LIBERTY HOLDINGS LIMITED - Operational Update for the Three Months ended 31 March 2013

Operational Update for the Three Months ended 31 March 2013

Liberty Holdings Limited
Registration number 1968/002095/06
Incorporated in the Republic of South Africa
Share code: LBH
ISIN code: ZAE0000127148
("Liberty Holdings" or "the Company")

LIBERTY HOLDINGS LIMITED

OPERATIONAL UPDATE FOR THE THREE MONTHS ENDED 31 MARCH 2013

Group operating performance reflects continued sales momentum

The performance of the group for the three months to 31 March 2013 reflects continued sales momentum
in the Retail SA business, strong cash inflows, and a good overall operational performance from the rest
of the group’s businesses. Returns on the shareholder investment portfolio benefitted from positive
investment markets and good tactical asset allocation.

Key highlights:

•   Long-term insurance indexed new business (excluding premium escalations) increased by 17% to
    R1.5 billion for the period.
•   Net customer cash inflows of R6 billion reflecting an improvement on the R5 billion reported for the
    corresponding 2012 period.
•   Total group assets under management increased to R549 billion from the R528 billion at
    31 December 2012.
•   The shareholder investment portfolio benefited from the portfolio construct and is tracking ahead of
    benchmark.

The capital adequacy level of Liberty Group Limited (LGL), the entity which conducts the bulk of the
company's insurance activities, at 31 March 2013 was unchanged from 31 December 2012 at 2.7 times.
The LGL position is after the contribution by LGL to Liberty Holdings Limited (LBH) to fund the declared
2012 final and special dividends which were paid by LBH in early April 2013. All the other life license
subsidiaries remain well capitalised.

Retail SA sales up 14%

Retail SA indexed new business was up 14% for the period, with recurring new business up 17% to just
under R1 billion and single premium new business up 7% to R3.5 billion. The increase is mainly driven by
good growth in single premium investment business as well as credit life sales. ECM risk business up 7%.

Retail SA net cash inflows of R789 million for the quarter further demonstrates the good growth in single
premium investment business.

LibFin returns ahead of benchmark

LibFin Investments continue to manage the shareholder investment portfolio within approved asset
allocation limits, with returns for the three months ahead of the gross benchmark return.

Libfin Markets has managed the market risk exposures within a narrow range and good progress has
been made during the period to further build the credit portfolio.

Institutional and Asset Management

Corporate new business up 57%
Corporate indexed new business increased by 57% to R166 million, mainly as a result of recurring
premium business growing by 65% (supported by good risk and existing policy enhancement sales) and
single premium investment business by 21%.

Corporate net cash outflows for the quarter remain negative at R168 million but are a considerable
improvement on the negative R488 million reported for the same period in 2012. The business remains
on track with its strategy to eliminate legacy issues and position the business for growth.


STANLIB AUM grow by 7%
(includes asset management operations in all African regions)

Assets under management (excluding the on-balance sheet property portfolio) at 31 March 2013
increased to R469 billion compared to R438 billion at 31 December 2012. This reflects continued strong
inflows for the quarter into retail non money market funds of R4.5 billion. Total cash inflows (excluding
intergroup) for the period are R5.4 billion. Underlying asset values continue to benefit from positive
growth in investment markets.

STANLIB’s investment performance has been sustained at the recent improved levels.

Liberty Properties benefits from increased rental areas

Liberty Properties, which comprises property management and development has benefited from the
increased rentals in the property portfolio and continues to focus on securing further development
mandates.

Business Development

Liberty Africa long-term insurance new business up by 6%

Long-term insurance indexed new business increased by 6% compared to the equivalent 2012 period,
with strong sales from the bancassurance channel. Short term insurance claims loss ratios remain at
good levels and the investment environment in Kenya has remained stable following the election process.

Liberty Health makes steady progress

Growth in the Liberty Medical Scheme membership continues albeit slowly with steady progress being
made in improving the operation and building scale to leverage the investment in systems and processes.

Direct Financial Services focused on affinity relationships

Management continues to focus on capitalising on the opportunities inherent in the affinity relationships
with Vodacom and Standard Bank. This includes the continued effort to build a scalable solution that
leverages the systems infrastructure supporting the direct channel.

Conclusion

The operational improvements delivered in 2012 have continued to benefit the business in the first
quarter of 2013. Management’s focus remains on ensuring that the core South African insurance
operations are managed within acceptable sustainable long-term assumption sets, whilst gaining
profitable market share in all business lines and markets in which the group operates. Liberty’s balance
sheet management capability continues to demonstrate the ability to manage the investment market risk
exposures within risk appetite.

The operational update for the three months ended 31 March 2013 has not been audited or reviewed by
the Company's auditors.
Queries:
Investor Relations
Sharon Steyn 011 408 3063
www.libertyholdings.co.za

17 May 2013
Sponsor
Merrill Lynch South Africa (Pty) Limited

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