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MET
MET
MET/MTD - Metropolitan - Metropolitan Holdings Financial Services Group
Audited Group Results For The Year Ended 31 December 2008
Metropolitan Holdings Limited
Incorporated in the Republic of South Africa
Registration Number: 2000/031756/06
JSE share code: MET
NSX share code: MTD
ISIN: ZAE000050456
("Metropolitan" or "the company")
METROPOLITAN HOLDINGS FINANCIAL SERVICES GROUP
AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
HIGHLIGHTS
- Net funds received from clients +R8bn
- Retail new business PVP +23%
- International new business PVP +18%
- Value of new insurance business +38%
- Health administration profits +56%
- Group CAR cover 3.1 times
REVIEW OF OPERATIONS AND PROSPECTS
Operating environment
Until very recently South Africa had been enjoying a prolonged period of
buoyant equity and property markets, strong GDP growth and significant
disposable income across most consumer classes. However, during 2008 there
was an almost complete reversal. Investment markets were extremely turbulent
and falling, interest rates rose and inflation soared to above 10%, driven
mainly by imported price pressures (particularly relating to food and
transport). All of these factors put pressure on financial and other
operating measures.
2008 was characterised by extreme volatility in interest rates, in particular
the government bond yield curve on which we base our assumptions to project
asset returns and discount projected shareholder cashflows.
Salient features and highlights
- Diluted core headline earnings per share for the year remained strong at
151 cents, increasing by 6% over 2007.
- The growth in diluted core headline earnings per share was assisted by a
5% reduction of the average number of shares in issue - a direct result
of capital management activities.
- Earnings and headline earnings, which include adjustments for negative
economic and other market value impacts, reflected a loss for the year.
- Total recurring new business premium income was 16% higher, while the
value of new insurance business increased by 38%.
- Investment income on shareholder assets was 30% up, driven by higher
cash balances and increased interest rates.
- The economic capital model is subject to constant refinement and the
capital required as at 31 December 2008 increased marginally despite the
turbulent markets.
- The embedded value per share held up very well, reducing by 123 cents
from 1 832 cents to 1 709 cents, almost exclusively owing to the falling
markets.
- The group experienced strong cashflow from clients, recording a net
inflow of R8 billion.
- Ordinary dividend per share of 95 cents was maintained.
- The general economic slow-down challenged operating profit across the
group.
Operational overview
Retail
- New business PVP (present value of expected premiums) exceeded
expectations, ending 23% higher.
- The increasingly difficult consumer conditions led to a higher
propensity to lapse or surrender life insurance policies. However,
management action in this area intensified, resulting in better overall
persistency than would have been expected in the current operating
environment.
- The new business margin increased from 2.0% to 2.8% (PVP basis),
assisted by improvements in new business production, product mix and
expense management.
- A deferred tax asset was recognised at the end of 2007 for accumulated
tax losses in the policyholder funds. As a result, the tax profits (tax
charged but not paid) that emerged during 2007 in the retail business
were not repeated in the current year.
- Operating profit decreased by only 3%, reflecting the lower average
investment assets towards the end of the year, the change in accounting
policy referred to above as well as the worsening economic environment.
Corporate
- New business PVP could not match the performance recorded during 2007,
and ended the year down 33%. Securing new business is a lengthy process
and premium inflows remain volatile.
- Risk margins remained under pressure throughout the period, dampening
both operating and new business profits.
- Similarly, the new business PVP margin decreased from 1.3% to 0.8%,
reflecting the lower profit margins.
- Metropolitan Retirement Administrators successfully took on its first
external client (15 000 members).
- Operating profit ended 13% lower, mostly as a result of lower risk
profits.
International
- New business PVP, based on the established southern African operations,
increased by 18%, boosted primarily by the individual life performance
in Lesotho.
- The two western operations (Ghana and Nigeria) increased new business
production and are progressing well.
- Overall, the southern operations recorded a strong new business margin
of 3.4% (PVP), falling marginally from 3.6% in 2007.
- Total operating profit fell 15%, taking into account investments in the
start-up businesses.
Asset management
- The value of new business, comprising collective investment inflows and
third-party mandates, grew by 11% to R39 million.
- Operating profit, however, declined by 7% as a result of administration
margin compression, lower absolute investment market performance as well
as increased staff costs.
Health (MHG)
- New business continued to add value, mostly as a result of the
tremendous growth in membership of the Government Employees Medical
Scheme (GEMS), the tender for which was renewed during the year.
- Total principal members under administration, including franchise, at
the year-end were in excess of 750 000 (almost two million lives),
confirming MHG`s status as South Africa`s largest administrator of
restricted medical schemes.
- As a result of the continued growth in members, together with improved
operational efficiencies, operating profit increased by 56%.
Prospects
- Metropolitan continues to capitalise on its focused market positioning,
in line with its strategy of creating prosperity for Africa`s people, by
providing accessible, affordable and appropriate products.
- All the businesses within the group are well prepared for the threats
and opportunities posed by ongoing changes in the highly regulated
environments in which they operate.
- Food, fuel and transport inflation, together with unemployment levels,
remains the biggest challenge to our core target market. Any further
increases are likely to curtail new business prospects and threaten the
persistency of the in-force book.
- The board is satisfied that the business remains strategically well
positioned, thanks to management`s specific focus on client service,
product innovation, business retention, cost containment,
diversification and capital management.
DIRECTORS` STATEMENT
The directors take pleasure in presenting the audited results of the
Metropolitan Holdings financial services group for the year ended 31 December
2008.
Basis of presentation of financial information
These results have been prepared in accordance with International Financial
Reporting Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations issued and effective at the
time of preparing these results, including compliance with IAS 34 Interim
Financial Reporting. They are also in compliance with the listings
requirements of the JSE Limited and the Companies Act of South Africa.
The accounting policies of the group have been applied consistently to all
periods presented. The preparation of financial statements in accordance
with IFRS requires the use of certain critical accounting estimates as well
as the exercise of managerial judgement in the application of the group`s
accounting policies. Such judgement, assumptions and estimates are disclosed
in detail in the annual financial statements for the year ended 31 December
2008.
Changes to presentation and restatement of 2007 results
The classification of certain policy loans, premium income and scrip lending
fees was changed from that disclosed in 2007. These changes are not material,
and do not have any impact on earnings attributable to equity holders of the
group. The full details are disclosed in the annual financial statements at
31 December 2008.
CAPITAL MANAGEMENT
- The investment markets were extremely volatile and unpredictable, both
locally and internationally.
