LGL
LIBU
Liberty Group Limited - Trading statement
Liberty Group Limited
("Liberty Life")
Registration number 1957/002788/06
Incorporated in the Republic of South Africa
Share code: LGL
ISIN code: ZAE000057360
Trading statement
Liberty Life"s interim results for the six months ended 30 June 2006 will be
published on 10 August 2006. Shareholders are advised that the group"s BEE
normalised (Note 1) interim headline earnings per share are expected to be
between 25% and 35% higher than the 291,0 cents per share reported in respect of
the corresponding period in 2005. Earnings have been positively impacted by
continued strong investment market performance (Note 2), higher average asset
levels on which management fees are earned and better risk experience. Headline
earnings per share for the period under review are also expected to be between
25% and 35% higher. In addition total earnings per share are expected to be
between 270% and 290% higher than total earnings per share for the six months
ended 30 June 2005.
On-balance-sheet new business sales have continued to disappoint in the second
quarter of 2006 and new business sales for the first six months of 2006 have
tracked slightly lower than those recorded in the first six months of 2005.
The information contained in this announcement has not been reviewed or audited
by the company"s external auditors.
(Note 1)
As defined in the 2005 annual report, Black Economic Empowerment (BEE)
normalised headline earnings per share include dividends received on the group"s
BEE preference shares and also include the reinstatement of the number of shares
in issue relating to the group"s BEE transaction. This measure reflects the
economic reality of the transaction as opposed to the required technical
accounting treatment that reflects the BEE transaction as a share buy-back.
(Note 2)
The weighted average investment return used as a proxy to calculate
shareholders" 10% share of policyholder capital bonuses on certain classes of
business was 14,9% at 30 June 2006 compared with 11,5% at 30 June 2005 and 33,2%
at 31 December 2005.
Johannesburg
28 July 2006
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 28/07/2006 03:15:12 PM Produced by the JSE SENS Department
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