Tyndall, Asteron boost Promina result

Promina Group’s financial services division, including its life insurance and wealth management activities, posted a 10 per cent increase to $132 million in net profit after tax for the year to December 31, 2005, up from $120 million in 2004.

This performance by the division, as represented by Asteron and Tyndall Asset Management, helped the group overall post a net profit after tax of $505 million last year, an increase of 9.8 per cent over 2004.

The division’s result was driven by a 34 per cent increase in operating margins after tax, up from $50 million in 2004 to $67 million in 2005,

The life risk component of its operating margins increased by 27.9 per cent from $43 million in 2004 to $55 million in 2005 and the wealth management component increased from $7 million in 2004 to $12 million in 2005.

Asteron dealer group GuardianFP posted a 5.2 per cent increase in adviser numbers on December 31 last year over June 2005, and a 19.7 per cent for the 12 months from December 31, 2004.

Tyndall posted a 51.4 percent increase in net fund flows and a 19.4 per cent increase in FUM in Australia, relative to 2004.

Promina chief executive officer and managing director Mike Witkins attributed the division performance to “improvements in operational performance and a commitment to maintaining new business profitability”.

He predicted average growth in revenue for the division of 10 per cent for 2006, and also a 10per cent growth in its operating margin.

He acknowledged the division “had benefited from favourable investment markets that delivered net investment income on shareholder funds of $65 million.

“While this represents a reduction of 7.1 per cent in 2005, it should be noted that it was an exceptionally buoyant market in 2004.”

The financial services division also completed the acquisition of boutique corporate super services provider Standard Pacific Financial Services (NSW) Limited in September 2005

The acquisition is “expected to enhance the development and positioning of the Asteron brand in the corporate super market, improving marketing and distribution reach and generating stronger sales”, Witkins said.