| Thu 29 Jul 2004, 16:43 | | South African Eagle - Unaudited results and divide |
|
South African Eagle - Unaudited results and dividend declaration for the six
months ended 30 June 2004
SOUTH AFRICAN EAGLE INSURANCE COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1965/006764/06)
Share code: SAE ISIN: ZAE000006243
Announcement of results and dividend declaration for the six months ended 30
June 2004
The Directors announce the unaudited Group results for the six months ended
30 June 2004
SUMMARISED INCOME STATEMENT Six months Six months Twelve months
ended ended ended
30 JUNE 30 JUNE 31 DEC
2004 2003 2003
Rand thousands Note
GROSS WRITTEN PREMIUM 1 572 138 1 543 845 3 189 100
__________________________________________
Underwriting profit 5 105 686 21 787 127 703
Investment income 6 64 427 73 695 152 772
Investment expenses (1 708) (2 014) (3 346)
__________________________________________
168 405 93 468 277 129
Net realised surplus on
disposal of investments 22 993 5 678 49 914
__________________________________________
PROFIT before taxation 191 398 99 146 327 043
Taxation (53 093) (24 754) (81 968)
__________________________________________
PROFIT after taxation 138 305 74 392 245 075
Minority and cell
shareholders` interest (3 116) (1 261) (21
156)
__________________________________________
Net profit attributable to
members of the Company 135 189 73 131 223 919
Dividends paid (36 539) (18 269) (36 539)
__________________________________________
RETAINED INCOME 98 650 54 862 187 380
__________________________________________
HEADLINE EARNINGS PER
SHARE (cents) 2 940.0 548.7 1 475.5
EARNINGS PER SHARE (cents) 4 1 110.0 600.4 1 838.5
ORDINARY DIVIDENDS PER
SHARE (cents) 180.0 150.0 450.0
ABRIDGED BALANCE SHEET
Rand thousands Note
ASSETS
Property, plant and equipment 64 884 76 090 71 335
Investments 7 784 424 761 794 785 089
Deferred taxation 7 824 - 8 293
Technical assets 398 646 401 860 408 776
Current assets 787 856 685 566 774 142
Cash and cash equivalents 1 051 326 816 398 889 121
__________________________________________
TOTAL ASSETS 3 094 960 2 741 708 2 936 756
__________________________________________
EQUITY AND LIABILITIES
Shareholders` equity 1 278 026 998 949 1 197 872
Minority and cell shareholders`
interest in subsidiaries 57 112 39 859 54 780
Deferred tax liabilities - 1 322 -
Retirement benefit obligation 68 941 70 000 68 941
Technical provisions 1 381 199 1 387 259 1 396 865
Current liabilities 309 682 244 319 218 298
__________________________________________
TOTAL EQUITY AND LIABILITIES 3 094 960 2 741 708 2 936 756
__________________________________________
COMMENTARY
The excellent underwriting performance reported in the second half of 2003
continued in the first half of 2004 with an underwriting profit of R105,7m up
from R21,8m in 2003. Gross written premiums were marginally up on 2003 at R1
572m. This increase is considered satisfactory following the impact of the
cancellation of unprofitable business in 2003 and the continued adherence to
strict underwriting principles and appropriate product pricing.
All underwriting accounts performed satisfactorily with the motor account, in
particular, now performing in line with other accounts. Claims continue to be
closely monitored with controls over claims costs being improved following the
introduction of motor vehicle assessment centres in Johannesburg, Cape Town and
Durban.
The absence of major weather related events, the presence of a lower
inflationary environment and stable crime rates have enabled pricing to be held
at current levels while maintaining the improved level of underwriting
performance.
Investment income at R64,4m is R9,3m lower than 2003 due to lower interest rates
and the impact of an AC133 adjustment of R8,5m in respect of unrealised losses
on the Company`s bond trading portfolio. The equity disposal programme
previously agreed upon continues with the surplus of R23,0m (2003: R5,7m)
arising on the disposal of investments.
Headline earnings have increased by 71,3% to 940,0 cents per share (2003: 548,7
cents per share). The solvency margin is 49,7% compared to 47,1% at the end of
2003 and 41,5% at 30 June 2003.
While the Directors are confident regarding the Company prospects for the
remainder of the year, it should be noted that short term insurance results can
fluctuate and therefore figures for the first six months are not necessarily
indicative of the year-end result.
DIVIDEND DECLARATION NO. 66
1. The Directors have declared an interim dividend for 2004 of 180 cents per
share (2003: 150 cents per share).
2. The dividend is payable in accordance with the following timetable:
Last day to trade in order to participate in
the dividend Friday, 3 September 2004
Shares commence trading ex the dividend from
the commencement of business on Monday, 6 September 2004
Record date Friday, 10 September 2004
Payment date Monday, 13 September
2004
Shareholders may not dematerialise or rematerialise their holdings of shares
in the Company between Monday, 6 September 2004 and Friday, 10 September 2004
both days inclusive.
By order of the Board.
