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LIBERTY HOLDINGS LIMITED - Financial Results for the year ended 31 December 2018

Release Date: 28/02/2019 07:10
Code(s): LBH LBHP     PDF:  
Wrap Text
Financial Results for the year ended 31 December 2018

Liberty Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 1968/002095/06)
JSE code: LBH
ISIN code: ZAE000012714
Preference share code: LBHP
ISIN code: ZAE000004040
Telephone +27 11 408 3911

FINANCIAL PERFORMANCE INDICATORS
for the year ended 31 December 2018

                                                                                                                %
Rm (unless otherwise stated)                                                           2018        2017    change
Liberty Holdings Limited                                                                                       
Earnings                                                                                                       
Normalised headline earnings(1)                                                       2 256       2 719    (17,0)
Normalised headline earnings per share (cents)(1)                                     817,9       982,1    (16,7)
Normalised return on IFRS equity (%)(1)                                                10,1        12,3         
Group equity value                                                                                             
Normalised group equity value per share (R)(1)                                       138,64      140,31     (1,2)
Normalised return on group equity value (%)(1)                                          3,8         1,1      >100
Distributions per share (cents)                                                                                
Normal dividend                                                                         691         691         
Interim dividend                                                                        276         276         
Final dividend                                                                          415         415         
Total assets under management (Rbn)                                                     718         720     (0,3)
Long-term insurance operations                                                                                  
Indexed new business (excluding contractual increases)                                8 051       8 018       0,4
Embedded value of new business                                                          371         233      59,2
New business margin (%)                                                                 0,9         0,5         
Net customer cash inflows                                                             2 001       1 634      22,5
Solvency capital requirement cover of Liberty Group Limited (times covered)(2)         1,87                    
Asset management - STANLIB South Africa                                                                        
Assets under management (Rbn)                                                           549         556     (1,3)
Net cash inflows including money market(3)                                           16 149       4 731      >100
Retail and institutional net cash inflows excluding money market(3)                   9 155       4 815      90,1
Money market net cash inflows/(outflows)(3)                                           6 994        (84)      >100

(1)   Normalised: headline earnings, headline earnings per share, return on equity, group equity value per share and return on group equity value.
      These measures reflect the economic reality of the consolidation of the listed REIT Liberty Two Degrees (L2D) and the Black Economic Empowerment 
      (BEE) transaction, as opposed to the required IFRS accounting treatment.
(2)   Solvency capital requirement cover (effective from 1 July 2018) is the excess of assets over liabilities required by an insurer to ensure that its 
      assets remain larger than its liabilities with a 99.5% level of certainty over a one year time horizon, with assets and liabilities valued in accordance 
      with the Insurance Act, 2017. This replaces the capital adequacy requirement cover that was reported previously under the old regime, hence no comparative 
      information is provided.
(3)   Excludes intergroup life funds.

Preparation and supervision:
This announcement on Liberty Holdings Limited annual financial results for the year ended 31 December 2018 has been prepared and
supervised by M Norris (Executive: Group Finance) CA (SA) and Y Maharaj (Financial Director) CA (SA).

FINANCIAL REVIEW
for the year ended 31 December 2018

Good progress made
in delivering Liberty's
turnaround strategy

Highlights
In supporting our clients through their life journeys and fulfilling
our promises to them, annuity payments made by Liberty in
2018 increased by 7% to R5,8  billion and death and disability
payments increased by 11% to R9,4 billion. 

Progress made on the key strategic objectives to better support
our clients by improving the investment performance of STANLIB
and restoring the health of the South African Retail insurance
business is starting to manifest in the group's financial performance.
Normalised operating earnings were up 42% on 2017. Strong cost
discipline together with product and margin enhancements resulted
in a 59% improvement in group value of new business (VoNB) to
R371  million, with margin improvement to 0.9%. STANLIB South
Africa reflected improved investment performance in its core retail
equity and balanced funds, achieving top quartile performance
over the 12 months ended 31  December  2018. STANLIB South
Africa's net external third party client cash inflows increased
significantly to R16,1  billion. Supporting these outcomes was the
organisational re-design exercise to reconnect the value chains in
our business. In addition, certain operations identified as no longer
central to Liberty's revised strategy are under ownership review.

The group's capital position remains strong, with the Solvency
Capital Requirement cover of Liberty Group Limited, the
group's main long-term insurance licence, at 1,87  times at
31 December 2018 which is at the upper end of the target range and
underpins our commitment to fulfil our promises to policyholders
and other stakeholders. 

Group financial performance
Normalised operating earnings for the year ended
31  December  2018 of R2  006  million were up 42% on 2017,
reflecting an improved operational performance in the South
African Insurance Operations and STANLIB South Africa
businesses. LibFin Investments - Shareholder Investment Portfolio
(SIP) earnings of R250 million were however impacted by volatile
market conditions and lower market returns which resulted
in normalised headline earnings of R2  256  million for the year
(31  December  2017: R2  719  million). This resulted in a return on
equity of 10,1% (31 December 2017: 12,3%). 

The group VoNB of R371 million was 59% up from R233 million in
the prior year with margin improvement from 0.5% to 0.9%.

Group net external third party client cash inflows amounted to
R10,2  billion, up 57% on 2017 inflows of R6,5  billion, supported
mainly by good STANLIB South Africa net external third party client
inflows as well as lower policy maturities and withdrawals in the
SA Insurance Operations. Total group assets under management
amounted to R718 billion (31 December 2017: R720 billion).

Continued focus on sales efforts and volumes resulted in an
improved second half sales performance, with the group long-term
insurance indexed new business of R8 051 million at similar levels to
2017 despite a slow start to the year.

The group remains well capitalised in respect of the new prudential
regulatory regime, which became effective from 1  July  2018.
The Solvency Capital Requirement Cover of Liberty Group Limited,
the group's main long-term insurance licence, of 1,87  times at
31  December  2018 is at the upper end of our target range and
underpins our commitment to fulfil our promises to policyholders
and other stakeholders.

Group equity value per share was R139 (31 December 2017: R140)
with the small reduction attributable to lower investment returns
in line with investment markets.

Headline earnings for 2018 amounted to R2 645 million compared
to R3  252  million in 2017. Liberty's headline earnings include the
positive earnings impact of R397  million (31  December  2017:
R543  million) arising from the accounting mismatch on the
consolidation of the Liberty Two Degrees listed REIT.

Earnings by business unit   
                                                                                                                %
Rm (Unaudited)                                                                         2018        2017    change
South African operations                                                                                        
South African Insurance Operations                                                    2 009       1 665      20,7
SA Retail                                                                             1 581       1 208      30,9
Liberty Corporate                                                                        52          81    (35,8)
LibFin Markets - credit portfolio                                                       302         330     (8,5)
LibFin Markets - asset/liability matching portfolio                                      74          46      60,9
South African Asset Management                                                                                                
STANLIB South Africa                                                                    355         252      40,9
Africa regions                                                                            8           7      14,3
Liberty Africa Insurance                                                               (19)          41    (>100)
STANLIB Africa                                                                           27          22      22,7
Business development support(1)                                                                   ( 56)       100
Operations under ownership review(2)                                                  (166)       (322)      48,4
Central costs and sundry income                                                       (200)       (190)     (5,3)
Normalised operating earnings                                                         2 006       1 412      42,1
LibFin Investments - SIP                                                                250       1 307    (80,9)
Normalised headline earnings                                                          2 256       2 719    (17,0)
BEE preference share adjustment                                                         (8)        (10)      20,0
Reversal of accounting mismatch arising on consolidation of L2D(3)                      397         543    (26,9)
Headline earnings                                                                     2 645       3 252    (18,7)

(1)   2017 includes the costs associated with the terminated long-term licence acquisition in Nigeria.
(2)   The cash-generating units impacted are asset management operations in Ghana, Uganda, Kenya and Botswana, Health solutions, 
      the short-term insurance technology start up and Liberty Africa Insurance short-term insurance business in Malawi and Namibia. 
      Under IFRS these are disclosed as disposal groups classified as held for sale.
(3)   Refer to Explanation of terms.

Commentary on the earnings by business unit follows on the pages below. Additional information is contained in the summary consolidated
segment information.

South African Insurance Operations
South African Insurance Operations comprise the SA Retail
(previously Individual Arrangements), Liberty Corporate and LibFin
Markets (credit portfolio and asset liability matching portfolio)
businesses. Headline earnings of R2 009 million were up 21%.

SA Retail
Headline earnings from the group's South African Retail
business  of R1  581  million were 31% up on the prior year. This
increase was supported by stringent cost management, together
with positive experience variances and the positive impact of
basis changes.

Indexed new business sales of R6  495  million were  1% down on
2017. The tough economic conditions continued to impact sales
volumes in 2018. However, the second half sales performance
reflected an improvement over the first half of 2018. Growth in
sales volumes and VoNB remains management's highest priority.

VoNB increased by 75% from R155  million in the prior year
to R271  million, and the margin improved from 0,5% at
31  December  2017 to 0,8%. This result is attributable to the
positive impact of product and margin enhancements and focused
cost management. Net client cash inflows of R2 065 million were
lower than 31 December 2017 of R2 846 million. Ongoing retention
initiatives reflecting favourable withdrawal experience were offset
by higher mortality and morbidity claims and annuity payments.

