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MET
MET
MET - Metropolitan Holdings Ltd - Unaudited group results for the six months
ended 30 June 2010
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" or the "company" or the "group")
UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010
METROPOLITAN HOLDINGS FINANCIAL SERVICES GROUP
- Net funds received from clients - R1 billion
- Value of Retail new business - up 108%
- Value of Health new business - up 39%
- Life insurance admin costs - down 11%
- Interim dividend per share increased to 42 cents
- Group CAR cover - 3 times
- Total earnings - up 17%
REVIEW OF OPERATIONS AND PROSPECTS
The group performed extremely well in a very difficult environment.
Operating environment
Volatile investment markets, difficult consumer conditions, World Cup
activities and the proposed Merger all contributed to a challenging new
business environment.
Salient features and highlights
- Diluted core headline earnings for the half-year increased by 11% over
2009, with good performances from all businesses.
- Total recurring new business premium income was 19% lower, curtailed by
the closure of the direct marketing operations and the sale of Union Life
Limited.
- The value of group new business, at R143 million, was an impressive 38%
higher.
- Investment income after tax on shareholder assets was at a similar level
to that of the prior year.
- The economic capital required by the group remained reasonably stable,
increasing to R4.5 billion.
- The overall capital position of the group is strong at a group CAR cover
of 3.0 times.
- The embedded value per share decreased marginally, from 1 811 cents (31
December 2009) to 1 809 cents, despite paying out a dividend of 60 cents
per share in April.
- The group`s unbroken record of positive cash flow from clients continued,
with a net inflow of R1 billion being recorded.
Operational overview
Retail
- New recurring premium income, excluding the closed direct marketing
operation, was in line with 2009, with good growth recorded in the
personal financial adviser channel compensated by a reduction from the
broker distribution channel.
- Single premium new business was down 13% as a result of slower
independent broker business and restrictions on various third party
distribution agreements.
- The mix of new recurring premium business sold during the period
continued to move from savings to risk products.
- Despite the increasingly difficult consumer conditions, ongoing focused
client management resulted in overall persistency remaining at acceptable
levels during the period under review.
- Retail new business margin increased from 1.0% to 2.3% (present value of
future premiums (PVP) basis) as a result of an improved new business
focus (11.7% on the APE basis).
- Operating profit before tax increased by 13%, supported by higher average
investment assets and good expense management, despite increased new
business strain on investment products.
Corporate
- New single premium income ended the period up 13%, driven by an increase
in annuity business.
- Once again, "off balance sheet" pure administration business was written
on both the Neon product and by Metropolitan Retirement Administrators.
- The new business PVP margin, reduced from 0.8% to 0.7%, reflecting the
reduction in recurring premium income and the resultant change in the mix
of business written.
- Although the growth in off balance sheet administration business did not
contribute to new business premium income, it did affect the new business
margin as it assisted with the recovery of costs and boosted the value of
new business.
- Risk margins, especially on funeral and disability business, remained
under pressure throughout the period.
- Operating profit before tax was 31% higher, boosted by higher average
investment levels, a change in the mix of business and a recovery in risk
profits.
International
- New business recurring premium income, from all seven operations, was up
10% compared to 1H09.
- An improved new business PVP margin of 1.7% (1H09: 1.3%) was recorded.
- Total operating profit after tax increased by 11%, reflecting reduced
start-up losses in the newer operations and continued tough conditions in
all markets.
Asset management
- The value of new business, comprising collective investment inflows and
new third-party mandates, fell by 17%.
- Operating profit before tax remained in line with 2009.
Health
- Total principal members under administration at the end of June were 912
000 (2.3 million lives) (1H09: 829 000 members; 2.0 million lives),
confirming MHG`s status as South Africa`s largest administrator of closed
medical schemes.
- As a result of the continued growth in members, together with improved
operational efficiencies attributable to increasing economies of scale,
operating profit after tax increased by 15% compared to 1H09.
- Operating profit after tax was reduced by STC of R9 million (1H09: R13
million).
Prospects
- The board is satisfied that the businesses remain strategically well
positioned, with a strong focus on client service, product innovation,
business retention, cost containment, diversification and capital
management.
- The proposed merger between Metropolitan and Momentum will result in a
significantly transformed, large and highly competitive financial
services group in South Africa, with a material black empowerment
shareholding.
DIRECTORS` STATEMENT
The directors take pleasure in presenting the unaudited interim results of the
Metropolitan Holdings financial services group for the six months ended 30
June 2010.
These results have been prepared in accordance with International Accounting
Standard 34 (IAS34) - Interim financial reporting; guidelines issued by the
Actuarial Society of South Africa; and the disclosure requirements of the JSE
Limited (JSE).
The accounting policies of the group are in terms of IFRS and have been
applied consistently to all the periods presented and the previous reporting
period.
The preparation of financial statements is in accordance with and contains the
information required by IFRS and the AC 500 standards, as issued by the
Accounting Practices Board or its successor , which 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
critical judgements and accounting estimates are disclosed in detail in the
annual financial statements at 31 December 2009 and, with the exception of the
principal economic assumptions, have remained unchanged since then. More
information is available on the Metropolitan website, www.metropolitan.co.za.
Related parties
There have been no significant changes to the nature of the related party
transactions as described in note 41 of the 2009 annual financial statements.
CORPORATE GOVERNANCE
The board has satisfied itself that appropriate principles of corporate
governance were applied throughout the period under review.
DIRECTORATE CHANGES AND DIRECTORS` SHAREHOLDING
On 14 April the company announced that, following a prolonged illness, Peter
Lamprecht could no longer continue as a director. The Board thank Peter for
his valuable contribution to the group. No further changes have been made to
the directorate. All transactions in listed shares involving directors were
disclosed on SENS as required. On 12 April Zukelwa Rweqana was appointed as
acting company secretary.
CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
The group had no material capital commitments at 30 June 2010. The group is
party to legal proceedings in the normal course of business, and appropriate
provisions are made when losses are expected to materialise.
EVENTS AFTER REPORTING PERIOD
A merger has been proposed between Metropolitan and Momentum. The full details
were published on SENS on 26 August 2010, and the required documentation will
be posted to shareholders on 3 September 2010. A shareholders meeting has been
scheduled for 28 September 2010 and the outcome will be disclosed shortly
thereafter.
