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Johannesburg - Diversified financial services group Metropolitan is concerned about the impact job losses may have on its performance.
In its trading update for the first quarter released on Tuesday, Metropolitan said it was watching food, fuel and transport inflation - together with unemployment levels and credit extension - as major challenges to business.
A key area of concern for many financial services businesses is the impact of job losses on retirement, health and investment products. Hard-pressed consumers are forced to cash in retirement policies, a trend Metropolitan has noticed since last year.
However, it still managed to boost new business levels by 11% during the period.
"We are very happy with the double-digit growth," said CEO Wilhelm van Zyl.
Van Zyl said the group focused on distribution tactics and channel diversification to get its products to the market. Also, while the public holidays in April had had a negative impact, trade picked up again in May.
In spite of the negative growth figures (-6.4% of gross domestic product on a quarterly basis for the first quarter), Van Zyl said there was still "some robustness in the market".
Metropolitan posted improved figures in its African operations, which grew single premiums business by 150% to R60m.
"We've seen a nice uptick here," said Van Zyl.
He said that while many neighbouring countries were "small and saturated", the group was seeing many opportunities in West Africa.
Metropolitan's shares closed at 1 130c on Tuesday, up 1.16%.
- Fin24.com