ISIN Code : ZAE000006623
Share Code : SGG
25 SEPTEMBER 2001
SAGE RESPONDS TO INVESTOR QUERIES
Strong new business growth trend disclosed
Sage Group has responded to queries from analysts and investors regarding
the progress of its US and international businesses and the possible impact
following the recent tragic events in America.In a statement released
through the Stock Exchange News Service (SENS) Sage says that while it is
clearly too early to predict the effect of the current disruption in the
financial markets on the pace of the Group's international expansion, Sage
Life of America and Sage Bermuda are not directly exposed to the recent
events as the US and international activities focus on linked investment
type policies, and to the extent that there is risk underwriting the
company retains minimal risk with the balance fully reinsured.Sage remains
confident about prospects for its international and South African
businesses, supported by buoyant new business results which have been
achieved in the first half of the current financial year.Total new business
for the six months to 30 September 2001 is projected at approximately R1,25
billion, an increase of approximately 120% on the first half of last year.
Single premium new business is projected to increase to in excess of R1
billion, while annualised recurring new business has increased modestly to
approximately R190 million, a competitive performance given the difficult
conditions in this category throughout the industry.A key factor in the
Group's new business progress during the past six months has been the impact
of the rapidly growing offshore initiatives where sales in excess of R725
million ($85 million) have been achieved in the six month period from the US
and Bermuda divisions, incorporating international business marketed in
South Africa. New product innovations within South Africa have also been
well received.Sage emphasises that the new business results cannot
necessarily be construed as an indication of profitability for the interim
period in view of the extreme volatility in current investment markets and
since, in the nature of life assurance business, a large proportion of
profits only emerge over time. The interim results, which are subject to
the calculation of actuarial estimates, a process which will commence in
October, are scheduled to be announced in the second half of November.
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