|
SNT
SNT
Santam Limited - Abridged Financial Report for the year ended 31 December 2005
Santam Limited
Registration number 1918/001680/06
ISIN: ZAE000006854
JSE share code: SNT
NSX share code: SNM
Santam Limited and its Subsidiaries
Abridged Financial Report for the year ended 31 December 2005
Highlights
- Return on shareholders" funds of 34%
- Net written premium increased by 21%
- R2.4 billion cash generated by operations
- Special dividend of 650 cents per share
- Normal dividend growth of 15.5%
CONSOLIDATED BALANCE SHEETS
Restated
Reviewed Audited
At 31 December At 31 December
Notes 2005 2004
R million R million
Assets
Non-Current Assets
Property and equipment 57 55
Goodwill 80 87
Deferred income tax 22 10
Investments in 239 230
associates
Financial assets
Equity securities:
- at fair value through 3 5 046 3 574
income
Debt securities:
- at fair value through 3 831 1 613
income
Current assets
Reinsurance assets 2 194 1 833
Deferred acquisition 181 146
costs
Loans and receivables 1 281 1 065
including insurance
receivables
Cash and cash 4 927 3 927
equivalents
Total assets 14 858 12 540
Equity
Capital and reserves
attributable to the
company"s equity holders
Share capital 42 1 171
Other reserves 763 636
Distributable reserves 4 922 3 615
5 727 5 422
Minority interest 125 60
Total equity 5 852 5 482
LIABILITIES
Non-Current liabilities
Cell owners" interest 268 47
Deferred income tax 256 148
Financial liabilities
- Investment contracts 250 -
Current liabilities
Insurance liabilities 6 607 5 083
Deferred reinsurance 109 115
acquisition revenue
Financial liabilities
- at fair value through 3 - 4
income
Provisions for other 145 113
liabilities and charges
Trade and other payables 1 345 1 167
Current income tax 26 381
liabilities
Total liabilities 9 006 7 058
Total shareholders" 14 858 12 540
equity and liabilities
CONSOLIDATED INCOME STATEMENTS
Restated
Reviewed Audited
Year ended Year ended
31 December 31 December %
Notes 2005 2004 Change
R million R million
Gross written premium 11 355 9 735 17
Less: reinsurance 2 011 2 012
premium
Net premium 9 344 7 723 21
Less: change in unearned
premium
Gross amount 371 (102)
Reinsurers" share (102) (180)
Net insurance premium 8 871 7 645 16
revenue
Investment income 4 482 479 1
Income from reinsurance 404 487
contracts ceded
Net realised gains on 263 202 30
financial assets
Net fair value gains on 742 596 24
assets at fair value
through income
Net income 10 762 9 409 14
Insurance claims and 6 905 5 015
loss adjustment expenses
Insurance claims and (1 112) (653)
loss adjustment expenses
recovered from
reinsurers
Net insurance benefits 5 793 4 362 33
and claims
Expenses for the 1 586 1 429
acquisition of insurance
contracts
Expenses for marketing 1 121 1 216
and administration
Expenses for asset 42 41
management services
Goodwill impairment 4 2
Expenses 8 546 7 050 21
Results of operating 2 216 2 359
activities
Finance costs (12) (14)
Share of profit of 117 37
associates
Profit before tax 2 321 2 382 (3)
Income tax expense 5 (520) (604)
Profit for the year 1 801 1 778 1
Attributable to:
- equity holders of the 1 778 1 754
Company
- minority interest 23 24
1 801 1 778
Earnings attributable to
equity shareholders
Earnings per share 6
Basic earnings per share 1 535 1 531 -
(cents)
Diluted earnings per 1 506 1 509 -
share (cents)
Weighted average number 115.82 114.63
of shares - millions
Dividends per share 335 290
(cents)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders Minority
of the Company interest Total
Share Other Distributable
capital reserves reserves
R R million R million R million R
million million
Balance as at 1 130 577 2 240 53 4 000
1 January
2004
Share issue 41 41
Retained 1 754 24 1 778
income for
the period
Transfer to 109 (109) -
reserves
Share-based 8 8
payments
Currency (50) (50)
translation
differences
Dividends (278) (18) (296)
paid
Additional 1 1
interest
acquired by
minorities
Balance as at 1 171 636 3 615 60 5 482
31 December
2004
Share issue 27 27
Return of (1 (1
excess 156) 156)
capital
Retained 1 778 23 1 801
income for
the period
Transfer to 131 (131) -
reserves
Share-based 10 10
payments
Currency (4) (4)
translation
differences
Dividends (350) (10) (360)
paid
Additional 52 52
interest
acquired by
minorities
Balance as at 42 763 4 922 125 5 852
