Insurance broker Glenrand MIB made a profit after it closed down one of its money-losing divisions. As a result, the company's net income climbed to 48.7 million rand in the fiscal year to June 2009. A year earlier, Glenrand MIB reported a loss of 80 million rand.

Furthermore, the company's investment income increased 11 percent to 54 million rand. This was due to the improvement of some effective cash management strategies. The earnings a share came in at 20.5 cents, compared to the loss of 36.2 cents last year.

"Clients are trying to purchase less insurance and competition is up, but we're trying to manage clients' views," said Andrew Chislett, the chief executive of Glenrand, in an interview with Business Report.

Chislett added that Glenrand is looking to acquire firms that were a fit with its strategy. "We will not buy companies that we need to turn around. We want companies that will add value to our operations," he said, underlining that Glenrand's focus would be in South Africa. Its corporate and specialised services held about 30 percent of South Africa's market share.

South African insurance companies, such as Liberty Holdings, have struggled to keep their customers as consumer spending dropped during the country's first recession in 17 years.

Mutual & Federal also saw its profit decline as a result of the financial turmoil.

Source: Business Report