Constantia Insurance Company Limited

    OVERVIEW

    Constantia Insurance Company Limited's (Constantia) origins date back to 1952 when the company was known as "The Marine and Trade Insurance Company Limited". Over the years Constantia has changed its profile from that of a "traditional" insurer to one which deals mainly with underwriting managers and administrators.

    The Constantia licence allows transactions in all classes of short-term insurance business and each underwriting manager/administrator focuses on its own niche product and market. Our Underwriting Managers/Administrators include:

    *A-Plus Consultants (Pty) Ltd Motor Insurance - Audi motor vehicles only
    *Furnex Dealers Indemnity (Pty) Ltd Consumer Protection Insurance
    *Kestrel Administrators (Pty) Ltd Personal Lines Insurance - General
    *Legal Protection Administration Services (Pty) Ltd Adverse Award Litigation Costs Insurance
    *Motor Liability Acceptances (Pty) Ltd Top Up and Excess Waiver Insurance
    *Oakwood Underwriting Managers (Pty) Ltd Motor, Motorcycle and Personal Accident Insurance
    *SAFCAM (Pty) Ltd Health, Emergency Evacuation, Cell Phone and Houseowners Insurance
    *SGI Guarantee Acceptances (Pty) Ltd Solvency, Performance and other Guarantees and Court Bonds
    *Leppard & Associates (Pty) Ltd Professional Indemnity Insurance
    *The Peoples' Industrial Advice Centre (Pty) Ltd Legal Expenses Insurance and Legal Advice
    *TradeSure Underwriting Managers (Pty) Ltd Commercial Insurance - small to medium sized risks (TSI R20,0mio)
    *Premium Select Insurance Administrators (Pty) Ltd Medical Expenses Insurance and Accident/Health business only

    As can be noted, Constantia currently underwrites personal and small commercial business and does not underwrite marine, aviation, engineering nor any form of heavy industrial type of insurance business.

    Constantia also pursues opportunities to use its Alternative Risk Transfer (ART) capabilities, including the use of its Rent-a-Licence/Captive facility and is a small but nimble insurer.

    Constantia is on a sound financial standing and has produced profits year on year. The following table provides a summary of the results achieved for the periods noted;

     12 months ending 31.03.200214 months ending 31.05.2003
    Gross Premium IncomeR93,0mioR494,1mio
    % of SA Market Share0.4% 0.6%
    Net Premium IncomeR56,8mioR173,8mio
    Management ExpensesR9,2mio (9.9% of GPI)R14,2mio (2.9% of GPI)
    Underwriting ResultR6,0mioR0,3mio**
    Investment IncomeR4,9mioR8,7mio
    Technical ReservesR27,6mioR37,9mio
    Incurred Loss Ratio70.6%76.4%
    Total Surplus AssetsR39,1mioR44,6mio
    Solvency Margin (International)68.8%25.7%
    ** Additional statutory reserves of R11,2mio raised in respect of new business written

    The current Directors of Constantia are:

      *  Mr W A Rutherford (Chairman)
      *  Mr R L Shaw (Chief Executive Officer)
      *  Mr M Paton
      *  Mr J Dritz
      *  Mr N Lazarus

    Constantia Insurance Company Limited is currently a 100% owned subsidiary of CICL Investment Holdings (Pty) Ltd. The shareholders of CICL Investment Holdings (Pty) Ltd are

      * Ellerines Holdings Limited 37.5%
      * CorpCapital Investments (Pty) Ltd 30.0%
      * Anslow Management Consultants (Pty) Ltd     20.0%
      * Stenny Investments (Pty) Ltd 7.4%
      * Premium Select Holdings (Pty) Ltd 2.5%
      * Alderman Brown Investments (Pty) Ltd 1.6%
      * Brittanic Holdings (Pty) Ltd 1.0%

    The senior management of Constantia is as follows:

      Mr R L ShawChief Executive Officer
      Mr P De Marigny    Chief Financial Officer
      Bachelor of Accountancy (Wits) 1981
      Public Accountants & Auditors Board 1983
      Chartered Accountants (S.A.) 1983
      Mrs V KnoetzeSenior Manager - Underwriting
      ACII, FCII
      ± 25 years insurance experience - Short-Term

    Constantia performs normal internal administration activities but does not carry out any external administration services.

    Various reinsurance programmes are placed with approved reinsurers.

    The Auditors are:

      PricewaterhouseCoopers Inc.
      2 Eglin Road
      Sunninghill, 2157
      Private Bag X36
      Sunninghill, 2157
      Contact person: Mr John Awbrey - Telephone: (011) 797-4000

    We use the following Attorneys:

    Deneys Reitz Inc.

      Mr Patrick Bracher and/or Mr Michael Hart Telephone: (011) 685-8500

    Roderick & Lowe

      Mr Errol Lowe Telephone: (011) 726-6270

    Frese, Moll & Partners

      Mr Jorge R Frese Telephone: (011) 888-2300

    Knowles Husain Lindsay Inc.

      Mr Alex Eliott Telephone: (011) 269-7861

    Our Bankers are:

    The Standard Bank of South Africa Limited, Randburg

      Janice du Plessis Telephone (011) 631-3178

    Based in Randburg, Gauteng, Constantia as a member of the South African Insurance Association and an ISO2002 registered company, is committed to quality service, professionalism, prudent business practice and strives to be a niche market leader.

    If you have any queries or would like any further information please feel free to be in contact with us. Our address details follow:

    Physical Address:

    Unit 3, Tulbagh
    360 Oak Avenue
    Randburg
    2194

    Postal Address:

    PO Box 3518
    Cramerview
    2060

    Telephone : (011) 886-1488

    Facsimile : (011) 789-8828

    E-mail: Constantia@cicl.co.za