No other material events occurred between the reporting date and the date of
approval of the interim results.
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.
An interim dividend of 42.00 cents per ordinary share was declared on 31
August 2010. This dividend is payable to the holders of ordinary shares
recorded in the register of the company at the close of business on Thursday,
23 September 2010 and will be paid on Monday, 27 September 2010. The last day
to trade "cum" dividend will be Thursday, 16 September 2010. The shares will
trade "ex" dividend from the start of business on Friday, 17 September 2010.
Share certificates may not be dematerialised or rematerialised between Friday,
17 September and Thursday, 23 September 2010, both days inclusive.
Where applicable, dividends in respect of certificated shares 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, 27 September 2010.
Preference share (unlisted) dividend
Dividends of R12 million (8.5%), R5 million (8.5%) and R27 million (17%) were
declared on 31 August 2010 on the A1, A2 and A3 Metropolitan preference shares
respectively, payable on 30 September 2010. The declaration rates were
determined as set out in the company`s articles. These amounts are included
under finance costs in these results.
Signed on behalf of the board
JJ Njeke Group chairman
Wilhelm van Zyl Group chief executive
Cape Town
1 September 2010
Directors:
JJ Njeke (non-executive group chairman), Wilhelm van Zyl (group chief
executive), Phillip Matlakala (executive director), Preston Speckmann (group
finance director), Fatima Jakoet, Zanele (Joyce) Matlala, Syd Muller, John
Newbury, Bulelwa Paledi, Marius Smith, Johan van Reenen, Mary Vilakazi
Acting company secretary: Zukelwa Rweqana
Registration number: 2000/031756/06
Registered office: 7 Parc du Cap, Mispel Road, Bellville 7535
Sponsor
Merrill Lynch South Africa (Pty) Limited
Transfer secretaries
Link Market Services SA (Proprietary) Limited
(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
METROPOLITAN HOLDINGS FINANCIAL SERVICES GROUP
Basis of presentation of financial information
These results have been prepared in accordance with International Accounting
Standard 34 (IAS34) - Interim financial reporting; guidelines issued by the
Actuarial Society of South Africa; and the disclosure requirements of the JSE
Limited (JSE). The accounting policies of the group are in terms of
International Financial Reporting Standards (IFRS) and have been applied
consistently to all periods presented and the previous reporting period. The
preparation of financial statements is in accordance with and contains the
information required by IFRS and the AC 500 standards, as issued by the
Accounting Practices Board or its successor , which 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 accounting estimates are disclosed in detail in the
annual financial statements for the year ended 31 December 2009, and with the
exception of the principal economic assumptions, have remained unchanged since
then.
Standards and interpretations of published standards effective in 2010 and
relevant to the group
- The following standards became effective for the first time in the
current year and had no significant impact on the group`s earnings: IFRS
2 - Share based payment - group cash-settle share based payment
transactions, IFRS 3 - Business combinations (revised), IAS 27 -
Consolidated and separate financial statements (revised), AC 504 - IAS19:
The limit on a defined benefit asset, minimum funding requirements and
their interaction in the South African pension fund environment.
- The International Accounting Standards Board (IASB) made amendments to
various standards as part of their annual improvements project. These
amendments had no impact on the group`s earnings.
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF FINANCIAL 30.06.2010 30.06.2009 31.12.2009
POSITION Rm Rm Rm
ASSETS
Intangible assets 439 488 464
Owner-occupied properties 714 700 690
Property and equipment 194 197 202
Investment properties 3 179 3 117 3 193
Investment in associates 1 207 1 365 856
Employee benefit assets 227 241 232
Financial instrument assets (1) 55 738 51 903 56 201
Insurance and other receivables 1 504 1 441 1 579
Deferred income tax 14 10 10
Reinsurance contracts 275 230 242
Current income tax assets 327 13 200
Cash and cash equivalents 7 288 8 971 7 702
Total assets 71 106 68 676 71 571
EQUITY
Equity attributable to owners of 6 516 5 749 6 612
the parent
Non-controlling interests 103 166 167
Total equity 6 619 5 915 6 779
LIABILITIES
Insurance contract liabilities
Long-term insurance contracts (2) 35 936 32 573 35 807
Capitation contracts 3 2 2
Financial instrument liabilities
Investment contracts 22 808 24 453 23 471
- with discretionary participation 11 633 10 589 12 022
features (2)
- designated as fair value through 11 175 13 864 11 449
income
Other financial instrument 2 304 2 448 2 308
liabilities (3)
Deferred income tax 351 118 394
Employee benefit obligations 274 258 202
Other payables 2 806 2 870 2 601
Current income tax liabilities 5 39 7
Total liabilities 64 487 62 761 64 792
Total equity and liabilities 71 106 68 676 71 571
(1) Financial instrument assets consist of the following:
Assets designated as fair value through income: R53 723 million
(30.06.2009: R50 002 million; 31.12.2009: R54 441 million)
Assets held for trading: R862 million (30.06.2009: R822 million;
31.12.2009: R718 million)
Available-for-sale assets: R2 million (30.06.2009: R5 million;
31.12.2009: R2 million)
Loans and receivables: R1 151 million (30.06.2009: R1 074 million;
31.12.2009: R1 040 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: R312 million
(30.06.2009: R337 million; 31.12.2009: R301 million)
Liabilities held for trading: R772 million (30.06.2009: R768 million;
31.12.2009: R787 million)
Liabilities at amortised cost: R1 220 million (30.06.2009: R1 343
million; 31.12.2009: R1 220 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
STATEMENT OF ACTUARIAL VALUES OF 30.06.2010 30.06.2009 31.12.2009
ASSETS AND LIABILITIES ON REPORTING Rm Rm Rm
BASIS
Total assets per statement of
financial position 71 106 68 676 71 571
Actuarial value of policy
liabilities per statement of
financial position (58 744) (57 026) (59 278)
Other liabilities per statement of (5 743) (5 735) (5 514)
financial position
Non-controlling interests (103) (166) (167)
Excess - group per reporting basis 6 516 5 749 6 612
Net assets - other businesses (824) (458) (721)
Excess - long-term insurance
business (4) 5 692 5 291 5 891
LONG-TERM INSURANCE BUSINESS (4)
Change in excess of long-term
insurance business (4) (199) 378 978
Increase in share capital (45) - (25)
Sale of Union Life 83
Metropolitan Nigeria accounted for
as a subsidiary (74) (74)
Change in other reserves (9) 16 18
Dividend paid 531 77 336
Total surplus arising 361 397 1 233
Operating profit 333 295 634
Investment income on excess 172 187 313
Net realised and fair value gains
on excess 33 70 397
Investment variances (5) (99) 182 279
Basis and other changes (78) (337) (390)
Consolidation adjustments 53 33 125
Income tax (credits)/expenses (6) (54) 168 357
Adjustment for finance costs 23 24 46
Results of long-term insurance
business (4) 383 622 1 761
Results of other group businesses
and consolidation adjustments (91) (48) 73
Results of operations per income
statement 292 574 1 834
STATEMENT OF ACTUARIAL VALUES OF 30.06.2010 30.06.2009 31.12.2009
ASSETS AND LIABILITIES ON STATUTORY Rm Rm Rm
BASIS
Reporting excess - long-term
insurance business (4) 5 692 5 291 5 891
Disregarded assets in terms of
statutory requirements (7) (440) (443) (553)
Capital adjustments 501 501 501
Statutory excess - long-term
insurance business (4) 5 753 5 349 5 839
Capital adequacy requirement (CAR)
(Rm) 2 554 2 186 2 090
Ratio of long-term insurance
business excess to CAR (times) 2.3 2.4 2.8
Discretionary margins 1 774 1 583 1 704
(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 non-controlling 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) Includes deferred tax on contract holder capital gains and losses.
