| Thu 26 Jul 2001, 0:00 | | South African Eagle Insurance Company Limited - An |
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DIVIDEND DECLARATION
SOUTH AFRICAN EAGLE INSURANCE COMPANY LIMITED
Announcement of results and dividend declaration for the six months ended 30
June 2001
Summarised income Statement
12 months
6 months ended ended
30 June 30 June 31 Dec
R'000 Note 2001 2000 2000
GROSS WRITTEN PREMIUM 1 103 406 850 147 1 867 318
Underwriting loss 3 (16 555) (32 475) 16 467)
Investment income 4 68 173 94 034 169 992
Investment expenses (3 415) (1 455) (4 463)
48 203 60 104 149 062
Restructuring cost - - (43 225)
NET REALISED surplus on
disposal of investments 55 264 30 803 184 671
OPERATING INCOME
before taxation 103 467 90 907 290 508
Taxation 5 (11 728) (25 441) (101 896)
NET INCOME after taxation 91 739 65 466 188 612
Outside shareholders'
interest therein (1 149) (1 104) (1 878)
Net income attributable
to members 90 590 64 362 186 734
Dividends - Normal (54 808) (30 449) (30 449)
- Special - (127 885) (596 795)
RETAINED INCOME/(DEFICIT) 35 782 (93 972) (440 510)
abridged balance sheet
12 months
6 months ended ended
30 June 30 June 31 Dec
R'000 Note 2001 2000 2000
ASSETS
Investments 6 934 345 1 347 725 80 010
Fixed assets 54 772 44 379 50 559
Current assets 541 176 433 848 508 240
Deposits and cash
at bankers 488 515 462 014 453 091
TOTAL ASSETS 2 018 808 2 287 966 1 991 900
EQUITY AND LIABILITIES
Capital and reserves 1 036 159 1 381 764 978 251
Minority interest 43 546 4 997 20 176
Deferred taxation 17 348 18 867 15 376
Technical provisions 741 126 711 258 702 471
Current liabilities 180 629 171 080 275 626
TOTAL EQUITY AND LIABILITIES 2 018 808 2 287 966 1 991 900
condensed statement of changes in equity
12 months
6 months ended ended
30 June 30 June 31 Dec
R'000 2001 2000 2000
Balance at beginning of period 978 251 1 592 902 1 592 902
Revaluation of investments 19 407 (122 589) (180 759)
Translation of foreign
subsidiaries 2 719 3 408 1 989
Taxation on movement of statutory
contingency reserve - 2 015 4 629
Net profits for the period 90 590 64 362 186 734
Dividends (54 808) (158 334) (627 244)
Balance at end of period 1 036 159 1 381 764 978 251
condensed cash flow statement
12 months
6 months ended ended
30 June 30 June 31 Dec
R'000 2001 2000 2000
Cash available from/
(utilised in)
underwriting operations 28 004 (47 150) (93 447)
Net increase in working
capital (69 985) (43 808) (7 274)
Dividends and interest
received 68 173 94 034 69 992
Taxation paid (64 742) (2 267) (23 554)
Dividends paid (54 808) (176 603) (675 962)
Cash effect of investing
activities 128 782 58 462 503 990
Increase/(Decrease) in
deposits and cash 35 424 (117 332) (126 255)
Notes
12 months
6 months ended ended
30 June 30 June 31 Dec
R'000 Note 2001 2000 2000
1. Accounting policies
The same accounting policies
and methods of computation
are followed in the interim
statements as compared
with the most recent annual
financial statements.
2. Determination of
headline earnings:
Net income attributable
to members 90 590 64 362 186 734
After-tax adjustment for:
- Net realised surplus on
disposal of investments and
fixed assets (45 697) (31 238) (182 834)
- Reverse provision for
restructuring cost (12 112) (24 710) (24 710)
- Provision for
restructuring cost 10 481 14 739 12 112
Headline earnings 43 262 23 153 (8 698)
Headline earnings per
share - cents 355,2 190,1 (71,4)
Adjusted headline earnings
per share before STC on
special dividends and
cost of restructuring - cents 368,6 403,2 893,0
Dividend per share - cents
- Normal paid 450,0 - 250,0
- Normal proposed 250,0 250,0 450,0
- Special paid - 1 050,0 4 900,0
Number of shares in issue 12 179 500 12 179 500 12 179 500
Net asset value per
share - cents 8 507 11 345 8 032
Solvency margin % 60,3 93,4 62,7
3. Underwriting loss after
charging/(crediting):
Depreciation 5 615 9 093 18 076
(Surplus)/Loss on disposal
of fixed assets (811) 621 372
4. Investment income
Interest 47 909 67 790 125 317
Dividends 20 264 26 244 44 675
Total investment income 68 173 94 034 169 992
5. Taxation
It was announced in the budget
speech that the long standing
relief from taxation in respect
of the statutory contingency
reserve was being withdrawn.
Full details are awaited of the
withdrawal of this relief which
is likely to result in an
additional tax charge of around
R40 million. No provision has
yet been made for this
additional tax liability.
6. Investments
Fixed properties 52 787 49 800 52 734
Mortgages and loans 19 856 21 488 19 303
Government and other
approved securities 145 811 375 153 192 411
Public boards, annuities and other
fixed interest securities 104 148 120
218 558 446 589 264 568
Listed shares 616 971 812 031 625 409
Unlisted shares 98 816 89 105 90 033
Total investments 934 345 1 347 725 980 010
Comments
Gross premium income has followed the strong growth pattern experienced in
the latter half of 2000 following the major consolidations in the market
with gross premium up 29,8% for the year to date.
The underwriting loss has reduced to R16,6 million (2000 - R32,5 million)
due to the absence of the extreme weather conditions experienced in 2000.
Despite the improved performance compared to the same period last year
further rating action has been taken to rectify areas of unsatisfactory
performance.
Investment income is 27,5% down on the year 2000 as a result of the payment
of special dividends amounting to R596,8 million in 2000 and also the
decline in interest rates experienced in the first half of the year.
Adjusted headline earnings per share are down to 368,6 cents from 403,2
cents in 2000 due to the reduction in investment income.
The net realised surplus on disposal of investments is R55,3 million
compared to R30,8 million in 2000 as the Company seeks to realign the equity
component in its investment portfolio following the reduction in cash
reserves due to the payment of special dividends in 2000.
Solvency stands at 60,3% (December 2000 - 62,7%) notwithstanding the
substantial increase in premium volumes.
DIVIDEND DECLARATION NO. 60
1. The Directors have declared an interim dividend for 2001 of 250 cents per
share (2000 - 250 cents per share) payable to shareholders registered on 17
August 2001.
2. The dividend is payable on 21 September 2001 and funds will be
transferred electronically to shareholders' bank accounts, or cheques will
be posted on or about that date.
By order of the Board
PHP O'Sullivan Chairman
NV Beyers Managing Director
Johannesburg
26 July 2001
Transfer Secretaries
Mercantile Registrars Limited, 8th Floor, 11 Diagonal Street
Johannesburg, 2001
Registered Office
South African Eagle Insurance Company Limited. Registration number
1965/06764/06
5th Floor, SA Eagle House, 70 Fox Street, Johannesburg, 2001