- During the first half of the year Metropolitan bought back 16 million
listed ordinary shares for R201 million.
- The group actively monitored its capital position throughout the
operations with a view to protecting shareholder capital during these
volatile investment market conditions.
- Dynamic asset allocation, capital protection and other strategies were
applied where deemed appropriate, in order to ensure that the group
maintained adequate capital.
- As a result of the poor investment markets, affecting both local
equities and in our instance international bonds, some smoothed bonus
funds ended the year with funding levels below 92.5%. Metropolitan
believes that these funds will be able to recover to full funding within
the required three years, as was the case after previous market falls.
- The year-end economic capital required by the Metropolitan group was
R4.5 billion, 1.9 times the statutory requirement.
- The actual capital held by the group at the year-end exceeded this
requirement by approximately R1 billion.
- The insurance operations remained well capitalised, with a group CAR
(capital adequacy requirement) cover ratio of 3.1 times.
- No share buy-backs are anticipated.
CORPORATE GOVERNANCE
The board has satisfied itself that appropriate principles of corporate
governance were applied throughout the year under review.
DIRECTORATE CHANGES AND DIRECTORS` SHAREHOLDING
Peter Doyle and Abel Sithole resigned as directors with effect from 31 March
2008. All transactions in listed shares involving directors were disclosed on
SENS as required.
CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
The group had no material capital commitments at 31 December 2008. The group
is party to legal proceedings in the normal course of business, and
appropriate provisions are made when losses are expected to materialise.
POST BALANCE SHEET EVENTS
In January 2009 Metropolitan reached a settlement with the curators of
Ovation and agreed to compensate policyholders for losses incurred. This
settlement has no impact on group earnings as the liability to policyholders
already existed. No other material post balance sheet events occurred between
the balance sheet date and the date of approval of the annual financial
statements.
DIVIDEND DECLARATION
Ordinary listed shares
The dividend policy for ordinary listed shares, approved by the directors and
consistent with prior years, is to provide shareholders with stable dividend
growth that reflects expected growth in underlying earnings in the medium
term, while allowing the dividend cover to fluctuate. The board felt it
prudent not to increase the total dividend.
An interim dividend of 40.00 cents per ordinary share was declared in
September and paid in October 2008. On 10 March 2009 a final divided of
55.00 cents per ordinary share was declared. This dividend is payable to the
holders of ordinary shares recorded in the register of the company at the
close of business on Friday, 3 April 2009 and will be paid on Monday, 6 April
2009. The last day to trade "cum" dividend will be Friday, 27 March 2009.
The shares will trade "ex" dividend from the start of business on Monday, 30
March 2009. Share certificates may not be dematerialised or rematerialised
between Monday, 30 March and Friday, 3 April 2009, both days inclusive.
Where applicable, dividends in respect of certificated shareholders will be
transferred electronically to shareholders` bank accounts on payment date. In
the absence of specific mandates, dividend cheques will be posted to
certificated shareholders on or about payment date. Shareholders who have
dematerialised their shares will have their accounts with their CSDP or
broker credited on Monday, 6 April 2009.
Staff share purchase scheme dividend
A dividend of R11 million (2007: R16 million) was declared on the unlisted
shares in the staff share purchase scheme, as provided for in the trust deed.
Preference share dividend
Dividends of R33 million (16.8%), R7 million (55.00 cents per share) and R30
million (19.0%) were declared on 10 March 2009 on the unlisted A1, A2 and A3
Metropolitan preference shares respectively, and are payable on 31 March
2009.
Dividends of R32 million (16.9%), R5 million (40.00 cents per share) and R29
million (18.7%) were declared in September 2008 on the unlisted A1, A2 and A3
Metropolitan preference shares respectively, and paid on 30 September 2008.
The declaration rate was determined as set out in the company`s articles.
Preference share dividends are included under finance costs in these results.
AUDIT OPINION
The auditors, PricewaterhouseCoopers Inc, have issued their opinion on the
group financial statements for the year ended 31 December 2008. A copy of
their unqualified report is available for inspection at the company`s
registered office.
INDEPENDENT ACTUARIAL REVIEW
The embedded value and value of new business results have been reviewed by
Deloitte & Touche.
Signed on behalf of the board
Wilhelm van Zyl Group chief executive
Preston Speckmann Group finance director
Cape Town
11 March 2009
Directors:
Prof Wiseman Nkuhlu (non-executive group chairman), Wilhelm van Zyl (group
chief executive), Phillip Matlakala (executive director), Preston Speckmann
(executive director), Fatima Jakoet, Peter Lamprecht, Syd Muller, John
Newbury, JJ Njeke, Bulelwa Paledi, Andile Sangqu, Marius Smith, Franklin
Sonn, Johan van Reenen
Secretary: Bongiwe Gobodo-Mbomvu
Registered office: 7 Parc du Cap, Mispel Road, Bellville 7535
Transfer secretaries Sponsor
Link Market Services SA (Proprietary) Limited Merrill Lynch
(Registration number 2000/007239/07)
5th Floor, 11 Diagonal Street,
Johannesburg, 2001
P O Box 4844, Johannesburg, 2000
Telephone: +27 11 834 2266
E-mail: info@linkmarketservices.co.za
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Summary of financial information
Year-end results 2008
Basis of presentation of financial information
These results have been prepared in accordance with International Financial
Reporting Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations issued and effective at the
time of preparing these results, including compliance with IAS 34 Interim
Financial Reporting. They are also in compliance with the Listing
Requirements of the JSE Limited and the Companies Act of South Africa.
The accounting policies of the group have been applied consistently to all
periods presented. The preparation of financial statements in accordance
with IFRS requires the use of certain critical accounting estimates as well
as the exercise of managerial judgement in the application of the group`s
accounting policies. Such judgement, assumptions and estimates are disclosed
in detail in the annual financial statements for the year ended 31 December
2008.
Restatement of 2007 results
- Certain policy loans were previously disclosed as loans and receivables
within the financial instruments category. These policy loans (R175
million) together with the related insurance (R134 million) and
investment contract liabilities (R41 million) were derecognised and the
disclosure was changed from what was disclosed in 2007. The opening
balances in 2007 for insurance (R94 million) and investment (R45
million) contract liabilities were also restated. This resulted in net
insurance benefits and claims for 2007 increasing by R40 million as only
insurance premiums are recorded in the income statement. This had no
impact on earnings attributable to equity holders of the group.