(7) 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 6 mths to 6 mths to 12 mths to
30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Net insurance premiums received 4 964 4 809 10 240
Fee income (8) 700 570 1 185
Investment income 1 672 2 140 3 995
Net realised and fair value
(losses)/gains (546) (386) 4 642
Net income 6 790 7 133 20 062
Net insurance benefits and claims 4 444 4 270 8 466
Change in liabilities (85) (124) 4 565
Change in insurance contract
liabilities 320 586 3 852
Change in investment contracts
with DPF liabilities (371) (688) 747
Change in reinsurance provision (34) (22) (34)
Fair value adjustments on
investment contract liabilities 171 401 1 235
Fair value adjustments on
collective investment scheme
liabilities 6 5 7
Depreciation, amortisation and
impairment expenses (9) 100 46 148
Employee benefit expenses 858 799 1 549
Sales remuneration 476 501 987
Other expenses (9) 528 661 1 271
Expenses 6 498 6 559 18 228
Results of operations 292 574 1 834
Share of profit/(loss) of 11 (17) 3
associates
Finance costs (10) (66) (88) (168)
Profit before tax 237 469 1 669
Income tax expenses (16) (270) (523)
Earnings 221 199 1 146
Attributable to:
Owners of the parent 218 186 1 129
Non-controlling interests 3 13 17
221 199 1 146
Basic earnings per share (cents) 40 36 214
Diluted earnings per share (cents) 40 38 188
(8) Fee income consist of the following:
Investment contracts: R63 million (30.06.2009: R33 million; 31.12.2009:
R67 million)
Trust and fiduciary services: R76 million (30.06.2009: R73 million;
31.12.2009: R159 million)
Other fee income: R561 million (30.06.2009: R464 million; 31.12.2009:
R959 million)
(9) A provision for a loan impairment of R72 million raised in prior years
for Metropolitan Card Operations was reversed during 2009 and written off
against other expenses.
(10) Finance costs consist of the following:
Preference shares: R42 million (30.06.2009: R64 million; 31.12.2009: R118
million)
Subordinated redeemable debt: R23 million (30.06.2009: R23 million;
31.12.2009: R46 million)
Other: R1 million (30.06.2009: R1 million; 31.12.2009: R4 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
RECONCILIATION OF Basic earnings Diluted earnings
HEADLINE EARNINGS
attributable to owners
of the parent
6 mths 6 mths 12 mths 6 mths 6 mths 12 mths
2010 2009 2009 2010 2009 2009
Rm Rm Rm Rm Rm Rm
Earnings 218 186 1 129 218 186 1 129
Finance costs -
preference shares 42 64 118
Diluted earnings 260 250 1 247
Profit on sale of Union
Life (3) (3)
Impairment of associate 17 17
Goodwill impairment and
adjustments relating to
equity accounted
associates - 37 61 - 37 61
Headline earnings (11) 232 223 1 190 274 287 1 308
Net realised and fair ( (
value losses/(gains) on
excess 9 33) 466) 9 (33) (466)
Basis and other changes
and investment 152
variances 173 152 92 173 92
Dilutory effect of
subsidiaries (12) (2) 2 (1)
Investment income on
treasury shares -
contract holders (13) - - 1
Core headline earnings
(14) 414 342 816 454 408 934
(11) Headline earnings consist of operating profit, investment income, net
realised and fair value gains, investment variances and basis and other
changes.