31 December
2005
CONSOLIDATED CASH FLOW STATEMENTS
Restated
Reviewed Audited
Year ended Year ended
31 December 31 December
2005 2004
R million R million
Cash generated from operations 2 377 2 108
Interest paid (12) (14)
Income tax paid (778) (361)
Net cash from operating activities 1 587 1 733
Cash flows from investing
activities
Cash generated/(utilised) in 578 (714)
investment activities
Acquisition of subsidiary, net of (61) -
cash acquired
Cash acquired through acquisition 281 -
of subsidiary
Purchases of property and (21) (21)
equipment
Proceeds from sale of property and 2 9
equipment
Acquisition of associated - (37)
companies
Capital refund from associated 4 -
companies
Proceeds from disposal of 7 8
associated companies
Proceeds from disposal of 20 9
subsidiary
Net cash from investing activities 810 (746)
Cash flows from financing
activities
Proceeds from issuance of ordinary 27 41
shares
Return of surplus capital to (1 156) -
shareholders
Dividends paid to Company"s (350) (278)
shareholders
Dividends paid to minority (10) (18)
interests
Increase in cell owners" interest 88 25
Net cash used in financing (1 401) (230)
activities
Net increase in cash and cash 996 757
equivalents
Cash and cash equivalents at 3 927 3 203
beginning of period
Exchange gains/(losses) on cash 4 (33)
and cash equivalents
Cash and cash equivalents at end 4 927 3 927
of period
Notes to the consolidated financial statements
1. Basis of presentation and accounting policies
The financial statements for the year ended 31 December 2005 were prepared in
accordance with International Financial Reporting Standards ("IFRS") IAS 34 -
Interim Financial Reporting and in compliance with the Listing Requirements of
the JSE Limited. These are the group"s condensed financial statements for the
period for which annual financial statements will be prepared in terms of IFRS.
IFRS 1 - First-time Adoptions of International Financial Reporting Standards has
been applied. For details on the adjustments, refer to our Transitional Report
published with our 2005 Interim Financial statements as well as the further
adjustments listed in this report. The abridged financial statements do not
include all of the information required by IFRS for full annual financial
statements.
The first time application of IFRS 4 - Insurance Contracts, did not have any
significant impact on the recognition and measurement of assets and liabilities
in respect of insurance contracts at
31 December 2005. However, a summary of the underwriting and investment
activities is reflected in the segment report. The group"s comprehensive
consolidated financial statements for the year ending 31 December 2005 will
present the additional disclosure required by IFRS 4.
The group operates insurance subsidiaries, which offer cell captive facilities
to clients. Since our Interim report, the accounting treatment of cell activity
by the insurer was finalised in terms of IFRS. In summary, the implications of
the interpretations for Santam are as follows:
- Cells are classified as special purpose entities in terms of SIC 12
"Consolidation - Special Purpose Entities".
- The Special Purpose Entity ("SPE") is regarded as controlled by the cell
owner and therefore the owner is required to consolidate the SPE in its own
records.
- In the case of third party cells, the insurer is still the principal to
the insurance transaction, although the business is written on behalf of the
cell owner. The insurer, however, in substance reinsures this business to the
cell as the cell owner remains responsible for the solvency of the cell.
- The insurer raises the obligation to the policyholders as a liability,
with the corresponding asset in the cell accounts representing the right to
recover any claims from the cell owner.
The impact of this change is that the pre-tax results attributable to the cell
owners, which were previously transferred to cell owner"s liability in the
income statement on a separate line, are now excluded, through reinsurance
accounting from the pre-tax results. The balance sheet treatment remains as
previously reported.
The historical accounting and interpretation in South Africa of AC105/IAS17 -
Leases, has not been in line with international interpretation and application.
