Wrap Text
MMI Holdings summarised group results for the year ended 30 June 2013
MMI Holdings Limited Group
Incorporated in South Africa
(Registration number 2000/031756/06)
"MMI Holdings" or "the Company"
JSE share code (primary listing): MMI
NSX share code: MIM
ISIN: ZAE000149902
MMI Holdings summarised group results for the year ended 30 June 2013
VALUE OF NEW BUSINESS up 19% to R711 million
ANNUALISED RETURN on EMBEDDED VALUE OF 17%
Profits of OPERATING DIVISIONS up 19%
Diluted CORE HEADLINE EARNINGS up 10% to R3.2 billion
MERGER EXPENSE SAVINGS of R346 million
TOTAL DIVIDEND up 12% to 127 cents per share
Total ASSETS UNDER MANAGEMENT of R559 billion
OVERVIEW OF OPERATIONS AND PROSPECTS
OPERATING ENVIRONMENT
Local operating conditions remained challenging and highly competitive. Equity markets remained high and
interest rate volatility continued. Overall consumer confidence remained fragile, with ongoing labour
challenges, high unemployment levels, high indebtedness and increasing inflation reducing disposable or
investible income. GDP growth in the rest of Africa, however, is proving to be resilient. Overall, the
need for and provision of investment and protection products within MMIs client base remains an
important part of financial wellness and planning.
GROUP RESULTS
Despite the tough operating environment, the MMI group delivered very strong financial results for the
year.
- The embedded value of R35 billion (2 191 cents per share), after allowing for R2.9 billion worth of
dividends paid during the year, generated an impressive annualised return on embedded value for
shareholders of 17%.
- Diluted core headline earnings increased by 10% to R3.2 billion for the year. The contribution from
operating divisions increased 19% to R2.5 billion.
- Total net cash flow from policyholders and clients amounted to R27 billion for the year.
- The full results of Momentum Namibia, Momentum Short-term Insurance and the Eris Property Group were
included for the first time.
MERGER BENEFITS
- The long-term insurance licences of Metropolitan and Momentum have been amalgamated into MMI Group.
The use of a single licence simplifies the group structure and facilitates effective deployment of
capital within the MMI Holdings group.
- The well-respected Metropolitan and Momentum client-facing brands continue to operate unchanged.
- Group and divisional strategies have been entrenched and collaboration initiatives between divisions
implemented.
- The targeted merger expense savings of R500 million remain attainable, with a reduction of R346
million recorded to date.
- Overall, the benefits envisaged as part of the merger rationale are being realised and can be seen in
the results.
CAPITAL STRENGTH
- MMI actively manages its capital resources within a defined risk appetite and balances the interests
of all stakeholders.
- The investment mandate for shareholder capital is restricted to lower-risk investments.
- The group remains actively involved and committed to the Regulators Solvency Assessment and
Management (SAM) project.
- A strong capital buffer of R3.8 billion was reported at 30 June 2013, after allowing for strategic
growth initiatives and the final dividend. The impact of SAM on the capital buffer will be assessed on
an ongoing basis.
- The group is satisfied that its present capital level is appropriate in the current environment. This
position is regularly evaluated.
OVERVIEW OF OPERATIONS
MOMENTUM RETAIL
- New insurance business, on a present value of premiums (PVP) basis, increased by 6% to R17.4 billion
for the year.
- The value of new business increased strongly by 17% to R203 million, confirming the benefits of
focusing on good quality new business.
- Good risk and expense experience were reported during the year.
- Operating profit for the year increased by 11% to R1 179 million.
METROPOLITAN RETAIL
- While total PVP was 5% lower, recurring premium new business ended 4% higher than the levels recorded
in the prior year.
- The profit-sharing arrangement with FNB Life will reduce from 10% to 5% from 1 November 2013.
- The value of new business for the year decreased to R239 million at a PVP margin of 4.7%, reducing in
line with changes to the FNB Life contract.
- Good risk experience and higher asset levels were recorded during the year; however, further
investments in the sales force dampened the new business margins.
- Operating profit for the year increased by 16% to R509 million.
MOMENTUM EMPLOYEE BENEFITS
- New business, on a PVP basis, increased substantially, rising 23% to R11.6 billion for the year.
- Good recurring premium new business was written during the second half of the year while increased
single premium annuity business was a large contributor to the higher value of new business.
- Client retention interventions resulted in better persistency across all product lines while improved
risk profit performance, with a recovery in disability experience, contributed to positive operating
experience variances.
- The value of new business for the year exceeded expectations, increasing 64% to R213 million, at an
impressive PVP margin of 1.8%.
- Operating profit for the year increased by 33% to R330 million.
METROPOLITAN INTERNATIONAL
- New business increased strongly by 23% to R1.6 billion on a PVP basis, with improved contributions
from most operations.
- The value of new business followed the same excellent trend, increasing 65% from R34 million to
R56 million.
- Lives under administration in the health business increased by 2% to 394 123 while claims ratios
improved as a result of successful re-pricing.
- Operating profit for the year increased by 89% to R108 million.
MOMENTUM INVESTMENTS
- Equity performance showed satisfactory improvement during the year. Further work continues on the
institutional balanced mandates.
- The retail offerings gained traction as the market sentiment improved.
- The unconstrained strategies team was established.
- The Eris Property Group was successfully added to the group.
- Operating profit for the year increased by 40% to R175 million.
METROPOLITAN HEALTH
- Good growth was recorded in the Momentum Health open scheme and the Government Employees Medical
Scheme.
- A few corporate schemes were amalgamated into schemes administered outside the MMI group.
- The business continued positioning itself for the anticipated health reforms.
- Operating profit for the year increased by 14% to R151 million.
SHAREHOLDER CAPITAL
- Shareholder capital includes investment income on shareholder capital, operating profit from the
Balance Sheet Management and Momentum Short-term Insurance businesses, central shareholder expenses
and new ventures.
- The current and the prior year results include the reversal of income tax provisions that are no
longer required.
- Investment income has been impacted as a result of the R1 billion special dividend paid in October
2012.
PROSPECTS
- The strategic focus of the MMI group has shifted from integration to growth initiatives.
- Each division has implemented plans and processes to identify and optimise structures, operations,
target markets, distribution channels and product offerings through innovation and collaboration.
- Growth in new business volumes will, however, remain dependent on the economic environment, including
a recovery in employment and stronger disposable income levels.
- The board of MMI Holdings believes that the group has identified and is busy implementing innovative
strategies to unlock value and generate the required return on capital for shareholders over time.
SUMMARY OF FINANCIAL INFORMATION
Audited results for the 12 months ended 30 June 2013
DIRECTORS STATEMENT
The directors take pleasure in presenting the audited results of MMI Holdings financial services group
for the year ended 30 June 2013. The preparation of the groups results was supervised by the group
finance director, Preston Speckmann, BCompt (Hons), CA(SA).
Corporate events and amalgamations
The transactions to acquire 55% of the Eris Property Group and the remaining 50% in Momentum Short-term
Insurance (MSTI) became unconditional during the current year.
After consultation with the Financial Services Board (FSB), the group applied to the High Court of South
Africa for the approval of the amalgamation of the two main long-term insurance licences. As a
preparatory step for this legal amalgamation of the life insurance licences, Momentum Group Ltd changed
its name to MMI Group Ltd. The court approval for the amalgamation was granted on 20 May 2013 and the
assets and liabilities of Metropolitan Life Ltd were sold to MMI Group Ltd on this date. This had no
impact on the group results or net asset value.
MMI Holdings Ltd acquired MMI Group Ltds preference shares from FirstRand Ltd during the current year.
These shares have been eliminated at the group level, but still qualify as capital for MMI Group Ltd.
Basis of presentation of financial information
These results have been prepared in accordance with International Accounting Standard 34 (IAS 34)
Interim financial reporting; the South African Companies Act of 2008; and the Listings Requirements of
the JSE Ltd (JSE). The accounting policies of the group are in terms of International Financial
Reporting Standards (IFRS) and have been applied consistently to all the years presented. The
preparation of financial statements is in accordance with and contains the information required by IFRS
and the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council, which requires the use of certain
critical accounting estimates as well as the exercise of managerial judgement in the application of the
groups accounting policies. Such critical judgements and accounting estimates are disclosed in detail
in the groups integrated report for the year ended 30 June 2013, including changes in estimates that
are an integral part of the insurance business. The group is exposed to financial and insurance risks,
details of which are also provided in the groups integrated report.
Segmental information
The group operates through the following divisions: Momentum Retail, Metropolitan Retail, Momentum
Employee Benefits, Metropolitan International, Momentum Investments, Metropolitan Health and
Shareholder Capital (which includes Momentum Short-term Insurance, the Balance Sheet Management
business unit, other support services and growth initiatives).
Reclassifications
The June 2012 results have been restated for the following reclassifications:
- The liquidity of certain items on the statement of financial position was re-assessed, which resulted
in reinsurance contracts and insurance and other receivables being moved on the statement of financial
position.
- Further classification-related alignments within financial assets have been made in the current year
and as a result certain balances have been restated. These alignments did not result in a change to
the statement of financial position or income statement but only to certain detailed financial asset
related tables.
- The comparative segmental information has been restated, where appropriate, to ensure alignment with
the way in which the chief operating decision-maker, being the MMI executive committee, monitors and
evaluates the performance of the various segments of the business.
These restatements had no impact on the current or prior year reported earnings, diluted earnings or
headline earnings per share, nor on the net asset value or the statement of cash flows.