Liberty Corporate
Earnings of R52  million reflected high death claims in the
second half of the year and lower annuity and asset based fee
income. Following repricing, underwriting margin on the group risk
book did, however, improve compared to 2017.

Indexed new business was 2% above the prior year at R1 192 million,
reflecting  increased single premium sales.  VoNB increased to
R73 million from R57 million in 2017, reflecting an improvement in
product mix and good expense management. Lower net client cash
outflows of R0,4 billion (31 December 2017: outflows of R1,5 billion)
were due to increased single premium sales and reduced member
retirements and scheme terminations.

LibFin Markets - Asset liability management and credit
portfolio
The asset liability management portfolio, which consists of the
market and liquidity risk exposures arising from the guaranteed
investment product set, produced a profit of R74 million
(31 December 2017: R46 million). Earnings from the credit portfolio
amounted to R302 million (31 December 2017: R330 million). LibFin
Markets assets under management amounted to R65 billion
(31 December 2017: R62 billion).

South African Asset Management

STANLIB South Africa
STANLIB South Africa earnings were up 41% to R355  million.
Fee income was lower in 2018 mainly due to weak investment
market returns. The prior year earnings were impacted by once off
operational write-offs. Costs were well managed during 2018 and
management has continued to strengthen the control environment
with a focus on improving the overall financial results.

Net external third party client cash inflows grew to
R16,1  billion  from  R4,7  billion in 2017. This result was attributable
to good institutional non-money market as well as retail and
institutional money market inflows. Intragroup cash outflows for
the year amounted to R17,0 billion.

Total assets under management by STANLIB South Africa
amounted to R549 billion (31 December 2017: R556 billion) with the
reduction from 2017 mainly attributable to weak market returns.

Africa regions 
Africa Regions comprises Liberty Africa Insurance and the STANLIB
asset management operations in the Southern African region.

Earnings for the year of R8  million  from these businesses
were  negatively impacted by generally lower investment market
returns and adverse claims experience in the short-term insurance
businesses in East Africa. The asset management operations
performed according to expectation.

Operations under ownership review
As part of the strategy refresh exercise, various operations  have
been identified as no longer central to Liberty's revised strategy.
Consequently a process of negotiations with potential partners
has commenced.

These operations include the asset management businesses in
East and West Africa, Liberty Health, Liberty Africa Insurance's
short-term insurance businesses in Malawi and Namibia and the
short-term insurance technology platform being developed in
South Africa.

The 2018 loss of R166 million is significantly reduced compared to
the prior year loss of R322 million due to the successful remedial
action taken in the STANLIB East African businesses. The Liberty
Heath loss of R78 million was attributable to the lower number of
risk lives under management.

LibFin Investments - Shareholder Investment Portfolio
(SIP)
The SIP includes the assets backing capital in the insurance
operations as well as the group's investment market exposure to
the 90:10 book of business. The current risk profile of the SIP is
similar to a conservative balanced portfolio and is managed with a
long-term through the cycle investment horizon.

The performance of the SIP was impacted by volatile market
conditions resulting in lower market returns.  These conditions
resulted in the SIP producing a gross return of 3,7% and
delivering  earnings of R250 million (31  December  2017:
R1 307 million). The SIP exposure to investment markets remains
appropriate in the context of the group's risk appetite.

Liberty Two Degrees (L2D)
L2D was restructured and converted to a corporate REIT
on 1 November 2018. L2D's results for the year ended
31  December  2018 were released on 25  February 2019.
The operational performance of the property portfolio
remained solid notwithstanding a difficult consumer environment.
The total distribution declared for 2018 amounted to 60,00 cents
per share which was in line with previously reported guidance (2017:
59,22 cents per share). Portfolio vacancies decreased to 3,4% from
6,4% with retail vacancies at 1,2%. Further details on the results are
available on the L2D website and in the L2D results announcement.

Bancassurance
The bancassurance agreement with Standard Bank, which is
applicable across the group's operations, continues to make a
positive contribution to new business volumes and earnings.
The total indexed new business premiums sold under the
agreement increased by 4% on the prior year. We continue
leveraging our joint capabilities with Standard Bank to capture
appropriate opportunities.

Liberty's short-term insurance technology platform has been sold
to Standard Bank Group effective 2 January 2019. Notwithstanding
the sale of the technology platform to Standard Bank Group, the
transaction ensures that Liberty's short-term insurance offering will
still be available to Liberty's financial advisers in the South African
market to enhance the comprehensive product offering available
to clients.

Capital adequacy cover
The group remains well capitalised in respect of the new prudential
regulatory regime, which became effective from 1  July  2018.
The Solvency Capital Requirement cover of Liberty Group Limited,
the group's main long-term insurance licence, of 1,87  times at
31  December  2018 is at the upper end of the target range and
underpins our commitment to fulfil our promises to policyholders
and other stakeholders.

All other group subsidiary life licences were adequately capitalised.

Dividends

2018 final dividend
In line with the group's dividend policy, the board has approved
and declared a gross final dividend of 415 cents per ordinary share.
The final dividend will be paid out of income reserves and is payable
on Monday, 8 April 2019 to all ordinary shareholders recorded in
the books of Liberty Holdings Limited on the record date.

The dividend of 415 cents per ordinary share will be subject to a local
dividend tax rate of 20%, which will result in a net final dividend, to
those shareholders who are not exempt from paying dividend tax,
of 332 cents per ordinary share. Liberty Holdings Limited's income
tax number is 9050/191/71/8. The number of ordinary shares in
issue in the company's share capital at the date of declaration is
286 202 373.

The important dates pertaining to the dividend are as follows: 

Last date to trade cum dividend on                Tuesday,  2 April 2019
the JSE
First trading day ex dividend on the JSE        Wednesday,  3 April 2019
Record date                                        Friday,  5 April 2019
Payment date                                       Monday,  8 April 2019

Share certificates may not be dematerialised or rematerialised
between Wednesday, 3  April  2019 and Friday,  5  April  2019, both
days inclusive. Where applicable, in terms of instructions received
by the company from certificated shareholders, the payment
of the dividend will be made electronically to shareholders' bank
accounts on payment date.

In the absence of specific mandates, cheques will be posted to
shareholders. Shareholders who have dematerialised their shares
will have their accounts with their CSDP or broker credited on
Monday, 8 April 2019.

Prospects

In summary, good progress is being made in implementing Liberty's
turnaround strategy. 

Management's focus for 2019 will be on  driving SA Retail
performance and VoNB growth by delivering exceptional client
and adviser experiences, continuing to improve the investment
performance of STANLIB, finalising outcomes for each of the
group's operations under ownership review and continuing to
maximise our relationship with the Standard Bank Group.

We expect the South African economic environment to remain
subdued for the first half of 2019, however, we remain confident
that focus is on the right areas of the business to create value for
all stakeholders.

David Munro                      Jacko Maree
Chief Executive                  Chairman

28 February 2019

Transfer Secretaries
Computershare Investor Services Proprietary Limited
(Registration number 2004/003647/07)
Rosebank Towers, 15 Biermann Avenue, Rosebank
Johannesburg 2196
Tel: +27 (11) 370 5000

These results are available at http://www.libertyholdings.co.za

ACCOUNTING POLICIES

The 2018 consolidated annual financial statements of Liberty
Holdings Limited have been prepared in accordance with and
contain information required by:

-  International Financial Reporting Standards (IFRS) including
   IAS 34 Interim Financial Reporting (with the exception of
   disclosures required under IAS 34 16A  (j) relating to fair
   value measurement, which are not required by the JSE
   Listings Requirements);

-  the SAICA Financial Reporting Guides as issued by the
   Accounting Practices Committee;

-  Financial Reporting Pronouncements as issued by the Financial
   Reporting Standards Council;

-  the Listings Requirements of the JSE Limited; and

-  the South African Companies Act, No. 71 of 2008.

The consolidated annual financial statements have been prepared
in compliance with IFRS and interpretations for year ends
commencing on or after 1 January 2018.

The accounting policies are consistent with those applied in the
prior year except for the mandatory adoption of IFRS 9 Financial
Instruments and IFRS 15 Revenue from Contracts with Customers.
The group has elected to apply the hedge accounting requirements
of IAS 39 in the adoption of IFRS 9.

Under the transitional approach adopted by the group for these
standards, there was no change to comparative period primary
financial statements or note disclosures. The impact to the group's
opening retained income as at 1 January 2018 was a reduction of
R121 million, after taxation (relating to IFRS 9 only). Consequential
amendments to IAS 1 Presentation of Financial Statements and
IFRS 7 Financial Instruments: Disclosures impacted only the
2018 annual financial statements.

Presentation change due to IFRS 9, adopted in line with the
group's transition approach
The group re-assessed its accounting presentation policy of all
IFRS 9 related transactions. As part of the IFRS 9 implementation,
all income statement movements, including interest income,
dividends and finance costs, on financial instruments held at fair
value through profit or loss are prospectively presented as fair value
adjustments. This has led to a decrease in 'investment income' and
'finance costs' for the year ended 31 December 2018, with the
corresponding amounts recognised in fair value adjustments to
financial assets held at fair value through profit or loss and to fair
value adjustments to financial liabilities respectively.

