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LGL
LIBU
Liberty Group Limited - Trading update
Liberty Group Limited
(Registration number 1957/002788/06)
(Incorporated in the Republic of South Africa)
Alpha Code LGL
Issuer Code: LIBU
ISIN Code: ZAE000057360
("Liberty Life")
Trading Update
Earnings per share and Embedded Value
Investment markets performed well during the quarter and the group"s BEE
normalised headline earnings per share and BEE normalised embedded value per
share strengthened as a result. The weighted average gross investment return (a
proxy for the shareholders" participation in investment returns on assets
backing certain classes of policyholder business) was 22.7% for the first nine
months of 2006. This was ahead of the actuarial assumptions, but below the
25.7% experienced for the first nine months of 2005. The group"s BEE normalised
embedded value per share increased by between 3%-5% during the quarter after
adjusting for the payment of the interim dividend of R1.40 per share.
Indexed new business
Indexed new business life premiums for the quarter were 4% lower than the same
period last year. Indexed retail life new business premiums were also 4% lower
for the 9 months ended 30 September 2006. Indexed corporate premiums were 6%
lower for the 9 months ended 30 September 2006 mainly as a result of the receipt
of large single premiums in the comparative period in 2005. Due to a number of
factors, including the completion of the distribution restructuring exercise,
new business retail volumes since the end of September 2006, have shown a return
to positive growth.
Life net cash flows continue to be positive albeit at levels lower than 2005.
New business margins are currently slightly below those recorded in the interim
results.
Costs
The continued focus on cost control has resulted in recurring management
expenses being below 2005 levels. The group"s integration and restructuring
continues as expected and management remains committed to the projected R300m
annualised cost saving targets.
Audit/ Review
None of the figures have been audited or reviewed by the group"s auditors.
Note
As defined in the 2005 annual report, Black Economic Empowerment (BEE)normalised
headline earnings per share include dividends received but accounted for
directly in equity 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.
Conference call
Liberty Group will host a conference call for analysts and investors at 12.45 SA
Time, 10.45 UK time today (29th November 2006). The call will include a brief
introduction and overview of our 3rd quarter operating update and an opportunity
for questions. Analysts and investors who wish to participate in the conference
call should dial the following numbers:
SA participants:
Toll 011 535 3600
Toll-free 0800 200 648
UK participants:
Toll-free 0800 917 7042
US participants:
Toll 1 412 858 4600
Toll-free 1 800 860 2442
If you are not able to make the live conference call, you will have access to a
one week playback number as follows:
Code: 2565
SA participants: 011 305 2030
UK participants: 0808 234 6771
US participants: 1 412 317 0088
Johannesburg
29 November 2006
Sponsor
Merrill Lynch South Africa (Pty) Ltd
Date: 29/11/2006 09:05:03 AM Produced by the JSE SENS Department
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