GFL Genva Finance

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GFL start trading on USX Unlisted today.
This is their issuer profile.
https://prod-trade.usx.co.nz/api/file/669820bfdc9e0482a73bf169.pdf

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If anyone missed selling their GFL before they moved to USX [Unlisted],there is currently a buyer for 500,000 at 26 cents on USX.;
BIDS
Quantity   Price   
500,000   0.2600

[Ferg]

Trading update today.

https://prod-trade.usx.co.nz/api/file/66b9389d0c033b1c231d7425.pdf

NPBT for Q1 ended 30 June 2024 of $2.4m which is up $1m on the same quarter last year.  This is all driven by the insurance arm.  Gross written premiums are up 18%.

Total lending division was within a whisker of breakeven despite higher loan provisions and costs for exiting the NZX.  Loan book is up 1.5% but lending volume was down 21% for the quarter.

Estimated quarterly earnings per share of 2.3c assuming 28% tax deduction.

Quote from the release:

"At Geneva, despite the economic headwinds many are facing, we are navigating the current
tough market climate with a strategic focus on growth and resilience. The recent changes to the
CCCFA (responsible lending code) will now allow us to assess applications that would have
previously been overlooked. This will likely lead to a significant increase in application numbers
in the coming months, but we remain committed to preserving margins and maintaining the
quality of our loan book."

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Geneva Finance March 2024 Final Dividend payment
15 August 2024 Dividend Announcement
Security: GFL
The Geneva board has resolved to declare a 1 cent per share final dividend for the March 2024 financial year payable on 23 August 2024.

Ex-dividend date is 16 August 2024

Record Date is 19 August 2024

Documents:
24 08 - Dividend.pdf
24 08 15 - Final Dividend March 24.pdf

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MEDIA RELEASE 12 November 2024
RBNZ WARNING TO QUEST INSURANCE
The Reserve Bank of New Zealand (RBNZ) has concluded an investigation into matters that Quest
Insurance Group Limited (Quest) self-reported in 2021 and 2022.
Geneva Finance, Quest's parent company, announced the investigation to the market when it was
commenced in September 2023, and Quest has fully cooperated with RBNZ's inquiries. RBNZ has
decided that the appropriate outcome is to issue a warning to Quest.
The warning identified potential breaches of the Insurance (Prudential Supervision) Act 2010. One
matter related to a delay in establishing a statutory fund for Quest's life business in 2021. The
second related to a failure to maintain the required solvency margin for its non-life business in
2022. However, the RBNZ investigation has confirmed that overall solvency was at all times
maintained. Lastly, the RBNZ believed that the backdating of a transaction which balanced the nonlife solvency fund was likely to have also been a breach. Most importantly, the Reserve Bank
investigation has found that these potential breaches did not affect Quest's ability to pay sums due
to policyholders.
Quest has since strengthened its oversight and governance as well as its operational processes
and controls to prevent any such issues recurring. This includes strengthening of Quests board and
management positions as well as a core system replacement and company-wide policy and
procedures upgrades.
Malcolm Johnston
Managing Director
QUEST INSURANCE

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MEDIA RELEASE 12 November 2024
RBNZ WARNING TO QUEST INSURANCE
The Reserve Bank of New Zealand (RBNZ) has concluded an investigation into matters that Quest
Insurance Group Limited (Quest) self-reported in 2021 and 2022.
Geneva Finance, Quest's parent company, announced the investigation to the market when it was
commenced in September 2023, and Quest has fully cooperated with RBNZ's inquiries. RBNZ has
decided that the appropriate outcome is to issue a warning to Quest.
The warning identified potential breaches of the Insurance (Prudential Supervision) Act 2010. One
matter related to a delay in establishing a statutory fund for Quest's life business in 2021. The
second related to a failure to maintain the required solvency margin for its non-life business in
2022. However, the RBNZ investigation has confirmed that overall solvency was at all times
maintained. Lastly, the RBNZ believed that the backdating of a transaction which balanced the nonlife solvency fund was likely to have also been a breach. Most importantly, the Reserve Bank
investigation has found that these potential breaches did not affect Quest's ability to pay sums due
to policyholders.
Quest has since strengthened its oversight and governance as well as its operational processes
and controls to prevent any such issues recurring. This includes strengthening of Quests board and
management positions as well as a core system replacement and company-wide policy and
procedures upgrades.
Malcolm Johnston
Managing Director
QUEST INSURANCE

Pleased this is settled.
Now I look forward to GFL's interim result due shortly.