Standards and interpretations of published standards effective for the year ended 30 June 2013 and
relevant to the group
- IAS 1 (amendment) Presentation of financial statements: presentation of items of other comprehensive
income became effective for the first time in the current year and had no impact on the groups
earnings.
- The following amendment to a standard is effective for years beginning on or after 1 January 2012,
but was early adopted by the group for the June 2011 financial year: IAS 12 (amendment) Income
taxes: deferred tax recovery of underlying assets.
Corporate governance
The board has satisfied itself that appropriate principles of corporate governance were applied
throughout the year under review.
Directorate and secretary changes and directors shareholding
Mr John Newbury retired as a non-executive director on 26 November 2012 and we thank him for his
invaluable input and support of the group over many years. The groups Company Secretary, Francois
Jooste, sadly passed away during the year. The Nominations Committee of the MMI Holdings Board has
appointed Ms M Chetty as the group Company Secretary with effect from 3 September 2013.
All transactions in listed shares of the company involving directors were disclosed on SENS as required.
Contingent liabilities and capital commitments
As part of running a business, the group is party to legal proceedings and appropriate provisions are
made when losses are expected to materialise. The group had no material capital commitments at
30 June 2013 that were not in the ordinary course of business.
Events after year-end
No material events occurred between the reporting date and the date of approval of these results.
Dividend declaration
Ordinary shares
The dividend policy for ordinary listed shares, approved by the directors, is to provide shareholders
with stable dividend growth, reflecting the boards long-term view on the expected underlying basic
core headline earnings growth. Exceptions are made from time to time in order to account for, inter
alia, volatile investment markets, capital requirements and changes in legislation.
On 10 September 2013 a gross final dividend of 76 cents per ordinary share was declared, resulting in
an annual dividend of 127 cents per share. The final dividend is payable out of income reserves to all
holders of ordinary shares recorded in the register of the company at the close of business on Friday,
4 October 2013 and will be paid on Monday, 7 October 2013. The dividend will be subject to local
dividend withholding tax at a rate of 15% unless the shareholder is exempt from paying dividend tax or
is entitled to a reduced rate. The Secondary Tax on Companies (STC) credits utilised per share amount
to 3.92110 cents per ordinary share. This will result in a net dividend, for those shareholders who are
not exempt from paying dividend tax, of 65.18817 cents per ordinary share.
MMIs income tax number is 975 2050 147 and the number of ordinary shares in issue at the declaration
date was 1 569 803 700. The last day to trade cum dividend will be Friday, 27 September 2013. The
shares will trade ex dividend from the start of business on Monday, 30 September 2013. Share
certificates may not be dematerialised or rematerialised between Monday, 30 September and Friday,
4 October 2013, 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 the payment date.
Preference shares
Dividends of R23 million (132 cents per share per annum) were declared on the unlisted A3 MMI preference
shares. The declaration rate was determined as set out in the companys Memorandum of Incorporation and
the total preference dividend utilised STC credits of R1 173 943.
Directors responsibility and integrated report
These results are the responsibility of the directors. The summarised financial information is an
extract from the groups 2013 annual financial statements and does not contain full or complete details.
Any investment decision should be based on consideration of the information contained in the full
financial results. The full integrated report for 2013 will be posted to shareholders by 30 September
2013, and will be viewable online at www.mmiholdings.com. A printed version of the integrated report may
be requested from the group company secretary, Maliga Chetty tel: 012 684 4255.
External audit
The summarised financial information has been extracted from the groups 2013 annual financial
statements, which have been audited by PricewaterhouseCoopers Inc. and their unqualified audit report is
available for inspection at the companys registered office. In addition, the summarised group embedded
value information has been extracted from the 2013 group embedded value report, which has been reviewed
by PricewaterhouseCoopers Inc. in accordance with the embedded value basis of MMI, and the review
report is available for inspection at the companys registered office.
Signed on behalf of the board
JJ Njeke Chairman
Nicolaas Kruger Group chief executive officer
Centurion
11 September 2013
DIRECTORS: MJN Njeke (chairman), JP Burger (deputy chairman), NAS Kruger (group chief executive
officer), FW van Zyl (deputy group chief executive officer), PE Speckmann (group finance director),
N Motsei (executive), L Crouse, RB Gouws, F Jakoet, Prof JD Krige, PJ Moleketi, SA Muller, V Nkonyeni,
SE Nxasana, KC Shubane, FJC Truter, BJ van der Ross, JC van Reenen, M Vilakazi
GROUP COMPANY SECRETARY: M Chetty
TRANSFER SECRETARIES: Link Market Services SA (Pty) Ltd (registration number 2000/007239/07)
Rennie House, 13th Floor, 19 Ameshoff Street, Braamfontein 2001. PO Box 4844, Johannesburg 2000
Telephone: +27 11 713 0800 E-mail: info@linkmarketservices.co.za
SPONSOR: Merrill Lynch (registration number: 2000/031756/06)
REGISTERED OFFICE: 268 West Avenue, Centurion 0157
JSE CODE: MMI NSX CODE: MIM ISIN NO. ZAE0001149902
www.mmiholdings.com
MMI HOLDINGS GROUP IFRS FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30.06.2013 30.06.2012
Rm Rm
ASSETS
Intangible assets 11 769 11 998
Owner-occupied properties 1 488 1 464
Property and equipment 348 321
Investment properties 6 433 5 415
Investment in associates 121 127
Employee benefit assets 327 302
Financial instrument assets (1) 297 847 260 883
Reinsurance contracts 1 519 1 439
Deferred income tax 124 107
Properties under development 98 -
Insurance and other receivables 2 857 2 657
Current income tax assets 108 69
Cash and cash equivalents 19 424 16 957
Non-current assets held for sale 680 865
Total assets 343 143 302 604
EQUITY
Equity attributable to owners of the parent 23 473 23 517
Preference shares - 500
23 473 24 017
Non-controlling interests 391 281
Total equity 23 864 24 298
LIABILITIES
Insurance contract liabilities
Long-term insurance contracts 96 817 88 116
Financial instrument liabilities
Investment contracts 183 506 156 929
with discretionary participation features 24 937 23 696
designated at fair value through income 158 569 133 233
Other financial instrument liabilities (2) 22 152 18 140
Deferred income tax 3 917 3 934
Employee benefit obligations 1 328 1 206
Other payables 11 112 9 517
Provisions 180 153
Current income tax liabilities 267 311
Total liabilities 319 279 278 306
Total equity and liabilities 343 143 302 604
1. Financial instrument assets consist of the following:
Securities designated at fair value through income: R271 227 million (30.06.2012: R236 129 million)
Investments in associates designated at fair value through income: R17 424 million (30.06.2012:
R14 333 million)
Derivative financial instruments: R3 173 million (30.06.2012: R3 579 million)
Held-to-maturity assets: R69 million (30.06.2012: R60 million)
Available-for-sale assets: R953 million (30.06.2012: R2 902 million)
Loans and receivables: R5 001 million (30.06.2012: R3 880 million)
2. Other financial instrument liabilities consist of the following:
Liabilities designated at fair value through income: R18 361 million (30.06.2012: R15 246 million)
Derivative financial instruments: R2 545 million (30.06.2012: R2 040 million)
Liabilities at amortised cost: R1 246 million (30.06.2012: R854 million)
CONDENSED CONSOLIDATED INCOME STATEMENT
12 mths to 12 mths to
30.06.2013 30.06.2012
Rm Rm
Net insurance premiums received 23 304 18 694
Fee income (1) 6 234 5 248
Investment income 13 537 13 100
Net realised and fair value gains 29 152 13 989
Net income 72 227 51 031
Net insurance benefits and claims 20 327 18 976
Change in liabilities 9 677 3 354
Change in insurance contract liabilities 8 525 4 277
Change in investment contracts with DPF liabilities 1 237 (694)
Change in reinsurance provision (85) (229)
Fair value adjustments on investment contract liabilities 22 614 12 092
Fair value adjustments on collective investment scheme liabilities 882 619
Depreciation, amortisation and impairment expenses 1 144 1 008
Employee benefit expenses 4 494 3 874
Sales remuneration 3 015 2 850
Other expenses 4 249 3 711
Expenses 66 402 46 484
Results of operations 5 825 4 547
Share of profit/(loss) of associates 12 (7)
Finance costs (2) (1 684) (899)
Profit before tax 4 153 3 641
Income tax expenses (1 502) (1 304)
Earnings 2 651 2 337
Attributable to:
Owners of the parent 2 587 2 301
Non-controlling interests 32 5
MMI Group Ltd preference shares 32 31
2 651 2 337
Basic earnings per ordinary share (cents) 166 154
Diluted earnings per ordinary share (cents) 164 151
1. Fee income consists of the following:
Investment contracts: R1 901 million (30.06.2012: R1 455 million)
Trust and fiduciary services: R1 875 million (30.06.2012: R1 546 million)
Health administration services: R1 866 million (30.06.2012: R1 799 million)
Other fee income: R592 million (30.06.2012: R448 million)
2. Finance costs consist of the following:
Preference shares issued by MMI Holdings Ltd: R46 million (30.06.2012: R92 million)
Subordinated redeemable debt: R100 million (30.06.2012: R114 million)
Cost of carry and derivative financial instruments: R1 273 million (30.06.2012: R624 million)
Other: R265 million (30.06.2012: R69 million)
Basic earnings Diluted earnings
12 mths to 12 mths to 12 mths to 12 mths to
RECONCILIATION OF HEADLINE EARNINGS 30.06.2013 30.06.2012 30.06.2013 30.06.2012
attributable to owners of the parent Rm Rm Rm Rm
Earnings 2 587 2 301 2 587 2 301
Finance costs convertible preference shares 46 92
Dilutory effect of subsidiaries (1) (19) -
Diluted earnings 2 614 2 393
Realised gains on available-for-sale financial assets (2) - (2) -
Intangible asset and other impairments 3 67 3 67
Profit on change from associate to subsidiary (67) (207) (67) (207)
Loss/(profit) on sale of business 3 (3) 3 (3)
Headline earnings (2) 2 524 2 158 2 551 2 250
Net realised and fair value gains on excess (340) (250) (340) (250)
Basis and other changes and investment variances 367 292 367 292
Amortisation of intangible assets relating to business
combinations 587 516 587 516
Secondary Tax on Companies (STC) - 144 - 144
BEE cost (3) - 3 - 3
Corporate restructuring expenses (4) 58 - 58 -
Dilutory effect of subsidiaries (1) - (14)
Investment income on treasury shares contract
holders 18 14
Core headline earnings (5) 3 196 2 863 3 241 2 955
1. Metropolitan Health is consolidated at 100% and the Metropolitan Namibian group and Metropolitan
Kenya are consolidated at 96% in the results. For purposes of diluted earnings, diluted non-
controlling interests and investment returns are reinstated. The dilutory impact of these
subsidiaries has been included in diluted earnings in the current year.
