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Sanlam Limited - Sanlam welcomes minimum standards on early termination values

Release Date: 13/12/2005 07:00
Code(s): SLM
Wrap Text

Sanlam Limited - Sanlam welcomes minimum standards on early termination values Sanlam Limited Registered Name: Sanlam Limited (REGISTRATION NUMBER 1959/001562/06) JSE share code: SLM NSX share code: SLA ISIN number: ZAE000070660 Sanlam welcomes minimum standards on early termination values Following today"s media announcements from the Minister of Finance and the Life Offices Association (LOA) respectively, Sanlam announced its full support for the agreement reached between National Treasury and the LOA on the minimum standards for early termination values on long-term savings and investment products. Under the terms of the agreement, National Treasury will implement a number of changes in 2006 which will create more certainty for Life Assurers within the regulatory environment. The timetable for payment of the resulting enhanced early termination values has still to be finalised, but where applicable the enhanced values will be applied retrospectively for 5 years. The cost of the enhanced early termination values on Sanlam"s existing business is estimated to amount to R600 million. The after tax cost of approximately R500 million, will be taken as a once-off direct charge through the Income Statement for the year ending 31 December 2005 and will reduce Headline Earnings by 20 cps. Core earnings will not be impacted. This will also reduce Sanlam"s Embedded Value by 21 cps which is less than 1.5% of total Embedded Value. The CAR cover remains in excess of 3 times. The agreement provides a sound and fair base for the future and Sanlam remains committed to enhancing its offering and value proposition to all its clients as we continue to pursue our strategic initiatives. Sanlam earlier this year already announced a new generation of products that satisfy the minimum standards now agreed to. Sponsor: J.P.Morgan Equities Limited Date: 13/12/2005 07:00:08 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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