Restatement of cash flow statement
During 2018 a comprehensive review of the group's long-term
insurance business model was undertaken in light of the adoption
of IFRS 9. In addition consideration was also given to the new
regulatory capital regime effective 1 July 2018 and the enterprise risk
management framework. All of the above support a change in key
judgement relating to the appropriateness of cash flows relating to
investment portfolios backing policyholder liabilities and supporting
regulatory and group risk adjusted minimum capital levels. It was
determined that these would be better reflected as cash flows
from operating activities rather than as previously reflected as cash
flows from investing activities. Due to the materiality of items, the
cash flow statement for 2017 has been restated.

Segment reporting
The Liberty group underwent a strategy refresh during 2018.
Consequently Liberty has reduced emphasis on growth
opportunities across Africa as well as other diversification initiatives
and increased remedial efforts on its core long-term insurance
and asset management business in South Africa. There are no
longer specific customer facing units (previously being Individual
Arrangements, Group Arrangements and Asset Management).
The primary segments, aligned to the new operating model,
operate within two main geographic clusters, being South African
operations and Africa regions (defined as all operations in Africa,
excluding South Africa).

The South African operations consists of long-term insurance
business, namely SA Retail and Liberty Corporate segments, asset
management, namely STANLIB South Africa and other operations
(governance and strategic execution and certain investment
portfolios), supporting these businesses. Businesses managed in
Africa regions, are segmented as Liberty Africa Insurance, Liberty
Health and STANLIB Africa (asset management).

As a result, the segment reporting information has been aligned
to the information used by the chief operating decision makers.
2017 comparative information has been restated.

New standards not yet effective
Based on Liberty's current lease obligations, IFRS 16 Leases
(effective 1 January 2019) does not have a material impact to profit
or loss on adoption in 2019. IFRS 17 Insurance Contracts (effective
1 January 2022, following IASB due process) will have significant
financial reporting impact for the group. Management is assessing
this impact under a focussed project.

AUDITOR STATEMENT

PricewaterhouseCoopers Inc. (PwC) have audited the consolidated
annual financial statements of Liberty Holdings Limited from which
the summary consolidated financial results have been extracted.
These summary consolidated financial results comprise the
consolidated statement of financial position at 31 December 2018,
the consolidated statement of comprehensive income, summary
consolidated changes in equity and summary consolidated cash
flows for the year then ended and selected explanatory notes.
These statements and related notes are marked as 'audited'. This
announcement itself is not audited.

The financial results contained in this announcement have
been prepared in accordance with the requirements of the JSE
Limited Listings Requirements for preliminary reports, and the
requirements of the Companies Act applicable to summary financial
statements. The Listings Requirements require preliminary reports
to be prepared in accordance with the framework concepts and
the measurement and recognition requirements of International
Financial Reporting Standards (IFRS), SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting
Standards Council and also, as a minimum, to contain the
information required by IAS 34 Interim Financial Reporting.

The accounting policies applied in the preparation of the
consolidated annual financial statements, from which the summary
consolidated financial results were extracted, are in terms of
IFRS and are consistent with the accounting policies applied in
the preparation of the prior year's consolidated annual financial
statements except for the changes outlined in the Accounting
policies above.

This  announcement  does  not  include  the  information required
pursuant to paragraph 16A (j) of IAS 34. The full IAS 34 compliant
summary consolidated financial results announcement and a copy
of the auditors' report is available on request or on the company's
website and at the company's registered office.

The auditors have expressed an unmodified audit opinion on the
consolidated annual financial statements. PwC have also issued an
unmodified assurance opinion on Liberty Holdings Limited's group
equity value report, which has also been marked as 'audited' in this
financial results announcement.

Shareholders are advised that in order to obtain a full understanding
of the nature of the auditors' engagement, they should obtain a
copy of the auditors' reports together with the accompanying
financial information which is available upon request from Liberty
Holdings Limited's registered office.

DIRECTORS' RESPONSIBILITY

The summary consolidated annual financial statements included in this announcement are the full responsibility of the directors.
The directors confirm that the financial information has been correctly extracted from the underlying 2018 audited consolidated Liberty
Holdings Limited annual financial statements which are available for inspection at the company's registered office on request.

EXPLANATION OF TERMS

Development costs
Represents project costs incurred on developing or enhancing
future revenue opportunities.

FCTR
Foreign Currency Translation Reserve.

FVOCI
Fair value through other comprehensive income

FVPL
Fair value through profit or loss

"Liberty" or "group"
Represents the collective of Liberty Holdings Limited and
its subsidiaries.

Long-term insurance operations - Indexed new business
This is a measure of new business which is calculated as the sum of
12 months' premiums on new recurring premium policies and one
tenth of single premium sales.

Long-term insurance operations - Value of new business
and margin (VONB)
The present value, at point of sale, of the projected stream of after
tax profits for new business issued, net of the cost of required
capital. The present value is calculated using a risk-adjusted
discount rate. Margin is calculated using the value of new business
divided by the present value of future modelled premiums.

Short-term insurance operations - Claims loss ratio
This is a measure of underwriting risk and is measured as a ratio of
claims incurred divided by the net premiums earned.

Solvency capital requirement (SCR)
The prudential regulatory regime governing South African
assurance companies changed on 1 July 2018. This has necessitated
a change to Liberty's capital requirement coverage methodology.
The SCR is the excess of assets over liabilities required by an insurer
to ensure that its assets remain larger than its liabilities with a
99.5% level of certainty over a one year time horizon, with assets
and liabilities valued in accordance with the Insurance Act, 2017.

Normalised: headline earnings, headline earnings per
share, return on equity, group equity value per share
and return on group equity value
These measures reflect the economic reality of the Black Economic
Empowerment (BEE) transaction and the consolidation of the
listed REIT Liberty Two Degrees (L2D) as opposed to the required
IFRS accounting treatment.

BEE transaction
IFRS reflects the BEE transaction as a share buy-back. Dividends
received on the group's preference shares (which are recognised
as an asset for this purpose) are included in income. Shares in issue
relating to the transaction are reinstated.

Reversal of accounting mismatch arising on IFRS profit or loss
consolidation of L2D
An accounting mismatch arises on consolidation of L2D in the
group annual financial statements, resulting from the different
measurement bases applied to L2D's assets and Liberty
Group Limited's (100% subsidiary of Liberty Holdings Limited)
policyholder liabilities. Specifically:

-  on a consolidated look through basis the investment property
   assets of L2D are included in the group annual financial
   statements at fair value; whereas

-  the corresponding linked obligations to Liberty Group Limited's
   policyholders are required under IFRS to continue to be
   measured in the group annual financial statements at the listed
   price of the L2D shares.

The result of this is an accounting mismatch that represents any
difference in the profit and loss movement in the price at which
L2D's listed shares trade relative to the underlying net asset value.

L2D adjustment in group equity value
In addition to the reversal of the accounting mismatch in IFRS
profit or loss described above, the group equity value adjusts the
exposures in the Shareholder Investment Portfolios (SIP) to the
listed share price.

Summary of impact
Below is a summary of the L2D transaction impact on the ordinary shareholders' equity: 

                                                                  Group                     SIP equity
                                                           equity value   IFRS net asset         value
Rm                                                                Total            value    adjustment
Opening adjustment at 1 January 2018                                597              340           257
IFRS profit or loss                                                 397              397              
Group equity value earnings                                         207                            207
Transaction between owners                                        (260)            (214)          (46) 
Share issue costs                                                   (1)              (1)            
Closing adjustment at 31 December 2018                              940              522           418

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2018
   
Rm (Audited)                                                                        2018          2017
Assets                                                                                                
Intangible assets                                                                    572           231
Defined benefit pension fund employer surplus                                        140           171
Properties                                                                        35 961        34 768
Equipment                                                                          1 038         1 128
Interests in joint ventures                                                        1 353         1 244
Interests in associates                                                           13 834        15 197
Deferred taxation                                                                    245           336
Deferred acquisition costs                                                           777           737
Long-term policyholder assets - insurance contracts                                6 708         7 484
Reinsurance assets                                                                 2 119         1 774
Long-term insurance                                                                1 699         1 481
Short-term insurance                                                                 420           293
Financial investments                                                            328 365       338 534
Loans and receivables                                                                340         1 222
Assets held for trading and for hedging                                           10 340         7 871
Repurchase agreements, scrip and collateral assets                                12 658        11 900
Prepayments, insurance and other receivables                                       4 953         6 361
Cash and cash equivalents                                                         16 974        15 169
Disposal group assets classified as held for sale                                    897              
Total assets                                                                     437 274       444 127
Liabilities                                                                                           
Long-term policyholder liabilities                                               310 994       322 918
Insurance contracts                                                              200 744       210 554
Investment contracts with discretionary participation features                    10 437        11 845
Financial liabilities under investment contracts                                  99 813       100 519
Reinsurance liabilities                                                              283           663
Third-party financial liabilities arising on consolidation of mutual funds        48 186        49 713
Provisions                                                                           145            76
Deferred taxation                                                                  2 694         3 386
Deferred revenue                                                                     314           291
Deemed disposal taxation liability                                                                 436
Short-term insurance liabilities                                                     984           780
Financial liabilities                                                              8 104         5 581
Liabilities held for trading and for hedging                                       8 457         6 311
Repurchase agreements, liabilities and collateral deposits payable                11 747         9 097
Employee benefits                                                                  1 377         1 446
Insurance and other payables                                                      11 971        11 995
Current taxation                                                                     347         1 043
Disposal group liabilities classified as held for sale                               278              
Total liabilities                                                                405 881       413 736
Equity                                                                                                
Ordinary shareholders' equity                                                     23 003        22 444
Share capital                                                                         26            26
Share premium                                                                      5 104         5 157
Retained surplus                                                                  18 661        18 163
Other reserves                                                                     (788)         (902)
Non-controlling interests                                                          8 390         7 947
Total equity                                                                      31 393        30 391
Total equity and liabilities                                                     437 274       444 127

