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Sovereign fattens ASB's bottom line

By Phil Boeyen, ShareChat Business News Editor

Thursday 31st August 2000

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Financial services company Sovereign has made almost $34 million in its first full year of trading as a wholly owned subsidiary of the ASB Group.

Sovereign says it has held its position as New Zealand's fastest growing risk and savings insurance company, with a 30% rise in new business premiums bringing the year-end total to $226.2 million.

It says it is also now well established as a significant lender on residential property, with advances for the year increasing by 78% to $722 million, with all mortgages being written through brokers.

Sovereign says that Aegis, which is its wrap account enabling financial planners to manage their clients' portfolios, has quickly established itself as a market leader and more than tripled funds under administration to $797 million during the year.

Investment funds under management stayed constant at $524.4 million, with the weighted average return after tax and charges across our 19 funds being 16.68%.

ASB, which paid $238 million for the formerly listed Sovereign, this week announced a full year tax-paid profit of $150.1 million. The figure is a 28% increase on last year. The ASB is owned by Australia's Commonwealth Bank.

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