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SNT
SNT
SNT - Santam Limited and its subsidiaries - Reviewed interim financial report
for the six months ended 30 June 2010
Santam Limited and its subsidiaries
Reviewed Interim Report for the six months ended 30 June 2010
Registration number 1918/001680/06
ISIN ZAE000093779
JSE share code: SNT
NSX share code: SNM
- 80% increase in headline earnings
- Exceptional underwriting returns achieved
- Strong cash flows generated
- Group solvency ratio of 44%
- Special dividend of 500 cents per share
- Interim dividend of 185 cents per share
Financial review
From an underwriting perspective, Santam experienced an exceptional first half,
particularly when compared to the same period in 2009. Whilst Santam`s
underwriting margin was very favourable, investment returns were under pressure
as a result of weaker equity markets. Overall earnings for the group showed a
significant improvement. Both headline earnings of R577 million and headline
earnings per share of 511 cents showed an increase of 80% compared to 2009.
Growth in gross written premiums was satisfactory at 6% despite the continuing
soft market. It is expected that the industry will grow below the nominal growth
of the economy as a result of continued pressure on disposable income whilst the
difficult economic environment persists. Positive growth was achieved across the
largest classes, including motor and property, but achieving an appropriate rate
for the risk insured, as the domestic economy recovered slowly from recession,
remains a challenge.
The net underwriting result for the first six months of the year was very
pleasing, showing a continued improvement from the second half of 2009 and all
business units performed well. This was particularly influenced by the absence
of large industrial accident and fire-related claims in the commercial and
corporate business units. The net underwriting result of R533 million was
significantly higher than the R88 million achieved during the first half of
2009. The overall net underwriting margin of 8% was favourably impacted by
improved margins in the property and motor classes. Underwriting performance of
the personal and non-specialist commercial businesses also showed positive
improvements due to a lower claims frequency and cost. It was particularly
pleasing to see a continued turnaround in the performance of the previous loss
making lines, corporate property and portfolio management, both of which
performed well during the past six months, recording positive margins. Amongst
the specialist classes, the liability and engineering business units continued
to perform well, while the crop business saw margins under pressure as a result
of increased hail claims in the summer rainfall areas. The net acquisition cost
ratio of 26.8% was higher than the 25.7% for the same period in 2009, mainly due
to timing differences on management expenses.
Investment return on insurance funds of R203 million was slightly below the R218
million for the comparable period in 2009. Despite increased float balances,
returns from interest bearing instruments were lower due to lower interest
rates. The group`s operating activities generated healthy cash flows of R825
million, somewhat lower than the same period in 2009 as several large prior year
claims are now being settled.
The combined effect of the insurance activities resulted in a net insurance
margin of 11% for the past six months compared to 5% for the comparable period
in 2009.
Performance of the investment portfolio was under pressure due to continued
volatility in the investment markets, with equity markets closing below the
December 2009 levels. The company`s equity portfolio outperformed the ALSI index
as mandates are essentially linked to the SWIX index. Reported investment
results benefited from the derivative fence structure which substantially
matured during the second quarter. Dividend income was lower as a direct
consequence of the economic environment while lower interest rates also resulted
in lower interest earnings.
Net earnings from associated companies were positive for the period mainly due
to higher earnings from key associates.
At 30 June 2010 the group`s international solvency ratio was at 44%, at the
upper end of the long-term target range of between 35% and 45%. As this solvency
margin is in excess of optimal risk adjusted capital requirements, the board
approved a special dividend of 500 cents per share in line with the group`s
continued focus on efficient capital management. The special dividend will be
paid simultaneously with the interim dividend for the year.
Given the concerns about the economy and markets at the time, a conservative
approach was warranted when the interim dividend of 166 cents per share was
declared at the halfway mark in 2009. The board has decided to declare an
interim dividend of 185 cents per share, up 11.4% on 2009, in recognition of
overall improving conditions and aligning the split between interim and final
dividend with the policy under normal conditions.
The board would like to extend its gratitude to Santam`s management, staff,
brokers and other business partners for their efforts and contributions during
the past six months.
