 million.

The group's international financial services business - including the consulting actuarial business of Lane Clarke & Peacock ("LCP"), with operations in the United Kingdom, Ireland and the Netherlands, and Alexander Forbes Channel Islands - grew net operating income from continuing operations by 6% to £39.9 million or by 25% to R715 million as the Rand depreciated by 17% on average to GBP Pound Sterling during the period under review. Profit from operations increased by 4% to £5.5 million or 23% to R 98 million.

Going forward, Kieswetter says the group will continue with a dedicated focus, to implement its growth strategies and strengthen its core businesses and related market positions.

"We will continue to leverage our core business, and expand our retail and public sector offering and footprint in Africa beyond SA. We will also continue to encourage open and honest engagement with our employees and various stakeholders so that we fully realise the values of SERVE with renewed vigour, client advocacy and by treating customers fairly," concludes Kieswetter.