- Certain investment contracts were accounted for as insurance business in
2007. Premium income and operating profit on insurance contracts was
therefore reduced by R77 million with a corresponding increase in fee
income from investment contracts in 2007. This had no impact on earnings
attributable to equity holders of the group.
- The disclosure of scrip lending fees received was changed from that
disclosed in the 2007 annual financial statements. Scrip lending fee
income of R19 million, previously disclosed as investment income, has
been reclassified as fee income as this class was considered more
appropriate. This had no impact on earnings attributable to equity
holders of the group.
Embedded value
Revised embedded value guidance from the Actuarial Society of South Africa,
which is intended to be materially consistent with the CFO Forum`s European
Embedded Value (EEV) Principles issued in May 2004, became effective for
reporting periods ending on or after 31 December 2008. The disclosed
embedded value results have been prepared in accordance with these new
guidelines. The diluted embedded value at 31 December 2007 has been restated
accordingly, (decrease of R171 million).
Standards and interpretations of published standards effective in 2008 and
relevant to the group
IFRIC 11 - IFRS 2 - Group and treasury share transactions
IFRIC 11 provides guidance in respect of share-based transactions involving
treasury shares or group entities, for example options over a parent`s shares
should be accounted for as equity-settled or cash-settled share-based payment
transactions in the stand-alone accounts of the parent and group. This
interpretation does not have an impact on the group`s financial results.
IFRIC 14 - IAS 19 - The limit on a defined benefit asset
IAS 19 - Employee benefits - limits the measurement of a defined benefit
asset. Certain funds include minimum funding requirements which normally
stipulate a minimum amount or level of contributions that must be made to a
plan over a given period. Therefore, a minimum funding requirement may limit
the ability of the entity to reduce future contributions. IFRIC 14 provides
guidance on when a minimum funding requirement may give rise to a liability
if the required contributions will not be available to the entity once they
have been paid. This interpretation does not have an impact on the group`s
financial results.
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED BALANCE SHEET 31.12.2008 31.12.2007
Rm Rm
ASSETS
Intangible assets 525 562
Owner-occupied properties 678 592
Property and equipment 186 233
Investment properties 3 031 2 710
Investment in associates 663 405
Investment in joint venture 35 61
Employee benefit assets 248 177
Financial instrument assets (1) 53 692 60 314
Insurance and other receivables 1 507 1 476
Deferred income tax 12 15
Reinsurance contracts 212 179
Current income tax assets 14 -
Cash and cash equivalents 8 810 8 274
Non-current assets held for sale - 185
Total assets 69 613 75 183
EQUITY
Capital and reserves attributable to equity 5 847 6 817
holders
Minority interests 141 124
Total equity 5 988 6 941
LIABILITIES
Insurance contract liabilities
Long-term insurance contracts (2) 32 023 33 397
Capitation contracts 2 1
Financial instrument liabilities
Investment contracts 25 209 28 385
-with discretionary participation 11 278 14 273
features(2)
- designated as fair value through income 13 931 14 112
Other financial instrument liabilities (3) 3 119 2 863
Deferred income tax 127 492
Employee benefit obligations 188 252
Other payables 2 934 2 545
Current income tax liabilities 23 307
Total liabilities 63 625 68 242
Total equity and liabilities 69 613 75 183
(1) Financial instrument assets consist of the following:
Assets designated as fair value through income: R50 795 million (2007:
R58 264 million)
Assets held for trading: R1 764 million (2007: R850 million)
Available-for-sale assets: R5 million (2007: R7 million)
Loans and receivables: R1 128 million (2007: R1 193 million)
(2) Under IFRS4, the group continues to account for long-term insurance
contracts and investment contracts with discretionary participation
features using SA GAAP.
(3) Other financial instrument liabilities consist of the following:
Liabilities designated as fair value through income: R272 million (2007:
R635 million)
Liabilities held for trading: R1 498 million (2007: R858 million)
Liabilities at amortised cost: R1 349 million (2007: R1 370 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
STATEMENT OF ACTUARIAL VALUES OF ASSETS AND 31.12.2008 31.12.2007
LIABILITIES ON REPORTING BASIS Rm Rm
Total assets per balance sheet 69 613 75 183
Actuarial value of policy liabilities per (57 232) (61 782)
balance sheet
Other liabilities per balance sheet (6 393) (6 460)
Minority interests (141) (124)
Excess - group per reporting basis 5 847 6 817
Net assets - other businesses (934) (1 102)
Excess - long-term insurance business (4) 4 913 5 715
LONG-TERM INSURANCE BUSINESS (4)
Change in excess of long-term insurance (802) (121)
business (4)
Increase in share capital (39) (12)
Acquisition of Union Life - (54)
Change in other reserves (45) (36)
Dividend paid 1 053 1 606
Total surplus arising 167 1 383
Operating profit 734 754
Investment income on excess 309 289
Net realised and fair value (losses)/gains on (329) 364
excess
Investment variances (5) (387) 29
Basis and other changes (197) (180)
Employee benefit assets (6) 37 48
Deferred tax (7) - 79
Consolidation adjustments 75 217
Income tax (credits)/expenses (8) (170) 549
Adjustment for finance costs 49 47
Results of long-term insurance business (4) 121 2 196
Results of other group businesses (277) 289
Results of operations per income statement (156) 2 485
STATEMENT OF ACTUARIAL VALUES OF ASSETS AND 31.12.2008 31.12.2007
LIABILITIES ON STATUTORY BASIS Rm Rm
Reporting excess - long-term insurance 4 913 5 715
business (4)
Disregarded assets in terms of statutory (489) (293)
requirements (9)
Capital adjustments 300 91
Statutory excess - long-term insurance 4 724 5 513
business (4)
Capital adequacy requirement (CAR) (Rm) 2 336 1 609
Ratio of long-term insurance business excess 2.0 3.4
to CAR (times)
Discretionary margins 1 756 2 151
(4) The long-term insurance business includes both insurance and investment
contract business and is the simple aggregate of all the life insurance
companies in the group. It includes minority interests and other items,
which are eliminated on consolidation. It excludes non-insurance
business.
(5) Investment variances reflect the impact of actual investment returns on
the value of future expense recoveries and include any change in the PGN
110 (Allowance for embedded investment derivatives) liability.
(6) Recognition of Metropolitan Staff Retirement Fund surplus as well as
movements in employee benefit assets not being utilised by the group.
(7) Deferred tax asset created at 31 December 2007 in respect of accumulated
tax losses.
(8) 2007 and 2008 includes deferred tax on contract holder capital gains and
losses.