Prospects
General consensus is that economic growth is expected to be fairly flat for the
remainder of the year, with domestic insurance industry premium growth most
likely below the nominal growth of the economy. It is anticipated that the
market will continue to be soft, both for commercial and personal lines business
as the recovery of the domestic economy is slower than anticipated. We remain
concerned over the low levels of disposable income of individuals and earnings
pressure on businesses which make achievement of an appropriate risk rate
challenging. Expectations are that underwriting margins could normalise within
the long-term target range of between 4% and 6%. The company will continue its
efforts to optimise profitability in all aspects of the business with a strong
focus on risk management and improving efficiencies. Santam is well positioned
to face current challenges with its unique diversification and scale benefits.
It remains difficult to predict financial markets and we expect the current
volatility to remain. Until there is more clarity regarding sovereign debt
exposures of several developed countries and its impact on the world economy,
markets will remain under pressure. In line with general consensus we expect
interest rates to remain at current or lower levels for the foreseeable future,
limiting significant increases in returns on cash-related investments.
Events after the reporting period
Santam exercised its pre-emptive right as a shareholder and partner in order to
purchase the remaining shares in Indwe Broker Holdings (Indwe) for a
consideration of R263 million to become the 100% shareholder of Indwe. This
transaction is still subject to conclusion of legal agreements and regulatory
approval.
Declaration of dividend (Number 113)
Notice is hereby given that the board has declared an interim dividend of 185
cents per share (2009: 166 cents) as well as a special dividend of 500 cents per
share (2009: zero cents). Shareholders are advised that the last day to trade
"cum dividend" will be Thursday, 16 September 2010. The shares will trade "ex
dividend" from the commencement of business on Friday, 17 September 2010. The
record date will be Thursday, 23 September 2010, and the payment date will be
Monday, 27 September 2010. Certificated shareholders may not dematerialise or
rematerialise their shares between Friday,
17 September 2010, and Thursday, 23 September 2010, both dates inclusive.
Auditors` Report
The company`s external auditors, PricewaterhouseCoopers Inc, have reviewed the
condensed interim financial report. A copy of their unqualified review opinion
is available on request at the company`s registered office.
On behalf of the board
VP Khanyile IM Kirk
Chairman Chief Executive Officer
1 September 2010
Consolidated statements of Reviewed Reviewed Audited
financial position Notes
At 30 June At 30 June At 31 Dec
2010 2009 2009
R million R million R million
ASSETS
Non-current assets
Property and equipment 53 51 47
Intangible assets 139 171 143
Deferred income tax 106 57 88
Investments in associates 217 173 198
Financial assets - at fair
value through income
Equity securities 4 3 116 3 181 3 191
Debt securities 4 3 570 2 726 3 146
Reinsurance assets 347 672 382
Current assets
Financial assets - at fair
value through income
Derivatives 4 - 32 -
Short-term money market 4 4 065 3 530 4 554
instruments
Reinsurance assets 1 196 1 733 1 429
Deferred acquisition costs 238 224 259
Loans and receivables 4 1 966 2 225 2 262
including insurance
receivables
Income tax assets 6 39 4
Cash and cash equivalents 1 717 1 857 1 379
Total assets 16 736 16 671 17 082
Equity
Capital and reserves
attributable to the company`s
equity holders
Share capital 107 107 107
Treasury shares (652) (658) (660)
Other reserves 1 297 1 259 1 268
Distributable reserves 4 264 3 558 4 080
5 016 4 266 4 795
Non-controlling interest 73 140 144
Total equity 5 089 4 406 4 939
Liabilities
Non-current liabilities
Deferred income tax 131 12 129
Financial liabilities - at
fair value through income
Debt securities 5 885 835 839
Derivatives 4 5 - 9
Financial liabilities - at
