Insurance industry technology heavyweight, WebSoft MAVeN in which the Brait Technology & Innovation Fund and Glenrand MIB are shareholders, has produced strong results for the year to June, raising profits 46% to R3.8 million on the basis of a 36% increase in turnover to R34 million.
The results were achieved notwithstanding tough trading conditions and reflected the benefits of strategic positioning, tight management, product development and the merger with MAVeN Technologies.
The combined group`s systems are responsible for administering some R3 billion worth of premiums or about 18% of the total "traditional" underwriting market.
The reporting period consolidated nine months of the MAVeN financial year and the results were therefore particularly pleasing, said group CEO, Joao Frasco.
The merger had created critical mass in offering integrated, advanced solutions for underwriters and brokers of all sizes. It had been one step ahead of market conditions where consolidation and rationalisation was taking place.
Benefits of the merger were already manifesting in increased client focus, convergence of the group as a brand, economies of scale and strong, cost-effective leveraging off combined capacities.
Clients had responded positively to the merger and the client base, which included Standard Bank Insurance Brokers, Deloitte & Touche, Regent Insurance and Insurance Company of Namibia, had been secured without a single loss. Significant new business had also been acquired notably through the company`s preferred partner/ supplier relationship with Hollard and Santam.
Going forward, the group would continue to capitalise on the provision of business-driven solutions, penetration into its niche market and on meeting the increasing demand for rand-denominated, home-grown insurance industry technology, products and services.
There would be continued investment in product development and possible commercialisation of the company`s feature-rich claims management system, allowing it to be marketed as a standalone product through the company`s preferred partner in the UK. The company was also looking at its geographical spread generally and was testing the water of further possible alliances internationally.
There was reason for cautious optimism in this respect said Marketing and Sales Director, Peter Roberts. The company`s Flagship "INSight" policy administration system had been successfully rolled out in Egypt, Bahrain, England and Ireland, and in sub-Saharan Africa in Namibia, Tanzania and Zimbabwe as well as in numerous South African sites.
Investors were looking at the company and the board would be prepared to consider equity participation in funding further growth, particularly where such partnerships had compatible industry focus. Further acquisitions and mergers were also foreseeable in WebSoft MAVeN`s focused, aggressive market strategy, Frasco added.
Sustainability and investment for the future were the watchwords. The niche focus and product line up would remain the same, namely, policy administration systems with complementary products and services including the company`s networking support, the Omni-analyser e-mail traffic analysis system, project management, consulting and software development.
The group`s complementary strengths in services, systems and processes, provided either on a bureau basis or as licensed software, would be bolstered by on-going investment in existing strengths, thus enhancing all its benchmark offerings.
The group expected to further consolidate its position in the coming trading year with sustained, conservative growth in both the broking and underwriting markets, a scenario which created significant cross-sell opportunities.
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