2. Headline earnings consist of operating profit, investment income, net realised and fair value gains,
investment variances and basis and other changes.
3. This represents the cost of the BEE transaction in Namibia in the prior year in terms of IFRS 2
Share based payments.
4. Corporate restructuring expenses include once-off costs relating to the restructuring of the group.
5. Core headline earnings disclosed comprise operating profit and investment income on shareholder
assets. It excludes net realised and fair value gains on investment assets, investment variances and
basis and other changes which can be volatile, STC (prior years), certain non-recurring items, as
well as the amortisation of intangible assets relating to business combinations as this is part of
the cost of acquiring the business.
EARNINGS PER SHARE (cents) 12 mths to 12 mths to
attributable to owners of the parent 30.06.2013 30.06.2012
Basic
Core headline earnings 205 192
Headline earnings 162 145
Earnings 166 154
Weighted average number of shares (million) 1 558 1 491
Diluted
Core headline earnings 202 184
Weighted average number of shares (million) (1) 1 604 1 605
Headline earnings 160 142
Earnings 164 151
Weighted average number of shares (million) (2) 1 592 1 590
1. For diluted core headline earnings per share, treasury shares held on behalf of contract holders are
deemed to be issued.
2. For diluted earnings and headline earnings per share, treasury shares held on behalf of contract
holders are deemed to be cancelled.
DIVIDENDS 2013 2012
Ordinary listed MMI Holdings Ltd shares (cents per share)
Interim March 51 44
Final September 76 69
Total 127 113
A special dividend of 65 cents per share was declared in September 2012.
MMI Holdings convertible redeemable preference shares (issued to Kagiso Tiso Holdings (KTH))
The A1 and A2 MMI preference shares were converted into MMI ordinary shares on a one-for-one basis
during June 2012.
The A3 MMI preference shares are redeemable in June 2017 at a redemption value of R9.18 per share
unless converted into MMI ordinary shares on a one-for-one basis prior to that date. Dividends are
payable at 132 cents per annum (payable March and September).
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
12 mths to 12 mths to
30.06.2013 30.06.2012
Rm Rm
Earnings 2 651 2 337
Other comprehensive income for the year, net of tax 88 121
Items that may subsequently be reclassified to income 86 68
Exchange differences on translating foreign operations 86 71
Available-for-sale financial assets - (3)
Items that will not be reclassified to income 2 53
Land and buildings revaluation 9 63
Change in non-distributable reserves (10) 1
Income tax relating to items that will not be reclassified 3 (11)
Total comprehensive income for the year 2 739 2 458
Total comprehensive income attributable to:
Owners of the parent 2 654 2 414
Non-controlling interests 53 13
MMI Group Ltd preference shares 32 31
2 739 2 458
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
12 mths to 12 mths to
30.06.2013 30.06.2012
Rm Rm
Changes in share capital
Balance at beginning 13 814 13 421
Staff share scheme shares released - 3
Treasury shares held on behalf of contract holders (4) 2
Conversion of preference shares (1) - 388
Share buy-back (7) -
Balance at end 13 803 13 814
Changes in other reserves
Balance at beginning 1 572 1 466
Total comprehensive income 67 113
BEE cost - 3
Transfer to retained earnings (8) (10)
Balance at end (2) 1 631 1 572
Changes in retained earnings
Balance at beginning 8 131 7 454
Total comprehensive income 2 587 2 301
Dividend paid (2 886) (1 603)
Transactions with non-controlling interests 87 (31)
Transfer from other reserves 8 10
Profit on preference share buy-back 112 -
Balance at end 8 039 8 131
Equity attributable to owners of the parent 23 473 23 517
MMI Group Ltd preference shares
Balance at beginning 500 500
Total comprehensive income 32 31
Dividend paid (32) (31)
Share buy-back (500) -
Balance at end - 500
Changes in non-controlling interests
Balance at beginning 281 298
Total comprehensive income 53 13
Dividends paid (97) (3)
Transactions with owners 39 (27)
Business combinations 115 -
Balance at end 391 281
Total equity 23 864 24 298
1. The conversion of the preference shares in the year ended 30 June 2012 represents the conversion of
the A1 and A2 MMI preference shares into ordinary shares on a one-for-one basis.
2. Other reserves consist of the following:
Land and buildings revaluation reserve: R534 million (30.06.2012: R533 million)
Foreign currency translation reserve: R139 million (30.06.2012: R74 million)
Fair value adjustment for preference shares issued by MMI: R940 million (30.06.2012: R940 million)
Fair value reserve: R11 million (30.06.2012: R11 million)
Non-distributable reserve: R4 million (30.06.2012: R11 million)
Equity-settled share-based payments reserve: R3 million (30.06.2012: R3 million)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
12 mths to 12 mths to
30.06.2013 30.06.2012
Rm Rm
Net cash inflow/(outflow) from operating activities 6 321 (1 142)
Net cash outflow from investing activities (753) (697)
Net cash outflow from financing activities (3 101) (1 875)
Net cash flow 2 467 (3 714)
Cash resources and funds on deposit at beginning 16 957 20 671
Cash resources and funds on deposit at end 19 424 16 957
PRINCIPAL ASSUMPTIONS (South Africa) (1) 30.06.2013 30.06.2012
% %
Pre-tax investment return
Equities 11.4 11.3
Properties 8.9 8.8
Government stock 7.9 7.8
Other fixed interest stocks 8.4 8.3
Cash 6.9 6.8
Risk-free return 7.9 7.8
Risk discount rate (RDR) 10.2 10.1
Investment return (before tax) balanced portfolio 10.1 10.0
Expense inflation base rate (2) 6.1 5.8
1. 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.
2. An additional 1% expense inflation is allowed for in some divisions to reflect the impact of closed
books that are in run-off.
NON-CONTROLLING INTERESTS 30.06.2013 30.06.2012
% %
Eris Property Group (acquired in the current year) 45.7 -
Metropolitan Botswana 24.2 24.2
Metropolitan Ghana 5.0 7.8
Metropolitan Health Group 17.6 17.6
Metropolitan Health Namibia Administrators 49.0 49.0
Metropolitan Kenya 33.7 33.7
Metropolitan Namibia 10.3 13.8
Metropolitan Nigeria 50.0 50.0
Metropolitan Swaziland 33.0 33.0
Momentum Health Botswana 28.0 28.0
Momentum Health Ghana 4.8 20.0
Momentum Health Mauritius 5.0 5.0
Momentum Mozambique 33.0 25.0
Momentum Swaziland 33.0 -
Momentum Tanzania 33.0 33.0
Momentum Zambia 35.0 35.0
Restated
30.06.2013 30.06.2012
FINANCIAL INSTRUMENT ASSETS Rm Rm
Equity securities 81 615 64 754
Debt securities 82 982 82 020
Funds on deposit and other money market instruments 15 026 12 477
Unit-linked investments 92 626 79 840
Derivative financial instruments 3 173 3 579
Loans and receivables 5 001 3 880
Investments in associates designated at fair value 17 424 14 333
Total financial instrument assets 297 847 260 883
Restated
30.06.2013 30.06.2012
ANALYSIS OF ASSETS UNDER MANAGEMENT Rm Rm
On-balance sheet assets
Managed and/or administered by Momentum Investments 206 789 173 627
Investment assets 134 681 113 325
Collective investment schemes 64 187 53 423
Properties 7 921 6 879
Momentum Wealth linked product assets under administration 63 045 50 412
Managed internally or by other managers within MMI 17 117 20 195
Managed by external managers 33 941 34 990
Other assets 22 251 23 380
343 143 302 604
Off-balance sheet assets
Managed and/or administered by Momentum Investments 156 838 125 458
Collective investment schemes 85 526 65 585
Segregated assets and linked products 54 005 59 873
Properties 17 307 -
Managed internally or by other managers within MMI 4 543 4 161
Momentum Employee Benefits segregated assets 307 298
Metropolitan Health 10 582 11 624
Momentum Wealth linked product assets under administration 43 437 35 640
Total assets under management 558 850 479 785
Total assets managed and/or administered by Momentum Investments 363 627 299 085
Other assets under management 195 223 180 700
Total assets under management 558 850 479 785
Restated
30.06.2013 30.06.2012
ANALYSIS OF ASSETS BACKING SHAREHOLDER EXCESS Rm % Rm %
Equity securities 973 4.1 1 121 4.7
Preference shares 538 2.3 1 492 6.2
Collective investment schemes 699 3.0 966 4.0
Debt securities 3 797 16.2 4 900 20.4
Properties 2 324 9.9 1 906 7.9
Owner-occupied properties 1 175 5.0 1 172 4.8
Investment properties 1 149 4.9 734 3.1
Cash and cash equivalents and funds on deposit 9 405 40.1 7 608 31.7
Intangible assets 7 109 30.3 7 425 30.9
Other net assets 503 2.1 487 2.0
25 348 108.0 25 905 107.8
Redeemable preference shares (313) (1.3) (316) (1.3)
Subordinated redeemable debt (1 562) (6.7) (1 572) (6.5)
Shareholder excess per reporting basis 23 473 100.0 24 017 100.0
BUSINESS COMBINATIONS JUNE 2013
Momentum Short-term Insurance
As at 30 June 2012 MMI Group Ltd (MGL) and OUTsurance Holdings Ltd (OUTsurance) each owned 50% of the
ordinary share capital of Momentum Short-term Insurance Company Ltd (MSTI). As OUTsurance controlled
MSTI, MGL accounted for the investment as an associate.