(9) Disregarded assets are those as defined in the South African Long Term
Insurance Act and are only applicable to South African Long Term
insurance companies. Adjustments are also made for the international
insurance companies from reporting excess to statutory excess as
required by their regulators.
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED INCOME STATEMENT 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Net insurance premiums received 10 405 8 715
Fee income (10) 1 151 903
Investment income 4 396 3 613
Net realised and fair value (losses)/gains (8 484) 4 407
Net income 7 468 17 638
Net insurance benefits and claims 8 069 6 232
Change in liabilities (4 468) 4 175
Change in insurance contract liabilities (1 451) 2 577
Change in investment contracts with DPF (2 990) 1 562
liabilities
Change in reinsurance provision (27) 36
Fair value adjustments on investment contract 269 1 518
liabilities
Fair value adjustments on collective 18 13
investment scheme liabilities
Depreciation, amortisation and impairment 221 169
expenses
Employee benefit expenses 1 269 1 145
Sales remuneration and distribution costs 1 235 1 127
Other expenses 1 011 774
Expenses 7 624 15 153
Results of operations (156) 2 485
Share of (loss)/profit of associates (2) 5
Share of loss of joint venture (26) -
Finance costs (188) (174)
(Loss)/profit before tax (372) 2 316
Income tax credits/(expenses) 77 (788)
Earnings (295) 1 528
Attributable to:
Equity holders of group (319) 1 503
Minority interests 24 25
(295) 1 528
(10) Fee income consists of the following:
Investment contracts: R174 million (2007: R97 million)
Trust and fiduciary services: R144 million (2007: R93 million)
Other fee income: R833 million (2007: R713 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
RECONCILIATION OF Basic earnings Diluted earnings
HEADLINE EARNINGS
attributable to equity
holders of group
12 mths to 12 mths to 12 mths to 12 mths to
31.12.2008 31.12.2007 31.12.2008 31.12.2007
Rm Rm Rm Rm
Earnings (319) 1 503 (319) 1 503
Finance costs - 138 124
preference shares
Diluted earnings (181) 1 627
Goodwill impairment 44 44
Headline earnings (11) (275) 1 503 (137) 1 627
Net realised and fair 603 (719) 603 (719)
value losses/(gains) on
excess
Basis and other changes 580 64 580 64
and investment variances
Employee benefit assets (37) (48) (37) (48)
Dilutory effect of 1 6
subsidiaries (12)
Investment income on 1 13
treasury shares -
contract holders (13)
STC on special dividend 60 60
Core headline 871 860 1 011 1 003
earnings (14)
(11) Headline earnings consist of operating profit, investment income, net
realised and fair value gains, investment variances, basis and other
changes and the first-time recognition of an employee benefit asset
(12) Metropolitan Health and Metropolitan Kenya are consolidated at 100% in
the results. For the purposes of diluted core headline earnings,
minority interests and investment returns are reinstated.
(13) For diluted core headline earnings, treasury shares held on behalf of
contract holders are deemed to be issued. For diluted earnings and
headline earnings, these shares are deemed to be cancelled.
(14) Net realised and fair value gains on investment assets, investment
variances and basis and other changes can be volatile; therefore core
headline earnings have been disclosed that comprise operating profit and
investment income on shareholder assets.
METROPOLITAN HOLDINGS - GROUP RESULTS
EARNINGS PER SHARE (cents) 12 mths to 12 mths to
attributable to equity holders of group 31.12.2008 31.12.2007
Basic
Core headline earnings 167.18 160.15
Headline earnings (52.78) 279.89
Earnings (61.23) 279.89
Weighted average number of shares (million) 521 537
Diluted
Core headline earnings 151.12 142.27
Weighted average number of shares (million) 669 705
Headline earnings (20.48) 232.43
Earnings (27.06) 232.43
Weighted average number of shares (million) 669 700
DIVIDENDS 2008 2007
Ordinary listed shares (cents per share)
Interim 40.00 36.00
Final 55.00 59.00
Total 95.00 95.00
DIVIDENDS
Convertible redeemable preference shares A1 A2 A3
Paid - 31 March 2007 Rate 13.5% 125.00 cps 13.3%
Rm 26 16 21
Paid - 30 September 2007 Rate 14.4% 36.00 cps 15.6%
Rm 27 5 24
Paid - 31 March 2008 Rate 16.1% 59.00 cps 18.0%
Rm 31 8 28
Paid - 30 September 2008 Rate 16.9% 40.00 cps 18.7%
Rm 32 5 29
Payable - 31 March 2009 Rate 16.8% 55.00 cps 19.0%
Rm 33 7 30
Redemption value (per share) R 5.12 9.18 9.18
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF DILUTED CORE HEADLINE EARNINGS 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Retail business 448 460
Operating profit 612 622
Tax (164) (162)
Corporate business 153 176
Operating profit 211 248
Tax (58) (72)
International business 94 110
Operating profit 107 116
Tax (13) (6)
Asset management business 65 70
Operating profit 92 96
Tax (27) (26)
Health business 100 64
Operating profit 142 116
Tax (42) (52)
Shareholder capital 151 123
Holding company expenses (55) (58)
Strategic ventures (78) (44)
Investment income on shareholder excess 501 384
Income tax on investment income (217) (159)
Diluted core headline earnings 1 011 1 003
RESULTS OF OPERATIONS FROM Net Expenses Results of operations
ADMINISTRATION BUSINESS income
(gross of minority
interests and before
finance costs and tax)
12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm Rm Rm
Health business 823 (682) 141 111
Asset administration 114 (58) 56 62
Asset management 119 (82) 37 35
Metropolitan Card 40 (88) (48) (22)
Operations
1 096 (910) 186 186
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Changes in share capital
Balance at beginning 19 (136)
Staff share scheme shares released 31 105
Decrease in treasury shares held on behalf of 1 50
contract holders
Balance at end 51 19
Changes in other reserves
Balance at beginning 495 413
Total recognised income 36 70
Revaluation of land and buildings 24 65
Foreign currency translation differences 12 5
Employee share schemes - value of services 4 12
provided
Transfer to retained earnings (3) -
Balance at end (15) 532 495
Changes in retained income
Balance at beginning 6 303 6 417
Earnings for period (319) 1 503
Dividend paid (520) (926)
Shares repurchased (203) (691)
Transfer from other reserves 3 -
Balance at end 5 264 6 303
Capital and reserves attributable to equity 5 847 6 817
holders
Changes in minority interests
Balance at beginning 124 109
Total recognised income 28 26
Earnings for period 24 25
Foreign currency translation differences 4 1
Dividend paid (12) (49)
Other 1 38
Balance at end 141 124
Total equity 5 988 6 941
METROPOLITAN HOLDINGS - GROUP RESULTS
(15) Other reserves consist of the following:
Land and buildings revaluation reserve: R182 million (2007: R161
million)
Foreign currency translation reserve: R1 million (2007: (R11 million))
Fair value reserve: R53 million (2007: R50 million)
Non-distributable reserve: R296 million (2007: R295 million)
CONSOLIDATED CASH FLOW STATEMENT 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Net cash inflow from operating activities 1 455 3 166
Net cash outflow from investing activities (163) (115)
Net cash outflow from financing activities (760) (1 668)
Net cash flow 532 1 383
Effect of foreign exchange rate changes 4 4
Cash resources at beginning 8 274 6 887
Cash resources at end 8 810 8 274
METROPOLITAN HOLDINGS - GROUP RESULTS
SEGMENT REPORT 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Revenue
Premiums received 11 855 11 667
Retail 7 931 6 726
Corporate 2 899 3 947
Health 19 19
International 1 006 975
Fee income 1 151 903
Retail 144 93
Corporate 92 57
Asset management 220 217
Health 787 683
International 34 12
Shareholder capital 11 11
Inter-segment fee income (137) (170)
Expenses
Payments to contract holders 9 795 7 575
Retail 5 013 4 180
Corporate 4 141 2 712
Health 16 17
International 625 666
Other expenses 3 924 3 389
Retail 2 415 1 987
Corporate 325 312
Asset management 141 133
Health 664 587
International 381 305
Shareholder capital 119 256
Inter-segment expenses (121) (191)
1. The South African operations are segregated into retail, corporate,
asset management, health and shareholder capital. The international
companies - Botswana, Ghana, Kenya, Lesotho, Mauritius, Namibia, Nigeria
and Swaziland - are all managed as a single operating segment.
