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MAF - Mutual & Federal - Trading Update MUTUAL & FEDERAL INSURANCE COMPANY LIMITED (Incorporated in the Republic of South Africa) Registration number 1970/006619/06 Share code: MAF ISIN No: ZAE000010823 ("Mutual & Federal" or "the company") TRADING UPDATE In an announcement issued earlier today, the company confirmed that all conditions precedent in relation to the acquisition by Old Mutual plc of the remaining shareholding in Mutual & Federal had been fulfilled and set out the salient dates and times of the transaction. Following consultation with the company`s Sponsor, Nedbank Capital, the Board believe that it is required to comply with all JSE regulations until it is delisted on 8 February 2010, in terms of the revised timetable announced today. The company is accordingly required to publish a trading update as soon as it becomes reasonably certain that the financial results for the period to be reported on next will show a 20% or more difference from those of the previous corresponding period. Although there was a decline in the underwriting surplus in 2009 the company benefitted from a substantial improvement in the value of listed equities following highly negative conditions in 2008. This trend was apparent in the interim results announcement on 28 July 2009 and was highlighted in the Operational Update on 5 November. Realised and unrealised investment surpluses for 2009 accordingly amounted to more than R200m compared to a deficit of more than R600m in 2008. Furthermore, the 2008 results were negatively impacted by retrenchment costs and certain one-off strategic expenses which did not recur in 2009. Shareholders are accordingly advised that the company expects basic earnings per share for the year ended 31 December 2009 to be 540% to 560% higher than those of the prior corresponding period, and headline earnings to be 620% to 640% higher. This increase was clearly expected in light of the improvements in world and South African financial markets in 2009 and the non-recurring nature of certain expenses incurred in 2008. The information in this trading update has not been reviewed or reported on by the Mutual & Federal auditors. Due to the proposed delisting of the company, it is not expected that results for the year ended 31 December 2009 will be published in terms of JSE requirements. Johannesburg 19 January 2010 Sponsor: Nedbank Capital Date: 19/01/2010 15:25:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