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2018

Rm (Audited)                                                                                          2018           2017  
Revenue                                                                                                                     
Insurance premiums                                                                                  40 611         39 970  
Reinsurance premiums                                                                               (2 090)        (1 950)  
Net insurance premiums                                                                              38 521         38 020  
Revenue from contracts with customers                                                                4 073                  
Fee income and reinsurance commission                                                                               3 683  
Hotel operations sales                                                                                                532  
Investment income                                                                                    3 316         21 652  
Interest income on financial assets using the effective interest rate method                         1 516                  
Fair value adjustment to assets held at fair value through profit or loss                            3 078                  
Investment gains                                                                                                   18 835  
Total income                                                                                        50 504         82 722  
Claims and policyholder benefits under insurance contracts                                        (39 504)       (38 819)  
Insurance claims recovered from reinsurers                                                           1 571          1 800  
Change in long-term policyholder assets and liabilities                                             11 449        (6 829)  
Liabilities under insurance contracts                                                               10 024        (6 504)  
Policyholder assets related to insurance contracts                                                   (776)            170  
Investment contracts with discretionary participation features                                       1 607          (521)  
Applicable to reinsurers                                                                               594             26  
Fair value adjustment to long-term policyholder liabilities under investment contracts               1 273        (9 116)  
Fair value adjustment to financial liabilities                                                     (1 381)                 
Fair value adjustment on third party mutual fund interests                                         (2 407)        (4 619)  
Acquisition costs                                                                                  (4 413)        (4 935)  
General marketing and administration expenses                                                     (11 184)       (11 345)  
Finance costs                                                                                       ( 110)        (1 344)  
Profit share allocations under bancassurance and other agreements                                  (1 284)          (972)  
Remeasurement of disposal groups classified as held for sale                                         (249)                
Equity accounted earnings from joint ventures                                                           32             25  
Profit before taxation                                                                               4 297          6 568  
Taxation(1)                                                                                        (1 255)        (2 864)  
Total earnings                                                                                       3 042          3 704  
Other comprehensive income/(loss)                                                                      369          (233)  
Items that may be reclassified subsequently to profit or loss                                          269           (95)  
Net change in fair value on cash flow hedges                                                           (9)             75  
Income and capital gains tax relating to net change in fair value on cash flow hedges                    3           (21)  
Net change in debt instruments measured at FVOCI                                                        42                
Income tax relating to movement in debt instument measured at FVOCI                                   (12)               
Foreign currency translation                                                                           245          (149)  
Items that may not be reclassified subsequently to profit or loss                                      100          (138)  
Owner-occupied properties - fair value adjustment                                                       19           (67)  
Income and capital gains tax relating to owner-occupied properties fair value adjustment                 2           (14)  
Change in long-term policyholder insurance liabilities (application of shadow accounting)                2           (32)  
Actuarial gains on post-retirement medical aid liability                                                70             45  
Income tax relating to post-retirement medical aid liability                                          (20)           (13)  
Net adjustments to defined benefit pension fund(2)                                                    (30)           (41)  
Income tax relating to defined benefit pension fund                                                      8           (16)  
Fair value adjustments to financial liabilities arising from own credit                                 68                
Income tax relating to fair value adjustments to financial liabilities arising from own credit        (19)               

Total comprehensive income                                                                           3 411          3 471     
Total earnings attributable to:                                                                                               
Shareholders' equity                                                                                 2 398          3 118     
Non-controlling interests                                                                              644            586     
                                                                                                     3 042          3 704     
Total comprehensive income attributable to:                                                                                   
Shareholders' equity                                                                                 2 680          2 932     
Non-controlling interests                                                                              731            539     
                                                                                                     3 411          3 471     
Basic and fully diluted earnings per share                                                           Cents          Cents     
Basic earnings per share                                                                             889,1        1 152,6     
Fully diluted basic earnings per share                                                               863,7        1 120,7     

(1) IFRS requires both policyholder and shareholder taxation to be reported in the taxation line. This therefore distorts the effective tax charge relative to profit before taxation.
(2) Net adjustments to defined benefit pension fund include actuarial gains or losses, return on plan assets, reduced by the interest on the net defined benefit asset and the effect of
    the application of the asset ceiling.

SUMMARY CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
for the year ended 31 December 2018

Rm (Audited)                                                                                          2018           2017
Balance of ordinary shareholders' equity at 1 January                                               22 444         21 676
IFRS 9 transition adjustment                                                                         (121)              
Ordinary dividends                                                                                 (1 941)        (1 942)
Total comprehensive income                                                                           2 680          2 932
Cash flow hedge recycled through profit and loss on early settlement                                    12               
Share buy-back(1)                                                                                    (247)          (350)
Black economic empowerment transaction                                                                  33             32
Share-based payments                                                                                    94             99
Preference dividends                                                                                   (2)            (2)
Share issue costs in subsidiary                                                                        (1)             
Transactions between owners                                                                             52            (1)
Ordinary shareholders' equity                                                                       23 003         22 444
Balance of non-controlling interests at 1 January                                                    7 947          7 330
Total comprehensive income                                                                             731            539
Acquisition of unincorporated property partnerships                                                                    87
Unincorporated property partnerships net distributions                                               (222)          (238)
Non-controlling interests' share of subsidiary distributions                                         (314)          (133)
Non-controlling interests' share of shares issued in subsidiary                                                         2
Share issue costs in subsidiary                                                                        (1)              
Transactions between owners                                                                            249            360
Non-controlling interests                                                                            8 390          7 947
Total equity                                                                                        31 393         30 391

(1) Share buy-backs are purchases of shares from the market to meet employee share-based payment obligations.

SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2018
            
                                                                                                  Restated
Rm (Audited)                                                                            2018       2017(1)
Cash flows from operating activities                                                   (379)         1 829
Cash utilised by operations                                                          (9 805)       (6 953)
Interest and dividends received(2)                                                     1 516        18 841
Distributions paid                                                                   (3 196)       (3 075)
Taxation paid                                                                        (3 092)       (1 946)
Net disposal/(purchase) of investments(2)                                             13 293       (2 495)
Net disposal/(purchase) of other assets                                                  215         (668)
Deposits received on/(repayments of) collateral deposits payable                       1 098         (258)
Other operating cash flows                                                             (408)       (1 617)
Cash flows from investing activities                                                   (512)         (289)
Net disposal of investments                                                               23           128
Net purchase of other assets                                                           (524)         (375)
Acquisition of associate                                                                (10)            
Acquisition of equity accounted joint ventures                                           (1)          (42)
Cash flows from financing activities                                                   2 785       (1 280)
Net funding from financial liabilities                                                 1 927           980
Net proceeds on/(repayment of) repurchase agreements liabilities                         730       (2 393)
Net cash flows from equity transactions with non-controlling interests                   377           483
Share issue cost in subsidiary                                                           (2)           
Share buy-back                                                                         (247)         (350)
            
Net increase in cash and cash equivalents                                              1 894           260
Cash and cash equivalents at the beginning of the year                                15 169        14 994
Foreign currency translation                                                             129          (85)
Disposal group cash classified as held for sale                                        (218)           
Cash and cash equivalents at the end of the year                                      16 974        15 169
            
(1) Refer to Accounting policies.
(2) Included in the movemnet on investments for 2018 was R5 200 million related to dividends received and R11 003 million related to interest income.

HEADLINE EARNINGS AND EARNINGS PER SHARE
for the year ended 31 December 2018

Rm (unless otherwise stated)/(Audited)                                                  2018          2017
Reconciliation of total earnings to headline earnings attributable to shareholders                         
Total earnings attributable to shareholders                                            2 398         3 118
Preference share dividend                                                                (2)           (2)
Basic earnings attributable to ordinary shareholders                                   2 396         3 116
Remeasurement of disposal groups classified as held for sale                             249               
Impairment of intangible assets                                                                        164
Tax on headline earnings adjustable item                                                              (28)
Headline earnings attributable to ordinary shareholders                                2 645         3 252
Net income earned on BEE preference shares                                                 8            10
Reversal of the accounting mismatch arising on consolidation of L2D(1)                 (397)         (543)
Normalised headline earnings attributable to ordinary shareholders                     2 256         2 719
Weighted average number of shares in issue ('000)                                    269 496       270 348
Normalised weighted average number of shares in issue ('000)                         275 842       276 847
Fully diluted weighted average number of shares in issue ('000)                      277 407       278 030
Earnings per share                                                                     Cents         Cents
Total earnings attributable to ordinary shareholders                                                      
Basic                                                                                  889,1       1 152,6
Headline                                                                               981,5       1 202,9
Normalised headline                                                                    817,9         982,1
Fully diluted earnings attributable to ordinary shareholders                                              
Basic                                                                                  863,7       1 120,7
Headline                                                                               953,5       1 169,7

(1) Refer to Explanation of terms.