amortised cost
Cell owners` interest 598 475 535
Insurance liabilities 1 302 2 049 1 332
Provisions for other 4 - 5
liabilities and charges
Current liabilities
Financial liabilities - at
fair value through income
Debt securities 24 24 24
Investment contracts 345 267 333
Derivatives 4 5 10 108
Financial liabilities - at
amortised cost
Collateral guarantee 104 97 101
contracts
Insurance liabilities 6 323 6 588 6 931
Deferred reinsurance 32 33 53
acquisition revenue
Provisions for other 28 26 27
liabilities and charges
Trade and other payables 1 606 1 763 1 570
Current income tax 255 86 147
liabilities
Total liabilities 11 647 12 265 12 143
Total shareholders` equity 16 736 16 671 17 082
and liabilities
Consolidated statements
of comprehensive income
Reviewed Reviewed Audited
Six months Six months Year
ended ended ended
30 June 30 June Change 31 Dec
2010 2009 2009
Notes R million R million % R million
Gross written premium 7 717 7 291 6% 15 026
Less: reinsurance 1 418 1 416 2 132
premium
Net premium 6 299 5 875 7% 12 894
Less: Change in
unearned premium
Gross amount (308) (370) (108)
Reinsurers` share (39) 67 106
Net insurance premium 6 646 6 178 8% 12 896
revenue
Investment income 6 335 365 (8%) 707
Income from reinsurance 134 127 209
contracts ceded
Net (losses)/gains on (15) 56 479
financial assets and
liabilities at fair
value through income
Net income 7 100 6 726 6% 14 291
Insurance claims and 4 728 5 784 10 241
loss adjustment
expenses
Insurance claims and (397) (1 281) (1 141)
loss adjustment
expenses recovered from
reinsurers
Net insurance benefits 4 331 4 503 (4%) 9 100
and claims
Expenses for the 1 148 1 067 2 127
acquisition of
insurance contracts
Expenses for marketing 768 647 1 425
and administration
Expenses for asset 16 12 25
management services
rendered
Amortisation of 4 6 25
intangible assets
Expenses 6 267 6 235 1% 12 702
Results of operating 833 491 70% 1 589
activities
Finance costs (42) (50) (114)
Share of profit of 24 (1) 49
associates
Impairment charge on - (4) (6)
net investment of
associates
Profit before tax 815 436 87% 1 518
Income tax expense 7 (229) (104) (402)
Profit for the period 586 332 77% 1 116
Other comprehensive
income
Currency translation (19) (28) (80)
differences
Total comprehensive 567 304 1 036
income for the period
Profit attributable to:
- equity holders of the 578 316 83% 1 082
company
- non-controlling 8 16 34
interest
586 332 1 116
Total comprehensive
income attributable to:
- equity holders of the 559 288 94% 1 002
company
- non-controlling 8 16 34
interest
567 304 1 036
Earnings attributable
to equity shareholders
Earnings per share 10
(cents)
Basic earnings per 512 280 83% 959
share
Diluted earnings per 503 276 82% 942
share
Weighted average number 112.91 112.75 112.80
of shares - millions
Weighted average number 114.94 114.48 114.87
of ordinary shares for
diluted earnings per
share - millions
Consolidated Attributable to equity holders Non- Total
statements of of the company control-
changes in equity ling
interest
Share Treasury Other Distri- R R
capital shares reserves butable million million
R R R reserves
million million million R
million
Balance as at 107 (680) 1 251 3 586 138 4 402
1 January 2009
Profit for the - - - 1 082 34 1 116
period
Other
comprehensive
income:
Currency - - (80) - - (80)
translation
differences
Total - - (80) 1 082 34 1 036
comprehensive
income for the
period ended 31
December 2009
Proceeds from - - - - - -
shares issued
Purchase of - (53) - - - (53)
treasury shares
Sale of treasury - 73 - - - 73
shares
Loss on sale of - - - (53) - (53)
treasury shares
Transfer to - - 97 (97) - -
reserves
Share-based - - - 47 - 47
payments
Dividends paid - - - (485) (28) (513)
Balance as at 107 (660) 1 268 4 080 144 4 939
31 December 2009
Profit for the - - - 578 8 586
period
Other
comprehensive
income:
Currency - - (19) - - (19)
translation
differences
Total - - (19) 578 8 567
comprehensive
income for the
period ended
30 June 2010
Proceeds from - - - - - -
shares issued
Purchase of - (13) - - - (13)
treasury shares
Sale of treasury - 21 - - - 21
shares
Loss on sale of - - - (18) - (18)