On 13 July 2012, MGL acquired the remaining 50% shareholding for R125 million in cash, which was based
on the embedded value of MSTI. No goodwill was recognised on the transaction.
Eris Property Group
On 29 October 2012, MMI Holdings Ltd acquired 55% in Eris Property Group (Eris) for R329 million in
cash. The group's property portfolio is currently managed by Eris and Momentum Properties. The
transaction resulted in R191 million goodwill being recognised attributable to certain anticipated
operating synergies. The goodwill is not deductible for tax purposes.
Eris management and Kagiso Tiso Holdings (Pty) Ltd (KTH), who were existing shareholders in Eris, also
acquired further shares from MMI Holdings Ltd, resulting in an effective controlling interest for MMI
Holdings Ltd of 54%.
The purchase price consideration, the net assets acquired and any relevant goodwill relating to the
above two transactions are as follows:
Total MSTI Eris
Rm Rm Rm
Purchase consideration 454 125 329
Fair value of net assets
Intangible assets 276 158 118
Tangible assets 332 - 332
Financial instrument assets 353 201 152
Cash and cash equivalents 43 7 36
Other assets 17 3 14
Financial instrument liabilities (85) - (85)
Other liabilities (418) (104) (314)
Net identifiable assets acquired 518 265 253
Fair value step-up of associate - MSTI (recognised in net realised and fair
value gains) (67) (67) -
Derecognise investment in associate - MSTI (carrying value at acquisition
date) (73) (73) -
Non-controlling interests (115) - (115)
Goodwill recognised 191 - 191
454 125 329
The above two transactions contributed net income of R603 million and earnings of R33 million to the
group results for the current year. Assuming the acquisitions occurred at the beginning of the year, it
would have contributed additional net income of R148 million and earnings of R14 million.
Common control transactions
After consultation with the Financial Services Board (FSB), the group applied to the High Court of South
Africa for the approval of the amalgamation of the two main long-term insurance licences. As a
preparatory step for this legal amalgamation of the life insurance licences, Momentum Group Ltd changed
its name to MMI Group Ltd. The court approval for the amalgamation was granted on 20 May 2013 and the
assets and liabilities of Metropolitan Life Ltd were sold to MMI Group Ltd on this date. The transaction
was recorded in accordance with the group's accounting policy for common control transactions. It had
no impact on the group results or net asset value.
MMI HOLDINGS GROUP - SEGMENTAL INFORMATION
Momentum Metropolitan
Momentum Metropolitan Employee Inter- Momentum
12 mths to 30.06.2013 Retail Retail Benefits national Investments
Rm Rm Rm Rm Rm
Revenue
Net insurance premiums 18 575 6 246 12 072 2 535 16 819
Recurring premiums 7 611 5 013 6 989 2 244 -
Single premiums 10 964 1 233 5 083 291 16 819
Fee income 2 369 134 862 145 1 467
Fee income 2 369 134 862 145 1 467
Inter-segmental fee income - - - - -
Expenses
Net payments to contract holders 18 609 4 509 9 240 1 340 15 241
External payments 18 609 4 509 9 240 1 340 15 241
Inter-segmental payments - - - - -
Other expenses 3 215 2 029 983 1 052 1 215
Sales remuneration 1 645 871 77 335 -
Administration expenses (2) 1 570 1 158 906 715 948
Amortisation due to business
combinations and impairments - - - 2 1
Direct property expenses - - - - -
Asset management and other
fee expenses - - - - 266
Holding company expenses - - - - -
Inter-segmental expenses - - - - -
Diluted core headline earnings 1 179 509 330 108 175
Operating profit 1 638 707 448 145 198
Tax on operating profit (459) (198) (118) (37) (54)
Investment income - - - - 43
Tax on investment income - - - - (12)
Actuarial liabilities 153 463 29 070 54 614 7 656 32 703
1. The 'other reconciling items' column includes: an adjustment to reverse investment contract premiums
(R33 609 million) and claims (R29 034 million); FNB Life adjustments reconciling the 10% of FNB Life
included in each of the relevant lines to the accounting treatment of the reinsurance arrangement
(premiums R174 million, fee income R11 million, claims R3 million, sales remuneration R65 million and
expenses R130 million); grossing up of fee income and expenses relating to properties under
development (R121 million); corporate restructuring expenses of R67 million; direct property and
asset management fees for all segments, except non-life segments, that are set off against
investment income for management reporting purposes but shown as an expense for accounting purposes;
the amortisation of intangibles relating to business combinations; and other minor adjustments to
expenses (R88 million), sales remuneration (R7 million) and fee income (R90 million).
2. Administration expenses for the current year include the following relating to new acquisitions:
Metropolitan International - R66 million relating to Momentum Namibia; Momentum Investments
R201 million relating to Eris Property Group and; Shareholder Capital R28 million relating to
Momentum Short-term Insurance.
Other
Metropolitan Shareholder Segmental reconciling IFRS
12 mths to 30.06.2013 Health Capital total items (1) total
Continued Rm Rm Rm Rm Rm
Revenue
Net insurance premiums 193 299 56 739 (33 435) 23 304
Recurring premiums 193 287 22 337 (4 889) 17 448
Single premiums - 12 34 402 (28 546) 5 856
Fee income 1 772 190 6 939 (705) 6 234
Fee income 1 772 190 6 939 222 7 161
Inter-segmental fee income - - - (927) (927)
Expenses
Net payments to contract holders 182 269 49 390 (29 063) 20 327
External payments 182 269 49 390 (29 031) 20 359
Inter-segmental payments - - - (32) (32)
Other expenses 1 619 700 10 813 2 089 12 902
Sales remuneration 5 34 2 967 48 3 015
Administration expenses (2) 1 578 310 7 185 406 7 591
Amortisation due to business
combinations and impairments 15 39 57 795 852
Direct property expenses - - - 220 220
Asset management and other
fee expenses 21 81 368 1 570 1 938
Holding company expenses - 236 236 - 236
Inter-segmental expenses - - - (950) (950)
Diluted core headline earnings 151 789 3 241 - 3 241
Operating profit 171 205 3 512 - 3 512
Tax on operating profit (30) (58) (954) - (954)
Investment income 14 847 904 - 904
Tax on investment income (4) (205) (221) - (221)
Actuarial liabilities 11 3 250 280 767 (444) 280 323
1. The 'other reconciling items' column includes: an adjustment to reverse investment contract premiums
(R33 609 million) and claims (R29 034 million); FNB Life adjustments reconciling the 10% of FNB Life
included in each of the relevant lines to the accounting treatment of the reinsurance arrangement
(premiums R174 million, fee income R11 million, claims R3 million, sales remuneration R65 million and
expenses R130 million); grossing up of fee income and expenses relating to properties under
development (R121 million); corporate restructuring expenses of R67 million; direct property and
asset management fees for all segments, except non-life segments, that are set off against
investment income for management reporting purposes but shown as an expense for accounting purposes;
the amortisation of intangibles relating to business combinations; and other minor adjustments to
expenses (R88 million), sales remuneration (R7 million) and fee income (R90 million).
2. Administration expenses for the current year include the following relating to new acquisitions:
Metropolitan International - R66 million relating to Momentum Namibia; Momentum Investments
R201 million relating to Eris Property Group and; Shareholder Capital R28 million relating to
Momentum Short-term Insurance.
