LOMBARD INSURANCE COMPANY LIMITED - LIC- Availability of the Annual Financial Statements of the Issuer

LIC- Availability of the Annual Financial Statements of the Issuer

Lombard Insurance Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1990/001253/06)
Company code: LIC
(“Lombard” or “the Issuer”)

AVAILABILITY OF THE ANNUAL FINANCIAL STATEMENTS OF THE ISSUER

Bondholders are advised that the annual financial statements (“the financial statements”) of the Issuer for the
year-ended 30 June 2019 are available for inspection at the Issuer’s registered office.

The financial statements of the Issuer have also been made available on their website at
https://www.lombardins.com/.

Bondholders are also advised that the audit report on the financial statements of the Issuer is unqualified, with
no modifications applicable.

Furthermore, the Issuer would like to advise bondholders of the following restatements to the 30 June 2018
annual financial statements (“the previous financials”):

•   Restatement of certain items previously recorded under operating cash flows to cash flows from investing
    operations: Because of the Issuer’s assessment of the manner in which the investments are managed, it
    was concluded that it is more appropriate to classify the cash flows relating to related party loans under
    investing activities. The change in classification has resulted in a R6.8 million restatement of operating cash
    flows to cash flows from investing operations. The acquisition of and proceeds from sales relating to
    strategic investments, equity and specific debt portfolios, remains part of investing activities as these
    portfolios were not considered part of the operations of the business. In addition, Lombard’s management
    amended the starting point of operating activities to profit before tax. Interest paid and interest income
    which was previously included in the note on cash generated from operations has now been presented in
    the statement of cash flows and the comparative numbers have been restated.

•   Restatement of certain items previously recorded as current to being recorded as non-current assets: IFRS
    4 and IFRS 7 require a maturity analysis for insurance and other financial liabilities. This disclosure was not
    provided in the previous financials. In preparing this maturity analysis for these liabilities, it was evident
    that some liabilities previously disclosed as current were in fact non-current. Most of these re-stated non-
    current liabilities related to insurance liabilities. To avoid any mismatch of reinsurance assets, the same
    maturity analysis was performed and extended to all financial assets and has resulted in some financial
    assets being reclassified between current and non-current assets. As a result, the change in classification of
    financial assets and liabilities between current and non-current has resulted in a restatement of the
    previous financials.

•   Restatement of certain assets and liabilities previously nett-off: In prior years, the company netted off cash
    collateral collected from policyholders with the corresponding liability in respect of repaying that collateral.
    In the current year, the company has reassessed its netting off treatment and corrected this treatment as
    well as restating comparative information. As a result, collateral cash has been disclosed under cash
    collateral and the corresponding liability under payables. In addition, the corresponding interest received,
    and interest expense is disclosed separately in the statement of profit or loss and other comprehensive
    income and the statement of cashflow.



31 October 2019

Debt Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 31/10/2019 02:00:00
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