The Samoa Life Assurance Corporation (S.L.A.C.) saw a drop in its profits of more than $2.5 million as increasing claims and operating expenses slashed its profit margins.

The S.L.A.C. registered a net profit of just $218,000 last financial year; a drop from $2.78 million the year prior, according to an unpublished report tabled before Parliament. 

The organisation’s net operating revenue was $12.32 million, but it paid out claims to the value of $8.1 million and recorded operating expenses of $4.1 million, which led to the drop in its profits. 

The previous financial year the S.L.A.C. paid out just $5.5 million in claims by comparison. 

The report says death claims were paid out to the value of $450,000; surrender claims to $2.06 million; and maturity claims amounted to $5.6 million. 

The S.L.A.C.'s total liabilities, funds and reserves amounted to $48.49 million, up from $47.80 million last year. 

The report says the assurance fund is $43.7 million, while the mortality and contingency reserve fund is $1.1 million and property revaluation reserve dropped to $390,751 from $540,751. 

The report further says that, for 2019, new loans on policies were $5.4 million and interest charged was $2.2 million with maintenance fees of $156,532. (Loans on policies by staff, meanwhile, amounted to $127,612). 

The Government-owned Corporation’s life insurance arm sells and administers life insurance contracts to consumers. 

Established in 1977, the S.L.A.C. is one of the longest-running of the Government’s public enterprises. 

The S.L.A.C.’s total equity investments amounted to $6.6 million for the Financial Year of 2018-2019. 

These included a 19 per cent stake in Computer Services Limited, which was listed as having a $325,000 value. 

The Corporation also owns more than 2.2 million shares with the Unit Trust, which were valued at $3.6 million. S.L.A.C. has also invested in the Samoa Submarine Cable Company to the amount of $2.1 million. 

The Corporation’s total funds on deposits last year was $7.6 million, compared to $9.4 million the year prior.