|
Capital Alliance Holdings Limited - Company Announcement
Capital Alliance Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1952/000756/06)
Share code: CPT
ISIN code: ZAE000011904
("CAH" or the "Company")
The reinsurance by Capital Alliance Life Limited ("CAL") of the group benefits
annuity policy book of Investec Employee Benefits Limited ("IEB"), and update on
the Saambou Life acquisition
1. Introduction
1.1
Investec Bank Limited is authorised to announce that agreement has been reached
between CAL (a wholly owned subsidiary of CAH) and IEB in terms of which CAL has
reinsured the group benefits annuity policy book of IEB ("the annuity
reinsurance agreement"), with effect from 30 September 2002.
2. Rationale
2.1
CAL previously reinsured the major portion of the individual life book of IEB
("the individual life reinsurance agreement") with effect from 1 June 2001. CAL
has successfully bedded down this transaction by integrating all individual life
policy data onto its administration platform, several months ahead of schedule.
This has resulted in improved service levels, good client retention and reduced
the cost of administering the individual life policy book. Consequently, CAL is
actively seeking to grow its business by administering more individual life
policies on its existing infrastructure, and accordingly has concluded the
annuity reinsurance agreement.
2.2
The annuity reinsurance agreement is expected to achieve the following benefits
for CAL:
2.2.1
enhance the profit earned on, and thus the Embedded Value ("EV") of, the current
in-force policy book, through the implementation of tighter expense management
and improved economies of scale;
2.2.2
increase the component of EV represented by the future profits on in-force
business; and
2.2.3
further enhance CAL`s position as a significant player in the life assurance
sector.
3. The annuity reinsurance agreement
3.1
The annuity reinsurance agreement is effective from 30 September 2002 ("the
effective date") and covers approximately 25 000 policies.
3.2
In terms of the liabilities that CAL has assumed from IEB, IEB has provided CAL
with certain warranties as to the accuracy of the policy data as at the
effective date.
3.3
CAL will receive from IEB a reinsurance premium equal to the best estimate
liabilities, calculated on an agreed set of assumptions, as at 30 September
2002. This reinsurance premium will be settled by IEB transferring appropriate
assets to CAL. Based on 31 March 2002 data for illustrative purposes this was
approximately 2.6 billion.
4. The Saambou Life transaction
4.1
Shareholders are advised that the acquisition by CAL of 100% of the share
capital of Saambou Life Limited, previously announced on 25 June 2002, has been
unconditionally approved by the Competition Authorities.
Johannesburg
14 October 2002
Merchant Bank Attorneys
Investec Bank Limited Jowell Glyn & Marais Inc
(Registration number (Registration number
1969/004763/06) 1990/000849/21)
Sponsor Corporate Adviser
Investec Securities Limited HR Levin
Member of the JSE
Registration No. 1972/008905/06
Date: 14/10/2002 09:00:00 AM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
