Capital Alliance Holdings Limited - Company Announ
Capital Alliance Holdings Limited
Share Code : CPT
ISIN Code : ZAE000011904
Fedsure Individual Life policyholders and the reinsurance transaction with
Capital Alliance Life.
Capital Alliance Life ("CAL") assumed responsibility for the majority of the
Fedsure Individual Life policies with effect from 1 June 2001, in terms of a
reinsurance agreement between Capital Alliance Life and Fedsure Life.
Asset concentration risks removed.
An important part of the reinsurance agreement related to the restructuring
of investment portfolios and asset concentration risks, to ensure that over
exposures to any particular asset or asset classes were removed.
Accordingly the exposure of Fedsure Individual Life portfolios to Saambou
was completely restructured effective 1 June 2001. The current Saambou
shareholding of the Fedsure Individual Life portfolios represents 3% of the
total issued share capital of Saambou, and 0.08% of the total Capital
Alliance Life asset base as at 30 September 2001.
Focus on maximising returns at acceptable risk
Capital Alliance Life appointed Investec Asset Management to manage all
Fedsure Individual Life portfolios under a performance-related mandate,
based on their proven track record of achieving upper quartile investment
returns. In order to facilitate the focus on maximising returns at an
acceptable level of risk, Capital Alliance Life and Investec Asset
Management have simplified the existing Fedsure Life and Norwich Life
investment processes, which removed much administrative complexity that
previously detracted from the business of achieving top returns for
policyholders.
Capital Alliance Life is confident that with the restructuring of
portfolios, simplification of administration processes, and Investec Asset
Management's excellent track record, all Fedsure Individual Life
policyholders can look forward to enhanced returns from 1 June 2001,
relative to those previously achieved.
Capital Alliance Life - In touch with the needs of today's people
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