| Wed 12 Sep 2007, 8:00 | | MET - Metropolitan Holdings Ltd - Metropolitan pos |
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MET - Metropolitan Holdings Ltd - Metropolitan posts record fund inflows
METROPOLITAN HOLDINGS LTD
(Incorporated in the Republic of South Africa)
Registration number: 2000/031756/06
ISIN: ZAE000050456
JSE Share Code: MET
NSX Share Code: MTD
("Metropolitan")
Metropolitan posts record fund inflows
Today (12 September) Metropolitan announced financial results for the six months
to 30 June 2007 reflecting sustained growth over four consecutive interim
reporting periods thanks to the group`s diversification strategy.
Group chief executive Peter Doyle, who has been the main architect of this
strategy, declared himself well satisfied with the way it continues to lift
operational performance.
Net funds received from clients reached a record R6.7 billion, more than 2.5
times the group`s previous best, and 168% up year on year. Most group businesses
recorded significant improvements in inflows.
In striking contrast to industry norms, where cashflows have been strained in
recent years, Metropolitan has maintained a compound annual growth rate of 59%
in net funds received every June since as far back as 2003.
"It is particularly pleasing," said Doyle, "that our core individual life
insurance business is continuing to grow along with the newer businesses.
"By way of example, corporate, one of the businesses established as part of our
revenue diversification drive, increased its after-tax operating profit by 19%
while health, another of our diversified sources of revenue, recorded an
impressive R32 million profit.
"For international, where we are exploring business opportunities in line with
our commitment to creating prosperity for the people of Africa, after-tax
operating profit was 95% higher while the asset management contribution was 119%
up.
"Retail, on the other hand, generated 55% of the group`s total after-tax
operating profit."
At 35% up, diluted core headline earnings per share were impressive. Once again,
earnings and headline earnings per share also showed healthy increases (30%),
clear evidence of sustained shareholder value-add.
An interim dividend per share of 36 cents per share was declared for 2007, 24%
higher, indicating that the directors expect the group`s underlying earnings to
continue growing in the medium term.
Turning to embedded value - a key life industry measure - the return of 20%
notched up by Metropolitan over the six months was amongst the highest in the
industry. The 22% rise in embedded value per share (annualised) from 1 585 cents
(adjusted for the dividend paid) to 1 761 cents over the last six months was
also a first-rate achievement.
With total assets under management passing the R95 billion mark, Metropolitan is
now firmly positioned amongst the bigger players in the financial services
sector.
In addition to the group`s robust 40% increase in total premium income, the life
businesses registered overall growth of 68% in the present value of new premium
income (PVP). The value of the new business written by each of them also trended
sharply upwards, showing a 48% increase overall.
Corporate new business soared 267% whilst new business from the health
operations almost trebled, demonstrating yet again the wisdom of
diversification. Health`s figures were boosted by exponential growth in
membership of the Government Employees Medical Scheme (GEMS).
"Metropolitan`s entrenched position in the low and middle income markets - we
have one of the largest customer bases in the industry with some 10 million
customers on the books across all our businesses - continues to give us a
competitive edge," says Doyle.
"Our efforts to enhance the value proposition offered to each and every customer
are ongoing regardless of how far and how fast we diversify."
Summary of Metropolitan`s stakeholder value-add to June 2007
June June %
2006 2007 growth
Diluted core headline earnings R344m R440m +28
Diluted core headline earnings per share 45.26c 61.28c +35
Diluted earnings R704m R879m +25
Diluted earnings per share 95.26c 124.15c +30
Return on embedded value (%) 17.7 20.3
Embedded value per share 1 486c 1 761c
Interim dividend per ordinary share 29.00c 36.00c +24
Total premiums received R4.2 bn R5.9 bn +40
Present value of new premium income (PVP) R3 141m R5 283m +68
Total assets under management R75 bn R95 bn +26
Notes
* Core headline earnings are a particularly appropriate measure of the
performance of financial services groups such as Metropolitan in that they
eliminate items of both a once-off and an inherently volatile nature, such
as changes to the valuation basis and capital appreciation/depreciation.
* Diluted core headline earnings have been adjusted for the convertible
redeemable preference shares, the staff share scheme shares and treasury
shares in issue - all dilutory in nature. The preference shares were issued
to a consortium controlled by Metropolitan`s strategic empowerment partner,
Kagiso Trust Investments (KTI).
end
ISSUED BY SUE SNOW
FINANCIAL MEDIA SPECIALIST
METROPOLITAN HOLDINGS LIMITED
TEL 021 9406119 OR 083 300 9745
DATE 12 SEPTEMBER 2007
QUERIES PETER DOYLE
GROUP CHIEF EXECUTIVE
METROPOLITAN HOLDINGS LIMITED
TEL 021 9405681 OR 082 880 2690
PRESTON SPECKMANN
GROUP FINANCE DIRECTOR
METROPOLITAN HOLDINGS LIMITED
TEL 021 9406634 OR 083 285 6454
TYRREL MURRAY
GENERAL MANAGER: GROUP FINANCE
METROPOLITAN HOLDINGS LIMITED
TEL 021 9405083 OR 082 889 2167
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 12/09/2007 08:00:01 Produced by the JSE SENS Department.
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