(12) Metropolitan Health and Metropolitan Kenya are consolidated at 100% in
the results. For the purposes of diluted core headline earnings, non-
controlling 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)
attributable to owners of the 6 mths to 6 mths to 12 mths to
parent 30.06.2010 30.06.2009 31.12.2009
Basic
Core headline earnings 75 66 154
Headline earnings 42 43 225
Earnings 40 36 214
Weighted average number of shares
(million) 549 522 529
Diluted
Core headline earnings 70 62 141
Weighted average number of shares
(million) 653 663 663
Headline earnings 42 43 197
Earnings 40 38 188
Weighted average number of shares
(million) 652 663 663
DIVIDENDS 2010 2009
Ordinary listed shares (cents per share)
Interim 42 40
Final 60
Total 100
METROPOLITAN HOLDINGS - GROUP RESULTS
DIVIDENDS
Convertible redeemable preference shares A1 A2 A3
Redemption value (per share) R 5.12 9.18 9.18
Paid - 31 March 2009 Rate 16.8% 55 cps 19.0%
Rm 33 7 30
Paid - 30 September 2009 Rate 14.1% 40 cps 15.8%
Rm 31 6 26
Paid - 31 March 2010 Rate 8.9% 8.9% 15.8%
Rm 12 5 25
Payable - 30 September 2010 Rate 8.5% 8.5% 17.1%
Rm 12 5 27
ANALYSIS OF DILUTED CORE HEADLINE 6 mths to 6 mths to 12 mths to
EARNINGS 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Retail business 211 192 383
Operating profit 306 270 506
Tax (95) (78) (123)
Corporate business 62 50 140
Operating profit 92 70 185
Tax (30) (20) (45)
International business 51 46 89
Operating profit 56 51 100
Tax (5) (5) (11)
Asset management business 10 10 61
Operating profit 15 15 88
Tax (5) (5) (27)
Health business 47 41 95
Operating profit 81 77 153
Tax (34) (36) (58)
Shareholder capital 73 69 166
Holding company expenses (38) (38) (67)
Strategic ventures (24) (37) (43)
Investment income on shareholder
excess 192 238 433
Income tax on investment income (57) (94) (157)
Diluted core headline earnings 454 408 934
METROPOLITAN HOLDINGS - GROUP RESULTS
RESULTS OF OPERATIONS Results of operations
FROM ADMINISTRATION
BUSINESS
(gross of minority
interests and before
finance costs and
tax)
Net Expenses 6 mths to 6 mths to 12 mths to
income Rm 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm Rm
Health business 569 (485) 84 77 174
Asset administration 63 (36) 27 18 57
Asset management 50 (63) (13) (2) 31
Metropolitan Card
Operations - - - (28) (31)
Metropolitan
Retirement
Administrators 40 (43) (3) (1) (1)
722 (627) 95 64 230
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF 6 mths to 6 mths to 12 mths to
COMPREHENSIVE INCOME 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Earnings 221 199 1 146
Other comprehensive income for the
year, net of tax 14 (15) (10)
Exchange differences on (3) (35) (37)
translating foreign operations
Land and buildings revaluation 25 29 29
Change in non-distributable (1) 1 1
reserves
Other - - 1
Income tax relating to components
of other comprehensive income (7) (10) (4)
Total comprehensive income for the
year 235 184 1 136
Total comprehensive income
attributable to:
Owners of the parent 232 182 1 129
Non-controlling interests 3 2 7
235 184 1 136
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF CHANGES 6 mths to 6 mths to 12 mths to
IN EQUITY 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Changes in share capital
Balance at beginning 183 51 51
Conversion of preference shares,
net of issue costs 114
Staff share scheme shares released 3 5 17
Decrease in treasury shares held on
behalf of contract holders - 1 1
Balance at end 186 57 183
Changes in other reserves
Balance at beginning 528 532 532
Total comprehensive income 14 (4) (1)
Employee share schemes - value of
services provided - 1 1
Transfer to retained earnings (3) (3) (4)
Balance at end (15) 539 526 528
Changes in retained earnings
Balance at beginning 5 901 5 264 5 264
Total comprehensive income 218 186 1 130
Dividend paid (331) (287) (497)
Transfer from other reserves 3 3 4
Balance at end 5 791 5 166 5 901
Equity attributable to owners of
the parent 6 516 5 749 6 612
Changes in non-controlling
interests
Balance at beginning 167 141 141
Total comprehensive income 3 2 7
Dividend paid (22) (14) (17)
Sale of Union Life (47)
Metropolitan Nigeria transferred to
subsidiary 36 36
Other 2 1 -
Balance at end 103 166 167
Total equity 6 619 5 915 6 779
(15) Other reserves consist of the following:
Land and buildings revaluation reserve: R219 million (30.06.2009: R199
million; 31.12.2009: R203 million)
Foreign currency translation reserve: (R29 million) (30.06.2009: (R23
million); 31.12.2009: (R26 million))
Fair value reserve: R54 million (30.06.2009: R53 million; 31.12.2009: R54
million)
Non-distributable reserve: R295 million (30.06.2009: R297 million;
31.12.2009: R297 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF CASH 6 mths to 6 mths to 12 mths to
FLOWS 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Net cash inflow/(outflow) from
operating activities 34 507 (475)
Net cash outflow from investing
activities (111) (43) (118)
Net cash outflow from financing
activities (338) (302) (515)
Net cash flow (415) 162 (1 108)
Effect of foreign exchange rate
changes 1 (1) -
Cash resources and funds on deposit
at beginning 7 702 8 810 8 810
Cash resources and funds on deposit
at end 7 288 8 971 7 702
METROPOLITAN HOLDINGS - GROUP RESULTS
SEGMENT REPORT 6 mths to 6 mths to 12 mths to
30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Revenue
Premiums received 5 256 5 335 11 207
Retail 3 261 3 418 6 831
Corporate 1 436 1 307 3 182
Health 12 6 12
International 547 604 1 182
Fee income 700 570 1 185
Retail 13 13 27
Corporate 90 60 128
Asset management 108 98 233
Health 552 456 944
International 6 - -
Shareholder capital - 2 2
Inter-segment fee income (69) (59) (149)
Expenses
Payments to contract holders 5 117 5 226 13 073
Retail 2 885 2 488 5 108
Corporate 1 872 2 403 7 308
Health 12 8 14
International 348 327 643
Other expenses 2 028 2 095 4 123
Retail 958 1 158 2 263
Corporate 188 176 355
Asset management 99 87 155
Health 472 388 803
International 232 213 449
Shareholder capital 139 126 238
Inter-segment expenses (60) (53) (140)
- The South African operations are segregated into retail, corporate, asset
management, health and shareholder capital. The international companies
- Botswana, Ghana, Kenya, Lesotho, Namibia, Nigeria and Swaziland - are
all managed as a single operating segment.
- Segment assets did not change materially from 31 December 2009, except
for market-related movements.
- 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.
- Fee income of R14 million has been reallocated from retail to corporate
for June 2009.