2. Segment assets did not change materially from 31 December 2007, except
for market-related movements.
3. Other segment information used to assess the performance of the
operating segments is disclosed throughout the results and includes,
diluted core headline earnings, new business premiums, value of new
business and profitability of new business as a % of APE.
METROPOLITAN HOLDINGS - GROUP RESULTS
4. Shareholder capital expenses are net of first-time recognition of
employee benefit assets and the movements in employee benefit assets not
being utilised by the group.
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE 31.12.2008 31.12.2007
Rm Rm
Reporting excess - long-term insurance 4 913 5 715
business
Disregarded assets (16) (177) (124)
Dilutory effect of subsidiaries (17) (7) (8)
Reclassification from non-covered 7 (7)
business
Diluted net asset value - covered 4 736 5 576
business
Net value of in-force business 4 161 4 249
Individual life 3 501 3 430
Gross value of in-force business 3 864 3 871
Less cost of capital (363) (441)
Employee benefits 660 819
Gross value of in-force business 842 945
Less cost of capital (182) (126)
Diluted embedded value - covered 8 897 9 825
business
Non-covered business
Net assets - other businesses 934 1 102
Reclassification to covered business (7) 7
Consolidation adjustments (121) (109)
Adjustments for dilution 1 029 1 072
Dilutory effect of subsidiaries (17) 88 81
Staff share scheme loans 91 141
Treasury shares held on behalf of 9 13
contract holders
Liability - convertible redeemable 841 837
preference shares
Diluted net asset value - non-covered 1 835 2 072
business
Net value of in-force business 598 540
Asset management 280 257
Health 664 666
Holding company expenses(18) (346) (383)
Diluted embedded value - non-covered 2 433 2 612
business
Diluted adjusted net asset value 6 571 7 648
Value of in-force business 4 759 4 789
Diluted embedded value 11 330 12 437
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE 31.12.2008 31.12.2007
Rm Rm
Required capital - covered business 3 813 3 554
(adjusted for qualifying debt)
Surplus capital - covered business 923 2 022
Diluted embedded value per share (cents) 1 709 1 832
Diluted net asset value per share 991 1 126
(cents)
Diluted number of shares in issue 663 679
(million) (19)
(16) Disregarded assets as disclosed in the statement of actuarial values of
assets and liabilities are adjusted for internally developed software,
receivables older than 12 months and recognised employee benefit assets.
(17) For accounting purposes, Metropolitan Health and Metropolitan Kenya have
been consolidated at 100% in 2007 and 2008 in the balance sheet. For
embedded value purposes, disclosed on a diluted basis, the minority
interests and related funding have been reinstated.
(18) The holding company expenses reflect the present value of projected
recurring expenses of that company.
(19) The diluted number of shares in issue takes into account all issued
shares, assuming conversion of the convertible redeemable preference
shares and the release of staff share scheme shares, and includes the
treasury shares held on behalf of contract holders.
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE ATTRIBUTABLE TO Net Value 31.12.2008 31.12.2007
GROUP asset of in-
value force
Rm Rm Rm Rm
Covered business
Metropolitan Life Ltd 4 142 3 567 7 709 8 769
Metropolitan Odyssey 35 - 35 34
Union Life 34 11 45 41
International 525 583 1 108 981
Metropolitan Life 58 - 58 50
International
Metropolitan Namibia 169 299 468 417
Metropolitan Botswana 125 69 194 178
Metropolitan Lesotho 113 202 315 307
Metropolitan Kenya 13 3 16 17
Metropolitan Ghana - 8 8 12
Metropolitan Swaziland 12 - 12 -
Metropolitan Nigeria 35 2 37 -
Total covered business 4 736 4 161 8 897 9 825
Non-covered business
Asset management 97 280 377 394
Metropolitan Health Group 259 664 923 831
Metropolitan Holdings (after 1 479 (346) 1 133 1 387
consolidation adjustments)
Total non-covered business 1 835 598 2 433 2 612
Total embedded value 6 571 4 759 11 330 12 437
Diluted net asset value - non- (1 835)
covered business
Disregarded assets 177
Reporting excess - long-term 4 913
insurance business
- The value of the health business is net of R54 million at 31.12.2007,
being the total liability in respect of the option held by MHG
management. The liability was settled during February 2008.
- Net of minority interests.