treasury shares
Transfer to - - 48 (48) - -
reserves
Share-based - - - 23 (1) 22
payments
Dividends paid - - - (339) - (339)
Excess paid on - - - (12) - (12)
acquisition of non-
controlling
interest
Interest acquired - - - - (78) (78)
from non-
controlling
interest
Balance as at 107 (652) 1 297 4 264 73 5 089
30 June 2010
Balance as at 107 (680) 1 251 3 586 138 4 402
1 January 2009
Profit for the - - - 316 16 332
period
Other
comprehensive
income:
Currency - - (28) - - (28)
translation
differences
Total - - (28) 316 16 304
comprehensive
income for the
period ended
30 June 2009
Proceeds from - - - - - -
shares issued
Purchase of - (17) - - - (17)
treasury shares
Sale of treasury - 39 - - - 39
shares
Loss on sale of - - - (31) - (31)
treasury shares
Transfer to - - 36 (36) - -
reserves
Share-based - - - 21 - 21
payments
Dividends paid - - - (298) (14) (312)
Balance as at 107 (658) 1 259 3 558 140 4 406
30 June 2009
Consolidated statements Reviewed Reviewed Audited
of cash flows Notes Six months Six months Year ended
ended 30 ended 30 31 Dec 2009
June 2010 June 2009 R million
R million R million
Cash generated from 825 958 1 839
operations
Interest paid (42) (50) (114)
Income tax paid (138) 2 (115)
Net cash from operating 645 910 1 610
activities
Cash flows from investing
activities
Cash generated/(utilised) in 66 (515) (1 477)
investment activities
Acquisition of subsidiary, 8 (94) (11) (11)
net of cash acquired
Cash acquired/(sold) through 8 95 2 (23)
acquisition/sale of
subsidiary
Purchases of equipment (19) (18) (37)
Purchases of software - (17) -
Proceeds from sale of 1 - 1
equipment
Acquisition of associated - - (7)
companies
Proceeds from sale of - - 33
associated companies
Acquisition of book of - (2) (2)
business
Proceeds from sale of - - 56
subsidiary
Net cash from investing 49 (561) (1 467)
activities
Cash flows from financing
activities
Proceeds from issuance of - - -
ordinary shares
Purchase of treasury shares (13) (17) (53)
Proceeds on sale of treasury 4 8 20
shares
Increase/(Decrease) in 1 (136) (101)
investment contract
liabilities
Dividends paid to company`s (339) (298) (485)
shareholders
Dividends paid to non- - (14) (28)
controlling interest
Increase in cell owners` 62 28 87
interest
Purchase of subsidiary from 9 (90) - -
non-controlling interest
Net cash used in financing (375) (429) (560)
activities
Net increase/(decrease) in 319 (80) (417)
cash and cash equivalents
Cash and cash equivalents at 1 379 1 938 1 938
beginning of period
Exchange gains/(losses) on 19 (1) (142)
cash and cash equivalents
Cash and cash equivalents at 1 717 1 857 1 379
end of period
Notes to the interim financial information
1. Basis of presentation
This condensed consolidated interim financial information for the six months
ended 30 June 2010 has been prepared in accordance with IAS 34 - Interim
Financial Reporting and in compliance with the Listing Requirements of the
JSE Limited. The condensed consolidated interim financial information does
not include all of the information required by IFRS for full annual
financial statements and should be read in conjunction with the annual
financial statements for the year ended 31 December 2009, which have been
prepared in accordance with IFRS.
2. Accounting policies
The principal accounting policies applied in preparing the reviewed results
for the six months ended 30 June 2010 are consistent with those of the
annual financial statements for the year ended 31 December 2009, as
described in those annual financial statements.
The following new standards and amendments to standards are mandatory for
the first time for the financial year beginning 1 January 2010.
- IAS 27 (revised) - Consolidated and Separate Financial Statements
This standard requires the effects of all transactions with non-controlling
interests to be recorded in equity if there is no change in control. They
will no longer result in goodwill or gains and losses. The standard also
specifies the accounting when control is lost. Any remaining interest in the
entity is re-measured to fair value and a gain or loss is recognised in
profit or loss.