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Covered business
Reporting excess - long-term
insurance business 5 692 5 291 5 891
Disregarded assets (16) (181) (174) (183)
Dilutory effect of
subsidiaries (17) (7) (4) (3)
Reclassification from non-
covered business 2 (58) (54)
Diluted net asset value -
covered business 5 506 5 055 5 651
Net value of in-force business 4 129 3 866 4 114
Individual life 3 440 3 205 3 450
Gross value of in-force
business 3 784 3 576 3 795
Less cost of capital (344) (371) (345)
Employee benefits 689 661 664
Gross value of in-force
business 871 840 844
Less cost of capital (182) (179) (180)
Diluted embedded value -
covered business 9 635 8 921 9 765
Non-covered business
Net assets - other businesses 824 458 721
Reclassification to covered
business (2) 58 54
Consolidation adjustments (108) (121) (112)
Adjustments for dilution 821 1 019 877
Dilutory effect of
subsidiaries (17) 79 88 83
Staff share scheme loans 23 85 73
Treasury shares held on
behalf of contract holders 9 10 10
Liability - convertible
redeemable preference shares 710 836 711
Diluted net asset value - non-
covered business 1 535 1 414 1 540
Net value of in-force business 641 633 702
Asset management 270 219 282
Health 711 718 728
Holding company expenses (18) (340) (304) (308)
Diluted embedded value - non-
covered business 2 176 2 047 2 242
EMBEDDED VALUE 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Diluted adjusted net asset
value 7 041 6 469 7 191
Value of in-force business 4 770 4 499 4 816
Diluted embedded value 11 811 10 968 12 007
Required capital - covered
business (adjusted for
qualifying debt) 3 789 3 644 3 616
Surplus capital - covered
business 1 717 1 411 2 034
Diluted embedded value per 1 809 1 654 1 811
share (cents)
Diluted net asset value per
share (cents) 1 078 976 1 085
Diluted number of shares in
issue (million) (19) 653 663 663
(16) Disregarded assets as disclosed in the statement of actuarial values of
assets and liabilities are adjusted for internally developed software and
recognised employee benefit assets.
(17) For accounting purposes, Metropolitan Health and Metropolitan Kenya have
been consolidated at 100% in the statement of financial position. For
embedded value purposes, disclosed on a diluted basis, the non-
controlling 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 Net Value 30.06.2010 30.06.2009 31.12.2009
ATTRIBUTABLE TO GROUP asset of Rm Rm Rm
value in-
Rm force
Rm
Covered business
Metropolitan Life Ltd 4 893 3 507 8 400 7 754 8 481
Metropolitan Odyssey 44 - 44 36 36
Union Life - - - 50 47
International 569 622 1 191 1 081 1 201
Metropolitan Life
International 69 - 69 59 68
Metropolitan
Namibia 147 314 461 453 493
Metropolitan
Botswana 115 60 175 184 188
Metropolitan
Lesotho 158 217 375 335 382
Metropolitan Kenya 15 2 17 11 8
Metropolitan Ghana 26 13 39 1 12
Metropolitan
Swaziland 20 6 26 3 23
Metropolitan
Nigeria 19 10 29 35 27
Total covered
business 5 506 4 129 9 635 8 921 9 765
Non-covered business
Asset management 63 270 333 273 391
Metropolitan Health
Group 201 711 912 903 961
Metropolitan Holdings
(after consolidation
adjustments) 1 271 (340) 931 871 890
Total non-covered
business 1 535 641 2 176 2 047 2 242
Total embedded value 7 041 4 770 11 811 10 968 12 007
Diluted net asset
value - non-covered
business (1 535)
Adjustments to
covered business -
net asset value 186
Reporting excess -
long-term insurance
business 5 692
Net of non-controlling interests.
METROPOLITAN HOLDINGS - GROUP RESULTS
VALUE OF NEW BUSINESS 6 mths to 6 mths to 12 mths to
30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Retail business 54 26 81
Gross value of new business 56 31 86
Less: Cost of capital (2) (5) (5)
Corporate business 7 10 25
Gross value of new business 10 15 45
Less: Cost of capital (3) (5) (20)
International business 6 4 13
Gross value of new business 6 4 13
Less: Cost of capital (0) (0) (0)
Value of covered new business 67 40 119
Value of non-covered new business 76 64 132
Asset management 19 23 39
Health 57 41 93
Total value of new business 143 104 251
- Net of non-controlling 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 6 mths to 6 mths to 12 mths to
BUSINESS 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Recurring premiums 508 628 1 160
Retail business 364 450 813
Corporate business 69 110 199
International business 75 68 148
Single premiums 1 463 1 590 3 422
Retail business 960 1 103 1 973
Corporate business 472 419 1 327
International business 31 68 122
Annual premium equivalent (APE) 655 787 1 501
Retail business 460 560 1 010
Corporate business 117 152 331
International business 78 75 160
Present value of premiums (PVP) 3 674 4 138 8 430
Retail business 2 358 2 620 5 050
Corporate business 964 1 200 2 737
International business 352 318 643
- Net of non-controlling interests.
PROFITABILITY OF NEW BUSINESS - 6 mths to 6 mths to 12 mths to
COVERED BUSINESS 30.06.2010 30.06.2009 31.12.2009
% of APE 10.2 5.1 7.9
Retail business 11.7 4.6 8.0
Corporate business 6.0 6.6 7.6
International business 7.7 5.3 8.1
% of PVP 1.8 1.0 1.4
Retail business 2.3 1.0 1.6
Corporate business 0.7 0.8 0.9
International business 1.7 1.3 2.0
- Corporate value of new business includes value generated in respect of
new administration contracts secured, where premium income is not
applicable.
METROPOLITAN HOLDINGS - GROUP RESULTS
SOURCE OF NEW BUSINESS 30.06.2010 30.06.2009 31.12.2009
PRODUCTION - COVERED
BUSINESS
Individual life - insurance
and investment business
APE Total APE Total APE Total
% premi % premi % premi
um % um % um %
Personal financial advisors 60 63 44 52 50 55
Broker distribution 23 29 21 31 22 31
Wholesale distribution 1 1 20 8 11 4
Third party business - - 1 1 1 1
Union Life - - 2 1 2 1
International 16 7 12 7 14 8
PRINCIPAL ASSUMPTIONS (South 30.06.2010 30.06.2009 31.12.2009
Africa) (20) % % %
Pre-tax investment return
Equities 12.8 12.8 13.0
Properties 10.3 10.3 10.5
Government stock 9.3 9.3 9.5
Cash 8.3 8.3 8.5
Risk discount rate (RDR) 11.8 11.8 12.0
Investment return (before tax) -
smoothed bonus 11.6 11.6 11.8
Expense inflation rate 6.0 6.0 6.3
(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.