Interpretive guidance by the Accounting Practice Committee of the South African
Institute of Chartered Accountants - Circular 7/2005 issued on 2 August 2005,
required minimum lease payments, which are subject to a fixed rate escalation,
to be spread over the life of the lease, with the escalation not to be accounted
for in the year of occurrence.
Santam assessed all the operating leases in force and recalculated the expense
on a straight-line basis. The adjustments have been made retrospective and are
not considered material. Refer to the later section in this report, "Further
adjustments to the Transition to International Financial Reporting Standards",
for details of these adjustments to the previously reported results as at 31
December 2004 in terms of IFRS.
2. Segment report
Primary segmentation
Business activity is seen as the primary segment, i.e. insurance activities and
investment activities, as these activities mainly affect the Group"s risks and
returns.
- Insurance activities: All short-term insurance underwriting activities
undertaken by the Group
- Investment activities: All investment related activities undertaken by the
Group
There were no inter-segment transfers or transactions between these segments.
Insurance Investment
activities activities Total
Business activity R million R million R million
2005
Gross written premium 11 355 11 355
Net written premium 9 344 9 344
Net earned premium 8 871 8 871
Claims incurred 5 793 5 793
Net commission 1 182 1 182
Management expenses 1 121 1 121
Underwriting result 775 - 775
Investment return on insurance 241 241
funds
Net insurance result 1 016 - 1 016
Investment income net of 1 192 1 192
management fee and finance cost
Income from associates 117 117
Goodwill impairment (4) (4)
Income before taxation 1 016 1 305 2 321
Total assets 8 662 6 196 14 858
Total liabilities 8 987 19 9 006
2004
Gross written premium 9 735 9 735
Net written premium 7 723 7 723
Net earned premium 7 645 7 645
Claims incurred 4 362 4 362
Net commission 942 942
Management expenses 1 216 1 216
Underwriting result 1 125 - 1 125
Investment return on insurance 203 203
funds
Net insurance result 1 328 - 1 328
Investment income net of 1 019 1 019
management fee and finance cost
Income from associates 37 37
Goodwill (2) (2)
Income before taxation 1 328 1 054 2 382
Total assets 7 036 5 504 12 540
Total liabilities 7 046 12 7 058
Secondary segmentation
Due to the nature of the Group"s activities, the Group has two secondary
segmentations; firstly by insurance class, and secondly by geographical area.
a) Insurance class
The Group"s insurance activities are spread over various classes of short-term
insurance, presented as a first secondary reporting segment.
Gross Underwriting Total Total
written
Insurance premium result assets* liabilities*
activity
R million R million R million R million
2005
Accident and 315 14 40 126
health
Alternative risk 983 12 243 1 332
Crop 286 39 91 156
Engineering 457 80 413 568
Guarantee 88 28 69 90
Liability 712 99 812 1 287
Miscellaneous 130 33 88 141
Motor 4 620 293 118 1 400
Property 3 492 118 451 1 455
Transportation 272 59 51 161
Unallocated - - 12 482 2 290
Total 11 355 775 14 858 9 006
Comprising:
Commercial 4 142 441 2 054 4 217
insurance
Commercial motor 2 201 248 67 465
insurance
Personal 4 029 74 12 702
insurance
Alternative risk 983 12 243 1 332
Unallocated - - 12 482 2 290
Total 11 355 775 14 858 9 006
2004
Accident and 282 1 39 100
health
Alternative risk 475 4 115 802
Crop 380 20 238 312
Engineering 380 86 242 321
Guarantee 91 11 97 96
Liability 633 121 630 905
Miscellaneous 132 34 90 133
Motor 4 085 496 110 1 266
Property 3 022 305 375 1 131
Transportation 255 47 46 132
Unallocated - - 10 558 1 860
Total 9 735 1 125 12 540 7 058
Comprising:
Commercial 3 747 500 1 789 3 264
insurance
Commercial motor 1 946 301 65 454
insurance
Personal 3 567 320 13 678
insurance
Alternative risk 475 4 115 802
Unallocated - - 10 558 1 860
Total 9 735 1 125 12 540 7 058
* Only reinsurance assets and insurance liabilities, including deferred
acquisition costs have been allocated to insurance classes. The balance of
assets and liabilities are disclosed for segment purposes under unallocated.
b) Geographical
The Group operates in two main geographical areas presented as a second
secondary reporting segment.