SUMMARY CONSOLIDATED SEGMENT INFORMATION
for the year ended 31 December 2018

The audited segment results for the year ended 31 December 2018 are as follows:

                                                                                  South African operations                                          Africa regions                                                   
                                                                                   Insurance                            Asset
                                                                                   operations                      management                                                                                    
                                                                                                                                  Liberty
                                                                                SA     Liberty           Other        STANLIB      Africa    Liberty    STANLIB                  Reporting       IFRS
Rm (Audited)                                                                Retail   Corporate   operations(1)   South Africa   Insurance     Health     Africa      Total  adjustments(2)   reported
Total income                                                                43 890      11 544           2 485          2 802       2 329        912        288     64 295        (13 791)     50 504
Profit/(loss) before taxation                                                1 971         199           1 544            493           5      (351)         53      3 914             383      4 297
Taxation(3)                                                                  (803)        (44)           (209)          (138)        (67)         47       (41)    (1 255)                    (1 255)
Total earnings                                                               1 168         155           1 335            355        (62)      (304)         12      2 659             383      3 042
Reconciliation of total earnings to headline earnings/(loss) attributable
to shareholders                                                                                                                                                                                     
Total earnings/(loss)                                                        1 168         155           1 335            355        (62)      (304)         12      2 659             383      3 042
Attributable to non-controlling interests                                                                (259)                          2                   (4)      (261)           (383)      (644)
Remeasurement of disposal groups classified as held for sale                                                                           23        226                   249                        249
Preference share dividend                                                                                  (2)                                                         (2)                        (2)
Headline earnings/(loss)                                                     1 168         155           1 074            355        (37)       (78)          8      2 645                      2 645
Net income earned on BEE preference shares                                                                   8                                                           8                          8
Reversal of the accounting mismatch arising on consolidation of L2D                                      (397)                                                       (397)                      (397)
Normalised headline earnings/(loss)                                          1 168         155             685            355        (37)       (78)          8      2 256                      2 256
Reconciliation of business unit earnings/(loss) to segment result                                                                                                                                   
South African operations                                                                                                                                                                                
South African Insurance Operations                                           1 860         149                                                                       2 009                               
SA Retail                                                                    1 581                                                                                   1 581                               
Liberty Corporate                                                                           52                                                                          52                               
LibFin Markets - credit portfolio                                              208          94                                                                         302                               
LibFin Markets - asset/liability matching                                       71           3                                                                          74                               
South African Asset Management
STANLIB South Africa                                                                                                      355                                          355                            
Africa regions                                                                                                                       (37)       (78)          8      (107)                           
Liberty Africa Insurance                                                                                                             (37)                             (37)                           
Liberty Health                                                                                                                                  (78)                  (78)                           
STANLIB Africa                                                                                                                                                8          8                            
LibFin Investments - SIP                                                     (699)           6             943                                                         250                            
Central costs and sundry income(4)                                               7                       (258)                                                       (251)                           
Normalised headline earnings/(loss)                                          1 168         155             685            355        (37)       (78)          8      2 256                               

(1)   Includes shareholders' equity, not allocated to the other operating segments, specifically invested to maximise the investment yield within the group's risk appetite and
      regulatory requirements and costs associated with the group's governance, investor relations, strategy co-ordination and certain corporate social investment and black economic
      empowerment activities.
(2)   Reporting adjustments include the consolidation of unincorporated property partnerships, the consolidation of third party mutual fund liabilities, the classification of long-term
      insurance into defined IFRS 'investment' and 'insurance' products, the application of shadow accounting for the change in long-term policyholder insurance liabilities and the
      elimination of intergroup transactions.
(3)   IFRS requires both policyholder and shareholder taxation to be reported in the taxation line. This therefore distorts the effective tax charge relative to profit before taxation.
(4)   Includes the short-term insurance technology start-up.

The operating segments are supported by LibFin Markets (manages the asset/ liability mismatch risk and also originates and manages credit
assets backing the guaranteed investment product set arising in the South African insurance operations) and LibFin Investments (manages
the performance of shareholder investment exposures in the South African life insurance operations). The impact of LibFin Markets and
LibFin Investments is disclosed in the relevant segment grouping.

The audited segment results for the year ended 31 December 2017 are as follows:

                                                                                   South African operations                                     Africa regions                                          
                                                                                   Insurance                            Asset
                                                                                   operations                      management                                                                      
                                                                                                                                 Liberty
Restated(6)                                                                     SA     Liberty           Other        STANLIB     Africa   Liberty     STANLIB                  Reporting       IFRS
Rm (Audited)                                                                Retail   Corporate   operations(1)   South Africa  Insurance    Health      Africa     Total   adjustments(2)   reported
Total income                                                                68 161      15 676           4 625          2 798      2 420       929         287    94 896         (12 174)     82 722
Profit/(loss) before taxation                                                2 957         223           2 793            386        121     (134)       (123)     6 223              345      6 568
Taxation(3)                                                                (1 819)        (62)           (725)          (134)       (74)        28        (78)   (2 864)                     (2 864)
Total earnings                                                               1 138         161           2 068            252         47     (106)       (201)     3 359              345      3 704
Reconciliation of total earnings to headline earnings/(loss) attributable
to shareholders                                                                                                                                                                                      
Total earnings/(loss)                                                        1 138         161           2 068            252         47     (106)       (201)     3 359              345      3 704
Attributable to non-controlling interests                                      (1)                       (179)                      (58)                   (3)     (241)            (345)      (586)
Remeasurement of disposal groups classified as held for sale                                               (2)                                                       (2)                         (2)
Preference share dividend                                                       13          71                                                  52                   136                         136
Headline earnings/(loss)                                                     1 150         232           1 887            252       (11)      (54)       (204)     3 252                       3 252
Net income earned on BEE preference shares                                                                  10                                                        10                          10
Reversal of the accounting mismatch arising on consolidation of L2D                                      (543)                                                     (543)                       (543)
Normalised headline earnings/(loss)                                          1 150         232           1 354            252       (11)      (54)       (204)     2 719                       2 719
Reconciliation of business unit earnings/(loss) to segment result                                                                                                                                   
South African operations                                                                                                                                                                            
South African Insurance Operations                                           1 435         220              10                                                     1 665                                
SA Retail                                                                    1 208                                                                                 1 208                                
Liberty Corporate                                                                           81                                                                        81                                
LibFin Markets - credit portfolio                                              192         138                                                                       330                                
LibFin Markets - asset/liability matching                                       35           1              10                                                        46                                
South African Asset Management
STANLIB South Africa                                                                                                      252                                        252                                
Africa regions                                                                                                                      (11)      (54)       (204)     (269)                               
Liberty Africa Insurance(4)                                                                                                         (11)                            (11)                              
Liberty Health                                                                                                                                (54)                  (54)                              
STANLIB Africa                                                                                                                                           (204)     (204)                               
LibFin Investments - SIP                                                     (365)          12           1 660                                                     1 307                                
Central costs and sundry income(5)                                              80                       (316)                                                     (236)                               
Normalised headline earnings/(loss)                                          1 150         232           1 354            252       (11)      (54)       (204)     2 719                                

(1)   Includes shareholders' equity, not allocated to the other operating segments, specifically invested to maximise the investment yield within the group's risk appetite and
      regulatory requirements and costs associated with the group's governance, investor relations, strategy co-ordination and certain corporate social investment and black economic
      empowerment activities.
(2)   Reporting adjustments include the consolidation of unincorporated property partnerships, the consolidation of third party mutual fund liabilities, the classification of long-term
      insurance into defined IFRS 'investment' and 'insurance' products, the application of shadow accounting for the change in long-term policyholder insurance liabilities and the
      elimination of intergroup transactions.
(3)   IFRS requires both policyholder and shareholder taxation to be reported in the taxation line. This therefore distorts the effective tax charge relative to profit before taxation.
(4)   Includes costs associated with central management support. 2017 includes the costs associated with the terminated long-term licence acquisition in Nigeria.
(5)   Includes the short-term insurance technology start-up.
(6)   Refer to Accounting policies.

GROUP EQUITY VALUE REPORT
for the year ended 31 December 2018

1.    Introduction
      Liberty presents a group equity value to reflect the combined value of the various components of Liberty's businesses.
      Section 2 below describes the valuation bases used for each reported component. It should be noted that the group equity value
      is presented to provide additional information to shareholders to assess performance of the group. The total equity value is not
      intended to be a fair value calculation of the group but provides indicative information of the inherent value of the component parts.

2.    Component parts of the group equity value and valuation techniques used
      Group equity value has been calculated as the sum of the following component parts:

2.1   South African (SA) covered business
      The wholly-owned subsidiary, Liberty Group Limited, comprises the South African long-term insurance entities and related
      asset holding entities. The embedded value methodology in terms of Advisory Practice Note 107 issued by the Actuarial Society
      of South Africa continues to be used to derive the value of this business cluster described as "South African covered business".
      The embedded value report of the South African covered business has been reviewed by the group's Head of Actuarial Function.
      The full embedded value report is included in the supplementary information section.
      The prudential regulatory regime governing South African assurance companies changed on 1 July 2018. This has necessitated a
      change to Liberty's embedded value methodology, in particular:

      -  The assessment of the net worth and value of in-force covered business has been changed to reference the published liabilities
         in order to improve alignment between the embedded value and published reporting bases. This change has led to an increase
         in the net worth and a decrease in the value of in-force; and

      -  The approach used for assessing the cost of required capital has been adjusted to reflect the new solvency regime which has
         led to an increase in the cost of required capital.