MINORITY INTERESTS 30.06.2010 30.06.2009 31.12.2009
% % %
Metropolitan Health Group 17.6 17.6 17.6
Union Life N/A 50.0 50.0
Metropolitan Namibia 18.0 18.0 18.0
Metropolitan Botswana 24.2 24.2 24.2
Metropolitan Kenya 33.6 33.3 34.4
Metropolitan Ghana 7.8 40.0 20.0
Metropolitan Nigeria 50.0 50.0 50.0
- Union Life was sold during 2010.
METROPOLITAN HOLDINGS - GROUP RESULTS
LONG-TERM INSURANCE Net In-force business New business
BUSINESS: worth written
SENSITIVITIES -
30.06.2010
Net Gross Cost Net Gross Cost
value value of value value of
CAR CAR
Rm Rm Rm Rm Rm Rm Rm
Base value 5 506 4 129 4 655 (526) 67 72 (5)
1% increase in risk
discount rate 3 840 4 366 (526) 54 59 (5)
% change (7) (6) - (19) (18) -
1% reduction in
risk discount
rate 4 454 4 980 (526) 82 87 (5)
% change 8 7 - 22 21 -
10% decrease in
future expenses 4 448 4 974 (526) 83 88 (5)
% change (1) 8 7 - 24 22 -
10% decrease in
lapse, paid-up
and surrender
rates 4 279 4 805 (526) 88 93 (5)
% change 4 3 - 31 29 -
5% decrease in
mortality and
morbidity for
assurance
business 4 270 4 796 (526) 82 87 (5)
% change 3 3 - 22 21 -
5% decrease in
mortality for
annuity business
4 104 4 630 (526) 65 70 (5)
% change (1) (1) - (3) (3) -
1% reduction in
gross investment
return,
inflation rate
and risk
discount rate
5 595 4 208 4 713 (505) 84 89 (5)
% change (2) 2 2 1 (4) 25 24 -
1% reduction in
gross investment
return only (no
change in risk
discount rate) 5 441 3 965 4 470 (505) 60 65 (5)
% change (2) (1) (4) (4) (4) (10) (10) -
LONG-TERM INSURANCE In-force business New business
BUSINESS: written
SENSITIVITIES -
30.06.2010
Net Net Gross Cost Net Gross Cost
worth value value of value value of
CAR CAR
Rm Rm Rm Rm Rm Rm
Base value 5 506 4 129 4 655 (526) 67 72 (5)
1% reduction in
inflation rate 5 687 4 047 4 573 (526) 76 81 (5)
% change 3 (2) (2) - 13 13 -
10% fall in market
value of
equities and
properties 5 150 3 935 4 461 (526)
% change (6) (5) (4) -
10% reduction in
premium
indexation take-
up rate 4 059 4 585 (526) 62 67 (5)
% change (2) (2) - (7) (7) -
10% decrease in non
commission
related
acquisition
expenses 84 89 (5)
% change 25 24 -
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 Non- Covered business 6 mths 6 mths 12 mths
CHANGES IN GROUP 2010 2009 2009
EMBEDDED VALUE
Cover- NAV VoIF Cost Total Total Total Total
ed of cover-Group group group
busi- CAR ed EV EV EV
ness
Rm Rm Rm Rm Rm Rm Rm Rm
Profit from new
business 78 (80) 154 (5) 69 147 108 266
Embedded value 76 (80) 152 (5) 67 143 104 251
from new
business
Expected 2 - 2 - 2 4 4 15
return to end
of year
Profit from (157) 321 (43) (38) 240 83 (79) 188
existing
business
Expected 47 - 272 (19) 253 300 255 495
return -
unwinding of
RDR
Expected (or - 332 (332) - - - - -
actual) net of
tax profit
transfer to
net worth
Operating (143) 77 (22) - 55 (88) (76) (100)
experience
variances
Operating (61) (88) 39 (19) (68) (129) (258) (207)
assumption
changes
Embedded value (79) 241 111 (43) 309 230 29 454
profit from
operations
Investment (62) 210 - 22 232 170 246 846
return on net
worth
Investment (15) (100) (121) - (221) (236) 44 442
variances
Economic 1 22 47 14 83 84 (291) (407)
assumption
changes
Change in risk - - - - - - - -
margin
Exchange rate - (2) (9) - (11) (11) (25) (28)
movements
Total embedded (155) 371 28 (7) 392 237 3 1 307
value profit
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF Non- Covered business 6 mths 6 mths 12 mths
CHANGES IN GROUP 2010 2009 2009
EMBEDDED VALUE
Cover- NAV VoIF Cost Total Total Total Total
ed of cover-Group group group
busi- CAR ed EV EV EV
ness
Rm Rm Rm Rm Rm Rm Rm Rm
Changes in share (86) 36 36 (50) - -
capital
Dividend paid 170 (511) (511) (341) (301) (512)
Finance costs - (42) - (42) (64) (118)
preference
shares
Sale of Union 47 (41) (12) 6 (47) -
Life
Change in (66) (145) 16 (1) (130) (196) (362) 677
embedded value
Time weighted return on embedded value (%) 4.1 0.0 11.9
METROPOLITAN HOLDINGS - GROUP RESULTS
Operating experience variances
Non-covered Negative variances from losses or a reduction in profit
business margins in certain of the non-life companies as well as
merger related costs incurred by Metropolitan Holdings.
Covered
business
Net asset Positive contribution from higher than expected
value (NAV) mortality profits partially offset by negative
variances from lower than expected expense recoveries
on withdrawals.
Value of in Negative contribution mainly due to the loss of a
force (VoIF) significant credit life scheme.
Operating assumption changes
Non-covered Negative contributions from methodology changes in
business respect of managed healthcare business and higher
expenses in Metropolitan Holdings.
