Sanlam Limited - Sanlam welcomes minimum standards on early termination values
Sanlam Limited
Registered Name: Sanlam Limited
(REGISTRATION NUMBER 1959/001562/06)
JSE share code: SLM
NSX share code: SLA
ISIN number: ZAE000070660
Sanlam welcomes minimum standards on early termination values
Following today"s media announcements from the Minister of Finance and the Life
Offices Association (LOA) respectively, Sanlam announced its full support for
the agreement reached between National Treasury and the LOA on the minimum
standards for early termination values on long-term savings and investment
products. Under the terms of the agreement, National Treasury will implement a
number of changes in 2006 which will create more certainty for Life Assurers
within the regulatory environment. The timetable for payment of the resulting
enhanced early termination values has still to be finalised, but where
applicable the enhanced values will be applied retrospectively for 5 years.
The cost of the enhanced early termination values on Sanlam"s existing business
is estimated to amount to R600 million. The after tax cost of approximately R500
million, will be taken as a once-off direct charge through the Income Statement
for the year ending 31 December 2005 and will reduce Headline Earnings by 20
cps. Core earnings will not be impacted. This will also reduce Sanlam"s Embedded
Value by 21 cps which is less than 1.5% of total Embedded Value. The CAR cover
remains in excess of 3 times.
The agreement provides a sound and fair base for the future and Sanlam remains
committed to enhancing its offering and value proposition to all its clients as
we continue to pursue our strategic initiatives. Sanlam earlier this year
already announced a new generation of products that satisfy the minimum
standards now agreed to.
Sponsor:
J.P.Morgan Equities Limited
Date: 13/12/2005 07:00:08 AM Produced by the JSE SENS Department
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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