2.2   Other businesses
      STANLIB South Africa Valued using a 10 times (2017: 10 times) multiple of estimated sustainable earnings.
      STANLIB Africa           Valued using a combination of estimated sales price where available, if held for sale, or a 10 times (2017: 10 times)
                               multiple of estimated sustainable earnings, adjusted for country risk.
      Liberty Health           As Liberty Health is under disposal groups held for sale, the IFRS net asset value has been used which
                               includes remeasurement to fair value, less cost to sell.
      Liberty Africa           Liberty Africa Insurance is an emerging cluster of both long- and short-term insurance businesses located
      Insurance                in various African countries outside of South Africa. A combination of valuation techniques including
                               embedded value, discounted cash flow and earnings multiples have been applied to value these
                               businesses. The combined value of this cluster is not material relative to the other components of group
                               equity value and therefore a detailed analysis of this valuation has not been presented. At 31 December
                               2018 the combined valuations were approximately equal to the group's IFRS net asset value. Therefore the
                               IFRS net asset value was used.
      Liberty Holdings         The net market value of assets and liabilities held by the Liberty Holdings Limited company excluding
                               investments in any subsidiaries which are valued separately.

2.3   Liberty Two Degrees (L2D) normalisation adjustment
      This represents the difference between Liberty's share of the net asset value of L2D as at the reporting date and the listed price of
      L2D units multiplied by the number of units in issue to Liberty at the reporting date. Adjusting the valuation from net asset value
      to share price is required to ensure consistency between policyholder liabilities and their backing assets, and to provide a market
      consistent valuation of the L2D shares held within the shareholder investment portfolio.

2.4   Other adjustments
      These comprise the fair value of share rights allocated to staff not employed by the South African covered businesses, adjusting
      certain deferred tax assets to current values and allowance for certain shareholder recurring expenses incurred in Liberty Holdings
      Limited capitalised at a multiple of 9 times (2017: 9 times).

3.    Normalised group equity value 

3.1   Analysis of normalised group equity value
      2018                                                                    SA covered          Other 
      Rm (Audited)                                                              business     businesses       Total
      Liberty Group Limited consolidated                                          18 088                     18 088
      STANLIB South Africa(1)                                                                       852         852
      STANLIB Africa(1)                                                                              84          84
      Liberty Africa Insurance                                                                      926         926
      Liberty Holdings                                                                            1 731       1 731
      Operations under ownership review(3)                                                          382         382
      Liberty Two Degrees adjustment to net asset value(2)                           932              8         940
      Shareholders' equity reported under IFRS                                    19 020          3 983      23 003
      Reverse deferred acquisition cost and deferred revenue liability             (328)                      (328)
      Reverse value of in-force acquired                                             (7)                        (7)
      Frank Financial Services allowance for future expenses                       (100)                      (100)
      Impact of discounting on deferred tax asset                                                 (100)       (100)
      BEE preference funding                                                          99                         99
      Liberty Two Degrees adjustment(2)                                            (932)            (8)       (940)
      Allowance for employee share rights                                           (46)           (36)        (82)
      Normalised net worth                                                        17 706         3 839       21 545
      Value of in-force - SA Retail                                               16 054                     16 054
      Value of in-force - Liberty Corporate                                        2 965                      2 965
      Cost of required capital                                                   (3 038)                    (3 038)
      Fair value adjustment - STANLIB South Africa(1)                                             2 948       2 948
      Fair value adjustment - STANLIB Africa(1)                                                     200         200
      Allowance for future shareholder expenses                                                 (1 990)     (1 990)
      Normalised equity value                                                     33 687          4 997      38 684
      
      (1)   STANLIB valuation (Rm)                                                                             2018

            STANLIB South Africa                                                                              3 800
            Value at 31 December 2017                                                                         4 450
            Sale of STANLIB REIT Fund Managers (RF) (Pty) Ltd                                                 (307)
            Fair value adjustment - 2018                                                                      (343)

            STANLIB Africa(i)                                                                                   330
            Value at 31 December 2017                                                                           150
            Fair value adjustment - 2018                                                                        180

            Total                                                                                             4 130

(i)   This includes R46m in respect of Stanlib Africa which is included in the operations under ownership review line item in the table above.
(2)   This represents the difference between Liberty's share of the net asset value of L2D as at the reporting date and the listed price of L2D shares multiplied by the number
      of shares in issue to Liberty at the reporting date. Adjusting the valuation from net asset value to share price is required to ensure consistency between policyholder
      liabilities and their backing assets, and to provide a market consistent valuation of the L2D shares held within the shareholder investment portfolio.
(3)   Under IFRS these are disclosed as disposal groups classified as held for sale.

      2017                                                                    SA covered          Other
      Rm (Audited)                                                              business     businesses       Total
      Liberty Group Limited consolidated                                          18 412                     18 412
      STANLIB South Africa(2)                                                                       795         795
      STANLIB Africa(2)                                                                             100         100
      Liberty Health (including Total Health Trust)                                                 299         299
      Liberty Africa Insurance                                                                      813         813
      Liberty Holdings                                                                            1 428       1 428
      Liberty Two Degrees adjustment to net asset value(3)                                          597         597
      Shareholders' equity reported under IFRS                                    18 412          4 032      22 444
      Difference between statutory and published valuation methods               (7 253)                    (7 253)
      Negative rand reserves                                                     (6 806)                    (6 806)
      Deferred acquisition costs                                                   (730)                      (730)
      Deferred revenue liability                                                     283                        283
      Subordinated notes                                                           5 581                      5 581
      CAR of subsidiaries                                                           (10)                       (10)
      Reverse value of in-force acquired                                            (12)                       (12)
      Inadmissible assets                                                        (1 018)                    (1 018)
      Statutory excess assets over liabilities(1)                                 15 700          4 032      19 732
      Reverse CAR of subsidiaries                                                     10                         10
      Reverse subordinated notes                                                 (5 581)                    (5 581)
      Reverse inadmissible assets                                                  1 018                      1 018
      Frank Financial Services allowance for future expenses                       (100)                      (100)
      Impact of discounting on deferred tax asset                                                 (100)       (100)
      BEE preference funding                                                         123                        123
      Liberty Two Degrees adjustment(3)                                                           (597)       (597)
      Allowance for employee share rights                                           (36)           (36)        (72)
      Normalised net worth                                                        11 134          3 299      14 433
      Value of in-force - SA Retail                                               22 088                     22 088
      Value of in-force - Liberty Corporate                                        3 049                      3 049
      Cost of required capital                                                   (1 690)                    (1 690)
      Fair value adjustment - STANLIB South Africa(2)                                             3 655       3 655
      Fair value adjustment - STANLIB Africa(2)                                                      50          50
      Allowance for future shareholder expenses                                                 (2 217)     (2 217)
      Normalised equity value                                                     34 581          4 787      39 368

(1)   The adjustments between the IFRS and statutory net asset values for the Liberty Africa subsidiaries have not been included. This is because the group equity value for
      these entities is set to their IFRS net asset value and so these adjustments do not affect group equity value.

(2)   STANLIB valuation (Rm)                                                                                   2017

      STANLIB South Africa                                                                                    4 450
      STANLIB Africa                                                                                            150

      Total                                                                                                   4 600

(3)   This represents the difference between Liberty's share of the net asset value of L2D as at the reporting date and the listed price of L2D units multiplied by the number of
      units in issue to Liberty at the reporting date. Adjusting the valuation from net asset value to share price is required to ensure consistency between policyholder liabilities
      and their backing assets, and to provide a market consistent valuation of the L2D shares held within the shareholder investment portfolio.