Momentum Metropolitan
Restated Momentum Metropolitan Employee Inter- Momentum
12 mths to 30.06.2012 Retail Retail Benefits national Investments
Rm Rm Rm Rm Rm
Revenue
Net insurance premiums 17 148 6 042 9 712 1 960 10 661
Recurring premiums 7 376 4 760 5 990 1 639 -
Single premiums 9 772 1 282 3 722 321 10 661
Inter-segmental premiums - - - - -
Fee income 1 751 130 932 129 1 099
Fee income 1 751 130 932 129 1 099
Inter-segmental fee income - - - - -
Expenses
Net payments to contract holders 16 095 5 049 9 033 1 099 12 772
External payments (2) 16 095 5 049 9 033 1 099 12 772
Inter-segmental payments - - - - -
Other expenses 3 217 1 863 991 841 959
Sales remuneration 1 582 778 166 247 4
Administration expenses 1 616 1 085 819 574 730
Amortisation due to business
combinations and impairments 19 - 6 20 12
Direct property expenses - - - - -
Asset management and other fee
expenses - - - - 213
Holding company expenses - - - - -
Inter-segmental expenses - - - - -
Diluted core headline earnings 1 064 438 249 57 125
Operating profit 1 472 609 351 77 146
Tax on operating profit (408) (171) (102) (20) (40)
Investment income - - - - 27
Tax on investment income - - - - (8)
Actuarial liabilities 131 252 31 064 43 898 6 326 30 055
1. The 'other reconciling items' column includes: an adjustment to reverse investment contract premiums
(R26 580 million) and claims (R25 868 million); FNB Life adjustments reconciling the 10% of FNB Life
included in each of the relevant lines to the accounting treatment of the reinsurance arrangement
(premiums R186 million; fee income R1 million, claims R3 million, sales remuneration R90 million and
expenses R103 million); direct property and asset management fees for all segments, except non-life
segments, that are set off against investment income for management reporting purposes but shown as
an expense for accounting purposes; the amortisation of intangibles relating to business
combinations; Namibian BEE cost (R3 million) and other minor adjustments to expenses (R41 million),
sales remuneration (R17 million) and fee income (R8 million).
2. The R799 million payments to contract holders in shareholder capital relates to the maturity of
certain corporate policies administered by Balance Sheet Management.
Other
Restated Metropolitan Shareholder Segmental reconciling IFRS
12 mths to 30.06.2012 Health Capital total items (1) total
Continued Rm Rm Rm Rm Rm
Revenue
Net insurance premiums 29 - 45 552 (26 858) 18 694
Recurring premiums 29 - 19 794 (4 547) 15 247
Single premiums - - 25 758 (21 847) 3 911
Inter-segmental premiums - - - (464) (464)
Fee income 1 701 82 5 824 (576) 5 248
Fee income 1 701 82 5 824 (7) 5 817
Inter-segmental fee income - - - (569) (569)
Expenses
Net payments to contract holders 24 799 44 871 (25 895) 18 976
External payments (2) 24 799 44 871 (25 865) 19 006
Inter-segmental payments - - - (30) (30)
Other expenses 1 560 477 9 908 1 535 11 443
Sales remuneration - - 2 777 73 2 850
Administration expenses 1 507 236 6 567 65 6 632
Amortisation due to business
combinations and impairments 53 40 150 614 764
Direct property expenses - - - 302 302
Asset management and other fee
expenses - - 213 1 050 1 263
Holding company expenses - 201 201 - 201
Inter-segmental expenses - - - (569) (569)
Diluted core headline earnings 133 889 2 955 - 2 955
Operating profit 170 306 3 131 - 3 131
Tax on operating profit (51) (34) (826) - (826)
Investment income 17 767 811 - 811
Tax on investment income (3) (150) (161) - (161)
Actuarial liabilities 1 2 902 245 498 (453) 245 045
1. The 'other reconciling items' column includes: an adjustment to reverse investment contract premiums
(R26 580 million) and claims (R25 868 million); FNB Life adjustments reconciling the 10% of FNB Life
included in each of the relevant lines to the accounting treatment of the reinsurance arrangement
(premiums R186 million; fee income R1 million, claims R3 million, sales remuneration R90 million and
expenses R103 million); direct property and asset management fees for all segments, except non-life
segments, that are set off against investment income for management reporting purposes but shown as
an expense for accounting purposes; the amortisation of intangibles relating to business
combinations; Namibian BEE cost (R3 million) and other minor adjustments to expenses (R41 million),
sales remuneration (R17 million) and fee income (R8 million).
2. The R799 million payments to contract holders in shareholder capital relates to the maturity of
certain corporate policies administered by Balance Sheet Management.
The comparative segmental information has been restated where appropriate to ensure alignment with the
way in which the chief operating decision-maker, being the MMI executive committee, monitors and
evaluates the performance of the various segments of the business. Refer to table below for detail.
These restatements had no impact on core headline earnings.
Momentum Metropolitan
Momentum Metropolitan Employee Inter- Momentum
Analysis of reclassifications Retail Retail Benefits national Investments
Rm Rm Rm Rm Rm
June 2012
Fee income
Published June 2012 1 797 130 938 129 1 099
Reclassifications (46) - (6) - -
Restated June 2012 1 751 130 932 129 1099
Actuarial liabilities
Published June 2012 131 723 31 064 43 898 6 326 30 055
Reclassifications (471) - - - -
Restated June 2012 131 252 31 064 43 898 6 326 30 055
Other
Metropolitan Shareholder Segmental reconciling IFRS
Analysis of reclassifications Health Capital total items total
Continued Rm Rm Rm Rm Rm
June 2012
Fee income
Published June 2012 1 701 30 5 824 (576) 5 248
Reclassifications - 52 - - -
Restated June 2012 1 701 82 5 824 (576) 5 248
Actuarial liabilities
Published June 2012 1 2 431 245 498 (453) 245 045
Reclassifications - 471 - - -
Restated June 2012 1 2 902 245 498 (453) 245 045
12 mths to 12 mths to
30.06.2013 30.06.2012
CHANGE IN DILUTED CORE HEADLINE EARNINGS Rm Rm Change
Momentum Retail 1 179 1 064 11%
Metropolitan Retail 509 438 16%
Momentum Employee Benefits 330 249 33%
Metropolitan International 108 57 89%
Momentum Investments 175 125 40%
Metropolitan Health 151 133 14%
Operating divisions 2 452 2 066 19%
Shareholder Capital 789 889 (11%)
Total diluted core headline earnings 3 241 2 955 10%
12 mths to 12 mths to
30.06.2013 30.06.2012
RECONCILIATION OF MOMENTUM INVESTMENTS Rm Rm
Revenue
Fee income 1 467 1 099
Expenses and finance costs 1 234 970
Other expenses 1 215 959
Finance costs 19 11
Share of profit of associates 5 -
Less non-controlling interests 42 -
196 129
Core adjustments 2 17
Impairments and amortisation of intangibles relating to business combinations 1 12
Other 1 5
Operating profit before tax 198 146
12 mths to 12 mths to
30.06.2013 30.06.2012
RECONCILIATION OF METROPOLITAN HEALTH Rm Rm
Revenue 1 965 1 730
Net insurance premiums 193 29
Fee income 1 772 1 701
Expenses and finance costs 1 801 1 587
Net payments to contract holders 182 24
Other expenses 1 619 1 560
Finance costs - 3
164 143
Core adjustments 7 27
Impairments and amortisation of intangibles relating to business
combinations 15 53
Adjustments for dilution (10) (17)
Other 2 (9)
Operating profit before tax 171 170
12 mths to 12 mths to
30.06.2013 30.06.2012
RECONCILIATION OF SHAREHOLDER CAPITAL Rm Rm
Revenue
Net insurance premiums (excluding investment business) 287 -
Balance Sheet Management income including fee income 711 645
Guaranteed portfolios earnings 174 177
Returns in excess of benchmark 138 152
Returns on working capital and other 399 316
Other income 26 98
Total income 1 024 743
Expenses
Net payments to contract holders (excluding investment business) 158 -
Other expenses 661 437
Balance Sheet Management 173 128
Strategic initiatives and other (1) 252 108
Holding company 236 201
Total expenses 819 437
Operating profit before tax 205 306
1. Includes Momentum Short-term Insurance (R143 million), Solvency Assessment and Management (SAM)
costs, redeployment centre costs and India strategic costs.
