Wrap Text
MET - Metropolitan Holdings Financial Services Group audited group results
for the year ended 31 December 2009
Metropolitan Holdings Limited
Incorporated in the Republic of South Africa
Registration Number: 2000/031756/06
JSE share code: MET
NSX share code: MTD
ISIN: ZAE000050456
("Metropolitan" or "the company" or "the group")
METROPOLITAN HOLDINGS FINANCIAL SERVICES GROUP AUDITED GROUP RESULTS FOR THE
YEAR ENDED 31 DECEMBER 2009
HIGHLIGHTS
- 12% return on embedded value
- Embedded value increased 6% to 1 811 cents per share
- Group capital cover increased to 3.7 times
- Diluted earnings per share increased to 188 cents
- Dividend increased to 100 cents per share
REVIEW OF OPERATIONS AND PROSPECTS
Operating environment
The investment markets remained extremely turbulent and unpredictable
throughout the year, long bond interest rates increased further. Increased
inflation and extensive job losses put pressure on our clients` disposable
income, as well as on the group`s capital and operating profits during the
year.
Salient features and highlights
- Diluted core headline earnings per share for the year held up well in a
difficult environment, decreasing by only 7% over 2008 - 5% better than
the 2009 half-year results comparison.
- Earnings and headline earnings, boosted by mark-to-market gains,
increased significantly when compared to the loss disclosed in the prior
year.
- The general economic slow-down affected growth in operating profit
across the group.
- Total recurring new business premium income fell 9%, while the value of
new insurance business declined 52%, driven primarily by the performance
of the direct marketing channel.
- Investment income on shareholder assets was in line with the previous
year and expectations.
- The economic capital requirement of the group remained stable, reducing
marginally to R4.3 billion, mainly as a result of a decline in projected
economic volatilities and improved capital modelling.
- The group`s overall capital position improved, resulting in a strong
group statutory capital adequacy requirement (CAR) cover of 3.7 times.
- Embedded value per share increased from 1 709 cents (31 December 2008)
to 1 811 cents, despite the group paying out 95 cents per share in
dividends.
- Cash flows from clients came under pressure during the year; net inflows
of R1.5 billion were recorded by the group.
- The ordinary dividend per share was increased to 100 cents, reflecting
the improved operating outlook.
Operational overview
Retail
- New business PVP (present value of expected premiums) ended 32% lower,
primarily as a result of the closure of loss-making products.
- The mix of new recurring business sold during the period changed, with a
switch from savings to risk policies.
- The increasingly difficult conditions experienced by consumers led to a
higher propensity to lapse or surrender life insurance policies.
However, ongoing focused management action in this area resulted in
better overall persistency during the year than would have been expected
in the current economic conditions.
- The direct marketing partnership, which was extensively scaled back
during the year, had a negative impact on both operating profit and
value of new business (VONB).
- The retail new business margin fell from 2.8% to 1.6% (PVP basis) as a
result of higher discount rates, poor persistency at direct marketing
and the new commission and early terminations dispensation for savings
business.
- Operating profit decreased by 15%, dampened by lower average investment
assets, the effects of the worsening economic environment on certain
product lines and increased new business strain on the sale of
investment products following the implementation of higher minimum
surrender values and the new commission regulations.
Corporate
- Good single premium new business resulted in a 13% increase in new
business PVP.
- In addition, a significant volume of off balance sheet administration
business was written on the new Neon product.
- Risk margins remained under pressure throughout the period, dampening
operating profits compared to 2008.
- The new business PVP margin increased from 0.8% to 0.9%, reflecting the
improved volumes and changes in the business mix.
- Although the growth in off balance sheet administration business did not
contribute to new business premium income, it did impact the new
business margin as it assisted with the recovery of costs and boosted
the value of new business.
- Operating profit ended 8% down, reduced by lower asset-based fees and
weaker risk profits.
International
- New business recurring premium income, from all seven operations, was
boosted by the inclusion of the "new" countries and good performance in
Lesotho, growing 10% compared to 2008.
- With the inclusion of all operations in the number for the first time, a
reduced new business margin of 2.0% (PVP) was recorded.
- We continue to seek strategic alliances and partners in the countries
where we operate, particularly in Kenya, Swaziland and Lesotho.
- Total operating profit fell 5% as a result of higher start-up losses in
the northern operations and increased claims on group business, as well
as the negative effect of a volatile exchange rate and tough operating
conditions in all markets.
Asset management
- The value of new business, comprising collective investment inflows and
third-party mandates, remained flat at R39 million.
- MetAM delivered good absolute and relative investment performance over
the period, with a particularly strong delivery on equity mandates.
- Net inflows of R1.5 billion were recorded for the year.
- Operating profit, however, declined by 6% as a result of administration
margin compression and lower average investment asset levels.
Health (MHG)
- New business flows increased, mostly as a result of the tremendous
growth in membership of the Government Employees Medical Scheme (GEMS).
- Total principal members under administration, including franchise, at
the year-end were 855 000 (over two million lives), confirming MHG`s
status as South Africa`s largest administrator of restricted medical
schemes.
- As a result of the continued growth in members, together with improved
operational efficiencies, operating profit before tax increased by 8%.
- Operating profit after tax was reduced by STC on a dividend paid to
Metropolitan Holdings during 2009.
Capital management
- The investment markets remained extremely volatile and unpredictable,
both locally and internationally.
- The group actively monitored its capital position throughout the year in
order to protect shareholder capital.
- Dynamic asset allocation, capital protection and other strategies were
applied where deemed appropriate.
- Smoothed bonus funds recovered during the year, with all funds ending
the year with strong funding levels well in excess of the 92.5%
reporting threshold.
- The year-end economic capital required by the Metropolitan group was
R4.3 billion, 2.1 times the statutory requirement.
- The actual capital held by the group at year-end exceeded this
requirement by approximately R2 billion.
- The operations remained well capitalised, with a group CAR cover ratio
of 3.7 times.
Prospects
- Metropolitan continues to create prosperity for Africa`s people by
providing appropriate products that are both accessible and affordable.
- Africa, as a largely untapped market, provides a number of opportunities
for the group.
- All the businesses are facing opportunities and threats posed by ongoing
changes in the highly regulated environments in which they operate.
- Food and transport inflation, together with rising unemployment, remain
the biggest challenges to the group`s core target market. Further
deterioration in the above factors will reduce new business prospects
and possibly challenge the persistency of the in-force book.
- The board is satisfied that the group remains strategically well
positioned, thanks to its strong focus on client service, product
innovation, business retention, cost containment, diversification and
capital management.
