Two Key Insurance executives exit
Key Insurance Company Limited announced that it restructured its executive management team in a move aimed at creating greater efficiency.
Two of the three main shareholders of the company relinquished their executive positions on September 30, but remain members of the board. It leaves Managing Director Sandra Masterton as the only executive director, that is, the only manager with a position on the board. Masterton did not respond to requests for comment.
Natalia Gobin-Gunter remains chairman of the company but has given up her operational positions as deputy managing director, while Kala Abrahams has given up her role as purchasing/Web operations manager.
"Emanating from a review of our strategic priorities, an enhanced efficiency and growth agenda was agreed," Key Insurance said in a market filing this week.
"In keeping with those strategic goals, this action marks the first step to ensure future expenses are contained within revenue growth. In the upcoming months and at the annual general meeting for the 2017 financial year, further plans and progress updates will be shared."
Key's last AGM was in June, which means the next one is due around mid-2018.
In 2016, the insurance company shelled out $48 million of compensation to executive directors, which, its records indicate, was for as many as four people. It more than doubled the $21 million paid out the year before.
The management adjustments follow other improvements in the company's finances. Key is exiting a period of losses, and the new adjustments are expected to build on that trajectory.
"Natalia and Kala will continue to execute their duties as non-executive directors as we continue to deliver credible and transparent leadership which honours the value of the company to you our shareholders and stakeholders," Key advised the market.
Both women served in their management roles for more than 20 years, the company said.
Gobin-Gunter, Abraham and Masterton have similar holdings in Key, each with 88.4 million shares up to the last disclosures in June.
For the half-year ending June, Key Insurance made net profit of $8 million, which was a reversal of the $7.9 million net loss recorded for the corresponding period in 2016.
Key grew its gross written premiums by nearly 36 per cent to $661 million, while net premiums performed even better at 35 per cent growth to $351 million.
Last year, ending December 2016, the company made a $42-million loss, mainly due to claims, which rocketed from $287 million to $1 billion. It wiped out the $23-million net profit made by the company in 2015.