12 mths to 12 mths to
30.06.2013 30.06.2012
PAYMENTS TO CONTRACT HOLDERS Rm Rm
Momentum Retail 18 609 16 095
Death and disability claims 3 018 2 940
Maturity claims 5 726 4 844
Annuities 3 849 3 420
Withdrawal benefits 140 48
Surrenders 6 655 5 684
Re-insurance recoveries (779) (841)
Metropolitan Retail 4 509 5 049
Death and disability claims 991 1 030
Maturity claims 1 688 1 512
Annuities 540 761
Withdrawal benefits 61 37
Surrenders 1 324 1 796
Re-insurance recoveries (95) (87)
Momentum Employee Benefits 9 240 9 033
Death and disability claims 3 241 2 791
Maturity claims 491 471
Annuities 1 176 938
Withdrawals and surrenders 2 550 2 344
Terminations 834 676
Disinvestments 1 620 2 382
Re-insurance recoveries (672) (569)
Metropolitan International 1 340 1 099
Death and disability claims 556 455
Maturity claims 234 209
Annuities 84 51
Withdrawal benefits 70 95
Surrenders 362 266
Terminations 64 39
Disinvestments - 5
Re-insurance recoveries (30) (21)
Momentum Investments
Withdrawals 15 241 12 772
Metropolitan Health
Claims 182 24
Shareholder Capital
Claims 269 799
Total payments to contract holders 49 390 44 871
Adjustment for payments to investment contract holders (29 181) (25 991)
Transfers between insurance, investment and investment with DPF contracts 147 123
FNB Life adjustment 3 3
Inter-segmental (32) (30)
Net insurance benefits and claims per income statement 20 327 18 976
NET FUNDS RECEIVED FROM CLIENTS
Restated
12 mths to 12 mths to
Gross Gross 30.06.2013 30.06.2012
single recurring Gross Gross Net inflow/ Net inflow/
inflow inflows inflow outflow (outflow) (outflow)
Rm Rm Rm Rm Rm Rm
On-balance sheet fund flows
Momentum Retail 10 964 7 611 18 575 (18 609) (34) 1 053
Metropolitan Retail 1 233 5 013 6 246 (4 509) 1 737 993
Momentum Employee Benefits 5 083 6 989 12 072 (9 240) 2 832 679
Metropolitan International 291 2 244 2 535 (1 340) 1 195 861
Momentum Investments 16 819 - 16 819 (15 241) 1 578 (2 111)
Metropolitan Health - 193 193 (182) 11 -
Shareholder Capital 12 287 299 (269) 30 (799)
Long-term insurance business fund flows 34 402 22 337 56 739 (49 390) 7 349 676
Off-balance sheet fund flows
Momentum Retail 14 635 - 14 635 (11 213) 3 422 2 542
Momentum Employee Benefits 14 - 14 - 14 332
Metropolitan International 987 - 987 (812) 175 (5)
Momentum Investments 80 165 4 358 84 523 (92 454) (7 931) 1 019
Momentum Investments
Eris Property acquisition 18 678 - 18 678 - 18 678 -
Metropolitan Health - 41 277 41 277 (35 700) 5 577 6 171
Total net funds received from clients 148 881 67 972 216 853 (189 569) 27 284 10 735
Restated
NUMBER OF EMPLOYEES 30.06.2013 30.06.2012
Indoor staff 9 597 9 311
Momentum Retail 1 660 1 764
Metropolitan Retail 1 452 1 431
Momentum Employee Benefits 1 052 980
Metropolitan International 852 797
Momentum Investments 693 519
Metropolitan Health 2 947 2 961
Shareholder Capital
Balance Sheet Management 66 54
Group services 719 751
Short-term insurance 156 -
Redeployment centre - 54
Field staff 6 798 6 549
Momentum Retail 993 1 057
Metropolitan Retail 4 369 4 179
Metropolitan International 1 436 1 313
Total 16 395 15 860
- The increase in the number of employees of Momentum Investments is mainly due to the acquisition of
Eris with 280 employees.
MMI HOLDINGS GROUP STATEMENT OF ASSETS AND LIABILITIES
Restated
STATEMENT OF ASSETS AND LIABILITIES ON REPORTING BASIS 30.06.2013 30.06.2012
Rm Rm
Total assets 343 143 302 604
Actuarial value of policy liabilities (280 323) (245 045)
Other liabilities (38 956) (33 261)
Non-controlling interests (391) (281)
Group excess per reporting basis 23 473 24 017
Net assets other businesses (1 547) (1 334)
Fair value adjustments on Metropolitan business acquisition and other
consolidation adjustments (5 001) (5 901)
Excess long-term insurance business, net of non-controlling interests (1) 16 925 16 782
RECONCILIATION OF CHANGE IN LONG-TERM INSURANCE EXCESS TO THE INCOME STATEMENT
Change in excess of long-term insurance business (1) 143 871
Increase in share capital (29) (345)
Change in other reserves (62) (60)
Dividend paid ordinary shares 3 140 2 502
Change in non-controlling interests - (53)
Acquisition of Momentum Namibia - (117)
Other (22) -
Total surplus arising, net of non-controlling interests 3 170 2 798
Operating profit 2 636 2 309
Investment income on excess 683 520
Net realised and fair value gains on excess 221 242
Investment variances 117 (54)
Basis and other changes (487) (219)
Net consolidation adjustments (43) (12)
Earnings after non-controlling interests of long-term insurance business 3 127 2 786
Earnings after non-controlling interests of other group businesses and
consolidation adjustments (94) (39)
Amortisation of intangibles relating to the merger (446) (446)
Earnings attributable to owners of the parent as per income statement 2 587 2 301
1. 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, including life insurance
companies in Africa. It is after non-controlling interests but excludes certain items which are
eliminated on consolidation. It also excludes non-insurance business.
RECONCILIATION OF REPORTING EXCESS TO STATUTORY EXCESS 30.06.2013 30.06.2012
Rm Rm
Reporting excess long-term insurance business (1) 16 925 16 782
Disregarded assets (2) (977) (998)
Difference between statutory and published valuation methods (551) (436)
Write-down of subsidiaries and associates for statutory purposes (936) (1 209)
Unsecured subordinated debt 1 553 1 563
Consolidation adjustments (119) (56)
Statutory excess long-term insurance business 15 895 15 646
Capital adequacy requirement (CAR) (Rm) (3) 6 167 6 641
Ratio of long-term insurance business excess to CAR (times) 2.6 2.4
Discretionary margins 11 378 9 974
1. 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, including life insurance companies
in Africa. It is after non-controlling interests but excludes certain items which are eliminated on
consolidation. It also excludes non-insurance business.
2. 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. It includes Sage intangible assets of R562 million (30.06.2012: R590 million).
3. Aggregation of separate company CARs, with no assumption of diversification benefits.
MMI HOLDINGS GROUP EMBEDDED VALUE INFORMATION
EMBEDDED VALUE RESULTS AS AT 30.06.2013 30.06.2012
Rm Rm
Covered business
Reporting excess long-term insurance business 16 925 16 782
Reclassification to non-covered business (1 482) (1 388)
15 443 15 394
Disregarded assets (1) (693) (688)
Difference between statutory and published valuation methods (551) (436)
Dilutory effect of subsidiaries (2) (26) (30)
Consolidation adjustments (3) (36) (30)
Momentum Namibia adjustment (4) - (247)
Value of MMI Group Ltd preference shares issued (500) (480)
Diluted adjusted net worth covered business 13 637 13 483
Net value of in-force business 17 870 14 910
Diluted embedded value covered business 31 507 28 393
Non-covered business
Net assets non-covered business within life insurance companies 1 482 1 388
Net assets non-covered business outside life insurance companies 1 547 1 334
Consolidation adjustments (3) (1 011) (200)
Adjustments for dilution (5) 698 610
Diluted adjusted net worth non-covered business 2 716 3 132
Write-up to directors value 925 947
Non-covered business 2 543 2 110
Holding company expenses (6) (1 208) (953)
International holding company expenses (6) (410) (210)
Diluted embedded value non-covered business 3 641 4 079
Diluted adjusted net worth 16 353 16 615
Net value of in-force business 17 870 14 910
Write-up to directors value 925 947
Diluted embedded value 35 148 32 472
Required capital covered business (adjusted for qualifying debt and preference
shares) 8 620 7 858
Surplus capital covered business 5 017 5 625
Diluted embedded value per share (cents) 2 191 2 023
Diluted adjusted net worth per share (cents) 1 020 1 035
Diluted number of shares in issue (million) (7) 1 604 1 605
1. Disregarded assets include Sage intangible assets of R562 million (30.06.2012: R590 million),
goodwill and various other items.
2. For accounting purposes, Metropolitan Health has been consolidated at 100%, while Metropolitan
Namibia and Metropolitan Kenya have been consolidated at 96% for the current year, in the statement
of financial position. For embedded value purposes, disclosed on a diluted basis, the non-
controlling interests and related funding have been reinstated.
3. Consolidation adjustments include mainly goodwill and intangibles in subsidiaries that are
eliminated.
4. The carrying value of Momentum Namibia included in the reporting excess for the prior year was
written down to the companys net asset value. For June 2013 this adjustment is already included in
the reporting excess.
5. Adjustments for dilution are made up as follows:
Dilutory effect of subsidiaries (note 2): R119 million (30.06.2012: R74 million)
Treasury shares held on behalf of contract holders: R266 million (30.06.2012: R220 million)
Liability MMI Holdings Ltd convertible preference shares issued to KTH: R313 million (30.06.2012:
R316 million)
6. The holding company expenses reflect the present value of projected recurring head office expenses.
The International holding company expenses reflect the allowance for support services to the
international life assurance and health businesses.
7. The diluted number of shares in issue takes into account all issued shares, assuming conversion of
the convertible redeemable preference shares, and includes the treasury shares held on behalf of
contract holders.
Restated
ANALYSIS OF NET VALUE OF IN-FORCE BUSINESS PER DIVISION 30.06.2013 30.06.2012
Rm Rm
Momentum Retail (1) 8 967 8 029
Gross value of in-force business 10 490 9 587
Less cost of required capital (1 523) (1 558)
Metropolitan Retail 3 555 3 323
Gross value of in-force business 4 312 3 968
Less cost of required capital (757) (645)
Momentum Employee Benefits 3 106 1 992
Gross value of in-force business 3 776 2 609
Less cost of required capital (670) (617)
Metropolitan International 1 659 1 268
Gross value of in-force business 1 772 1 321
Less cost of required capital (113) (53)
Shareholder Capital (1) 583 298
Gross value of in-force business (2) 583 298
Less cost of required capital - -
Net value of in-force business 17 870 14 910
Notes
1. Net value of in-force of R93 million was transferred from Momentum Retail to Shareholder Capital at
30 June 2012, reflecting a change in the responsibility for managing financial options and guarantees
(Advisory Practice Note (APN) 110). The comparatives have been restated to reflect this change.