DIRECTORS` STATEMENT
The directors take pleasure in presenting the audited results of the
Metropolitan Holdings financial services group for the year ended 31 December
2009.
Basis of presentation of financial information
These results have been prepared in accordance with International Financial
Reporting Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations issued and effective at the
time of preparing these results, including compliance with IAS 34 Interim
financial reporting. They are also in compliance with the listings
requirements of the JSE Limited and the Companies Act of South Africa.
The accounting policies of the group have been applied consistently to all
periods presented. The preparation of financial statements in accordance
with IFRS requires the use of certain critical accounting estimates as well
as the exercise of managerial judgement in the application of the group`s
accounting policies. Such judgement, assumptions and estimates are disclosed
in detail in the annual financial statements for the year ended 31 December
2009.
Changes to presentation and restatement of 2008 results
Distribution costs have been reallocated from sales remuneration to other
expenses while fee income on certain investment contracts was changed from
that disclosed in 2008. These changes are not material and have no impact on
group earnings. The full details are disclosed in the annual financial
statements at 31 December 2009.
CORPORATE GOVERNANCE
The board has satisfied itself that appropriate principles of corporate
governance were applied throughout the year under review.
DIRECTORATE CHANGES AND DIRECTORS` SHAREHOLDING
Wiseman Nkuhlu resigned from the board with effect from 17 March 2009. JJ
Njeke was appointed acting chairman at that time, and then on 26 January 2010
he was appointed chairman. Dr Sonn retired as a director on 11 October 2009
and Andile Sangqu resigned from the board on 8 December 2009. Mary Vilakazi
and Joyce Matlala were appointed to the board on 2 November 2009 and 26
January 2010 respectively. On 7 January 2010 Bongiwe Gobodo-Mbomvu resigned
as company secretary. No further changes have occurred. All transactions in
listed shares involving directors were disclosed on SENS as required.
CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
The group had no material capital commitments at 31 December 2009. The group
is party to legal proceedings in the normal course of business, and
appropriate provisions are made when losses are expected to materialise.
EVENTS AFTER THE REPORTING PERIOD
No material events occurred between the reporting date and the date of
approval of the annual financial statements.
DIVIDEND DECLARATION
Ordinary listed shares
The dividend policy for ordinary listed shares, approved by the directors and
consistent with prior years, is to provide shareholders with stable dividend
growth that reflects expected growth in underlying earnings in the medium
term, while allowing the dividend cover to fluctuate.
An interim dividend of 40.00 cents per ordinary share was declared and paid
in September 2009. On 9 March 2010 a final dividend of 60.00 cents per
ordinary share was declared. This dividend is payable to the holders of
ordinary shares recorded in the register of the company at the close of
business on Friday, 9 April 2010 and will be paid on Monday, 12 April 2010.
The last day to trade "cum" dividend will be Wednesday, 31 March 2010. The
shares will trade "ex" dividend from the start of business on Thursday, 1
April 2010. Share certificates may not be dematerialised or rematerialised
between Thursday, 1 April and Friday, 9 April 2010, both days inclusive.
Where applicable, dividends in respect of certificated shareholders will be
transferred electronically to shareholders` bank accounts on payment date. In
the absence of specific mandates, dividend cheques will be posted to
certificated shareholders on or about payment date. Shareholders who hold
dematerialised shares will have their accounts with their CSDP or broker
credited on Monday, 12 April 2010.
Staff share purchase scheme dividend
A dividend of R7 million (2008: R11 million) was declared on the unlisted
shares in the staff share purchase scheme, as provided for in the trust deed.
Preference share dividend
Dividends of R12 million (8.9% p.a.), R5 million (8.9% p.a.), and R25 million
(15.8% p.a.) were declared on 9 March 2010 on the unlisted A1, A2 and A3
Metropolitan preference shares respectively, and are payable on 31 March
2010.
Dividends of R31 million (14.1% p.a.), R6 million (40.00 cents per share) and
R26 million (15.8% p.a.) were declared in September 2009 on the unlisted A1,
A2 and A3 Metropolitan preference shares respectively, and paid on 30
September 2009.
The declaration rate was determined as set out in the company`s articles.
Preference share dividends are included under finance costs in these results.
AUDIT OPINION
The auditors, PricewaterhouseCoopers Inc, have issued their opinion on the
group financial statements for the year ended 31 December 2009. A copy of
their unqualified report is available for inspection at the company`s
registered office.
INDEPENDENT ACTUARIAL REVIEW
The embedded value and value of new business results have been reviewed by
Deloitte & Touche.
Signed on behalf of the board
Wilhelm van Zyl Group chief executive
JJ Njeke Group chairman
Cape Town
9 March 2010
Directors:
JJ Njeke (non-executive group chairman), Wilhelm van Zyl (group chief
executive), Phillip Matlakala (executive director), Preston Speckmann (group
finance director), Fatima Jakoet, Peter Lamprecht, Joyce Matlala, Syd Muller,
John Newbury, Bulelwa Paledi, Marius Smith, Johan van Reenen, Mary Vilakazi
Secretary: Thobeka Sishuba-Mashego (designate)
Registration number: 2000/031756/06
Registered office: 7 Parc du Cap, Mispel Road, Bellville 7535
JSE code: MET
NSX code: MTD
ISIN NO. ZAE000050456
Transfer secretaries Sponsor
Link Market Services SA (Pty) Ltd Merrill Lynch
(Registration number 2000/007239/07) South Africa
5th Floor, 11 Diagonal Street, (Pty) Limited
Johannesburg, 2001
P O Box 4844, Johannesburg, 2000
Telephone: +27 11 834 2266
E-mail: info@linkmarketservices.co.za
Summary of financial information
AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009
Basis of presentation of financial information
These results have been prepared in accordance with International Financial
Reporting Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations issued and effective at the
time of preparing these results, including compliance with International
Accounting Standard 34 (IAS34) - Interim Financial Reporting. They are also
in compliance with the guidelines issued by the Actuarial Society of South
Africa; the disclosure requirements of the JSE Limited (JSE) and the
Companies Act of South Africa.
The accounting policies of the group have been applied consistently to all
periods presented. The preparation of financial statements in accordance
with IFRS requires the use of certain critical accounting estimates as well
as the exercise of managerial judgement in the application of the group`s
accounting policies. Such judgement, assumptions and accounting estimates are
disclosed in detail in the annual financial statements for the year ended 31
December 2009.
