Financial services makes quarter of Promina profit
Promina’s financial services division has contributed $132 million of the group’s $458 million profit for 2004, although the wealth management businesses chipped in just $27 million.
Asteron’s life risk business was the star of the financial services division, fattening the bottom line by $105 million.
Asteron’s asset administration business, represented in Australia by the Optimum Corporate Super Plan, and the distribution business under the Guardian Financial Planning brand, delivered $16 million and $10 million respectively.
Tyndall Asset Management made $1 million.
Promina attributed the life insurance profit to above-average client retention and strong investment returns, particularly in Australian equities which also explained much of Tyndall’s black ink.
The group said some savings had been made by a program of back office rationalisation across the financial services businesses, although the full fruits of the program, begun in 2004, are not expected to show up until 2006.
Promina also said the introduction last year of Wealthstar, a combined platform of life insurance and super, was aimed at better targeting what the group’s research has found to be its most profitable kind of customer.
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