3.2   Normalised group equity value earnings and value per share
                                                                  2018                                 2017
                                                           SA                                  SA
                                                      covered        Other                covered         Other
      Rm (Audited)                                   business   businesses      Total    business    businesses       Total
      Normalised equity value at the end of
      the period                                       33 687        4 997     38 684      34 581         4 787      39 368
      Equity value at the end of the period            34 520        5 005     39 525      34 458         5 384      39 842
      Liberty Two Degrees adjustment(1)                 (932)          (8)      (940)                     (597)       (597)
      BEE preference shares                                99                      99         123                       123
      Net share buy-backs                                              247        247                       350         350
      Funding of restricited share plan                    80         (80)                     92          (92)          
      Intragroup dividends(2)                           2 252      (2 252)                  2 600       (2 600)           
      Dividends paid                                                 1 943      1 943                     1 944       1 944
      Normalised equity value at the beginning of
      the period                                     (34 599)      (4 787)   (39 386)    (34 470)       (6 751)    (41 221)
      Equity value at the beginning of the period    (34 458)      (5 384)   (39 842)    (34 322)       (6 421)    (40 743)
      Beginning of year adjustment for
      introduction of new prudential regime(3)          (139)                   (139)                                    
      IFRS 9 transition adjustment                        121                     121                                    
      Liberty Two Degrees adjustment(1)                                597        597                     (330)       (330)
      BEE preference shares                             (123)                   (123)       (148)                     (148)
 
      Normalised equity value earnings                  1 420           68      1 488       2 803       (2 362)         441
      Normalised return on group equity     
      value (%)                                           4,1          1,5        3,8         8,2        (36,4)         1,1
      Normalised number of shares ('000)                                      279 025                               280 573
      Number of shares in issue ('000)                                        268 418                               270 120
      Shares held for the employee restricted   
      share scheme ('000)                                                       4 353                                 4 014
      Adjustment for BEE shares ('000)                                          6 254                                 6 439
      Normalised group equity value per share   
      (R)                                                                      138,64                                140,31

(1)   This represents the difference between Liberty's share of the net asset value of L2D as at the reporting date and the listed price of L2D shares multiplied by the number
      of shares in issue to Liberty at the reporting date. Adjusting the valuation from net asset value to share price is required to ensure consistency between policyholder
      liabilities and their backing assets, and to provide a market consistent valuation of the L2D shares held within the shareholder investment portfolio.
      In the prior period this adjustment was applied at a Liberty Holdings level. As a result of the transaction between L2D and Liberty Group Limited in 2018 and the
      consequential reassessment of control as defined under IFRS this adjustment is now required at a Liberty Group Limited consolidated level.
(2)   Dividends paid by Liberty Group Limited to Liberty Holdings Limited.
(3)   This adjustment and the consequential impact on the components of the embedded value earnings analysis are explained in section 1 of the South African covered
      business embedded value report.

3.3   Sources of normalised group equity value earnings
                                                                    2018                              2017
                                                           SA                                 SA
                                                      covered        Other               covered         Other
      Rm (Audited)                                   business   businesses      Total   business    businesses       Total
      Value of new business written in the period         344           27        371        212            21         233
      Expected return on value of    
      in-force business                                 2 433                   2 433      2 926                     2 926
      Variances/changes in     
      operating assumptions                               507                     507        109                       109
      Operating experience variances                      423                     423        330                       330
      Operating assumption changes                        103                     103         30                        30
      Changes in modelling methodology                   (19)                    (19)      (251)                     (251)
      New operating model - expense impact(1)           (372)          372                                              
      Development costs                                   (9)         (99)      (108)       (55)         (166)       (221)
      Liberty Holdings shareholder expenses(2)                       (369)      (369)                    (584)       (584)
      Headline earnings of other    
      businesses/intragroup transfers                                  246        246         46           100         146
      Operational equity value profits                  2 903          177      3 080      3 238         (629)       2 609
      Economic adjustments                            (1 473)          417    (1 056)      (432)         (139)       (571)
      Return on net worth                                   2          417        419       (14)         (139)       (153)
      Investment variances                            (1 225)                 (1 225)      (594)                     (594)
      Change in economic assumptions                    (250)                   (250)        176                       176
      Change in fair value adjustments on value of    
      other businesses(3)                                            (526)      (526)                  (1 585)     (1 585)
      Change in allowance for share rights               (10)                    (10)        (3)           (9)        (12)
      Group equity value earnings                       1 420           68      1 488      2 803       (2 362)         441

(1)   This is the anticipated impact of reserving for expenses that currently reside in Liberty Holdings Limited that will be transferred to Liberty Group Limited with effect
      1 January 2019, in line with the change to the group's operating model which came into effect on the same date.
(2)   This includes the actual shareholder expenses incurred by Liberty Holdings of R223 million (31 December 2017: R260 million) plus the change in the allowance for future
      shareholder expenses over the period.
(3)   The negative R526 million comprises STANLIB South Africa negative R400 million, STANLIB Africa positive R150 million, operations under ownership review
      remeasurement of negative R249 million and R27 million Liberty Africa Insurance VONB offset.

3.4   Analysis of value of long-term insurance new business and margins 
      Rm (unless otherwise stated) (Audited)                                                  2018       2017
      South African covered business                                                                         
      SA Retail                                                                              1 710      1 445
      Traditional Life                                                                       1 317      1 159
      Direct Channel                                                                            82         67
      Credit Life                                                                               98         83
      LibFin Credit uplift to SA Retail                                                        213        136
      Liberty Corporate                                                                        168        162
      Traditional business                                                                     132        137
      LibFin Credit uplift to Liberty Corporate                                                 36         25
 
      Gross value of new business                                                            1 878      1 607
      Overhead acquisition (including underwriting) costs impact on value of new business  (1 341)    (1 305)
      Cost of required capital                                                               (193)       (90)
      Net value of South African covered business                                              344        212
      Present value of future expected premiums                                             42 417     42 782
      Margin (%)                                                                               0,8        0,5
      Liberty Africa Insurance                                                                                
      Net value of new business                                                                 27         21
      Present value of future expected premiums                                                972        528
      Margin (%)                                                                               2,8        3,9
      Total group net value of new business                                                    371        233
      Total group margin (%)                                                                   0,9        0,5

LONG-TERM INSURANCE NEW BUSINESS
for the year ended 31 December 2018

Rm (Unaudited)                                                                                2018       2017
Sources of insurance operations total new business by product type                                           
Retail                                                                                      26 641     27 132
Single                                                                                      22 131     22 660
Recurring                                                                                    4 510      4 472
Institutional                                                                                2 377      2 034
Single                                                                                       1 166        838
Recurring                                                                                    1 211      1 196
                       
Total new business                                                                          29 018     29 166
Single                                                                                      23 297     23 498
Recurring                                                                                    5 721      5 668
                       
Insurance indexed new business                                                               8 051      8 018
Sources of insurance indexed new business                                                                    
SA Retail                                                                                    6 495      6 570
Liberty Corporate                                                                            1 192      1 171
Liberty Africa Insurance(1)                                                                    364        277

(1) Liberty owns less than 100% of certain entities that make up Liberty Africa. The information is recorded at 100% and is not adjusted for proportional legal ownership.

The difference between the single premiums reported under total long-term insurance premiums and single premiums reported under
long-term insurance new business by distribution channel arises mainly from different treatment for extensions of matured policies,
reinvestment of fund withdrawals, conversions of standalone funds to umbrella funds and fund member movements within Liberty
administered funds.

LONG-TERM INSURANCE NET CUSTOMER CASH FLOWS
for the year ended 31 December 2018

Rm (Audited)                                                                                  2018       2017
Net premiums by product type                                                                                
Retail                                                                                      43 553     43 467
Single                                                                                      21 836     22 191
Recurring                                                                                   21 717     21 276
Institutional                                                                               11 522     10 673
Single                                                                                       2 062      1 416
Recurring                                                                                    9 460      9 257
    
Net premium income from insurance contracts and inflows from investment contracts           55 075     54 140
    
Single                                                                                      23 898     23 607
Recurring                                                                                   31 177     30 533
Net claims and policyholders benefits by product type                                                       
Retail                                                                                    (41 263)   (40 436)
Death and disability claims                                                                (7 277)    (6 567)
Policy surrender and maturity claims                                                      (27 579)   (27 984)
Annuity payments                                                                           (6 407)    (5 885)
Institutional                                                                             (11 811)   (12 070)
Death and disability claims                                                                (2 285)    (2 118)
Scheme terminations and member withdrawals                                                 (8 726)    (9 139)
Annuity payments                                                                             (800)      (813)
  
Net claims and policyholders benefits                                                     (53 074)   (52 506)
Long-term insurance net customer cash flows(1)                                               2 001      1 634
Rm (Unaudited)                                                                                             
Sources of insurance operations net cash flows:                                                            
SA Retail                                                                                    2 065      2 846
Liberty Corporate                                                                            (449)    (1 536)
Liberty Africa Insurance(2)                                                                    385        324

(1) This excludes net cash inflows attributed to the off balance sheet GateWay LISP of R524 million (2017: R350 million).
(2) Liberty owns less than 100% of certain entities that make up Liberty Africa. The information is recorded at 100% and is not adjusted for proportional legal ownership.

ASSETS UNDER MANAGEMENT(1)
as at 31 December 2018
                                                   
Rbn (Unaudited)                                                                               2018      2017
Managed by group business units                                                                682       684
STANLIB South Africa                                                                           549       556
STANLIB Africa(2)                                                                               51        53
Remaining operations                                                                            19        20
Operations under ownership review(4)                                                            32        33
LibFin Markets                                                                                  65        62
Other internal managers                                                                         17        13
Externally managed                                                                              36        36
Total assets under management(3)                                                               718       720

(1) Includes funds under administration.
(2) Liberty owns less than 100% of certain of the entities that make up STANLIB Africa. The information is recorded at 100% and is not adjusted for proportional legal ownership.
(3) Included in total assets under management are the following LISP December 2018 amounts:

                                                                                STANLIB      Other  
Unit trusts listed (Rbn)                                                        managed    managed     Total
  
STANLIB                                                                              39         78       117
Gateway                                                                               4          5         9
(4) Under IFRS these are disclosed as disposal groups classified as held for sale.

