Sage Group - International Operations
SAGE GROUP LIMITED
("Sage Group") or ("the Group")
(Incorporated in the Republic of South Africa)
(Registration Number 1970/010541/06)
(Share Code SGG ISIN no ZAE000006623)
INTERNATIONAL OPERATIONS
The following are extracts from a Fitch rating announcement in the United States
dated 3 January 2003 (issued at 5:31 pm).
"Fitch Ratings has lowered the insurer financial strength rating of Sage Life
Assurance of America, Inc. (Sage Life of America) to `A-` from `A`. The rating
remains on Rating Watch Negative.
This action reflects last weeks announcement that Sage Life of America has
ceased new business originations effective Jan. 1, 2003. The new rating reflects
Sage Life of America`s current status as a run-off operation with significant
over-capitalisation on a risk-adjusted basis.
On Dec. 18, 2002, Sage Life of America announced that its Board of Directors
approved plans to suspend marketing and underwriting activities and to cease all
new sales effective Jan. 1, 2003 if new capital is not secured by that date.
Sage Life of America is currently in ongoing capital raising discussions with
several parties. If these negotiations are successful in the near term,
consideration will be given to resuming new business activities."
The full Fitch press release relating to Sage Life Assurance of America Inc. is
available on the Sage website www.sage.co.za.
As announced last week, negotiations for additional reinsurance facilities for
the Group`s Bermudan operations are in progress with a leading insurance group
which, if successfully concluded, will ensure viability and continuity. Under
these circumstances the Bermudan operations, representing approximately half of
the international operations, will remain fully operational and open for new
business until further notice.
6 January 2003.
Sponsor
ABSA Corporate and Merchant Bank
Corporate Finance
(Registration Number 1986/004794/06)
Date: 06/01/2003 12:18:00 PM Produced by the JSE SENS Department
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