Restatement of 2008 results
- The disclosure of sales remuneration has been reconsidered.
Distribution costs are no longer considered part of sales remuneration
and have been reallocated to other expenses. This resulted in an
increase of other expenses of R140 million and a corresponding decrease
in sales remuneration. This had no impact on the group`s earnings. The
distribution costs for the current year would have been R113 million.
- Fee income on certain investment contracts was incorrectly allocated in
the December 2008 results. This resulted in a decrease in fee income of
R80 million with a corresponding change in fair value adjustments. This
had no impact on the group`s earnings.
Standards and interpretations of published standards effective in 2009 and
relevant to the group
- IAS 1 (Revised) - Presentation of financial statements. The revised
standard prohibits the presentation of non-owner changes in equity in
the statement of changes in equity, requiring all such income and
expense items to be presented separately from owner changes in equity.
The group has therefore prepared a statement of comprehensive income as
well as a statement of changes in equity for the current results.
- The following standards: IFRS 2 (Amendment) - Share-based payments, IFRS
7 (Amendment) - Financial instruments disclosures: Improving disclosures
about financial instruments, IFRIC 16 - Hedges of a net investment in a
foreign operation and AC 503 (Revised) - Accounting for black economic
empowerment transactions had no impact on the group`s earnings.
- The International Accounting Standards Board (IASB) made amendments to
various standards as part of their annual improvements project. These
amendments had no impact on the group`s earnings.
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31.12.2009 31.12.2008
Rm Rm
ASSETS
Intangible assets 464 525
Owner-occupied properties 690 678
Property and equipment 202 186
Investment properties 3 193 3 031
Investment in associates 856 663
Investment in joint venture - 35
Employee benefit assets 232 248
Financial instrument assets (1) 56 201 53 692
Insurance and other receivables 1 579 1 507
Deferred income tax 10 12
Reinsurance contracts 242 212
Current income tax assets 200 14
Cash and cash equivalents 7 702 8 810
Total assets 71 571 69 613
EQUITY
Equity attributable to owners of the parent 6 612 5 847
Minority interests 167 141
Total equity 6 779 5 988
LIABILITIES
Insurance contract liabilities
Long-term insurance contracts (2) 35 807 32 023
Capitation contracts 2 2
Financial instrument liabilities
Investment contracts 23 471 25 209
- with discretionary participation features 12 022 11 278
(2)
- designated as fair value through income 11 449 13 931
Other financial instrument liabilities (3) 2 308 3 119
Deferred income tax 394 127
Employee benefit obligations 202 188
Other payables 2 601 2 934
Current income tax liabilities 7 23
Total liabilities 64 792 63 625
Total equity and liabilities 71 571 69 613
(1) Financial instrument assets consist of the following:
Assets designated as fair value through income: R54 441 million (2008:
R50 795 million)
Assets held for trading: R718 million (2008: R1 764 million)
Available-for-sale assets: R2 million (2008: R5 million)
Loans and receivables: R1 040 million (2008: R1 128 million)
(2) Under IFRS4 - Insurance contracts, the group continues to account for
long-term insurance contracts and investment contracts with
discretionary participation features using SA GAAP.
(3) Other financial instrument liabilities consist of the following:
Liabilities designated as fair value through income: R301 million (2008:
R272 million)
Liabilities held for trading: R787 million (2008: R1 498 million)
Liabilities at amortised cost: R1 220 million (2008: R1 349 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
STATEMENT OF ACTUARIAL VALUES OF ASSETS AND 31.12.2009 31.12.2008
LIABILITIES ON REPORTING BASIS Rm Rm
Total assets per statement of financial 71 571 69 613
position
Actuarial value of policy liabilities per (59 278) (57 232)
statement of financial position
Other liabilities per statement of financial (5 514) (6 393)
position
Minority interests per statement of financial (167) (141)
position
Excess - group per reporting basis 6 612 5 847
Net assets - other businesses (721) (934)
Excess - long-term insurance business (4) 5 891 4 913
LONG-TERM INSURANCE BUSINESS (4)
Change in excess of long-term insurance 978 (802)
business (4)
Increase in share capital (25) (39)
Metropolitan Nigeria (74) -
Change in other reserves 18 (45)
Dividend paid 336 1 053
Total surplus arising 1 233 167
Operating profit 634 734
Investment income on excess 313 309
Net realised and fair value gains/(losses) on 397 (329)
excess
Investment variances (5) 279 (387)
Basis and other changes (390) (197)
Employee benefit assets (6) - 37
Consolidation adjustments 125 75
Income tax expenses/(credits) (7) 357 (170)
Adjustment for finance costs 46 49
Results of long-term insurance business (4) 1 761 121
Results of other group businesses 73 (277)
Results of operations per income statement 1 834 (156)
METROPOLITAN HOLDINGS - GROUP RESULTS
STATEMENT OF ACTUARIAL VALUES OF ASSETS AND 31.12.2009 31.12.2008
LIABILITIES ON STATUTORY BASIS Rm Rm
Reporting excess - long-term insurance business 5 891 4 913
(4)
Disregarded assets in terms of statutory (553) (489)
requirements (8)
Capital adjustments 501 300
Statutory excess - long-term insurance business 5 839 4 724
(4)
Capital adequacy requirement (CAR) (Rm) 2 090 2 336
Ratio of long-term insurance business excess to 2.8 2.0
CAR (times)
Discretionary margins 1 704 1 756
(4) The long-term insurance business includes both insurance and investment
contract business and is the simple aggregate of all the life insurance
companies in the group. It includes minority interests and other items,
which are eliminated on consolidation. It excludes non-insurance
business.
(5) Investment variances reflect the impact of actual investment returns on
the value of future expense recoveries and include any change in the PGN
110 (Allowance for embedded investment derivatives) liability.
(6) Recognition of Metropolitan Staff Retirement Fund surplus.
(7) Includes deferred tax on contract holder capital gains and losses.
(8) Disregarded assets are those as defined in the South African Long Term
Insurance Act and are only applicable to South African Long Term
insurance companies. Adjustments are also made for the international
insurance companies from reporting excess to statutory excess as
required by their regulators.