2. The value of in-force in the Shareholder Capital represents discretionary margins.
Adjusted net Net value of
EMBEDDED VALUE PER DIVISION worth in-force 30.06.2013 30.06.2012
Rm Rm Rm Rm
Covered business
MMI Group Ltd 12 441 16 211 28 652 26 115
Metropolitan Odyssey Ltd 49 - 49 48
Metropolitan International 1 147 1 659 2 806 2 230
Metropolitan Life (Namibia) Ltd 431 1 092 1 523 1 263
Metropolitan Life of Botswana Ltd 137 129 266 215
Metropolitan Lesotho Ltd 276 379 655 539
Other international businesses 303 59 362 213
Total covered business 13 637 17 870 31 507 28 393
Write up to
Adjusted net directors Restated
worth value 30.06.2013 30.06.2012
Rm Rm Rm Rm
Non-covered business
Momentum Investments (1) 721 1 025 1 746 1 453
Metropolitan Health (2) 404 1 258 1 662 1 603
Momentum Retail (Wealth) (3) 269 110 379 408
Momentum Short-term Insurance (MSTI) 171 129 300 160
Metropolitan International Holdings (4) 104 (389) (285) 78
MMI Holdings (after consolidation adjustments) (4) 1 047 (1 208) (161) 377
Total non-covered business 2 716 925 3 641 4 079
Total embedded value 16 353 18 795 35 148 32 472
Diluted adjusted net worth non-covered business (2 716)
Adjustments to covered business adjusted net
worth 3 288
Reporting excess long-term insurance business 16 925
1. Momentum Investments subsidiaries are valued using forward Price Earnings multiples applied to the
relevant sustainable earnings bases. June 2013 includes the valuation of Eris Properties Group.
2. Metropolitan Health subsidiaries have been valued using Embedded Value methodology.
3. Momentum Retail (Wealth) has been valued using Embedded Value methodology.
4. The holding company expenses reflect the present value of projected recurring head office expenses.
The International holding company expenses reflect the allowance for support services to the
international life assurance and health businesses.
12 mths to 12 mths to
Covered business 30.06.2013 30.06.2012
ANALYSIS OF CHANGES IN Notes Adjusted Gross
GROUP EMBEDDED VALUE net worth Value of in- Cost of
(ANW) force (VIF) CAR Total EV Total EV
Rm Rm Rm Rm Rm
Profit from new business (1 296) 2 257 (162) 799 723
Embedded value from new business A (1 296) 2 169 (162) 711 633
Expected return to end of period B - 88 - 88 90
Profit from existing business 3 228 120 (12) 3 336 2 350
Expected return unwinding of RDR B - 1 786 (299) 1 487 1 518
Release from the cost of required
capital C - - 417 417 411
Expected (or actual) net of tax
profit transfer to net worth D 3 093 (3 093) - - -
Operating experience variances E 618 275 19 912 711
Operating assumption changes F (483) 1 152 (149) 520 (290)
Embedded value profit from operations 1 932 2 377 (174) 4 135 3 073
Investment return on adjusted net worth G 919 - - 919 870
Investment variances H 140 852 19 1 011 (364)
Economic assumption changes I (36) (170) (15) (221) 110
Acquisition of covered business - 89 - 89 5
Exchange rate movements 32 9 (2) 39 18
Embedded value profit covered business 2 987 3 157 (172) 5 972 3 712
Transfer of business from/(to) non-
covered business J 292 (7) (18) 267 (571)
Changes in share capital 37 - - 37 365
Dividend paid (3 140) - - (3 140) (2 498)
Change in reserves (22) - - (22) 28
Change in embedded value covered
business 154 3 150 (190) 3 114 1 036
Non-covered business
Change in directors valuation and
other items 131 4
Holding company expenses (455) (248)
Secondary Tax on Companies allowance - 6
Embedded value profit non-covered
business (324) (238)
Changes in share capital (37) (365)
Dividend paid 236 889
Finance costs preference shares (46) (92)
Transfer of business (to)/from
covered business J (267) 551
Change in embedded value non-
covered business (438) 745
Total change in group embedded value 2 676 1 781
Total embedded value profit 5 648 3 474
Return on embedded value (%) - internal rate of return 17.4% 11.3%
A. VALUE OF NEW BUSINESS
Momentum
Momentum Metropolitan Employee Metropolitan
VALUE OF NEW BUSINESS Retail Retail Benefits International Total
Rm Rm Rm Rm Rm
12 mths to 30.06.2013
Value of new business (1) 203 239 213 56 711
Gross 268 268 275 63 874
Less cost of required capital (65) (29) (62) (7) (163)
New business premiums 12 433 2 305 5 836 473 21 047
Recurring premiums 1 057 1 075 769 298 3 199
Single premiums 11 376 1 230 5 067 175 17 848
New business premiums (APE) 2 195 1 198 1 276 316 4 985
New business premiums (PVP) 17 421 5 126 11 627 1 635 35 809
Profitability of new business as a % of APE 9.2 19.9 16.7 17.7 14.3
Profitability of new business as a % of PVP 1.2 4.7 1.8 3.4 2.0
Restated
12 mths to 30.06.2012
Value of new business (1) 173 262 130 34 599
Gross 235 284 173 34 726
Less cost of required capital (62) (22) (43) - (127)
New business premiums 11 518 2 282 4 458 497 18 755
Recurring premiums 1 054 1 035 790 228 3 107
Single premiums 10 464 1 247 3 668 269 15 648
New business premiums (APE) 2 100 1 159 1 157 255 4 671
New business premiums (PVP) 16 384 5 371 9 421 1 332 32 508
Profitability of new business as a % of APE 8.2 22.6 11.2 13.3 12.8
Profitability of new business as a % of PVP 1.1 4.9 1.4 2.6 1.8
- Value of new business and new business premiums are net of non-controlling interests.
- The value of new business has been calculated on closing assumptions. Investment yields at the
point of sale have been used for fixed annuity and guaranteed endowment business, for other
business the investment yields at the end of the year have been used.
1. The Wealth off-balance sheet business has been excluded from covered business in the current year.
The comparative value of new business information has been restated but the analysis of changes in
embedded value has not been restated.
Momentum
Momentum Metropolitan Employee Metropolitan
ANALYSIS OF NEW BUSINESS PREMIUMS Retail Retail Benefits International Total
Rm Rm Rm Rm Rm
12 mths to 30.06.2013
New business premiums 12 433 2 305 5 836 473 21 047
Recurring premiums 1 057 1 075 769 298 3 199
Risk 508 748 369 - 1 625
Savings/Investments 549 327 400 - 1 276
International - - - 298 298
Single premiums 11 376 1 230 5 067 175 17 848
Savings/Investments 10 921 589 2 267 - 13 777
Annuities 455 641 2 800 - 3 896
International - - - 175 175
New business premiums (APE) 2 195 1 198 1 276 316 4 985
Risk 508 748 369 - 1 625
Savings/Investments 1 641 386 627 - 2 654
Annuities 46 64 280 - 390
International - - - 316 316
Restated
12 mths to 30.06.2012
New business premiums 11 518 2 282 4 458 497 18 755
Recurring premiums 1 054 1 035 790 228 3 107
Risk 566 735 419 - 1 720
Savings/Investments 486 300 368 - 1 154
Annuities 2 - 3 - 5
International - - - 228 228
Single premiums 10 464 1 247 3 668 269 15 648
Savings/Investments 9 699 659 2 397 - 12 755
Annuities 765 588 1 271 - 2 624
International - - - 269 269
New business premiums (APE) 2 100 1 159 1 157 255 4 671
Risk 566 734 419 - 1 719
Savings/Investments 1 456 366 608 - 2 430
Annuities 78 59 130 - 267
International - - - 255 255
Restated
12 mths to 12 mths to
RECONCILIATION OF LUMP SUM INFLOWS 30.06.2013 30.06.2012
Rm Rm
Total lump sum inflows 148 881 105 090
Inflows not included in value of new business (131 698) (90 352)
Momentum Retail (1) (14 816) (13 063)
Momentum Employee Benefits (184) (66)
Metropolitan International (1 024) (1 122)
Momentum Investments
On-balance sheet inflows (16 819) (10 661)
Off-balance sheet inflows
Eris Property acquisition (18 678) -
Other (80 165) (65 440)
Balance Sheet Management (12) -
Term extensions on maturing policies 610 885
Non-controlling interests and other adjustments 55 25
Single premiums included in value of new business 17 848 15 648
1. From financial year 2013 Wealth off-balance sheet business has been excluded from covered business.
B. EXPECTED RETURN
The expected return is determined by applying the risk discount rate applicable at the beginning of
the reporting year to the present value of in-force covered business at the beginning of the
reporting year and adding the expected return on new business, which is determined by applying the
current risk discount rate to the value of new business from the point of sale to the end of the
year.
C. RELEASE FROM THE COST OF REQUIRED CAPITAL
The release from the cost of required capital represents the difference between the risk discount
rate and the expected after tax investment return on the assets backing the required capital over
the year.
D. EXPECTED (OR ACTUAL) NET OF TAX PROFIT TRANSFER TO NET WORTH
The expected profit transfer for covered business from the present value of in-force to the adjusted
net worth is calculated on the statutory valuation method. While investment returns on certain
explicit discretionary margin reserves were retained in the past, expected investment returns of
R128 million (30.06.2012: R146 million) on the statutory basis after tax (R153 million (30.06.2012:
R182 million) on the published basis after tax) have been released to earnings in the twelve months
ended 30 June 2013 in conjunction with managements regular review of the adequacy of these margins
in line with the accounting policy. This item is released from the value of in-force as part of the
item Expected (or actual) net of tax profit transfer to net worth.
