Capital Life to diversify

Press, 19 May 1984, Page 22

Capital Life to diversify

PA Auckland The management of Capital Life Assurance, Ltd, has decided to diversify into financial services and consumer marketing. The directors of the company, which is being taken over by New Zealand South British Group, Ltd, say in the annual report that the principal product range is insurance, but developments in closely allied fields can only contribute to over-all growth, and strengthen its position. As reported, audited taxpaid profit for the year to January 31 increased 61.3 per cent from $189,238 to $305,328. The result includes a deficit of $4283 in the company’s hospital plan and was after tax of $45,097. In the previous year the company had a tax credit of $964.

As a percentage of average shareholders’ funds, the tax-paid profit was 29.2 per cent, up from 19.8 per cent the previous year, and at year end paid-up capital was 48.9 per cent.

New life insurance written during the year amounted to $106,943,443 sums assured and $706,965 premium income, down 28.7 per cent. In addition, $290,252 of annual premium was written from the sale ol health insurance, up 53.3 per cent. Net investments in-

creased $1,712,384 tc $15,813,229. Investment income was $1,923,102, up from $1,745,248. As a percentage of average investments, the income was 12.86 per cent, down from 13.3 per cent. Investment income was increased by a $40,791 profit from the sale of investments.