Gross Underwriting Total Total
written
premium result assets liabilities
Geographical R million R million R million R million
2005
Southern 10 578 761 13 118 7 937
Africa
UK & Europe 777 14 1 740 1 069
TOTAL 11 355 775 14 858 9 006
2004
Southern 9 171 1 099 11 226 6 365
Africa
UK & Europe 564 26 1 314 693
TOTAL 9 735 1 125 12 540 7 058
3. Financial assets and liabilities at fair value through income
Restated
Reviewed Audited
At 31 December At 31 December
2005 2004
R million R million
The Group"s financial assets are
summarised below by measurement
category.
Equity securities:
- quoted 4 285 3 004
- unquoted 758 570
5 043 3 574
Debt securities - fixed interest
rate:
- government bonds 755 1 537
- unquoted 76 76
831 1 613
Derivative
- Exchange traded futures 3 -
- Over the counter - (4)
3 (4)
Net financial assets at fair value 5 877 5 183
through income
4. Investment income
Dividends 185 164
Interest 297 315
482 479
5. Income tax expense
South African normal taxation
Current year 367 494
Current 337 475
Other taxes 30 19
Prior year 2 61
Foreign taxation 56 20
Current year 55 22
Prior year 1 (2)
Income taxation for the year 425 575
Deferred taxation 95 29
Current year 99 88
Prior year (4) (59)
Total taxation as per the Income 520 604
Statement
6. Earnings per share
Basic earnings per share
Profit attributable to the 1 778 1 754
Company"s equity holders (R
million)
Weighted average number of 115.82 114.63
ordinary shares in issue (million)
Earnings per share (cents) 1 535 1 531
Diluted earnings per share
Profit attributable to the 1 778 1 754
Company"s equity holders (R
million)
Weighted average number of 115.82 114.63
ordinary shares in issue (million)
Adjusted for share-options 2.20 1.57
Weighted average number of
ordinary shares for
diluted earnings per share 118.02 116.20
(million)
Diluted basic earnings per share 1 506 1 509
(cents)
Headline earnings per share
Profit attributable to the 1 778 1 754
Company"s equity holders
Adjust for:
Impairment of goodwill in 4 2
subsidiaries
Impairment of goodwill in - 18
associates
Loss on sale of subsidiary 2 -
Headline earnings (R million) 1 784 1 774
Weighted average number of 115.82 114.63
ordinary shares in issue (million)
Headline earnings per share 1 540 1 548
(cents)
Diluted headline earnings per
share
Headline earnings (R million) 1 784 1 774
Weighted average number of
ordinary shares for
diluted earnings per share 118.02 116.20
(million)
Diluted headline earnings per 1 512 1 527
share (cents)
Comments
Santam concluded a very successful year in which it generated a 34% return on
capital (2004: 37%). This was predominantly due to excellent investment income
on the back of firmer equity markets, as well as a strong underwriting
performance, although the latter has normalised somewhat compared to the high
levels achieved in 2004. Headline earnings for the year were on par with those
of the previous year at R1.78 billion, equating to headline earnings per share
of 1540 cents against the 1548 cents for 2004.
Profitable growth of market share across all segments was set as a target in
2005. The group exceeded expectations during the year by achieving 17% growth in
gross written premium. On the local front, there was growth across most classes
of business. New entrants to the crop insurance market, together with lower
levels of insurance due to climatic conditions and lower crop prices, hampered
growth in that particular area. At group level, growth in net written premium
was even higher at 21%, as the benefits of the refinement of Santam"s
reinsurance programme continued to have an effect. International premiums rose
38% with the commencement of the Santam Europe business, while Westminster Motor
Insurance Association achieved growth of 24% in GBP terms.
With the normalisation of the short-term insurance environment in South Africa,
the company experienced a sharp increase in claims in the personal and
commercial lines of business, which placed underwriting margins under pressure.
The group"s net claims ratio increased year on year by 8.2 percentage points to
65.3%, mainly due to increased motor vehicle accidents, adverse weather
conditions, and a sharp increase in fire-related incidents that adversely
affected the motor, property and personal lines insurance classes. On the other
hand, specialist underwriting classes experienced more favourable claims ratios.