METROPOLITAN HOLDINGS - GROUP RESULTS
VALUE OF NEW BUSINESS 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Retail business 211 119
Gross value of new business 223 125
Less: Cost of capital (12) (6)
Corporate business 20 46
Gross value of new business 31 55
Less: Cost of capital (11) (9)
International business 17 15
Gross value of new business 17 15
Less: Cost of capital (0) (0)
Value of covered new business 248 180
Value of non-covered new business 123 156
Asset management 39 35
Health 84 121
Total value of new business 371 336
- 2008 and 2007 results exclude Metropolitan Ghana, Metropolitan Kenya and
Metropolitan Nigeria and Metropolitan Swaziland as these businesses were
in start-up phase. The 2007 also excludes results for Union Life as the
company was acquired late in 2007.
- Net of minority interests.
- Due to rounding, the cost of capital for the international business is
less than R1 million.
METROPOLITAN HOLDINGS - GROUP RESULTS
NEW BUSINESS PREMIUMS - COVERED BUSINESS 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Recurring premiums
Retail business 961 804
Corporate business 210 207
International business 107 91
1 278 1 102
Single premiums
Retail business 3 239 2 519
Corporate business 979 2 154
International business 96 121
4 314 4 794
Annual premium equivalent (APE) 1 709 1 581
Retail business 1 285 1 056
Corporate business 308 422
International business 116 103
Present value premiums (PVP) 10 354 10 068
Retail business 7 426 6 033
Corporate business 2 431 3 613
International business 497 422
- 2008 and 2007 exclude Metropolitan Ghana (2008: R13 million; 2007: R9
million APE), Metropolitan Kenya (2008: R2 million; 2007: R4 million
APE), Metropolitan Nigeria (2008: R14 million) and Metropolitan
Swaziland (2008: R2 million) as these businesses are in start-up phase.
2007 excludes results for Union Life as the company was acquired late in
2007.
- Net of minority interests.
METROPOLITAN HOLDINGS - GROUP RESULTS
PROFITABILITY OF NEW BUSINESS - COVERED 12 mths to 12 mths to
BUSINESS 31.12.2008 31.12.2007
% of APE 14.5 11.4
Retail business 16.4 11.3
Corporate business 6.5 10.9
International business 14.7 14.6
% of PVP 2.4 1.8
Retail business 2.8 2.0
Corporate business 0.8 1.3
International business 3.4 3.6
SOURCE OF NEW BUSINESS PRODUCTION 31.12.2008 31.12.2007
- COVERED BUSINESS
Individual life - insurance and
investment business
APE Total APE Total
% premium % % premium %
Tied agents and personal financial 39 31 36 26
advisors
Brokers 27 36 25 25
Wholesale and credit life 20 7 21 8
Third party business 5 19 9 34
International 9 7 9 7
PRINCIPAL ASSUMPTIONS (South Africa) (20) 31.12.2008 31.12.2007
% %
Pre-tax investment return
Equities 11.0 10.5
Properties 8.5 10.5
Government stock 7.5 8.5
Cash 6.5 6.5
Risk discount rate (RDR) (21) 10.0 10.3
Investment return (before tax) - smoothed bonus 9.8 9.9
Expense inflation rate 4.3 5.3
(20) The principal assumptions relate only to the South African life
insurance business. Assumptions relating to international life
insurance businesses are based on local requirements and can differ from
the South African assumptions.
(21) The 2007 RDR has been restated to comply with PGN 107 (Embedded value
reporting).
METROPOLITAN HOLDINGS - GROUP RESULTS
MINORITY INTERESTS 31.12.2008 31.12.2007
% %
Metropolitan Health Group 17.6 17.6
Union Life 50.0 50.0
Metropolitan Namibia 18.0 19.0
Metropolitan Botswana 24.2 24.2
Metropolitan Kenya 33.3 33.3
Metropolitan Ghana 40.0 40.0
Metropolitan Nigeria 50.0 50.0
METROPOLITAN HOLDINGS - GROUP RESULTS
LONG-TERM INSURANCE In-force business New business
BUSINESS: written
SENSITIVITIES -
31.12.2008 Net
worth
Net Gross Cost Net Gross Cost
value value of value value of
CAR CAR
Rm Rm Rm Rm Rm Rm Rm
Base value 4 736 4 161 4 706 (545) 248 271 (23)
1% increase in 3 862 4 407 (545) 216 239 (23)
risk discount
rate
% change (7) (6) - (13) (12) -
1% reduction in 4 507 5 052 (545) 285 308 (23)
risk discount
rate
% change 8 7 - 15 14 -
10% increase in 3 869 4 414 (545) 213 236 (23)
future expenses
% change (1) (7) (6) - (14) (13) -
10% decrease in 4 327 4 872 (545) 323 346 (23)
lapse, paid-up
and surrender
rates
% change 4 4 - 30 28 -
5% decrease in 4 305 4 850 (545) 284 306 (23)
mortality and
morbidity for
assurance
business
% change 3 3 - 15 13 -
5% decrease in 4 143 4 688 (545) 245 268 (23)
mortality for
annuity
business
% change - - - (1) (1) -
1% reduction in 4 809 4 311 4 823 (512) 284 305 (22)
gross
investment
return,
inflation rate
and risk
discount rate
% change (2) 2 4 2 (6) 15 13 (4)
1% reduction in 4 664 4 048 4 560 (512) 216 238 (22)
gross
investment
return only (no
change in risk
discount rate)
% change (2) (2) (3) (3) (6) (13) (12) (4)
LONG-TERM INSURANCE In-force business New business
BUSINESS: written
SENSITIVITIES - Net
31.12.2008 worth
Net Gross Cost Net Gross Cost
value value of value value of
CAR CAR
Rm Rm Rm Rm Rm Rm Rm
Base value 4 736 4 161 4 706 (545) 248 271 (23)
1% reduction in 4 900 4 097 4 642 (545) 263 286 (23)
inflation rate
% change 3 (2) (1) - 6 6 -
10% fall in market 4 427 3 926 4 471 (545)
value of
equities and
properties
% change (7) (6) (5) -
10% reduction in 4 076 4 621 (545) 234 257 (23)
premium
indexation take-
up rate
% change (2) (2) - (6) (5) -
10% decrease in non 281 304 (23)
commission
related
acquisition
expenses
% change 13 12 -
Notes
(1) No corresponding changes in variable policy charges are assumed,
although in practice it is likely that these will be modified
according to circumstances.
(2) Bonus rates are assumed to change commensurately.
(3) The change in the value of cost of CAR is disclosed as nil where
the sensitivity test results in an insignificant change in the
value.