- IFRS 3 (revised) - Business Combinations
The new standard continues to apply the acquisition method to business
combinations, with some significant changes. All payments to purchase a
business are to be recorded at fair value at the acquisition date, with some
contingent payments subsequently re-measured at fair value through income.
Goodwill may be calculated based on the parent`s share of net assets or it
may include goodwill related to the minority interest. All transaction costs
will be expensed.
3. Segment information
The Executive committee (Exco) reviews the group`s internal reporting in
order to assess performance and allocate resources. The operating segments
identified are representative of the internal structure of the group.
Exco reviews the two core activities of the group, i.e. insurance activities
and investment activities, on a monthly basis. Insurance activities are all
insurance underwriting activities undertaken by the group and comprise
commercial insurance, personal insurance and alternative risks. Insurance
activities are also further analysed by insurance class. Investment
activities are all investment-related activities undertaken by the group.
Exco considers the performance of insurance activities based on gross
written premium as a measure of growth while underwriting result and net
insurance result are measures of profitability.
Investment activities are measured based on net investment income and income
from associated companies.
Other information provided to Exco is measured in a manner consistent with
that in the financial statements.
3.1 For the six months ended 30 June 2010
Business activity Insurance Investment Total
activities activities R million
R million R million
Revenue 7 717 93 7 810
Gross written premium 7 717 7 717
Net written premium 6 299 6 299
Net earned premium 6 646 6 646
Claims incurred 4 331 4 331
Net commission 1 014 1 014
Management expenses 762 6 768
Underwriting result 539 (6) 533
Investment return on 203 203
insurance funds
Net insurance result 742 (6) 736
Investment income net of 59 59
management fee
Income from associates 24 24
net of impairment
Amortisation of (4) (4)
intangible assets
Income before taxation 738 77 815
Total assets 9 833 6 903 16 736
Total liabilities 10 728 919 11 647
Insurance class Gross Under- Total Total
written writing assets liabilities
premium result R million R million
R million R million
Accident and health 185 13 22 144
Alternative risk 1 240 11 332 1 683
Crop 57 5 9 23
Engineering 282 62 124 307
Guarantee 7 5 11 25
Liability 500 190 461 1 850
Miscellaneous 11 3 2 14
Motor 3 059 111 44 1 562
Property 2 189 81 699 1 803
Transportation 187 58 77 248
Unallocated - (6) 14 955 3 988
Total 7 717 533 16 736 11 647
Comprising:
Commercial insurance 3 535 444 1 327 4 706
Personal insurance 2 942 84 122 1 270
Alternative risk 1 240 11 332 1 683
Unallocated - (6) 14 955 3 988
Total 7 717 533 16 736 11 647
3.2 For the six months ended 30 June 2009
Business activity Insurance Investment Total R
activities activities million
R million R million
Revenue 7 291 146 7 437
Gross written premium 7 291 7 291
Net written premium 5 875 5 875
Net earned premium 6 178 6 178
Claims incurred 4 503 4 503
Net commission 940 940
Management expenses 641 6 647
Underwriting result 94 (6) 88
Investment return on 218 218
insurance funds
Net insurance result 312 (6) 306
Investment income net of 141 141
management fee
Income from associates (5) (5)
net of impairment
Amortisation of (6) (6)
intangible assets
Income before taxation 306 130 436
Total assets 10 559 6 112 16 671
Total liabilities 11 396 869 12 265
Insurance class Gross Under- Total Total
written writing assets liabilities
premium result R million R million
R million R million
