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MiWay announces record growth in financial performance

Published on: 06 March 2015

MiWay has announced the best results in its short history, with underwriting margin and operating profit to end December 2014 delivering record numbers and Gross written premium reaching R1.49b.

For the 2014 full year, the company reported an underwriting margin of 11%, making a R170m contribution to their holding company Santam’s profit; an increase of 14% in gross written premium; and a decrease of 8% in the loss ratio to an effective 57.4%. The company is the direct insurance arm of Santam, but continues to operate independently. 

“I am pleased with the 2014 results,” said MiWay CEO, René Otto. “All key performance indicators point towards a positive trend, with loss ratio and acquisition costs decreasing while premium growth and operating profit increased – far exceeding our expectations.”

In another challenging year for the insurance industry, Otto puts the company’s performance down to its proven strategy of delivering innovative yet simple insurance solutions, at affordable premiums and its focus on the fundamentals: charging the right premium for the risk and managing claims costs effectively. 

MiWay continues to focus on innovation, service excellence and operating efficiencies to drive business growth. Online distribution and servicing remains a critical channel to deliver to a tech savvy client base and create growth for the company.  A key development is the addition of an app with the capability to take photos and submit a claim, at the scene of the accident. 

“Our philosophy is to empower our clients and put them in the driving seat of their policies. We call that insurance freedom” adds Otto.

The total number of MiWay customers increased to over 225 000 – demonstrating the trust consumers have in the MiWay brand. 

“MiWay’s vision is to build a world class direct financial services business. The excellent results in 2014 enables us to focus on a number of new initiatives going forward, such as Business Insurance and Life Insurance” says Otto.

He concludes, “MiWay will continue to build on the foundation we have meticulously and consistently established since our 2008 launch.”