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African Life - Correction to Embedded Value Earnings published on SENS at 8am on
29 November 2004
African Life Assurance Company Limited
(Registration number 1911/003818/06)
(`African Life` or `the Company`)
Share code: AFI ISIN: ZAE000000246
Correction to Embedded Value Earnings published on SENS at 8am on 29 November
2004
African Life wish to advise that an error has been found subsequent to the
publication this morning of our results for the six months ended 30 September
2004.
Whilst the Group Embedded Value (EV) as at 30 September 2004 is unchanged, two
items in the EV earnings have changed. We have corrected the error which occurs
in both `Investment return on free assets after tax` and `Dividends and share
repurchases`. These two lines are now consistent with the movements in the
shareholders funds reflected in the Statement of Changes in Equity.
As a result, the transactions with shareholders of R137,4 million should now be
R49,1 million and the return on opening EV for the six-month period is 12% and
not 16% as reported in the commentary.
Set out below is the corrected Group Embedded Value and Embedded Value earnings.
Headline earnings, operating profit and surplus attributable to shareholders are
unchanged as a result of this correction.
Corrected Published
Six months Six months
30 September 30 September
2004 2004
Embedded value results Rm Rm
Shareholders` net assets 1,774.8 1,774.8
Value of in force 582.8 582.8
Value before cost of capital 673.0 673.0
Cost of capital (90.2) (90.2)
Embedded value at end of period 2,357.6 2,357.6
Capital adequacy requirement (CAR) 763.4 763.4
CAR Cover 2.3 2.3
Embedded value per share (Rands) 22.27 22.27
Embedded value earnings
Embedded value at end of period 2,357.6 2,357.6
Embedded value at beginning of period (2,146.8) (2,146.8)
Change in embedded value 210.8 210.8
Dividends and share repurchases 49.1 137.4
Embedded value earnings 259.9 348.2
These earnings can be analysed as follows:
Roll forward 178.9 267.2
Investment return on free assets after tax 139.6 227.9
Expected return on life business in force 39.3 39.3
Change over the period 81.0 81.0
Value of new business at end of period 48.3 48.3
Value at point of sale 47.0 47.0
Expected return to end of period 1.3 1.3
Change in assumptions and methodology (2.7) (2.7)
Experience variations 35.3 35.3
Additional exchange rate fluctuations and
change in shareholdings 0.1 0.1
Total earnings 259.9 348.2
Johannesburg
29 November 2004
Date: 29/11/2004 04:19:34 PM
Produced by the JSE SENS Department
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