| Thu 8 May 2008, 8:00 | | MAF - Mutual & Federal Insurance Company Limited - |
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MAF
MAF
MAF - Mutual & Federal Insurance Company Limited - Quarterly operational update
Mutual & Federal Insurance Company Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1970/006619/06)
Share code JSE: MAF & Share code NSX: MTF
ISIN: ZAE000010823
("Mutual & Federal" or "the Company")
Quarterly operational update
The text of this Mutual & Federal business update for the three months ended 31
March 2008, released on 8 May 2008, can be accessed on Mutual & Federal`s
website http//www.mf.co.za
Gross premiums of R2.6 billion were up 6% over the comparative period,
reflecting increases in rates and sums insured in most portfolios, partly offset
by the cancellation of certain uneconomical blocks of business where there was
no prospect of a return to profitability.
The underwriting account was negatively impacted during the quarter by a
significant increase in the frequency and severity of fire losses on the
commercial property account and substantial weather-related claims in the
personal portfolio.
The annualised investment return for the quarter was 8.1% which was satisfactory
in light of the highly volatile investment environment and the solvency margin
(being the ratio of net assets to net premiums) at 31 March 2008 was 42% which
was unchanged from the figure at 31 December 2007.
Discussions with community-based investment group, Royal Bafokeng Holdings,
regarding a potential sale of Old Mutual`s controlling interest in Mutual &
Federal, were terminated during the quarter, as the parties were unable to agree
mutually acceptable terms in the current economic environment. Old Mutual is
therefore continuing to evaluate various options with regard to its investment
in Mutual & Federal.
As the payment of a final dividend in respect of 2007 was deferred in view of
the above discussions, a "late" 2007 final capitalisation award with a cash
dividend alternative of R1,35 (2006: R1,35) has now been declared,
Johannesburg
8 May 2008
Sponsor
Nedbank Capital
Date: 08/05/2008 08:00:01 Produced by the JSE SENS Department.
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