Covered
business
Net asset Negative changes due to a strengthening of reserves and
value (NAV) the introduction of premium holidays on grouped
individual business reduced by a weakening of the
mortality basis on grouped individual business.
Value of in Positive changes due to the impact of a strengthening
force (VoIF) of reserves as well as better persistency and mortality
experience on retail business.
METROPOLITAN HOLDINGS - GROUP RESULTS
FUNDS RECEIVED 6 mths to 6 mths to 12 mths to
FROM CLIENTS Gross Gross 30.06.2010 30.06.2009 31.12.2009
inflow outflow Net inflow Net inflow Net inflow
Rm Rm Rm Rm Rm
Retail business 3 261 (2 885) 376 930 1 723
Corporate business 1 436 (1 872) (436) (1 096) (4 126)
International
business 547 (348) 199 277 539
Long-term
insurance business
cash flows
5 244 (5 105) 139 111 (1 864)
Health business 11 463 (10 049) 1 414 (582) 1 760
Asset
administration
business 9 077 (8 382) 695 1 751 2 901
Asset management
business 37 (1 088) (1 051) 640 (1 420)
Corporate business 5 - 5 48 118
Total funds
received from
clients 25 826 (24 624) 1 202 1 968 1 495
PREMIUMS RECEIVED 6 mths to 6 mths to 12 mths to
30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Recurring premiums 3 778 3 726 7 779
Retail business 2 301 2 313 4 856
Corporate business 964 888 1 863
International business 513 525 1 060
Single premiums 1 466 1 603 3 416
Retail business 960 1 105 1 975
Corporate business 472 419 1 319
International business 34 79 122
Capitation contracts - health
business 12 6 12
Segment premiums received 5 256 5 335 11 207
Adjustment for premiums received
from investment contract holders (336) (555) (1 071)
Transfers between insurance, 44 29 104
investment and investment with DPF
contracts
Net insurance premiums per income
statement 4 964 4 809 10 240
METROPOLITAN HOLDINGS - GROUP RESULTS
PAYMENTS TO CONTRACT HOLDERS 6 mths to 6 mths to 12 mths to
30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Retail 2 885 2 488 5 108
Death and disability claims 484 532 1 099
Maturity claims 959 748 1 487
Annuities 394 359 768
Withdrawal benefits 35 57 108
Surrenders 1 056 821 1 752
Re-insurance recoveries (43) (29) (106)
Corporate 1 872 2 403 7 308
Death and disability claims 626 570 1 159
Maturity claims 31 69 101
Annuities 257 373 696
Withdrawal benefits 78 141 269
Terminations 131 286 3 405
Disinvestments 868 1 063 1 879
Re-insurance recoveries (119) (99) (201)
International 348 327 643
Death and disability claims 92 96 195
Maturity claims 58 61 138
Annuities 20 19 38
Withdrawal benefits 26 48 69
Surrenders 104 104 199
Terminations 1 - 3
Disinvestments 57 11 24
Re-insurance recoveries (10) (12) (23)
Capitation contracts 12 8 14
Total payments to contract holders 5 117 5 226 13 073
Adjustment for payments to
investment contract holders (717) (985) (4 711)
Transfers between insurance,
investment and investment with DPF
contracts 44 29 104
Net insurance benefits and claims
per income statement 4 444 4 270 8 466
- Segment information is disclosed in the segment report and reconciles to
total payments to policyholders.
- Payments to contract holders have been restated for June and December
2009 to separate the international payments to contract holders.
METROPOLITAN HOLDINGS - GROUP RESULTS
NUMBER OF EMPLOYEES 30.06.2010 30.06.2009 31.12.2009
Indoor staff 5 509 5 496 5 512
Insurance companies 2 680 2 708 2 780
Retail 1 236 1 227 1 274
Union Life - 112 98
Cover2Go - 13 13
Employee benefits 412 404 400
International 491 419 453
Group services 541 533 542
Metropolitan Health Group 2 509 2 360 2 382
Asset management 80 80 81
Asset administration 65 66 67
Metropolitan Card Operations - 14 -
Metropolitan Retirement
Administrators 138 138 138
DirectFin Solutions 22 114 47
Holding company 15 16 17
Field staff 4 178 3 762 4 210
Retail 3 035 2 686 2 822
Union Life - 187 304
International 1 143 889 1 084
Total 9 687 9 258 9 722
- Union Life was sold during 2010
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF EXPENSES 6 mths to 6 mths to 12 mths to
30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Depreciation, amortisation and
impairment expenses 100 46 148
Employee benefit expenses 858 799 1 549
Sales remuneration 476 501 987
Other expenses 528 661 1 271
Finance costs 66 88 168
Total expenses 2 028 2 095 4 123
Long-term insurance business 1 378 1 502 3 018
Administration expenses 757 853 1 705
Sales remuneration 475 501 984
Asset management fees 93 96 210
Direct property expenses 53 52 119
Administration business 571 511 996
Finance costs - preference shares
and subordinated redeemable debt 65 87 164
Holding company 61 38 67
Consolidation adjustments (47) (43) (122)
Total expenses 2 028 2 095 4 123
- Segment information is disclosed in the segment report.
