NAFM defies cost-cutting trend to achieve double its profit
National Australia Financial Management (NAFM) has doubled profits for the six months ending March this year, reporting a $14 million rise to $28 million.
NAFM managing director David Holston says the profit increase has come from sales and not cost cutting.
"Increased sales have been coming from the bank network and they are getting very good at selling insurance products like term life and business life," he says.
Protection sales increased by 45 per cent to $20 million during the six month
National Australia Financial Management (NAFM) has doubled profits for the six months ending March this year, reporting a $14 million rise to $28 million.
NAFM managing director David Holston says the profit increase has come from sales and not cost cutting.
"Increased sales have been coming from the bank network and they are getting very good at selling insurance products like term life and business life," he says.
Protection sales increased by 45 per cent to $20 million during the six months, including $6 million of general insurance premiums.
Holston says sales from independent advisers were up in the first three months of this year with them writing about 25 per cent of NAFM's business.
"This shows we have the right products for them to sell, especially in the re-tirement income products area," he says.
Sales for NAFM in the six months reached $820 million and retail funds under management increased by 40 per cent to $6.4 billion.
National Australia Asset Management (NAM) double its profits in the six months to $2 million while County Investment Management's profit remained static at $2 million.
The combined funds under management of NAM, County and NFM now stands at $17.7 billion, up from $15.3 billion during the corresponding period last year.
Meanwhile, RACV Financial Services has reported premium income for its 1999 fi-nancial year ending February has risen by 34.4 per cent to $82 million. The di-vision of the Victorian car club now has $176.4 million of funds under manage-ment, up 38 per cent.
RACV managing director Ted Johnson says the club is continuing to look at a strategic alliance for the back office operations of the financial services di-vision.
Money Management understands a decision on a partnership will be announced in a few months. The board is still reviewing partners and among those on the short list are NRMA and GIO.
Ends
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