| Fri 30 Nov 2007, 14:55 | | LGL - Liberty Group - Overview Of Trading For The |
|
LGL
LIBU
LGL - Liberty Group - Overview Of Trading For The Nine Months Ended
30 September 2007
Liberty Group Limited
(Liberty Group)
(Registration number 1957/002788/06)
(Incorporated in the Republic of South Africa)
Registration number 1957/002788/06
Share Code: LGL
ISIN Code: ZAE000057360
Overview of trading for the nine months ended 30 September 2007
Introduction
Favourable equity markets continued to buoy the operational performance of both
the life and asset management businesses during the period. In addition the
group enjoyed meaningful and sustainable increases in new business volumes.
Indexed new business production at Liberty, (life and off balance sheet sales
made by Liberty sales and distribution), increased by 19.4%, showing the
advantage of leveraging off the group`s distribution capabilities. Whilst
capital market volatility continues, Liberty is operationally well positioned.
Life Assurance (Liberty)
Liberty`s indexed new business was R3 957m for the first nine months of 2007, up
14.7% on the same period in 2006 (Table 1), with improving margin trends, which
will positively improve the value of new business. All retail channels continued
to perform well and indexed individual new business premiums grew by 15.5%. Risk
products continued to sell well, augmented by even stronger sales of the group`s
investment and savings products. Indexed corporate new business premiums
increased by 11.3%. Recurring premiums remained strong. Single premium flows
were lower than 2006.
Notwithstanding the negative effect of higher asset levels on withdrawals and
the run off in the Capital Alliance book, retail cash flows remain positive.
Management expenses were tightly controlled and renewal costs were slightly
better than actuarial assumptions. The weighted average gross investment return
was 14.6% compared to 22.7% for the same period in 2006.
Asset Management (Stanlib)
Assets under management increased to R339bn during the period (up 10.8% on the
31 December 2006 comparative). Total sales for the period were R86.4bn up 6.7%
on the same period in 2006, as reflected in table 2. Retail net cash flows were
up 45.4% to R6.7bn. Total net cash flows improved strongly at R11.6bn compared
to a net cash outflow of R0.2bn in 2006.
Excellent investment performance was maintained across the product set, with
specific success in the equity franchises. Stanlib, despite its broad product
set, was rated the top unit trust manager in the PlexCrown Survey and was ranked
second in the Alexander Forbes SA Large Manager watch over the 12 months to 30
October 2007.
Conclusion
The changes in sales and distribution are having the desired effect as evidenced
by the strong new business sales performance over the period under review and
have continued to do so post end of September 2007. Strong investment
performance at Stanlib is starting to reap rewards, as the cash flows have
illustrated. Sustained strong performance should continue this positive trend.
Audit/Review
None of the figures has been audited or reviewed by the Group`s auditors.
Liberty Group new business for the nine months ended 2007
Table 1 Liberty Life on balance sheet new business for the nine months ended 30
September 2007
2007 2006 %
change
Rm Rm
Single premium new business 9 828 8 981 9.4%
Individual Life 8 805 7 730 13.9%
Corporate Operations 1 023 1 251 -18.2%
Recurring premium new business 2 974 2 551 16.6%
Individual Life 2 405 2 073 16.0%
Corporate Operations 569 478 19.0%
Total new business 12 802 11 532 11.0%
Individual Life 11 210 9 803 14.4%
Corporate Operations 1 592 1 729 -7.9%
Indexed new business 3 957 3 449 14.7%
Individual Life 3 286 2 846 15.5%
Corporate Operations 671 603 11.3%
Table 2 Stanlib off balance sheet new business for the nine months ended 30
September 2007
2007 2006 %
change
Rm Rm
Retail sales excluding money 25 907 24 875 4.1%
market
Institutional sales excluding 9 619 11 187 -14.0%
money market
Total sales excluding money 35 526 36 062 -1.5%
market
Money market 50 862 44 888 13.3%
Total sales 86 388 80 950 6.7%
Johannesburg
30 November 2007
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 30/11/2007 14:55:28 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