Continued initiatives to improve efficiencies and the increased level of
activity contributed towards the reduction of the net acquisition cost ratio
from 28.2% to 26%.
In line with the company"s ongoing strategy of optimising the retention of more
business at an acceptable risk profile, the level of reinsurance premiums
declined to 17.7% of gross written premium against the 20.7% of 2004. If the
accounting changes that affected the reporting of insurance cell business are
excluded, the 2005 ratio decreases to 14.2% against 18.9% for 2004. The better
reinsurance result achieved in 2005 is testimony to the success achieved with
this optimising strategy.
On the international front, Westminster Motor Insurance Association remains
profitable, but experienced increased competition in its market sector from new
entrants, which put pricing under pressure and eroded margins. Santam Europe
commenced business at the end of 2004. Although business volumes have increased
steadily since then, these are still below expectations due to the slower-than-
expected uptake at Bluesure. Santam"s participation in the Beazley Syndicate
yielded very favourable results that exceeded expectations.
The combined effect of all insurance activities resulted in a net insurance
margin of 11.5% against the exceptional 17.3% of 2004.
Investment return on insurance funds exceeded those of the previous year by 19%
due to a 28% higher average float level (funds generated by insurance
activities). This was primarily attributable to a continued focus on cash and
working capital management and the impact of the refinements made to the
reinsurance programme. This, together with the experienced profitability,
resulted in a 12.9% year on year increase in cash generated from operations to
R2.4 billion.
Benefiting significantly from the bullish performance of local equities, Santam
increased total investment-related income (excluding the investment return on
insurance funds) by 17% year on year. What makes this achievement even more
noteworthy is the fact that Santam reduced its capital base by returning R1.15
billion to shareholders during April 2005. Earnings from associated companies
were also significantly higher than the comparable period mainly due to the very
good results of Credit Guarantee Insurance Corporation of Africa Ltd. Santam"s
alternative risk finance business is the only empowered business of this nature
in South Africa, following the acquisition of the Nova Group and the subsequent
disposal of a third of Santam"s risk finance business to Kagiso Trust.
The group ended the year with a healthy solvency level of 61%. After the return
of R1.15 billion of surplus capital to shareholders in April 2005, the solvency
level reduced to 53%, compared to 70% at the end of 2004. Equally, the net asset
value per share increased from 4706 cents to 4927 cents during the year despite
the capital reduction of 1000 cents per share. As the current solvency margin is
in excess of the optimal risk adjusted capital requirements, the board approved
a special dividend of 650 cents per share. This will be paid simultaneously with
the final dividend for the year.
The board would like to extend its gratitude to Santam"s management, staff,
brokers and other business partners for their efforts and contributions during
this year.
PROSPECTS
It is anticipated that underwriting margins will continue to come under pressure
due to the softer market, keener pricing, and continued normalisation of claims.
In 2006, Santam will continue to concentrate on growing its market share without
compromising sustainable profitability and will focus on its purpose, which is
"to be recognised as the best in everything we choose to do".
The international businesses will remain focused on achieving sufficient growth
to ensure that operations yield profitable results and the required return on
invested capital. It is expected that Westminster Motor Insurance Association
will continue to do well, whilst Santam Europe should break even.
Anticipated low interest rates in 2006 will continue to dampen returns on cash-
related investments. Assuming that equity markets continue to perform well on
the strength of a strong economy and relatively low inflation, a reasonable
performance is expected in the year ahead. However, it is unlikely that the
performance of the past two years will be repeated.
DECLARATION OF DIVIDEND (NUMBER 103)
Notice is hereby given that the board has declared a final dividend of 227 cents
a share (2004: 195 cents) as well as a special dividend of 650 cents per share
(2004: zero cents). Shareholders are advised that the last day to trade "cum
dividend" will be Friday, 10 March 2006. The shares will trade "ex dividend"
from the commencement of business on Monday, 13 March 2006. The record date will
be Friday,
17 March 2006, and the payment date will be Monday, 20 March 2006. Certified
shareholders may not dematerialise or rematerialise their shares between Monday,
13 March 2006, and Friday, 17 March 2006, both dates inclusive.
REVIEW BY AUDITORS
The company"s external auditors, PricewaterhouseCoopers Inc., have reviewed the
abridged financial report. A copy of their unqualified opinion is available on
request at the company"s registered office.