Accident and health 188 5 28 137
Alternative risk 1 025 9 386 1 865
Crop 67 103 2 5
Engineering 278 55 97 285
Guarantee 6 4 13 27
Liability 503 244 659 2 022
Miscellaneous 9 (6) 7 24
Motor 2 956 (4) 68 1 422
Property 2 064 (333) 1 281 2 580
Transportation 195 17 87 303
Unallocated - (6) 14 043 3 595
Total 7 291 88 16 671 12 265
Comprising:
Commercial insurance 3 453 167 2 175 5 691
Personal insurance 2 813 (82) 67 1 114
Alternative risk 1 025 9 386 1 865
Unallocated - (6) 14 043 3 595
Total 7 291 88 16 671 12 265
3.3 For the year ended 31 December 2009
Business activity Insurance Investment Total
activities activities R million
R million R million
Revenue 15 026 695 15 721
Gross written premium 15 026 15 026
Net written premium 12 894 12 894
Net earned premium 12 896 12 896
Claims incurred 9 100 9 100
Net commission 1 918 1 918
Management expenses 1 412 13 1 425
Underwriting result 466 (13) 453
Investment return on 420 420
insurance funds
Net insurance result 886 (13) 873
Investment income net of 627 627
management fee
Income from associates 43 43
net of impairment
Amortisation of (25) (25)
intangible assets
Income before taxation 861 657 1 518
Total assets 10 547 6 535 17 082
Total liabilities 11 271 872 12 143
Insurance class Gross Under- Total Total
written writing assets liabilities
premium result R million R million
R million R million
Accident and health 382 3 25 147
Alternative risk 1 638 16 306 1 740
Crop 472 83 140 302
Engineering 562 127 107 308
Guarantee 16 6 12 27
Liability 1 126 517 488 1 941
Miscellaneous 19 (4) 5 17
Motor 6 147 (29) 33 1 487
Property 4 266 (321) 890 2 082
Transportation 398 68 64 265
Unallocated - (13) 15 012 3 827
Total 15 026 453 17 082 12 143
Comprising:
Commercial insurance 7 489 657 1 692 5 341
Personal insurance 5 899 (207) 72 1 235
Alternative risk 1 638 16 306 1 740
Unallocated - (13) 15 012 3 827
Total 15 026 453 17 082 12 143
4. Financial assets Reviewed Reviewed Audited
At 30 June At 30 June At 31 Dec
2010 2009 2009
R million R million R million
The group`s financial assets are
summarised below by measurement
category
Financial assets at fair value 10 741 9 459 10 774
through income
Loans and receivables 1 966 2 225 2 262
Total financial assets 12 707 11 684 13 036
Financial assets at fair value
through income
Equity securities
- quoted 2 808 2 849 2 872
- unquoted 308 332 319
3 116 3 181 3 191
Derivatives (net) (10) 22 (117)
Debt securities
- quoted
government and other bonds 1 793 1 626 1 639
long-term money market 1 026 815 756
instruments
- unquoted
redeemable preference shares 751 285 751
3 570 2 726 3 146
Short-term money market 4 065 3 530 4 554
instruments
5. Total financial assets at fair 10 741 9 459 10 774
value through income
Debt securities - at fair value
through income
At the beginning of the year 839 972 972
Fair value adjustment 46 (137) (133)
885 835 839
Accrued interest 24 24 24
909 859 863
During 2007 the company issued unsecured subordinated callable notes to
the value of R1 billion in two tranches. The fixed effective rate for
the R600 million issue was 8.6% and 9.6% for the second tranch of R400
million, representing the R203 companion bond plus an appropriate
credit spread at the time of the issues. The fixed coupon rate, based
on the nominal value of the issues, amounts to 8.25% and for both
tranches the optional redemption date is 15 September 2017. Between the
optional redemption date and the final maturity date of 15 September
2022, a variable interest rate (JIBAR-based) plus additional margin
will apply.
Per conditions set by the Regulator, Santam is required to maintain
liquid assets equal to the value of the callable notes until maturity.
The callable notes are therefore measured at fair value to minimise
undue volatility in net profit.