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED INCOME STATEMENT 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Net insurance premiums received 10 240 10 405
Fee income (9) 1 185 1 071
Investment income 3 995 4 396
Net realised and fair value gains/(losses) 4 642 (8 484)
Net income 20 062 7 388
Net insurance benefits and claims 8 466 8 069
Change in liabilities 4 565 (4 468)
Change in insurance contract liabilities 3 852 (1 451)
Change in investment contracts with DPF 747 (2 990)
liabilities
Change in reinsurance provision (34) (27)
Fair value adjustments on investment contract 1 235 189
liabilities
Fair value adjustments on collective investment 7 18
scheme liabilities
Depreciation, amortisation and impairment 148 221
expenses (*)
Employee benefit expenses (#) 1 549 1 269
Sales remuneration 987 1 095
Other expenses (*) 1 271 1 151
Expenses 18 228 7 544
Results of operations 1 834 (156)
Share of profit/(loss) of associates 3 (2)
Share of loss of joint venture - (26)
Finance costs (10) (168) (188)
Profit/(loss) before tax 1 669 (372)
Income tax (expenses)/credits (523) 77
Earnings 1 146 (295)
Attributable to:
Owners of the parent 1 129 (319)
Minority interests 17 24
1 146 (295)
Basic earnings per share (cents) 214 (61)
Diluted earnings per share (cents) 188 (27)
(9) Fee income consists of the following:
Investment contracts: R67 million (2008: R94 million)
Trust and fiduciary services: R159 million (2008: R144 million)
Other fee income: R959 million (2008: R833 million)
(10) Finance costs consist of the following:
Preference shares: R118 million (2008: R138 million)
Subordinated redeemable debt: R46 million (2008: R47 million)
Other: R4 million (2008: R3 million)
(*) A provision for a loan impairment raised in prior years for Metropolitan
Card Operations has been reversed during the current period and written
off against other expenses.
(#) December 2008 is net of a R75 million employee benefit asset recognised.
METROPOLITAN HOLDINGS - GROUP RESULTS
RECONCILIATION OF Basic earnings Diluted earnings
HEADLINE EARNINGS
attributable to owners
of parent
12 mths to 12 mths to 12 mths to 12 mths to
31.12.2009 31.12.2008 31.12.2009 31.12.2008
Rm Rm Rm Rm
Earnings 1 129 (319) 1 129 (319)
Finance costs - 118 138
preference shares
Diluted earnings 1 247 (181)
Goodwill impairment and 61 44 61 44
adjustments relating to
equity accounted
associates
Headline earnings (11) 1 190 (275) 1 308 (137)
Net realised and fair (466) 603 (466) 603
value (gains)/losses on
excess
Basis and other changes 92 580 92 580
and investment variances
Employee benefit assets - (37) - (37)
Dilutory effect of (1) 1
subsidiaries (12)
Investment income on 1 1
treasury shares -
contract holders (13)
Core headline earnings 816 871 934 1 011
(14)
(11) Headline earnings consist of operating profit, investment income, net
realised and fair value gains, investment variances, basis and other
changes and the first-time recognition of employee benefit assets.
(12) Metropolitan Health and Metropolitan Kenya are consolidated at 100% in
the results. For the purposes of diluted core headline earnings,
minority interests and investment returns are reinstated.
(13) For diluted core headline earnings, treasury shares held on behalf of
contract holders are deemed to be issued. For diluted earnings and
headline earnings, these shares are deemed to be cancelled.
(14) Net realised and fair value gains on investment assets, investment
variances and basis and other changes can be volatile; therefore core
headline earnings have been disclosed that comprise operating profit and
investment income on shareholder assets.
METROPOLITAN HOLDINGS - GROUP RESULTS
EARNINGS PER SHARE (cents) 12 mths to 12 mths to
attributable to owners of parent 31.12.2009 31.12.2008
Basic
Core headline earnings 154 167
Headline earnings 225 (53)
Earnings 214 (61)
Weighted average number of shares (million) 529 521
Diluted
Core headline earnings 141 151
Headline earnings 197 (20)
Earnings 188 (27)
Weighted average number of shares (million) 663 669
DIVIDENDS 2009 2008
Ordinary listed shares (cents per share)
Interim 40 40
Final 60 55
Total 100 95
DIVIDENDS
Convertible redeemable preference shares A1 A2 A3
Redemption value (per share) R 5.12 9.18 9.18
Paid - 31 March 2008 Rate 16.1% 59 cps 18.0%
Rm 31 8 28
Paid - 30 September 2008 Rate 16.9% 40 cps 18.7%
Rm 32 5 29
Paid - 31 March 2009 Rate 16.8% 55 cps 19.0%
Rm 33 7 30
Paid - 30 September 2009 Rate 14.1% 40 cps 15.8%
Rm 31 6 26
Payable - 31 March 2010 Rate 8.9% 8.9% 15.8%
Rm 12 5 25
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF DILUTED CORE HEADLINE EARNINGS 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Retail business 383 448
Operating profit 506 612
Tax (123) (164)
Corporate business 140 153
Operating profit 185 211
Tax (45) (58)
International business 89 94
Operating profit 100 107
Tax (11) (13)
Asset management business 61 65
Operating profit 88 92
Tax (27) (27)
Health business 95 100
Operating profit 153 142
Tax (58) (42)
Shareholder capital 166 151
Holding company expenses (67) (55)
Strategic ventures (43) (78)
Investment income on shareholder excess 433 501
Income tax on investment income (157) (217)
Diluted core headline earnings 934 1 011
RESULTS OF OPERATIONS FROM Net Expenses Results of operations
ADMINISTRATION BUSINESS income
(gross of minority interests
and before finance costs and
tax)
12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm Rm Rm
Health business 991 (817) 174 141
Asset administration 119 (62) 57 56
Asset management 123 (92) 31 37
Metropolitan Card Operations 7 (38) (31) (48)
1 240 (1 009) 231 186
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Earnings for year 1 146 (295)
Other comprehensive income for the year, net of (10) 40
tax
Exchange differences on translating foreign (37) 16
operations
Land and buildings revaluation 29 30
Other 2 -
Income tax relating to components of other (4) (6)
comprehensive income
Total comprehensive income for the year 1 136 (255)
Total comprehensive income attributable to:
Owners of the parent 1 129 (283)
Minority interest 7 28
1 136 (255)
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Changes in share capital
Balance at beginning 51 19
Conversion of preference shares, net of issue 114
costs
Staff share scheme shares released 17 31
Decrease in treasury shares held on behalf of 1 1
contract holders
Balance at end 183 51
Changes in other reserves
Balance at beginning 532 495
Total comprehensive income (1) 36
Employee share schemes - value of services 1 4
provided
Transfer to retained earnings (4) (3)
