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African Life Assurance Company Limited - Trading Update
African Life Assurance Company Limited
(Incorporated in the Republic of South Africa)
Registration number: 1911/003818/06
JSE code: AFI
ISIN: ZAE000000246
("African Life" or "the company")
Trading Update
African Life"s group results for the year ending 31 March 2004 will be released
on 7 June 2004, but the Board has deemed it appropriate to give shareholders an
early indication of the year"s performance.
Notwithstanding the tough operating environment experienced, African Life"s new
business premiums for the current financial year in respect of recurring
individual life business, will be broadly in line with that reported for the
previous financial year. Initial indications are that margins on this business
will be in line with those reported for the six months ended 30 September 2003.
The low interest rate environment continued to exert pressure on single premium
business in SA and on the income on shareholders assets during the second half
of the financial year. No material inflow of funds occurred during the second
half of the financial year in respect of the asset management business in
Botswana (Bifm).
The above factors, together with the depreciation and devaluation of the Pula
against the Rand, will have a negative impact on headline earnings for the year
ending 31 March 2004. Initial estimates indicate that headline earnings for 31
March 2004 will be materially lower than the 201.3 cents per share reported for
the year ended 31 March 2003 (in terms of the JSE Securities Exchange South
Africa Listings Requirements, "materially" in this context has been defined as a
variation of between 10% and 30%)..
The embedded value of new business for 31 March 2004 in respect of recurring
individual life business for the African Life group is estimated to be
marginally lower than that of the previous financial year. Shareholders are
advised that the year-end actuarial valuation has not been completed and
finalisation of this valuation may impact upon the initial estimate of headline
earnings per share. Shareholders will be advised should such impact be
material.
The information contained in this announcement has not been reviewed and
reported on by the company"s auditors or the consulting actuaries. Consequently
holders of securities must exercise caution in their securities dealings until
the publication of the financial results for the year ended 31 March 2004.
Johannesburg
25 March 2004
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Date: 25/03/2004 05:00:02 PM Produced by the JSE SENS Department
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