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF CHANGES Non- Covered business 2008 2007
IN GROUP EMBEDDED covered
VALUE busi-
ness
NAV VoIF Cost Total Total Total
of cover group group
CAR ed EV EV
Rm Rm Rm Rm Rm Rm Rm
Profit from new 129 (116) 398 (23) 259 388 352
business
Embedded value 123 (116) 387 (23) 248 371 336
from new business
Expected return 6 - 11 - 11 17 16
to end of year
Profit from (4) 457 (19) (43) 395 391 781
existing business
Expected return - 84 - 523 (57) 466 550 540
unwinding of RDR
Expected (or - 700 (700) - - - -
actual) net of
tax profit
transfer to net
worth
Operating (94) 130 40 - 170 76 414
experience
variances
Operating 6 (373) 118 14 (241) (235) (173)
assumption
changes
Embedded value 125 341 379 (66) 654 779 1 133
profit from
operations
Investment return (330) (9) - 58 49 (281) 768
on net worth
Investment (59) (345) (578) - (923) (982) 138
variances
Economic assumption 15 79 123 30 232 247 (1)
changes
Change in risk - 32 (40) - (8) (8)
margin
Exchange rate - 10 6 - 16 16 (4)
movements
Total embedded (249) 108 (110) 22 20 (229) 2 034
value profit
Changes in share (231) 30 30 (201) (691)
capital
Dividend paid 492 (1 (1 (539) (960)
031) 031)
Finance costs - (138) (138) (124)
preference shares
PGN 107 restatement (171)
Reallocations (53) 53 53 -
Change in embedded (179) (840) (110) 22 (928) (1 107) 88
value
Time weighted (2.1) 17.8
return on embedded
value (%)
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF VARIANCES AND OPERATING ASSUMPTION CHANGES - 31.12.2008
Operating experience variances
Other Negative variances from losses or a reduction in
businesses profit margins in certain of the non-life companies.
Long-term insurance business
Net asset Positive contribution from higher than expected
value (NAV) mortality profits and profit from the employee benefit
asset partially offset by negative variances from
higher than expected lapses and expenses.
Value of in Positive contributions from mortality profits.
force (VoIF)
Operating assumption changes
Other business Positive contribution from the reduction in the
corporate tax rate from 29% to 28%.
Long-term insurance business
Net asset Negative change from the strengthening of lapse basis
value (NAV) at longer durations for grouped individual business.
Negative change from an increase in the assumed per
policy expense for individual life contracts.
Positive change in respect of the assumed mortality on
certain lines of business.
Value of in Positive contribution mainly from the reduction in the
force (VoIF) transfer tax rate from 29% to 28%. Negative change
due to an increase in the assumed future expenses of
the corporate business.
METROPOLITAN HOLDINGS - GROUP RESULTS
FUNDS RECEIVED FROM CLIENTS 12 mths to 12 mths to
Gross Gross 31.12.2008 31.12.2007
inflow outflow Net inflow Net inflow
Rm Rm Rm Rm
Retail business 7 931 (5 011) 2 920 2 546
Corporate business 2 899 (4 142) (1 243) 1 235
International business 1 006 (624) 382 309
Long-term insurance business 11 836 (9 777) 2 059 4 090
cash flows
Health business 14 494 (12 657) 1 837 1 364
Asset administration business 21 074 (17 753) 3 321 6 708
Asset management business 1 722 (763) 959 222
Corporate business 159 - 159 78
Total funds received from 49 285 (40 950) 8 335 12 462
clients
PREMIUMS RECEIVED 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Recurring premiums 7 472 6 913
Retail business 4 689 4 288
Corporate business 1 924 1 793
International business 859 832
Single premiums 4 364 4 735
Retail business 3 242 2 438
Corporate business 975 2 154
International business 147 143
Capitation contracts - health business 19 19
Segment premiums received 11 855 11 667
Adjustment for premiums received from (1 706) (3 069)
investment contract holders
Transfers between insurance, investment and 256 117
investment with DPF contracts
Net insurance premiums per income statement 10 405 8 715
- Excluding premiums received in Nigeria.
METROPOLITAN HOLDINGS - GROUP RESULTS
PAYMENTS TO CONTRACT HOLDERS 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Individual life 5 475 4 659
Death and disability claims 1 084 952
Maturity claims 1 710 1 417
Annuities 664 581
Withdrawal benefits 156 7
Surrenders 1 977 1 795
Re-insurance recoveries (116) (93)
Employee benefits 4 304 2 899
Death and disability claims 1 191 886
Maturity claims 211 136
Annuities 695 614
Withdrawal benefits 378 469
Terminations 508 106
Disinvestments 1 538 837
Re-insurance recoveries (217) (149)
Capitation contracts 16 17
Total payments to contract holders 9 795 7 575
Adjustment for payments to investment contract (1 982) (1 460)
holders
Transfers between insurance, investment and 256 117
investment with DPF contracts
Net insurance benefits and claims per income 8 069 6 232
statement
- Segment information is disclosed in the segment report and reconciles to
total payments to policyholders.
- Excluding payments to contract holders in Nigeria.
METROPOLITAN HOLDINGS - GROUP RESULTS
NUMBER OF EMPLOYEES 31.12.2008 31.12.2007
Indoor staff 5 256 4 866
Insurance companies 2 751 2 573
Retail 1 280 1 305
Union Life 107 -
Cover2Go 16 7
Employee benefits 400 359
International 425 381
Group services 523 521
Metropolitan Health Group 2 108 1 956
Asset management 81 75
Asset administration 77 69
Metropolitan Card Operations 34 42
Metropolitan Retirement Administrators 139 132
DirectFin Solutions 47 -
Holding company 19 19
Field staff 3 794 3 409
Retail 2 713 2 554
Union Life 173 -
DirectFin Solutions 79 -
International 829 855
Total 9 050 8 275
- 2007 excludes employees for Union Life and DirectFin Solutions as the
companies were acquired late in 2007.
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF EXPENSES 12 mths to 12 mths to
31.12.2008 31.12.2007
Rm Rm
Depreciation, amortisation and impairment 221 169
expenses
Employee benefit expenses 1 269 1 145
Sales remuneration and distribution costs 1 235 1 127
Other expenses 1 011 774
Finance costs 188 174
Total expenses 3 924 3 389
Long-term insurance business 2 979 2 598
Management expenses 1 656 1 288
Administration expenses 1 416 1 165
Distribution costs 240 123
Sales remuneration 994 1 001
Asset management fees 209 242
Direct property expenses 120 67
Administration business 888 787
Finance costs - preference shares and 186 170
subordinated redeemable debt
Holding company 63 65
Employee benefit assets (75) (51)
Consolidation adjustments (117) (180)
Total expenses 3 924 3 389
- Segment information is disclosed in the segment report.