GM Riddell Chairman
NV Beyers Managing Director
Johannesburg
28 July 2004
CONDENSED STATEMENT OF CHANGES Six months Six months Twelve months
IN EQUITY ended ended ended
30 JUNE 30 JUNE 31 DEC
2004 2003 2003
Rand thousands
Balance at beginning of period 1 197 872 974 650 974 650
Revaluation of investments (2 351) (16 240) 36 683
Translation of foreign subsidiaries (16 145) (14 323) (841)
Net profit for the period 135 189 73 131 223 919
Dividends (36 539) (18 269) (36 539)
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Balance at end of period 1 278 026 998 949 1 197 872
__________________________________________
CONDENSED CASH FLOW STATEMENT
Rand thousands
Cash retained from operating activities 109 032 88 383 187 767
Net decrease/(increase) in working capital 26 501 48 446 (5 325)
Dividends, interest and rental received 72 933 73 695 150 350
Taxation paid (35 302) (15 352) (91 411)
Dividends paid (36 539) (18 269) (36 539)
Cash effect of investing activities 25 580 43 480 1 304
__________________________________________
Net increase in cash and cash
equivalents 162 205 133 423 206 146
__________________________________________
NOTES
1. Accounting policies
The financial statements are prepared in accordance and comply with the South
African Statements of Generally Accepted Accounting Practice. The accounting
policies applied in the preparation of these financial statements are
consistent with those used in the annual financial statements for the year
ended 31 December 2003.
2. Determination of headline earnings
Net profit attributable to
members of the Company 135 189 73 131 223 919
After-tax adjustment for:
- Net realised surplus on disposal
of investments, property, plant
and equipment (20 700) (6 299) (44 215)
__________________________________________
Headline earnings 114 489 66 832 179 704
__________________________________________
Headline earnings per share (cents) 940.0 548.7 1 475.5
Foreign
South Africa subsidiaries Total
3. Segmental information
Six months ended 30 June 2004
Gross written premium
General insurance business 1 400 015 115 074 1 515 089
Alternative risk transfer business 57 049 - 57 049
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1 457 064 115 074 1 572 138
__________________________________________
Profit before taxation
General insurance business 168 775 16 639 185 414
Alternative risk transfer business 5 984 - 5 984
__________________________________________
174 759 16 639 191 398
__________________________________________
Net assets
General insurance business 1 123 656 78 534 1 202 190
Alternative risk transfer business 132 948 - 132 948
__________________________________________
1 256 604 78 534 1 335 138
__________________________________________
Six months ended 30 June 2003
Gross written premium
General insurance business 1 336 074 111 664 1 447 738
Alternative risk transfer business 96 107 - 96 107
__________________________________________
1 432 181 111 664 1 543 845
__________________________________________
Profit before taxation
General insurance business 75 018 19 719 94 737
Alternative risk transfer business 4 409 - 4 409
__________________________________________
79 427 19 719 99 146
__________________________________________
Net assets
General insurance business 844 115 78 877 922 992
Alternative risk transfer business 115 816 - 115 816
__________________________________________
959 931 78 877 1 038 808
__________________________________________
Twelve months ended 31 December 2003
Gross written premium
General insurance business 2 706 160 218 285 2 924 445
Alternative risk transfer business 264 655 - 264 655
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2 970 815 218 285 3 189 100
__________________________________________
Profit before taxation
General insurance business 246 279 36 149 282 428
Alternative risk transfer business 44 615 - 44 615
__________________________________________
290 894 36 149 327 043
__________________________________________
Net assets
General insurance business 1 026 819 85 980 1 112 799
Alternative risk transfer business 139 853 - 139 853
__________________________________________
1 166 672 85 980 1 252 652
__________________________________________
Six months Six months Twelve months
ended ended ended
30 JUNE 30 JUNE 31 DEC
2004 2003 2003
4. Other financial information
Earnings per share (cents) 1 110.0 600.4 1 838.5
Dividend paid per share (cents) 300.0 150.0 300.0
Number of shares in issue 12 179 500 12 179 500 12 179 500
Net asset value per share (cents) 10 962 8 202 9 835
Solvency margin % 49.7 41.5 47.1
5. Profit before tax after charging/
(crediting)
Depreciation 11 870 11 330 23 336
Loss/(Surplus) on disposal of property,
plant and equipment 1 093 (1 495) (1 495)
6. Investment income
Interest and rental income 54 772 62 348 132 318
Dividends 9 655 11 347 20 454
__________________________________________
Total investment income 64 427 73 695 152 772
__________________________________________
7. Investments
Investment properties 51 211 54 546 57 156
Investment in associates 19 830 19 228 19 830
- Listed 6 573 5 971 6 573
- Unlisted 13 257 13 257 13 257
Mortgages and loans 9 238 11 332 9 415
Available-for-sale investments 458 442 444 260 474 355
Ordinary shares
- Listed 419 946 404 462 431 400
- Unlisted 35 422 37 793 37 855
Preference shares
- Unlisted 3 024 1 943 2 118
Government and other approved
securities - - 2 931
Municipal annuities and other
fixed interest securities 50 62 51
Trading investments 245 703 232 428 254 333
__________________________________________
Total investments 784 424 761 794 785 089
__________________________________________
In compliance with rule 3.59 of the JSE Listings Requirements, the following
information is disclosed:
Martin Christopher South (British) has been appointed to the Board as a Non-
Executive Director with effect from 28 July 2004. There were no resignations
from the Board.
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street
Johannesburg
2001
Registered office
South African Eagle Insurance Company Limited
Registration number 1965/006764/06
SA Eagle House
The Braes
193 Bryanston Drive
Bryanston
2021
Date: 29/07/2004 04:30:09 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
