M&F RETURNS R720M TO SHAREHOLDERS

INSURER Mutual & Federal said this week it would return about R720m to its shareholders by way of a special dividend as part of efforts to trim excess capital. It said the reduction in its reserves was part of an ongoing review of the efficient use of capital and the company’s commitment to deliver shareholder value. The company said its level of capital was in excess of that required to support ongoing operations and future development. Insurance companies measure their capital requirements by the ratio of net assets to net premiums (the solvency premium). Mutual & Federal’s solvency margin is currently in excess of 100% compared to the legislated minimum of 25%. – Reuters