Balance at end (15) 528 532
Changes in retained earnings
Balance at beginning 5 264 6 303
Total comprehensive income 1 130 (319)
Dividend paid (497) (520)
Shares repurchased - (203)
Transfer from other reserves 4 3
Balance at end 5 901 5 264
Equity attributable to owners of the parent 6 612 5 847
Changes in minority interests
Balance at beginning 141 124
Total comprehensive income 7 28
Dividend paid (17) (12)
Metropolitan Nigeria transferred to subsidiary 36
Other - 1
Balance at end 167 141
Total equity 6 779 5 988
(15) Other reserves consist of the following:
Land and buildings revaluation reserve: R203 million (2008: R182
million)
Foreign currency translation reserve: (R26 million) (2008: R1 million)
Fair value reserve: R54 million (2008: R53 million)
Non-distributable reserve: R297 million (2008: R296 million)
METROPOLITAN HOLDINGS - GROUP RESULTS
CONSOLIDATED STATEMENT OF CASH FLOWS 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Net cash (outflow)/inflow from operating (475) 1 455
activities
Net cash outflow from investing activities (118) (163)
Net cash outflow from financing activities (515) (760)
Net cash flow (1 108) 532
Effect of foreign exchange rate changes - 4
Cash resources and funds on deposit at 8 810 8 274
beginning
Cash resources and funds on deposit at end 7 702 8 810
SEGMENT REPORT 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Revenue
Premiums received 11 207 11 855
Retail 6 831 7 931
Corporate 3 182 2 899
Health 12 19
International 1 182 1 006
Fee income 1 185 1 071
Retail 27 37
Corporate 128 119
Asset management 233 220
Health 944 787
International - 34
Shareholder capital 2 11
Inter-segment fee income (149) (137)
Expenses
Payments to contract holders 13 073 9 795
Retail 5 108 5 013
Corporate 7 308 4 141
Health 14 16
International 643 625
Other expenses 4 123 3 924
Retail 2 263 2 415
Corporate 355 325
Asset management 155 141
Health 803 664
International 449 381
Shareholder capital 238 119
Inter-segment expenses (140) (121)
- The South African operations are segregated into retail, corporate,
asset management, health and shareholder capital. The international
companies - Botswana, Ghana, Kenya, Lesotho, Namibia, Nigeria and
Swaziland - are all managed as a single operating segment.
- Segment assets did not change materially from 31 December 2008, except
for market-related movements.
- Other segment information used to assess the performance of the
operating segments is disclosed throughout the results and includes,
diluted core headline earnings, new business premiums, value of new
business and profitability of new business as a % of APE.
- In 2008 shareholder capital expenses are net of first-time recognition
of employee benefit assets and the movements in employee benefit assets
not being utilised by the group.
- Fee income of R27 million has been reallocated from retail to corporate
for 2008.
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE 31.12.2009 31.12.2008
Rm Rm
Covered business
Reporting excess - long-term insurance 5 891 4 913
business
Disregarded assets (16) (183) (177)
Dilutory effect of subsidiaries (17) (3) (7)
Reclassification from non-covered business (54) 7
Diluted net asset value - covered business 5 651 4 736
Net value of in-force business 4 114 4 161
Individual life 3 450 3 501
Gross value of in-force business 3 795 3 864
Less cost of capital (345) (363)
Employee benefits 664 660
Gross value of in-force business 844 842
Less cost of capital (180) (182)
Diluted embedded value - covered business 9 765 8 897
Non-covered business
Net assets - other businesses 721 934
Reclassification to covered business 54 (7)
Consolidation adjustments (112) (121)
Adjustments for dilution 877 1 029
Dilutory effect of subsidiaries (17) 83 88
Staff share scheme loans 73 91
Treasury shares held on behalf of 10 9
contract holders
Liability - convertible redeemable 711 841
preference shares
Diluted net asset value - non-covered 1 540 1 835
business
Net value of in-force business 702 598
Asset management 282 280
Health 728 664
Holding company expenses (18) (308) (346)
Diluted embedded value - non-covered 2 242 2 433
business
Diluted adjusted net asset value 7 191 6 571
Value of in-force business 4 816 4 759
Diluted embedded value 12 007 11 330
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE 31.12.2009 31.12.2008
Rm Rm
Required capital - covered business 3 616 3 813
(adjusted for qualifying debt)
Surplus capital - covered business 2 034 923
Diluted embedded value per share (cents) 1 811 1 709
Diluted net asset value per share (cents) 1 085 991
Diluted number of shares in issue 663 663
(million) (19)
(16) Disregarded assets as disclosed in the statement of actuarial values of
assets and liabilities are adjusted for internally developed software,
receivables older than 90 days (2008: 12 months) and recognised employee
benefit assets.
(17) For accounting purposes, Metropolitan Health and Metropolitan Kenya have
been consolidated at 100%. For embedded value purposes, disclosed on a
diluted basis, the minority interests and related funding have been
reinstated.
(18) The holding company expenses reflect the present value of projected
recurring expenses of that company.
(19) The diluted number of shares in issue takes into account all issued
shares, assuming conversion of the convertible redeemable preference
shares and the release of staff share scheme shares, and includes the
treasury shares held on behalf of contract holders.
METROPOLITAN HOLDINGS - GROUP RESULTS
EMBEDDED VALUE ATTRIBUTABLE TO Net Value 31.12.2008
GROUP COMPANIES asset of Rm
value in- 31.12.2009
Rm force Rm
Rm
Covered business
Metropolitan Life Ltd 4 983 3 498 8 481 7 709
Metropolitan Odyssey 36 - 36 35
Union Life 41 6 47 45
International 591 610 1 201 1 108
Metropolitan Life 68 - 68 58
International
Metropolitan Namibia 186 307 493 468
Metropolitan Botswana 127 61 188 194
Metropolitan Lesotho 161 221 382 315
Metropolitan Kenya 5 3 8 16
Metropolitan Ghana 2 10 12 8
Metropolitan Swaziland 23 - 23 12
Metropolitan Nigeria 19 8 27 37
Total covered business 5 651 4 114 9 765 8 897
Non-covered business
Asset management 109 282 391 377
Metropolitan Health Group 233 728 961 923
Metropolitan Holdings (after 1 198 (308) 890 1 133
consolidation adjustments)
Total non-covered business 1 540 702 2 242 2 433
Total embedded value 7 191 4 816 12 007 11 330
Diluted net asset value - non- (1 540)
covered business
Adjustments to covered business 240
- net asset value
Reporting excess - long-term 5 891
insurance business
- Net of minority interests.