On behalf of the board
DK Smith SC Gilbert
Chairman Chief Executive
21 February 2006
Santam Limited and its Subsidiaries
Further adjustments to the Transition to International Financial Reporting
Standards Report ("IFRS")
Additional adjustments to the restated financial information for the year ended
31 December 2004 under International Financial Reporting Standards
COMMENTS
From 2005 onwards the Santam Group ("Group") is required to prepare its
consolidated financial statements in accordance with IFRS and JSE Limited"s
("JSE") Listing Requirements. This change applies to all financial reporting for
accounting periods beginning on or after 1 January 2005. The Group"s first
published IFRS results were its interim results for the six months ended 30 June
2005. The Group"s first published full set of financial statements under IFRS
will be for the year ending 31 December 2005. As the Group publishes comparative
information for one year in its financial statements, the date for the
transition to IFRS is 1 January 2004, which represents the start of the earliest
period of comparative information.
In order to explain how Santam"s reported performance and financial position are
impacted by IFRS, the Group has restated information previously published under
SA GAAP to the equivalent basis under IFRS. This restatement follows the
guidelines set out in IFRS 1, First-time Adoption of International Financial
Reporting Standards. The adoption of IFRS has resulted in certain adjustments to
comparative information. Refer to the Transitional Report as contained in the 30
June 2005 Interim Financial report for details of these adjustments.
It is important to note that there were further adjustments to the previously
reported restated financial information due to:
(i) Correction of the accounting treatment of operating leases in line with
guidance by the Accounting Practice Committee of the South African Institute of
Chartered Accountants - Circular 7/2005 issued on 2 August 2005. In terms of
this circular, IAS 17 - Leases, requires minimum lease payments, which are
subject to a fixed rate escalation, to be spread over the life of the lease,
with the escalation not to be accounted for in the year of occurrence. Santam
previously accounted for lease costs on a cash basis.
(ii) The accounting treatment of cell activity by the insurer was finalised in
terms of IFRS. The impact of this change is that the pre-tax results
attributable to the cell owners, previously transferred to cell owner"s
liability in the income statement on a separate line, are now excluded from the
pre-tax results through reinsurance accounting. The balance sheet treatment
remains as previously reported.
This document includes the following:
- Consolidated Balance Sheets at 1 January 2004, and 31 December 2004
reflecting the further adjustments
- Consolidated Income Statement for the year ended 31 December 2004
reflecting the further adjustments
Consolidated balance sheet
Previously Further Final
reported Adjustments - restated
At Operating At 31
31 December leases December
2004 R million 2004
R million R million
31 December 2004
ASSETS
Non-Current assets
Property and equipment 55 55
Goodwill 87 87
Deferred income tax 10 10
Investments in associates 230 230
Financial assets
Equity securities:
- at fair value through 3 574 3 574
income
Debt securities:
- at fair value through 1 613 1 613
income
Current assets
Reinsurance assets 1 833 1 833
Deferred acquisition 146 146
costs
Loans and receivables 1 098 (33) 1 065
including insurance
receivables
Cash and cash equivalents 3 927 3 927
Total assets 12 573 (33) 12 540
EQUITY
Capital and reserves
attributable to the
company"s equity holders
Share capital 1 171 1 171
Other reserves 636 636
Distributable reserves 3 642 (27) 3 615
5 449 (27) 5 422
Minority interest 60 60
Total equity 5 509 (27) 5 482
LIABILITIES
Non-Current liabilities
Cell owners" interest 47 47
Deferred income tax 160 (12) 148
Current liabilities
Insurance liabilities 5 083 5 083
Deferred reinsurance 115 115