Reviewed At Reviewed At Audited
30 June 30 June At 31 Dec
2010 2009 2009
R million R million R million
6. Investment income
Dividend income 55 141 198
Interest income 258 300 612
Foreign exchange differences 22 (76) (103)
335 365 707
7. Tax
South African normal taxation
Current year 240 76 240
Charge for the year 206 55 213
STC 34 21 27
Prior year (7) (4) 25
Foreign taxation 13 10 27
Income taxation for the year 246 82 292
Deferred taxation (17) 22 110
Current year (12) 16 96
STC (5) 6 14
229 104 402
Reconciliation of taxation rate
(%)
Normal South African taxation 28.0 28.0 28.0
rate
Adjust for
- Exempt income (1.9) (6.1) (4.1)
- Investment results (1.2) (3.0) (2.6)
- STC 3.6 2.6 2.7
- Other (0.4) 2.4 2.5
Net reduction 0.1 (4.1) (1.5)
Effective rate 28.1 23.9 26.5
8. Business combinations
Disposals
Net asset value sold - - (3)
Onerous contract as a result of - - (5)
disposal
Proceeds on sale of subsidiaries - - 56
Profit on sale of subsidiaries - - 54
Acquisition/Increase in
shareholding
On 1 January 2010, Swanvest 120
(Pty) Ltd acquired 100% of the
voting equity interest in Emerald
Risk Transfer (Pty) Ltd to obtain
specialist underwriting skills in
the corporate property
environment. The company was sold
by its main shareholder,
Supergroup, as part of their
strategy to dispose of non-core
businesses. As at 30 June 2010
the fair valued amounts
recognised as at the acquisition
date for each major class of
assets acquired and liabilities
assumed were only provisional.
Provisional details of the assets
and liabilities acquired at fair
value are as follows:
Deferred taxation 3
Fixed assets 4
Intangible assets -
Reinsurance assets 13
Loans and receivables 67
Cash and cash equivalents 95
Insurance liabilities (32)
Trade and other payables (53)
Taxation (2)
Provisional net asset value 95 3 7
acquired
Purchase consideration paid 94 11 11
Investment in associated share - 1 1
previously acquired
Provisional excess of acquirer`s (1) 9 5
interest in the net fair value of
the acquiree`s identifiable
assets, liabilities and
contingent liabilities over cost
Comparative information on
acquisitions and disposals relate
to several smaller transactions
reported on in detail in prior
periods.
9. Transactions with non-controlling
partners
On 1 January 2010, Santam Ltd
acquired the non-controlling
interest of 33.3% in Centriq
Holdings (Pty) Ltd.
Non-controlling interest acquired 78 - -
Excess paid on acquisitions of 12 - -
non-controlling interest
Purchase consideration paid 90 - -
Reviewed Reviewed Audited
Six months Six months Year ended
ended 30 ended 30 31 Dec 2009
June 2010 June 2009
10. Earnings per share
Basic earnings per share
Profit attributable to the 578 316 1 082
company`s equity holders
(R million)
Weighted average number of 112.91 112.75 112.80
ordinary shares in issue
(million)
Earnings per share (cents) 512 280 959
Diluted earnings per share
Profit attributable to the 578 316 1 082
company`s equity holders
(R million)
Weighted average number of 112.91 112.75 112.80
ordinary shares in issue
(million)
Adjusted for share-options 2.03 1.73 2.07
Weighted average number of 114.94 114.48 114.87
ordinary shares for diluted
earnings per share (million)
Diluted basic earnings per share 503 276 942
(cents)
Headline earnings per share
Profit attributable to the 578 316 1 082
company`s equity holders
Adjust for:
Impairment charge on net - 4 6
investment of associates
Profit on sale of subsidiaries - - (76)
and associates
Provisional excess of acquirer`s (1) - -
interest in the net fair value of
the aquiree`s identifiable
assets, liabilities and
contingent liabilities over cost
Tax charge - - 10
Headline earnings (R million) 577 320 1 022
Weighted average number of 112.91 112.75 112.80
ordinary shares in issue
(million)
Headline earnings per share 511 284 906
(cents)
Diluted headline earnings per
share
Headline earnings (R million) 577 320 1 022
Weighted average number of 114.94 114.48 114.87
ordinary shares for diluted
earnings per share (million)
Diluted headline earnings per 502 280 889
share (cents)
11. Dividends per share
Dividend per share (cents) 185 166 466
Special dividend per share 500 - -
(cents)
Date: 01/09/2010 14:00:01 Produced by the JSE SENS Department.
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