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https://prod-trade.usx.co.nz/api/file/67354096331cfca2067e5cc0.pdf

Quarterly update.Insurance enjoying strong growth.Finance still has ongoing impairments.

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USX ANNOUNCEMENT: GENEVA FINANCE – 27 May 2025
Quarterly trading update: March 2025 (Q4, 31 March 2025 financial year)
Group Financial Performance
The Geneva Group reported an unaudited pretax profit of $6.0 million, an increase of $2.4 million (+66%)
compared to the previous year. The improved result is attributed to enhanced performance from the Insurance
and Tonga operations. New Zealand Lending operations were impacted by high loan delinquencies which saw
an increased impairment charge for the year matching the 2024 charge.
The March 2025 result is similar to the December 2024 USX announced result, principally due to late year-end
adjustments in loan loss provisioning of $1.8million in NZ Lending operations, and late adjustments to Quest
for accruals not previously recognised.
Quest Insurance
Quest Insurance Group Limited (Quest) continues to perform well with NPBT of $7.3 million. Although this is
$1.2 million down on the previous year, this includes an overheads recharge of $2.2 million of operating costs
paid at the Group level on behalf of Quest.
The 2025 year saw Quest continuing its year-on-year double digit growth trend. Gross written premiums grew
by 20.4% to $55.8 million, driven by robust market demand and expanding distribution channels. Claims costs
remained stable compared to the prior year, reflecting continued underwriting discipline.
Investment income rose 13.7% to $2.1 million, supported by strong cash flows and positive term deposit rates.
Quest also maintained a solid liquidity position, with cash on hand increasing by 7.1% to $42.1 million. Quest's
solvency ratios remain strong, underscoring the company's sound financial position and commitment to longterm stability.
This year's result demonstrates Quests continued momentum in the market, underpinned by prudent financial
management and a deliberate focus on strengthening operational foundations to support future growth. In
2025, the positions of Financial Controller and Manager Risk and Compliance were created to ensure a
specific focus on these areas was enhanced. Both position report directly to the CEO of Quest Insurance.
Level 3, 3 Te Kehu Way, Mt Wellington, Auckland 0800 800 132
NZ Lending Operations
New Zealand lending operations reported a $3.4 million loss for the fiscal year ending March 2025, which is an
improvement of $3.2 million from the $6.6 million loss recorded in the prior year. This improvement reflects
the recharge of insurance related costs now being passed on to the insurance operations from the beginning
of the current year. Loan loss provisioning hit $4.9m million in 2025, similar to the 2024 year. Lending for the
full year increased by 4.6%, totalling $55.6 million. Additionally, dealer Floorplan funding grew by 4.5%,
reaching $15.1 million for the year. Net Group receivables increased from $110 million to $117.3 million,
reflecting a 6.4% growth for the year.
The key focus for lending is now improving the quality of loans approved and at the same time growing the loan
book. Recent changes to lending processes, including the appointment of a new credit manager in January
2025, will support this objective. Furthermore, the launch of a new lending onboarding platform is underway
and expected to be completed within the next Quarter.
Tonga Lending Operations
The Tonga operation reported a $2.1 million pretax profit, up $0.3m (18.9%) on last year.
Funding
The Group's Westpac Funding facility increased to $87.3 million, up $5.8 million. Kiwi Bank Facility is being
repaid and has $0.6 million remaining at year-end. Over the last year, $1.7 million was repaid to Kiwibank.
Funding from wholesale investors at year-end was $16.3 million, with $0.7 million repaid during the period.
Highlights / Key Events 2025 financial year
Group
• Group delisted from NZX, listed on the USX, July 2024
• Restructure of Lending and appointment of a separate Manager Credit, Jan 2025
Quest
• RBNZ investigation into two potential IPSA breaches resulted in a public censure with no fines in
November 2024.
• Appointment of Quest focused positions, Manager Risk and Compliance and Financial Controller.
• COFI licence granted effective 31 March 2025
• Insurance business exceeding $50m gross written premiums
• Launched new insurance software on 1 April 2025

[Ferg]

$6m PBT less an assumed 28% tax gives NPAT of $4.3m.  Divided into 72.9m shares is 5.9c EPS.

With a SP of 26c divided into EPS of 5.9c puts GFL on a P/E ratio of 4.4.  Outstanding growth in insurance.....again.  Hopefully that is the bottom of the cycle for poor performing loans.