E. OPERATING EXPERIENCE VARIANCES
12 mths to
12 mths to 30.06.2013 30.06.2012
OPERATING EXPERIENCE VARIANCES Notes ANW Net VIF EV EV
Rm Rm Rm Rm
Momentum Retail 75 53 128 76
Mortality and morbidity 1 249 10 259 154
Terminations, premium cessations and policy alterations 2 (59) 76 17 3
Expense variance 3 (3) - (23)
Other 4 (118) (30) (148) (58)
Metropolitan Retail 101 (39) 62 7
Mortality and morbidity 1 88 9 97 92
Terminations, premium cessations and policy alterations 5 (34) (63) (97) (76)
Expense variance 3 59 - 59 27
Other 6 (12) 15 3 (36)
Momentum Employee Benefits 152 154 306 147
Mortality and morbidity 1 19 (2) 17 53
Terminations 7 78 155 233 44
Expense variance 3 9 - 9 14
Other 6 46 1 47 36
Metropolitan International 76 76 152 38
Mortality and morbidity 1 88 (7) 81 62
Terminations, premium cessations and policy alterations 24 41 65 1
Expense variance 3 (22) 38 16 (18)
Other (14) 4 (10) (7)
Shareholder Capital 8 214 28 242 328
Opportunity cost of required capital - 22 22 115
Total operating experience variances 618 294 912 711
Notes
1. Overall, mortality and morbidity experience for the twelve months was better compared to what was
allowed for in the valuation basis.
2. Favourable persistency on Risk and Investment Business offset by fee alterations on Wealth business.
3. The impact of managing expenses better than anticipated in the actuarial valuation basis.
4. Various items including non-recurring costs related to strategic initiatives and under-recovery of
intergroup sales costs.
5. Mainly one-off items relating to Grouped Individual terminations and expense recoveries on smoothed
bonus product withdrawals. Corrective actions, including provisioning and modelling changes, have
been taken during the current period.
6. Various small other operating experience variances.
7. Positive impact of better than anticipated termination experience on administration and investment
fees and also reduced capital required due to the migration towards less capital intensive products.
8. The income recorded in respect of Shareholder Capital relates mostly to earnings from holding
company activities and the management of MMI's capital and shareholder balance sheet risks. Other
sources of earnings such as variations in actual tax payments and corporate expenses not allocated
to underlying business units are also included here.
F. OPERATING ASSUMPTION CHANGES
12 mths to
12 mths to 30.06.2013 30.06.2012
OPERATING ASSUMPTION CHANGES Notes ANW Net VIF EV EV
Rm Rm Rm Rm
Momentum Retail (341) 419 78 (220)
Mortality and morbidity assumptions 1 (41) 107 66 11
Renewal expense assumptions 2 (53) 157 104 17
Termination assumptions 3 (77) 181 104 (7)
Modelling, methodology and other changes 4 (170) (26) (196) (241)
Metropolitan Retail (51) 200 149 143
Mortality and morbidity assumptions 1 & 5 45 160 205 15
Renewal expense assumptions 2 26 64 90 (3)
Termination assumptions 5 (77) (101) (178) 3
Modelling, methodology and other changes 6 (45) 77 32 128
Momentum Employee Benefits (21) 408 387 296
Assumed mortality and morbidity profit margin 1 - (29) (29) 82
Termination assumptions 7 - 201 201 56
Renewal expense assumptions 2 (60) 141 81 109
Modelling, methodology and other changes 8 39 95 134 49
Metropolitan International (73) 55 (18) (44)
Mortality and morbidity assumptions (4) 8 4 1
Renewal expense assumptions 2 14 10 24 (8)
Termination assumptions (46) 25 (21) (7)
Modelling, methodology and other changes 9 (37) 12 (25) (30)
Shareholder Capital 3 17 20 (6)
Methodology change: cost of required capital 10 - (96) (96) (459)
Total operating assumption changes (483) 1 003 520 (290)
Notes
1. Allowance in the assumptions for better risk experience across all divisions, in line with
experience.
2. Allowance in the assumptions for better expense experience across all divisions, in line with
budgets.
3. Mainly positive termination assumption changes on Risk business, in line with experience.
4. Various changes to models and methodology, including improvements to fees on Wealth business, tax
changes, benefit enhancements and costs relating to strategic initiatives.
5. Offsetting mortality and termination assumption changes have been made to mainly Grouped Individual
lines of business, in line with recent experience investigations.
6. Various changes to models and methodology.
7. Improvements to termination assumptions, in line with experience.
8. Various changes to models and methodology, including improvements to allowances for investment
guarantees (APN 110) and yield curves on annuity products.
9. Various changes to models and methodology, including improvements to allowances for investment
guarantees (APN 110).
10. Various changes including changes to the assumed return on assets backing the required capital.
G. INVESTMENT RETURN ON ADJUSTED NET WORTH
12 mths to 12 mths to
30.06.2013 30.06.2012
INVESTMENT RETURN ON ADJUSTED NET WORTH Rm Rm
Investment income 681 611
Capital appreciation 267 290
Preference share dividends paid and change in fair value of preference shares (29) (31)
Investment return on adjusted net worth 919 870
H. INVESTMENT VARIANCES
Investment variances represent the impact of higher/lower than assumed investment returns on current
and expected future after tax profits from in-force business.
I. ECONOMIC ASSUMPTION CHANGES
The economic assumption changes include the effect of the change in assumed rate of investment
return, expense inflation rate and risk discount rate in respect of local and offshore business.
J. TRANSFER OF BUSINESS FROM/(TO) NON-COVERED BUSINESS
Represents the alignment of net assets and value of in-force of mainly international subsidiaries
between covered and non-covered business.
COVERED BUSINESS: SENSITIVITIES Adjusted In-force business New business written
30.06.2013 net Net Gross Cost of Net Gross Cost of
worth (3) value (4) value CAR (5) value value CAR (5)
Rm Rm Rm Rm Rm Rm Rm
Base value 13 637 17 870 20 933 (3 063) 711 874 (163)
1% increase in risk discount rate 16 489 19 932 (3 443) 584 773 (189)
% change (8) (5) 12 (18) (12) 16
1% reduction in risk discount rate 19 434 22 085 (2 651) 858 995 (137)
% change 9 6 (13) 21 14 (16)
10% decrease in future expenses 18 961 22 026 (3 065) 817 980 (163)
% change (1) 6 5 - 15 12 -
10% decrease in lapse, paid-up and
surrender rates 18 512 21 601 (3 089) 870 1 041 (171)
% change 4 3 1 22 19 5
5% decrease in mortality and
morbidity for assurance
business 19 183 22 300 (3 117) 866 1 028 (162)
% change 7 7 2 22 18 (1)
5% decrease in mortality for
annuity business 17 554 20 632 (3 078) 698 861 (163)
% change (2) (1) - (2) (1) -
1% reduction in gross investment
return, inflation rate and
risk discount rate 13 629 18 217 21 334 (3 117) 806 963 (157)
% change (2) - 2 2 2 13 10 (4)
1% reduction in inflation rate 18 556 21 620 (3 064) 755 918 (163)
% change 4 3 - 6 5 -
10% fall in market value of equities
and properties 13 447 16 503 19 648 (3 145)
% change (1) (8) (6) 3
10% reduction in premium indexation
take-up rate 17 571 20 617 (3 046) 667 830 (163)
% change (2) (2) (1) (6) (5) -
10% decrease in non-commission
related acquisition expenses 829 992 (163)
% change 17 14 -
1% increase in equity/property
risk premium 18 230 21 249 (3 019) 718 881 (163)
% change 2 2 (1) 1 1 -
1. No corresponding changes in variable policy charges are assumed, although in practice it is likely
that these will be modified according to circumstances.
2. Bonus rates are assumed to change commensurately.
3. The Adjusted net worth sensitivities represents the change in respect of shareholder investment
assets only.
4. The Net VIF includes the day one impact of any reserving and value of in-force changes as per the
APN 107 guidelines.
5. The change in the value of cost of required capital is disclosed as nil where the sensitivity test
results in an insignificant change in the value.
MMI HOLDINGS GROUP STOCK EXCHANGE PERFORMANCE
STOCK EXCHANGE PERFORMANCE 30.06.2013 30.06.2012
12 months
Value of listed shares traded (rand million) 16 060 11 420
Volume of listed shares traded (million) 733 655
Shares traded (% of average listed shares in issue) 47 43
Value of shares traded life insurance (J857 Rbn) 155 119
Value of shares traded top 40 index (J200 Rbn) 3 059 2 791
Trade prices
Highest (cents per share) 2 700 1 976
Lowest (cents per share) 1 792 1 505
Last sale of year (cents per share) 2 217 1 800
Annualised percentage (%) change during year 23 6
Annualised percentage (%) change life insurance sector (J857) 37 29
Annualised percentage (%) change top 40 index (J200) 18 4
30 June
Price/diluted core headline earnings (segmental) ratio 11.0 9.8
Dividend yield % (dividend on listed shares) 5.7 6.3
Dividend yield % top 40 index (J200) 2.9 3.0
Total shares issued (million)
Ordinary shares listed on JSE 1 570 1 571
Treasury shares held on behalf of contract holders (14) (13)
Basic number of shares in issue 1 556 1 558
Treasury shares held on behalf of contract holders 14 13
Convertible redeemable preference shares 34 34
Diluted number of shares in issue (1) 1 604 1 605
Market capitalisation at end (Rbn) (2) 36 29
Percentage (%) of life insurance sector 13 13
1. The diluted number of shares in issue takes into account all issued shares, assuming conversion of
the convertible redeemable preference shares, and includes the treasury shares held on behalf of
contract holders.
2. The market capitalisation is calculated on the fully diluted number of shares in issue.
Date: 11/09/2013 07:05:00 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.