METROPOLITAN HOLDINGS - GROUP RESULTS
VALUE OF NEW BUSINESS 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Retail business 81 211
Gross value of new business 86 223
Less: Cost of capital (5) (12)
Corporate business 25 20
Gross value of new business 45 31
Less: Cost of capital (20) (11)
International business 13 17
Gross value of new business 13 17
Less: Cost of capital (0) (0)
Value of covered new business 119 248
Value of non-covered new business 132 123
Asset management 39 39
Health 93 84
Total value of new business 251 371
- The 2008 results excluded Metropolitan Ghana, Metropolitan Kenya,
Metropolitan Nigeria and Metropolitan Swaziland as these businesses were
in start-up phase.
- Net of minority interests.
- Due to rounding, the cost of capital for the international business is
less than R1 million.
METROPOLITAN HOLDINGS - GROUP RESULTS
NEW BUSINESS PREMIUMS - COVERED BUSINESS 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Recurring premiums 1 160 1 278
Retail business 813 961
Corporate business 199 210
International business 148 107
Single premiums 3 422 4 314
Retail business 1 973 3 239
Corporate business 1 327 979
International business 122 96
Annual premium equivalent (APE) 1 501 1 709
Retail business 1 010 1 285
Corporate business 331 308
International business 160 116
Present value of premiums (PVP) 8 430 10 354
Retail business 5 050 7 426
Corporate business 2 737 2 431
International business 643 497
- From 2009 all international premiums have been included.
- Net of minority interests.
PROFITABILITY OF NEW BUSINESS - COVERED BUSINESS 12 mths to 12 mths to
31.12.2009 31.12.2008
% of APE 7.9 14.5
Retail business 8.0 16.4
Corporate business 7.6 6.5
International business 8.1 14.7
% of PVP 1.4 2.4
Retail business 1.6 2.8
Corporate business 0.9 0.8
International business 2.0 3.4
- Corporate value of new business includes value generated in respect of
new administration contracts secured, where premium income is not
applicable.
METROPOLITAN HOLDINGS - GROUP RESULTS
SOURCE OF NEW BUSINESS PRODUCTION - 31.12.2009 31.12.2008
COVERED BUSINESS
Individual life - insurance and investment
business
APE Total APE Total
% premi % premi
um % um %
Personal financial advisors 48 48 38 31
Broker distribution 22 31 27 36
Wholesale distribution 13 5 18 7
Third party business 2 7 5 19
Union Life 2 1 2 1
International 13 8 10 6
PRINCIPAL ASSUMPTIONS (South Africa) (20) 31.12.2009 31.12.2008
% %
Pre-tax investment return
Equities 13.0 11.0
Properties 10.5 8.5
Government stock 9.5 7.5
Cash 8.5 6.5
Risk discount rate (RDR) 12.0 10.0
Investment return (before tax) - smoothed bonus 11.8 9.8
Expense inflation rate 6.3 4.3
(20) The principal assumptions relate only to the South African life
insurance business. Assumptions relating to international life
insurance businesses are based on local requirements and can differ from
the South African assumptions.
MINORITY INTERESTS 31.12.2009 31.12.2008
% %
Metropolitan Health Group 17.6 17.6
Union Life 50.0 50.0
Metropolitan Namibia 18.0 18.0
Metropolitan Botswana 24.2 24.2
Metropolitan Kenya 34.4 33.3
Metropolitan Ghana 20.0 40.0
Metropolitan Nigeria 50.0 50.0
METROPOLITAN HOLDINGS - GROUP RESULTS
LONG-TERM INSURANCE Net In-force business New business
BUSINESS: worth written
SENSITIVITIES -
31.12.2009
Net Gross Cost Net Gross Cost
value value of value value of
CAR CAR
Rm Rm Rm Rm Rm Rm Rm
Base value 5 651 4 114 4 639 (525) 119 144 (25)
1% increase in 3 840 4 365 (525) 95 120 (25)
risk discount
rate
% change (7) (6) - (20) (17) -
1% reduction in 4 429 4 954 (525) 147 172 (25)
risk discount
rate
% change 8 7 - 24 19 -
10% decrease in 4 427 4 952 (525) 150 175 (25)
future expenses
% change (a) 8 7 - 26 22 -
10% decrease in 4 274 4 799 (525) 175 200 (25)
lapse, paid-up
and surrender
rates
% change 4 3 - 47 39 -
5% decrease in 4 269 4 794 (525) 150 175 (25)
mortality and
morbidity for
assurance
business
% change 4 3 - 26 22 -
5% decrease in 4 099 4 624 (525) 116 141 (25)
mortality for
annuity
business
% change - - - (3) (2) -
1% reduction in 5 740 4 193 4 696 (503) 155 179 (24)
gross
investment
return,
inflation rate
and risk
discount rate
% change (b) 2 2 1 (4) 30 24 (4)
1% reduction in 5 586 3 954 4 457 (503) 109 133 (24)
gross
investment
return only (no
change in risk
discount rate)
% change (b) (1) (4) (4) (4) (8) (8) (4)
LONG-TERM INSURANCE Net In-force business New business
BUSINESS: worth written
SENSITIVITIES -
31.12.2009
Net Gross Cost Net Gross Cost
value value of value value of
CAR CAR
Rm Rm Rm Rm Rm Rm
Base value 5 651 4 114 4 639 (525) 119 144 (25)
1% reduction in 5 805 4 037 4 562 (525) 137 162 (25)
inflation rate
% change 3 (2) (2) - 15 13 -
10% fall in market 5 355 3 886 4 411 (525)
value of
equities and
properties
% change (5) (6) (5) -
10% reduction in 4 053 4 578 (525) 112 137 (25)
premium
indexation
take-up rate
% change (1) (1) - (6) (5) -
10% decrease in 153 178 (25)
non commission
related
acquisition
expenses
% change 29 24 -
(a) No corresponding changes in variable policy charges are assumed,
although in practice it is likely that these will be modified according
to circumstances.
(b) Bonus rates are assumed to change commensurately.
(c) The change in the value of cost of CAR is disclosed as nil where the
sensitivity test results in an insignificant change in the value.