METROPOLITAN HOLDINGS - GROUP RESULTS
ASSETS UNDER MANAGEMENT 31.12.2008 31.12.2007
Rm Rm
Intangible assets 525 562
Owner-occupied properties 678 592
Property and equipment 186 233
Investment properties 3 031 2 710
Investment in associates 663 405
Investment in joint venture 35 61
Employee benefit assets 248 177
Financial assets 53 692 60 314
Equity securities 21 167 31 990
Debt securities 15 968 14 268
Funds on deposit and other money market 3 409 2 150
instruments
Unit-linked investments 10 256 9 863
Derivative financial instruments 1 764 850
Loans and receivables 1 128 1 193
Insurance and other receivables 1 507 1 476
Deferred income tax 12 15
Reinsurance contracts 212 179
Current income tax assets 14 -
Cash and cash equivalents 8 810 8 274
Non-current assets held for sale - 185
Total on-balance sheet assets 69 613 75 183
Collective investments 18 832 18 403
Health 4 624 4 091
Asset management - segregated assets 3 238 2 950
Employee benefits - segregated assets 1 550 1 392
Total assets under management 97 857 102 019
ANALYSIS OF ASSETS BACKING GROUP EXCESS 31.12.2008 31.12.2007
Rm % Rm %
Equity securities 2 504 42.8 3 575 52.4
Collective investment schemes 629 10.8 1 325 19.4
Debt securities 295 5.0 523 7.7
Owner-occupied properties 671 11.5 592 8.7
Investment properties 286 4.9 103 1.5
Cash and cash equivalents 2 100 35.9 1 490 21.9
Goodwill 209 3.6 244 3.6
Other net assets 495 8.5 303 4.4
7 189 123.0 8 155 119.6
Redeemable preference shares (841) (14.4) (837) (12.3)
Subordinated redeemable debt (501) (8.6) (501) (7.3)
Excess - group per reporting basis 5 847 100.0 6 817 100.0
METROPOLITAN HOLDINGS - GROUP RESULTS
GROUP EXCESS - TOP 10 EQUITY HOLDINGS 31.12.2008 31.12.2007
Rm % Rm %
MTN Group Ltd 192 7.6 293 8.2
FirstRand Ltd 132 5.3 130 3.7
Billiton Plc 125 5.0 182 5.0
Impala Platinum Holdings Ltd 122 4.9 157 4.4
Standard Bank Group Ltd 115 4.6 211 5.9
Sasol Ltd 100 4.0 167 4.7
Anglo American Plc 90 3.6 133 3.7
Imperial Holdings Ltd 78 3.1 111 3.1
Compagnie Financiere Richemont 70 2.8 - -
RMB Holdings 60 2.4 - -
Remgro Plc - - 70 2.0
Nedbank Group Ltd - - 90 2.5
1 084 43.3 1 544 43.2
Total equities backing excess 2 504 100.0 3 575 100.0
METROPOLITAN HOLDINGS - GROUP RESULTS
STOCK EXCHANGE PERFORMANCE 2008 2007 2006 2005
12 month period
Value of listed shares traded 4 718 7 024 5 614 3 347
(rand million) (23)
Volume of listed shares traded 392 456 442 315
(million) (23)
Shares traded (% of average 71.1 79.7 75.0 51.1
listed shares in issue) (23)
Value of shares traded - life 93.0 108.0 81.9 70.0
insurance (J857 - Rbn)
Value of shares traded - top 40 2 687.7 2 328.0 1 735.0 1 028.2
index (J200 - Rbn)
Trade prices
Highest (cents per share) 1 520 1 691 1 581 1 220
Lowest (cents per share) 890 1 314 1 020 950
Last sale of period (cents per 1 080 1 509 1 500 1 185
share)
Percentage (%) change during (28.43) 36.04 38.25 19.70
period (24)
Percentage (%) change - life (50.18) 3.11 28.18 21.18
insurance sector (J857)
Percentage (%) change - top 40 (25.93) 16.11 37.53 44.12
index (J200)
31 December
Price/diluted core headline 7.15 10.61 13.28 12.35
earnings ratio
Dividend yield % (dividend on 8.80 6.30 5.13 5.32
listed shares)
Dividend yield % - top 40 index 4.27 2.39 2.06 2.24
(J200)
METROPOLITAN HOLDINGS - GROUP RESULTS
STOCK EXCHANGE PERFORMANCE 2008 2007 2006 2005
Total shares issued (million)
Listed on JSE 542 559 585 594
Ordinary shares 538 553 578 587
Share incentive scheme 4 6 7 7
Unlisted - share purchase 14 23 41 48
scheme
Total ordinary shares in issue 556 582 626 642
Treasury shares held by (16) (26) (27) -
subsidiary
Treasury shares held on behalf (1) (1) (13) (22)
of contract holders
Adjustment to staff share (17) (26) (47) (50)
scheme shares (25)
Share incentive scheme (4) (4) (7) (5)
Share purchase scheme (13) (22) (40) (45)
Basic number of shares in 522 529 539 570
issue
Adjustment to staff share 17 26 47 50
scheme shares
Treasury shares held on behalf 1 1 13 22
of contract holders
Convertible redeemable 123 123 123 123
preference shares
Diluted number of shares in 663 679 722 765
issue (26)
Market capitalisation at end 7.16 10.25 10.83 9.07
(Rbn) (27)
Percentage (%) of life insurance 7.05 4.93 5.45 6.83
sector
(23) 31.12.2008 is net of 16 million shares acquired for R200 million as part
of a share buy-back programme (31.12.2007: 44 million shares acquired
for R690 million; 31.12.2006: 42 million shares acquired for R558
million; 31.12.2005: 22 million shares acquired for R242 million).
(24) 2007 has been adjusted for the special dividend of 77 cents per share
paid in April, while both 2006 and 2005 have been adjusted for a capital
reduction of 100 cents.
(25) These are shares which have been issued since 1 January 2001, the date
on which the group adopted AC133 (now IAS39).
METROPOLITAN HOLDINGS - GROUP RESULTS
(26) The diluted number of shares in issue takes into account all issued
shares, assuming conversion of the convertible redeemable preference
shares and the release of staff share scheme shares, and includes the
treasury shares held on behalf of contract holders.
(27) The market capitalisation is calculated on the fully diluted number of
shares in issue.
Date: 11/03/2009 08:00:08 Produced by the JSE SENS Department.
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