AFRICAN LIFE - TRADING STATEMENT - DISCLOSURE IN TERMS OF SECTION 3.4 OF THE JSE
SECURITIES EXCHANGE LISTINGS REQUIREMENTS
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 Statement - Disclosure in terms of Section 3.4 of the JSE Securities
Exchange Listings Requirements
African Life`s group interim results for the six months ended 30 September 2004
will be released on 29 November 2004. The Board has deemed it appropriate to
give shareholders an early indication of the company`s performance during this
period.
Recurring premium new business in South Africa has shown modest growth over the
previous six months. No new single premiums were received by Botswana Insurance
Fund Management in the period under review following the completion of the
privatisation of the Botswana government pension fund. Embedded value of new
business will therefore be below that reported in the first half of the last
financial year.
Notwithstanding these factors the group has experienced strong operating
performances.
In the South African life operations, performance has been largely in line with
actuarial assumptions and no material negative experience variations have
impacted on the operating surplus. African Life Health (ALH) has performed in
line with expectations following the acquisition in January 2004 of Amanzi
Medical Administrators and growth in Ingwe HPO. ALH have recorded an operating
profit for the period under review.
Despite the negative impact of rand strength on the translation of the operating
surplus of Botswana Insurance Holdings Ltd, the above factors have had a
positive impact on the operating surplus of the group for the period under
review. The increase in operating surplus will be between 20% and 25% compared
to the first half of the previous financial year.
The tax charge for the period will be materially lower than previous periods.
The reason is that the company has recently received tax assessments for the
financial years ended 2001, 2002, and 2003. These assessments revealed an
overprovision of tax of R45 million. This arose in the main from the treatment
of negative rand reserves and related deductions on transition from the
Prescribed Valuation basis to the Financial Soundness Valuation basis for tax
purposes in 2001 in terms of S29(a) of the Income Tax Act No 58 of 2001.
The combined impact of the abovementioned factors will lead to headline earnings
and headline earnings per share being between 70% and 80% higher than the first
half of the previous financial year. Earnings per share will be between 80% and
90% higher than the first half of the previous financial year.
The information contained in this announcement has not been reviewed and
reported on by the company`s auditors or the consulting actuaries.
Johannesburg
22 November 2004
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
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.