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF CHANGES IN Non- Covered business 2009 2008
GROUP EMBEDDED VALUE
cover NAV VoIF Cost Total Total Total
ed of cover- group group
busi- CAR ed EV EV
ness
Rm Rm Rm Rm Rm Rm Rm
Profit from new 140 (173) 324 (25) 126 266 388
business
Embedded value from 132 (173) 317 (25) 119 251 371
new business
Expected return to 8 - 7 - 7 15 17
end of year
Profit from existing (56) 552 (305) (3) 244 188 391
business
Expected return - 75 - 469 (49) 420 495 550
unwinding of RDR
Expected (or actual) - 675 (675) - - - -
net of tax profit
transfer to net worth
Operating experience (80) 43 (65) 2 (20) (100) 76
variances
Operating assumption (51) (166) (34) 44 (156) (207) (235)
changes
Embedded value profit 84 379 19 (28) 370 454 779
from operations
Investment return on 83 705 - 58 763 846 (281)
net worth
Investment variances 9 336 97 - 433 442 (982)
Economic assumption (31) (188) (178) (10) (376) (407) 247
changes
Change in risk margin - - - - - - (8)
Exchange rate movements - (23) (5) - (28) (28) 16
Total embedded value 145 1 209 (67) 20 1 162 1 307 (229)
profit
Changes in share (23) 23 23 - (201)
capital
Dividend paid (195) (317) (317) (512) (539)
Finance costs - (118) - - (118) (138)
preference shares
Change in embedded (191) 915 (67) 20 868 677 (1 107)
value
Time weighted return 11.9 (2.1)
on embedded value (%)
Operating experience variances
Non-covered Negative variances from losses in certain of the non-
business life companies partially offset by profits in the
health and asset management businesses.
Covered
business
Net asset Positive contribution from higher than expected
value (NAV) mortality profits partially offset by negative
variances from higher than expected expenses and lower
than expected withdrawal profits.
Value of in Negative contributions mainly from greater than
force (VoIF) expected net employee benefit outflows.
Operating assumption changes
Non-covered Negative contribution from lower future profitability
business expected from the asset management businesses and
higher non-life company expenses.
Covered
business
Net asset Negative changes from the strengthening of the
value (NAV) mortality basis at longer durations for grouped
individual business, an increase in the assumed per
policy expense for individual life contracts and a
strengthening of the expense basis for international.
Value of in Negative change mainly due to an increase in the
force (VoIF) assumed future expenses of the corporate business.
METROPOLITAN HOLDINGS - GROUP RESULTS
FUNDS RECEIVED FROM CLIENTS 12 mths to 12 mths to
Gross Gross 31.12.2009 31.12.2008
inflow outflow Net inflow Net inflow
Rm Rm Rm Rm
Retail business 6 831 (5 108) 1 723 2 920
Corporate business 3 182 (7 308) (4 126) (1 243)
International business 1 182 (643) 539 382
Long-term insurance business 11 195 (13 059) (1 864) 2 059
cash flows
Health business 18 470 (16 710) 1 760 1 837
Asset administration 18 734 (15 833) 2 901 3 321
business
Asset management business 1 208 (2 628) (1 420) 959
Corporate business 118 - 118 159
Total funds received from 49 725 (48 230) 1 495 8 335
clients
PREMIUMS RECEIVED 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Recurring premiums 7 779 7 472
Retail business 4 856 4 689
Corporate business 1 863 1 924
International business 1 060 859
Single premiums 3 416 4 364
Retail business 1 975 3 242
Corporate business 1 319 975
International business 122 147
Capitation contracts - health business 12 19
Segment premiums received 11 207 11 855
Adjustment for premiums received from (1 071) (1 706)
investment contract holders
Transfers between insurance, investment and 104 256
investment with DPF contracts
Net insurance premiums per income statement 10 240 10 405
- 2008 excludes premiums received in Metropolitan Nigeria as it was a
joint venture.
METROPOLITAN HOLDINGS - GROUP RESULTS
PAYMENTS TO CONTRACT HOLDERS 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Individual life 5 571 5 475
Death and disability claims 1 202 1 084
Maturity claims 1 604 1 710
Annuities 797 664
Withdrawal benefits 136 156
Surrenders 1 950 1 977
Re-insurance recoveries (118) (116)
Employee benefits 7 488 4 304
Death and disability claims 1 251 1 191
Maturity claims 121 211
Annuities 705 695
Withdrawal benefits 310 378
Terminations 3 408 508
Disinvestments 1 904 1 538
Re-insurance recoveries (211) (217)
Capitation contracts 14 16
Total payments to contract holders 13 073 9 795
Adjustment for payments to investment contract (4 711) (1 982)
holders
Transfers between insurance, investment and 104 256
investment with DPF contracts
Net insurance benefits and claims per income 8 466 8 069
statement
- Segment information is disclosed in the segment report and reconciles to
total payments to policyholders.
- 2008 excludes payments to contract holders in Metropolitan Nigeria as it
was a joint venture.
METROPOLITAN HOLDINGS - GROUP RESULTS
NUMBER OF EMPLOYEES 31.12.2009 31.12.2008
Indoor staff 5 512 5 338
Insurance companies 2 780 2 751
Retail 1 274 1 280
Union Life 98 107
Cover2Go 13 16
Employee benefits 400 400
International 453 425
Group services 542 523
Metropolitan Health Group 2 382 2 108
Asset management 81 81
Asset administration 67 77
Metropolitan Card Operations - 34
Metropolitan Retirement Administrators 138 139
DirectFin Solutions 47 129
Holding company 17 19
Field staff 4 210 3 715
Retail 2 822 2 713
Union Life 304 173
International 1 084 829
Total 9 722 9 053
ANALYSIS OF EXPENSES 12 mths to 12 mths to
31.12.2009 31.12.2008
Rm Rm
Depreciation, amortisation and impairment 148 221
expenses
Employee benefit expenses 1 549 1 269
Sales remuneration 987 1 095
Other expenses 1 271 1 151
Finance costs 168 188
Total expenses 4 123 3 924
Long-term insurance business 3 018 2 979
Administration expenses 1 705 1 555
Sales remuneration 984 1 095
Asset management fees 210 209
Direct property expenses 119 120
Administration business 996 888
Finance costs - preference shares and 164 186
subordinated redeemable debt
Holding company 67 63
Employee benefit assets - (75)
Consolidation adjustments (122) (117)
Total expenses 4 123 3 924
- Segment information is disclosed in the segment report.
