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Patrick Hazlewood wins Chairman’s Diamond Award
Top Guyana producer for Demerara Mutual, Patrick Hazelwood, (L) receives his award from company Director, Paul E. Fredericks, C.C.H.
… insurance coy holds AGM
Patrick Hazlewood emerged as the sole Guyanese to cop the Chairman’s Diamond Award when the Demerara Mutual Life Assurance Society Group held its annual general meeting Thursday.
In receiving the award for the 2010 financial year ended December 31, he joined the company’s regional producers – two in Grenada and two in St Lucia – who also earned this top honour. Hazelwood registered 51 life insurance policy sales, garnering as Annualised Premium Interest $5.8 million for the period.
Along with its headquarters in Guyana, Demerara Mutual has offices in Grenada, St Lucia and St Vincent, and its principal activity of this 119-year-old entity is offering long-term life assurance.
Hazelwood was also the top producer for the entire company in sales for fire insurance with 67 new policies.
At its Annual General Meeting held in the Robb Street, Georgetown, head office the Group reported a total comprehensive income of $808.090 million for 2010, reflecting a jump from the 2009 figure of $127.6 million.
This massive movement in income year-on-year is however misleading as auditors reported discovering that lapsed, terminated, and matured policies, which should have not been in the statement were included.
Demerara Mutual, the Group stated in its annual report, “… Policy loans should include loans on policies which are in force and within the cash surrender value of the policy. However, it was discovered that policies that were lapsed, matured, and terminated which should have charged out to the income statement were also included. In an effort to review its entire portfolio, the company is currently continuing its exercise to clear those amounts.”
Claims on policies of the Group have been climbing over the past three financial years. A total of $234.3 million was paid out in 2010 in claims for death, maturity, annuities, disability, and miscellaneous others. That figure stood at $208 million the previous year, and $192.2 million in 2008.
“The year 2010 saw the Group portfolio increasing as five new pension plans and two life plans were added,” the annual report stated. “This meant that our membership was increased by 1620 overall and our life liabilities by $62.2 million.
“Premium income from the life schemes increased as a result of the new schemes, therefore moving from $46,293,011 to $89,621,517, an impressive increase of 94 per cent and as such surpassing the increases realized in 2009.
On the pension side the pension contributions moved from $113,560,529 to $298,527,654 an increase of 194 per cent and like the life portfolio surpassing the gains realized in 2009.”
Explaining that Demerara Mutual, like most Caribbean companies, continues to struggle with exploding fiscal and external imbalances, Chairman Richard B. Fields stated, “It was compounded by natural disasters such as Tropical Storm Thomas which ravaged St Lucia and St Vincent last November. Demerara Mutual has regional offices in both of these territories and the impact on our premium income, especially in St Lucia, was severe”.
Demerara Mutual saw a reduction in profit before tax from $259 million in 2009, to $232.5 million last year.
Chief Executive Officer, Keith Cholmondeley, stated that with a need to drive costs down while increasing revenue potential, the Society has embarked on various initiatives to reorganize itself.
This revamping exercise has been reaping rewards. “During the period under review, we had an increase in premium of a little over five per cent, whilst reducing management expenses by approximately 7.2 per cent.
This period also saw an increase in the number of policies written by 16.4 per cent,” the CEO stated.
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