acquisition revenue
Financial liabilities
Investment contracts:
- at fair value through 4 4
income
Provisions for other 113 113
liabilities and charges
Trade and other payables 1 161 6 1 167
Current income tax 381 381
liabilities
Total liabilities 7 064 (6) 7 058
Total shareholders" 12 573 (33) 12 540
equity and liabilities
1 January 2004
ASSETS
Non-Current assets
Property and equipment 70 70
Goodwill 110 110
Deferred income tax 14 14
Investment in associates 166 166
Financial assets
Equity securities:
- at fair value through 2 727 2 727
income
Debt securities:
- at fair value through 936 936
income
Current assets
Reinsurance assets 2 148 2 148
Deferred acquisition 154 154
costs
Loans and receivables 1 199 (33) 1 166
including insurance
receivables
Cash and cash equivalents 3 203 3 203
Total assets 10 727 (33) 10 694
EQUITY
Capital and reserves
attributable to the
company"s equity holders
Share capital 1 130 1 130
Other reserves 577 577
Distributable reserves 2 267 (27) 2 240
3 974 (27) 3 947
Minority interest 53 53
Total equity 4 027 (27) 4 000
LIABILITIES
Non-Current liabilities
Cell owners" interest - -
Deferred income tax 135 (12) 123
Current liabilities
Insurance liabilities 5 025 5 025
Deferred reinsurance 131 131
acquisition revenue
Provisions for other 60 60
liabilities and charges
Trade and other payables 1 182 6 1 188
Current income tax 167 167
liabilities
Total liabilities 6 700 (6) 6 694
Total shareholders" 10 727 (33) 10 694
equity and liabilities
Consolidated income statement
Previously Further Further Final
reported Adjustments Adjustments restated
Year ended - - Year ended
31 December Operating Cell 31 December
2004 leases accounting 2004
R million R million R million R million
Gross written 9 735 9 735
premium
Less: 1 892 120 2 012
reinsurance
premium
Net premium 7 843 - (120) 7 723
Less: change
in unearned
premium
Gross amount (102) (102)
Reinsurers" (226) 46 (180)
share
Net insurance 7 719 - (74) 7 645
premium
revenue
Investment 482 (3) 479
income
Income from - 487
reinsurance
contracts
ceded
Net realised 202 202
gains on
financial
assets
Net fair 596
value gains
on assets at
fair value
through
income
Net income 9 486 - (77) 9 409
Insurance 5 015
claims and
loss
adjustment
expenses
Insurance (618) (35) (653)
claims and
loss
adjustment
expenses
recovered
from
reinsurers
Net insurance 4 397 - (35) 4 362
benefits and
claims
Expenses for 1 429
the
acquisition
of insurance
contracts
Expenses for - (6) 1 216
marketing and
administratio
n
Expenses for 41 41
asset
management
services
Goodwill 2 2
impairment
Expenses 7 091 - (41) 7 050
Results of 2 395 - (36) 2 359
operating
activities
Finance costs (14) (14)
Share of 37 37
profit of
associates
Cell owners" (25) 25 -
interest
Profit before 2 393 - (11) 2 382
tax
Income tax (615) - 11 (604)
expense
Profit for 1 778 - - 1 778
the year
Attributable
to:
- equity 1 754 - - 1 754
holders of
the Company
- minority 24 24
interest
1 778 -* - 1 778
* After
rounding the
effect of the
operating
lease
adjustment
was less than
R1 million
Earnings
attributable
to equity
shareholders
Earnings per
share
Basic 1 531 1 531
earnings per
share (cents)
Diluted 1 509 1 509
earnings per
share (cents)
Weighted 114.63
average
number of
shares -
millions
Non-executive Directors
JJ Geldenhuys, JG Le Roux, NM Magau, AR Martin, EA Moolla,
JE Newbury, P de V Rademeyer, GE Rudman, DK Smith (Chairman),
J van Zyl, BP Vundla
Executive Directors
SC Gilbert (Chief executive), MJ Reyneke
Company secretary
Sana-Ullah Bray
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited70 Marshall Street,
Johannesburg 2001 PO Box 61051, Marshalltown 2107 Tel (011) 370 7700, Fax (011)
688 7721 http://www.computershare.com
Sponsor
Investec Bank Limited
Head office and registered address
1 Sportica Crescent, Tyger Valley,
Bellville 7530
PO Box 3881, Tyger Valley 7536
Tel (021) 915 7000
Fax (021) 914 0700
http://www.santam.co.za
Date: 22/02/2006 08:00:29 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. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