METROPOLITAN HOLDINGS - GROUP RESULTS
ASSETS UNDER MANAGEMENT 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
Intangible assets 439 488 464
Owner-occupied properties 714 700 690
Property and equipment 194 197 202
Investment properties 3 179 3 117 3 193
Investment in associates 1 207 1 365 856
Employee benefit assets 227 241 232
Financial assets 55 738 51 903 56 201
Equity securities 22 648 20 225 24 687
Debt securities 13 525 15 737 13 014
Funds on deposit and other money 5 635 4 134 5 484
market instruments
Unit-linked investments 11 917 9 911 11 258
Derivative financial instruments 862 822 718
Loans and receivables 1 151 1 074 1 040
Insurance and other receivables 1 504 1 441 1 579
Deferred income tax 14 10 10
Reinsurance contracts 275 230 242
Current income tax assets 327 13 200
Cash and cash equivalents 7 288 8 971 7 702
Total on-balance sheet assets 71 106 68 676 71 571
Collective investments 22 462 18 777 22 189
Health 5 113 4 808 5 006
Asset management - segregated assets 1 970 4 443 2 948
Employee benefits - segregated
assets 808 1 499 1 508
Total assets under management 101 459 98 203 103 222
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF ASSETS UNDER MANAGEMENT 30.06.2010 30.06.2009 31.12.2009
Rm Rm Rm
On-balance sheet assets
Managed and administered by Metam 52 258 49 362 51 017
Properties 3 893 3 802 3 869
Collective investment schemes 2 044 2 014 1 982
Investment assets 46 321 43 546 45 166
Administered and/or managed by
Metropolitan Collective Investments
(excludes managed by Metam)
1 108 1 043 1 320
Managed by external managers 12 780 14 014 14 521
Other assets 4 960 4 257 4 713
71 106 68 676 71 571
Off-balance sheet assets
Managed and administered by Metam 6 035 8 600 6 629
Collective investment schemes 3 397 3 344 3 004
Segregated assets 2 638 5 256 3 625
Administered and/or managed by
Metropolitan Collective Investments
(includes white label funds)
19 065 15 432 19 185
Employee benefits - segregated
assets 140 687 831
Health 5 113 4 808 5 006
Total assets under management 101 459 98 203 103 222
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF ASSETS 30.06.2010 30.06.2009 31.12.2009
BACKING GROUP EXCESS
Rm % Rm % Rm %
Equity securities 2 248 34.5 1 900 33.0 2 489 37.7
Collective investment
schemes 1 353 20.8 636 11.1 1 260 19.1
Debt securities 480 7.4 703 12.2 723 10.9
Owner-occupied
properties 675 10.4 655 11.4 638 9.7
Investment properties 374 5.6 303 5.2 223 3.4
Cash and cash
equivalents 1 485 22.8 1 947 33.9 1 781 26.9
Goodwill 149 2.3 177 3.1 154 2.3
Other net assets 963 14.8 765 13.3 556 8.4
7 727 118.6 7 086 123.2 7 824 118.4
Redeemable preference
shares (710) (10.9) (836) (14.5) (711) (10.8)
Subordinated redeemable
debt (501) (7.7) (501) (8.7) (501) (7.6)
Excess - group per
reporting basis 6 516 100.0 5 749 100.0 6 612 100.0
GROUP EXCESS - TOP 10 30.06.2010 30.06.2009 31.12.2009
EQUITY HOLDINGS
Rm % Rm % Rm %
MTN Group Ltd 178 7.9 137 7.2 196 7.9
Sasol Ltd 146 6.5 88 4.6 128 5.1
Standard Bank Group
Ltd 122 5.4 81 4.3 104 4.2
Billiton Plc 119 5.3 96 5.0 139 5.6
Anglo American Plc 112 5.0 70 3.7 113 4.5
SAB Miller Plc 101 4.5 87 3.5
FirstRand Ltd 97 4.3 67 3.5 117 4.7
Impala Platinum
Holdings Ltd 90 4.0 116 4.7
Telkom SA Ltd 78 3.5
Compagnie Financiere
Richemont 72 3.2 66 3.5 62 2.5
Bidvest Ltd 44 2.3
Vodacom group Ltd 53 2.8
ABSA Ltd 60 3.2
Naspers Ltd 87 3.5
1 115 49.6 762 40.1 1 149 46.2
Total equities backing
excess 2 248 100.0 1 900 100.0 2 489 100.0
METROPOLITAN HOLDINGS - GROUP RESULTS
STOCK EXCHANGE 30.06.2010 31.12.2009 30.06.2009 31.12.2008
PERFORMANCE
6 month period
Value of listed shares
traded (rand million)
(21) 2 724 2 470 2 180 2 126
Volume of listed shares
traded (million) (21) 177 191 195 192
Shares traded (% of
average listed shares in
issue) (21) 64.0 70.5 72.9 71.1
Value of shares traded -
life insurance (J857 -
Rbn) 49.3 50.9 43.1 45.2
Value of shares traded -
top 40 index (J200 -
Rbn) 1 211 1 152 1 045 1 320
Trade prices
Highest (cents per
share) 1 731 1 395 1 295 1 367
Lowest (cents per
share) 1 291 1 140 941 890
Last sale of period
(cents per share) 1 606 1 342 1 165 1 080
Percentage (%) change
during period 43.2 32.7 16.4 (2.4)
Percentage (%) change -
life insurance sector
(J857) (4.7) 65.2 32.0 (44.7)
Percentage (%) change -
top 40 index (J200) (13.2) 59.1 3.9 (54.1)
30 June/31 December
Price/diluted core
headline earnings ratio
10.78 9.52 9.47 7.15
Dividend yield %
(dividend on listed
shares) 6.35 7.45 8.15 8.80
Dividend yield % - top
40 index (J200) 2.17 1.96 3.80 4.27
STOCK EXCHANGE 30.06.2010 31.12.2009 30.06.2009 31.12.2008
PERFORMANCE
6 month period
Total shares issued
(million)
Listed on JSE 553 553 528 542
Ordinary shares 549 549 524 538
Share incentive
scheme 4 4 4 4
Unlisted - share
purchase scheme 10 10 12 14
Total ordinary shares
in issue 563 563 540 556
Treasury shares held
by subsidiary - - - (16)
Treasury shares held
on behalf of contract
holders (1) (1) (1) (1)
Adjustment to staff
share scheme shares
(22) (12) (12) (16) (17)
Share incentive
scheme (2) (2) (4) (4)
Share purchase
scheme (10) (10) (12) (13)
Basic number of shares
in issue 550 550 523 522
Adjustment to staff
share scheme shares 2 12 16 17
Treasury shares held
on behalf of contract
holders 1 1 1 1
Convertible redeemable
preference shares 100 100 123 123
Diluted number of 653 663 663 663
shares in issue (23)
Market capitalisation at
end (Rbn) (24) 10.65 8.90 7.72 7.16
Percentage (%) of life
insurance sector 7.33 6.01 6.69 7.05
(21) Percentages have been annualised.
(22) These are shares which have been issued since 1 January 2001, the date on
which the group adopted AC133 (now IAS39).
(23) 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.
(24) The market capitalisation is calculated on the fully diluted number of
shares in issue.
Date: 01/09/2010 08:00:02 Produced by the JSE SENS Department.
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