METROPOLITAN HOLDINGS - GROUP RESULTS
ASSETS UNDER MANAGEMENT 31.12.2009 31.12.2008
Rm Rm
Intangible assets 464 525
Owner-occupied properties 690 678
Property and equipment 202 186
Investment properties 3 193 3 031
Investment in associates 856 663
Investment in joint venture - 35
Employee benefit assets 232 248
Financial assets 56 201 53 692
Equity securities 24 687 21 167
Debt securities 13 014 15 968
Funds on deposit and other money market 5 484 3 409
instruments
Unit-linked investments 11 258 10 256
Derivative financial instruments 718 1 764
Loans and receivables 1 040 1 128
Insurance and other receivables 1 579 1 507
Deferred income tax 10 12
Reinsurance contracts 242 212
Current income tax assets 200 14
Cash and cash equivalents 7 702 8 810
Total on-balance sheet assets 71 571 69 613
Collective investments 22 189 18 832
Health 5 006 4 624
Asset management - segregated assets 2 948 3 238
Employee benefits - segregated assets 1 508 1 550
Total assets under management 103 222 97 857
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF ASSETS UNDER MANAGEMENT 31.12.2009 31.12.2008
Rm Rm
On-balance sheet assets
Managed and administered by Metam 51 017 50 092
Properties 3 869 3 689
Collective investment schemes 1 982 1 647
Investment assets 45 166 44 756
Administered and/or managed by Metropolitan 1 320 977
Collective Investments (excludes managed by
Metam)
Managed by external managers 14 521 13 754
Other assets 4 713 4 790
71 571 69 613
Off-balance sheet assets
Managed and administered by Metam 6 629 6 567
Collective investment schemes 3 004 2 559
Segregated assets 3 625 4 008
Administered and/or managed by Metropolitan 19 185 16 273
Collective Investments (includes white label
funds)
Employee benefits - segregated assets 831 780
Health 5 006 4 624
Total assets under management 103 222 97 857
METROPOLITAN HOLDINGS - GROUP RESULTS
ANALYSIS OF ASSETS BACKING GROUP 31.12.2009 31.12.2008
EXCESS
Rm % Rm %
Equity securities 2 489 37.7 2 471 42.3
Collective investment schemes 1 260 19.1 948 16.2
Debt securities 723 10.9 175 3.0
Owner-occupied properties 638 9.7 671 11.5
Investment properties 223 3.4 286 4.9
Cash and cash equivalents 1 781 26.9 2 113 36.1
Goodwill 154 2.3 209 3.6
Other net assets 556 8.4 316 5.4
7 824 118.4 7 189 123.0
Redeemable preference shares (711) (10.8) (841) (14.4)
Subordinated redeemable debt (501) (7.6) (501) (8.6)
Excess - group per reporting basis 6 612 100.0 5 847 100.0
GROUP EXCESS - TOP 10 EQUITY HOLDINGS 31.12.2009 31.12.2008
Rm % Rm %
MTN Group Ltd 196 7.9 192 7.8
Billiton Plc 139 5.6 125 5.1
Sasol Ltd 128 5.1 100 4.0
FirstRand Ltd 117 4.7 132 5.3
Impala Platinum Holdings Ltd 116 4.7 122 4.9
Anglo American Plc 113 4.5 90 3.6
Standard Bank Group Ltd 104 4.2 115 4.7
SAB Miller Plc 87 3.5
Naspers Ltd 87 3.5
Compagnie Financiere Richemont 62 2.5 70 2.8
Imperial Holdings Ltd 78 3.2
RMB Holdings 60 2.4
1 149 46.2 1 084 43.8
Total equities backing excess 2 489 100.0 2 471 100.0
METROPOLITAN HOLDINGS - GROUP RESULTS
STOCK EXCHANGE PERFORMANCE 2009 2008 2007 2006
12 month period
Value of listed shares traded (rand 4 650 4 718 7 024 5 614
million) (21)
Volume of listed shares traded 386 392 456 442
(million) (21)
Shares traded (% of average listed 70.4 71.1 79.7 75.0
shares in issue) (21)
Value of shares traded - life 94.0 93.0 108.0 81.9
insurance (J857 - Rbn)
Value of shares traded - top 40 index 2 196 2 688 2 328 1 735
(J200 - Rbn)
Trade prices
Highest (cents per share) 1 395 1 520 1 691 1 581
Lowest (cents per share) 941 890 1 314 1 020
Last sale of period (cents per 1 342 1 080 1 509 1 500
share)
Percentage (%) change during period 24.3 (28.4) 6.0 38.3
(22)
Percentage (%) change - life insurance 47.7 (50.2) 3.1 28.2
sector (J857)
Percentage (%) change - top 40 index 28.6 (25.9) 16.1 37.5
(J200)
31 December
Price/diluted core headline earnings 9.52 7.15 10.61 13.28
ratio
Dividend yield % (dividend on listed 7.45 8.80 6.30 5.13
shares)
Dividend yield % - top 40 index (J200) 1.96 4.27 2.39 2.06
METROPOLITAN HOLDINGS - GROUP RESULTS
STOCK EXCHANGE PERFORMANCE 2009 2008 2007 2006
Total shares issued (million)
Listed on JSE 553 542 559 585
Ordinary shares 549 538 553 578
Share incentive scheme 4 4 6 7
Unlisted - share purchase scheme 10 14 23 41
Total ordinary shares in issue 563 556 582 626
Treasury shares held by subsidiary - (16) (26) (27)
Treasury shares held on behalf of (1) (1) (1) (13)
contract holders
Adjustment to staff share scheme (12) (17) (26) (47)
shares (23)
Share incentive scheme (2) (4) (4) (7)
Share purchase scheme (10) (13) (22) (40)
Basic number of shares in issue 550 522 529 539
Adjustment to staff share scheme 12 17 26 47
shares
Treasury shares held on behalf of 1 1 1 13
contract holders
Convertible redeemable preference 100 123 123 123
shares
Diluted number of shares in issue 663 663 679 722
(24)
Market capitalisation at end (Rbn) 8.90 7.16 10.25 10.83
(25)
Percentage (%) of life insurance 6.01 7.05 4.93 5.45
sector
(21) 2008 is net of 16 million shares acquired for R200 million as part of a
share buy-back programme (2007: 44 million shares acquired for R690
million; 2006: 42 million shares acquired for R558 million).
(22) 2007 has been adjusted for the special dividend of 77 cents per share,
while 2006 has been adjusted for a capital reduction of 100 cents.
(23) These are shares which have been issued since 1 January 2001, the date
on which the group adopted AC133 (now IAS39).
(24) The diluted number of shares in issue takes into account all issued
shares, assuming conversion of the convertible redeemable preference
shares and the release of staff share scheme shares, and includes the
treasury shares held on behalf of contract holders.
(25) The market capitalisation is calculated on the fully diluted number of
shares in issue.
Date: 10/03/2010 08:00:03 Supplied by www.sharenet.co.za
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