IBL Ltd achieved an excellent performance in 2004 from its three trading divisions: RAIA Professional Risk Services, Planned Professional Risk Services, and Planned Professional Risks Underwriting Agency.
Premium income was $33 million, with net revenue at $7.51 million and an operating profit before income tax of $2.8 million. Favourable economic and industry market conditions contributed to IBL Ltd’s record year, while the achievement of the company’s vision and strategic objectives had a significant impact on these results.
The year represented a turning point with some significant changes, one being the RAIA’s professional indemnity facility being led by Suncorp.
Highlights for the year included the obtaining of a financial services licence, a significant improvement in our core business, and a strong financial performance across all lines of the business.
All divisions performed well. The impact of Tort reform did not have a material effect on professional indemnity claims for construction professionals, with the impact of this change expected to show up more fully in coming years.
The Way Ahead
IBL Ltd is well positioned to continue its excellent progress in 2005. While part of the group’s growth over recent years has been achieved from rate rises, we anticipate that in 2005 there will be some “softening” of rates for quality professional indemnity risks with very good claims history and proactive risk management programmes.
Increasing competitive pressures from both the insurance market place and the competitive environment in the construction industry are expected over 2005. IBL’s professional clients’ fee income is projected to remain stable with an ever increasing focus on Asia, with particular attention on China. Our facilities and capacity have the ability to meet our professional clients’ requirements in this market.