At 118th AGM…
– Insurance company records consistent growth over last two financial years
THE Demerara Mutual Life Assurance Society Limited, on Friday last, reported a surplus of $240M for 2009 at their 118th Annual General Meeting (AGM).
A gathering of policyholders and other stakeholders, at the Company’s Avenue of the Republic and Robb Street location, were told that this was a reduction of 29 per cent over 2008’s surplus of $338.7M.
In his report, the Company’s Chairman, Mr. Richard Fields, said the Society has “proved its mettle” and met the challenges it faced by recording consistent growth over the last two financial years.
He announced, too, that the revenue for 2009 mirrored the 2008 figure of $1.3B, resulting in an after tax surplus  of $240M, a reduction  of 29% over the 2008 surplus of $338.7M.
He said premium  income amounted to $829M, a reduction of 2% when compared to the 2008 figure of $843M.
The Chairman maintained that Demerara Mutual is one of the pillars of the financial services industry in Guyana and the Caribbean Region, having survived the Great Depression of the 1930’s and the recent Global Financial Crisis.

INVESTMENT

Against this background, Fields touched on the Society’s investment policy and stated that it is essential to invest prudently to ensure the availability of funds to pay future claims and expenses.
“We may not receive a higher yield as compared to other investors. Having a lower yield is not reflective of poor performance by the Society. It is, however,  indicative of the fact that our primary emphasis is on safety, rather than yield of the investments,” he said.
The Chairman added that the opportunities for local investments are only available on a “microscopic scale”.
To this end, he said Demerara Mutual has had the challenging task of selecting investments that will match expected cash out-flows, satisfy the Insurance Regulator and maximize the rate of return.
“While all investments involve some degree of risk, we are committed to obtaining the highest possible yield for the degree of safeguard desired,” Fields said.
The Chairman pointed out that the solid investment policies, with minimal risks and guaranteed returns, of the Society, are a result of the Company’s leadership.
He said the Company is a beneficiary of rich, invaluable experiences which provide a good blend of approaches for team work and ensure future development and growth of the Company.
“The management team should be commended for achieving good results…the management team has developed and articulated a shared vision, motivated by key people,” he said.
Fields said this is the reason the Company has, to date, remained stable, strong and maintains an adequate resource base which will ensure its ability to continue in the foreseeable future.
Relative to the position of the Company, its auditors TDS Lal and Company, Chartered Accountants (An Independent Correspondent Firm of Deloitte Touche Tohmatsu), approved the financial statements.
In their report, they indicated that the financial statements give a true and fair value, in all material respects.
Demerara Mutual Assurance Society is one of the main providers of Life, Motor, Fire, Health, loss and other financial indemnities in Guyana where the society is headquartered. The Caribbean Islands of St. Lucia, St. Vincent and the Grenadines, and Grenada are also home to the Company.
The areas of coverage have grown to encompass group and individual health, travel, plus financial coverage for the more delicate aspects of life and living.