| Wed 29 Feb 2012, 9:30 | | MMI - MMI Holdings Limited - Trading Statement |
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MMI
MMI
MMI - MMI Holdings Limited - Trading Statement
MMI Holdings Limited
Incorporated in the Republic of South Africa
Registration Number: 2000/031756/06
JSE share code: MMI
NSX share code: MIM
ISIN: ZAE000149902
("MMI" or "the company")
Trading statement in terms of the JSE Listings Requirements
MMI, created on 1 December 2010 as a result of a merger between Metropolitan and
Momentum, will be releasing interim results for the six months ended 31 December
2011 on 6 March 2012.
Shareholders are advised that the group`s diluted core headline earnings will be
between 78 and 83 cents per share, an increase on the restated prior period
comparative of 77 cents per share (as per the segmental information). The
segmental information assumes that the merger took place on 1 July 2009 and as
such the two interim reporting periods are comparable.
Core headline earnings are a measure of performance used by MMI in addition to
earnings and headline earnings. Core headline earnings are regarded by the
directors of MMI as an appropriate measure of longer-term operational
performance, given that items of both a once-off and an inherently volatile
nature are eliminated. These include changes to the valuation basis, investment
variances, fair value movements on shareholder assets, secondary tax on
companies and the amortisation of any intangible assets recognised due to
business combinations.
The statutory diluted earnings per share and diluted headline earnings per share
are expected to be between 50 and 60 cents per share for the six month period.
This is after taking into account a R257 million amortisation charge for the
intangibles created during the merger and a transfer to actuarial reserves as a
result of changes in the economic assumptions used in the financial soundness
valuation. The comparative statutory figures for 2010 comprise six months`
results from Momentum and one month`s results from Metropolitan, while the
current period includes six months from all operations. The comparative
statutory figures therefore do not provide meaningful comparisons.
New business written by the group during the six month period, measured on both
the annual premium equivalent and the present value of premiums basis, ended
marginally below the comparative levels recorded during 2010, reflecting the
difficult operating conditions experienced by the group.
The financial information on which this trading statement is based has not been
reviewed and reported on by MMI`s external auditors.
Centurion
29 February 2012
Sponsor
Merrill Lynch South Africa (Pty) Ltd
Date: 29/02/2012 09:30:02 Produced by the JSE SENS Department.
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