ASSET MANAGEMENT NET CASH FLOWS(1)
as at 31 December 2018

Rm (Unaudited)                                                                              2018        2017
STANLIB South Africa                                                                                     
Non-money market                                                                           9 155       4 815
Retail                                                                                     6 146       8 249
Institutional                                                                              3 009     (3 434)
Money market                                                                                6994        (84)
Retail                                                                                      (48)     (1 400)
Institutional                                                                              7 042       1 316
                   
Net South Africa cash inflows                                                             16 149       4 731
STANLIB Africa                                                                                           
Non-money market                                                                         (7 696)     (1 156)
Retail                                                                                        19         738
Institutional                                                                            (7 715)     (1 894)
Money market                                                                               (868)         676
Net Africa cash outflows                                                                 (8 564)       (480)
Net cash inflows from asset management                                                     7 585       4 251

(1) Cash flows exclude intergroup segregated life funds mandates.

SHORT-TERM INSURANCE INDICATORS
for the year ended 31 December 2018
   
Rm (Audited)                                                                                2018        2017
Net premiums                                                                               1 347       1 297
Liberty Health - medical risk                                                                808         777
Liberty Africa Insurance - motor, property, medical and other                                539         520
Net claims                                                                                 (943)       (886)
Liberty Health - medical risk                                                              (650)       (637)
Liberty Africa Insurance - motor, property, medical and other                              (293)       (249)
                             
Net cash inflows from short-term insurance                                                   404         411
Unaudited                                                                                                   
Claims loss ratio (%)                                                                                       
Liberty Health                                                                                80          82
Liberty Africa Insurance                                                                      54          48
Combined loss ratio (%)                                                                                     
Liberty Health                                                                               117         102
Liberty Africa Insurance                                                                     108          99
                             
CAPITAL COMMITMENTS                             
as at 31 December 2018                             
                             
Rm (Audited)                                                                                2018        2017
Equipment                                                                                    543         741
Investment and owner-occupied property                                                     1 497       1 432
Committed capital(1)                                                                       1 337       1 071
Total capital commitments                                                                  3 377       3 244
Under contracts                                                                              808         430
Authorised by the directors but not contracted                                             2 569       2 814

(1)   Liberty has committed capital to certain infrastructure and development funds through consolidated mutual fund subsidiaries. The committed funds are drawn down
      when required.

The above 2018 capital commitments will be financed by available bank facilities, existing cash resources, internally generated funds and
R482 million (2017: R452 million) from non-controlling interests in respect of investment properties.

RETIREMENT BENEFIT OBLIGATIONS
as at 31 December 2018

Audited
Post-retirement medical benefit
The group operates an unfunded post-retirement medical aid benefit for permanent employees who joined the group prior to
1 February 1999 and agency staff who joined prior to 1 March 2005. As at 31 December 2018, the Liberty post-retirement medical aid
benefit liability was R471 million (2017: R495 million).
Defined benefit retirement fund
The group operates a defined benefit pension scheme on behalf of employees. The fund is closed to new membership and is well funded.

RELATED PARTIES
for the year ended 31 December 2018
Audited
Standard Bank Group Limited and any subsidiary (excluding Liberty) is referred to as Standard Bank in the context of this section.
The following selected significant related party transactions have occurred in the 31 December 2018 financial period:

1.      Summary of related party transactions with Standard Bank
1.1     Summary of movement in investment in ordinary shares held by the group in the group's holding company is as follows:
       
                                      Number    Fair value     Ownership
                                        '000            Rm             %
Standard Bank Group Limited                                          
Balance at 1 January 2018             16 180         3 166          1,02
Purchases                             12 301         2 445              
Sales                                (7 863)       (1 491)             
Fair value adjustments                               (433)             
Balance at 31 December 2018           20 618         3 687          1,29

1.2   Bancassurance
      Liberty has extended the bancassurance business
      agreements with Standard Bank group for the manufacture,
      sale and promotion of insurance, investment and health
      products through the Standard Bank's African distribution
      capability. New business premium income in respect of
      this business in 2018 amounted to R8 895 million (2017:
      R9 129 million). In terms of the agreements, Liberty's group
      subsidiaries pay profit shares to various Standard Bank
      operations. The amounts to be paid are in most cases
      dependent on source and type of business and are paid
      along geographical lines. The total combined net profit
      share amounts accrued as payable to the Standard Bank
      group for the year to 31 December 2018 is R1 266 million
      (2017: R948 million).

      The bancassurance business agreements are evergreen
      agreements with a 24-month notice period for termination
      - as at the date of the approval of these financial statements,
      neither party had given notice.

1.3   Purchases and sales of financial instruments
      As per Liberty's 2017 group annual financial statements, in
      the normal course of conducting business, Liberty deposits
      cash with Standard Bank, purchases and sells financial
      instruments issued by Standard Bank and enters into sale
      and repurchase agreements and derivative transactions
      with Standard Bank. These transactions are at arm's length
      and are primarily used to support investment portfolios for
      policyholders and shareholders' capital.

1.4   Business operations contracted sale to Standard Bank
      As released on the JSE SENS on 27 February 2019, Liberty Holdings
      Limited has entered into a sale and purchase agreement
      with the Standard Bank of South Africa to dispose of 100%
      of the technology that supports and enables its short-term
      insurance business, which is operated as a division of
      Liberty Holdings Limited, including all moveable assets
      used and intellectual property. The purchase consideration
      is R145 million, which will realise a profit on sale of
      R51 million to be recognised in 2019. The transaction
      enables the Liberty group to continue to provide
      short-term products to its customers, while reducing
      future capital requirements, and to focus on the objective
      of its strategy refresh being to concentrate on long-term
      insurance and asset management businesses.

2.    Other related party transaction - Liberty
      Two Degrees (L2D)
      Effective 6 November 2018, Liberty sold a 100% owned
      subsidiary in STANLIB REIT Fund Managers (RF) (Pty) Ltd
      (an asset manager company) to L2D for R307 million.
      In addition, Liberty Group Limited disposed of a R1,2 billion
      share in its property portfolio to L2D. The existing put
      option that Liberty Group Limited previously had, which
      allowed it to sell further portions of its undivided shares in
      existing properties to L2D, was cancelled for no value.

DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE
as at 31 December 2018

Audited
As part of the strategy refresh exercise conducted during 2018, various cash-generating units were identified as either sub scale or no longer
applicable to Liberty's revised strategy. Consequently the board approved a process of disposals and strategic partnership negotiations
which is likely to lead to loss of control of these cash-generating units during 2019.

The cash-generating units impacted are asset mangement operations in Ghana, Uganda, Kenya and Botswana, Health risk solutions, the
short-term insurance technology start up and short-term insurance in Malawi and Namibia.

These entities were included in the consolidated financial statements of Liberty Holdings Limited in 2017.

Based on the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, the assets and liabilities have been
disclosed as disposal groups, and are separately disclosed on the statement of financial position. The disposal groups are measured at the
lower of carrying amount and fair value less costs to sell, which lead to various impairments, as set out below.

The classes of assets and liabilities comprising the disposal groups classified as held for sale are as follows:

2018
Rm                                              Gross    Impairment       Net
Total assets classified as held for sale        1 146         (249)       897
Intangibles assets                                183          (85)        98
Properties                                         17           (2)        15
Equipment                                          24          (16)         8
Deferred taxation                                 118         (118)          
Reinsurance assets - short-term insurance          18           (7)        11
Financial investments                              71                      71
Prepayments, insurance and other receivables      497          (21)       476
Cash and cash equivalents                         218                     218
                                                                             
Total liabilities classified as held for sale     278                     278
Short-term insurance liabilities                  116                     116
Employee benefits                                  40                      40
Insurance and other payables                      116                     116
Current taxation                                    6                       6
     
Net assets of disposal groups held for sale       868         (249)       619

The potential sales are not discontinued operations as defined as they are not disposals of separate major lines of business or geographical
areas of operation. Profit or loss from cash-generating units within disposal groups have not been separately identified in the income
statement.

OFFSETTING, ENFORCEABLE MASTER NETTING
ARRANGEMENTS OR SIMILAR AGREEMENTS
as at 31 December 2018

The group does not have any financial assets or financial liabilities that are currently subject to offsetting in accordance with IAS 32 Financial
Instruments: Presentation. The table below sets out the nature of agreements and the types of rights relating to items which do not qualify
for offset but that are subject to a master netting arrangement (MNA) or similar agreement.

                                    NATURE OF AGREEMENT                             RELATED RIGHTS
Derivative assets and liabilities   International swaps and derivatives associations The agreement allows for offset in the event of
                                                                                     default
Repurchase agreements               Global master repurchase agreements
Collateral deposits payable         Global master securities lending arrangements

                                                            Not subject         Subject
                                                                 to MNA          to MNA
                                                             or similar      or similar        Financial
Rm (Audited)                                     Total       agreements      agreements    collateral(1)      Net
2018                                                                                                        
Assets                                                                                                      
Assets held for trading and for hedging         10 340          (1 496)           8 844          (8 008)      836
Total assets                                    10 340          (1 496)           8 844          (8 008)      836
Liabilities                                                                                                     
Liabilities held for trading and for hedging     8 457            (133)           8 324          (8 008)      316
Repurchase agreements liabilities                5 771                            5 771          (5 680)       91
Collateral deposits payable                      5 976                            5 976          (5 976)         
Total liabilities                               20 204            (133)          20 071         (19 664)      407
2017                                                                                                             
Assets                                                                                                           
Assets held for trading and for hedging          7 871          (1 356)           6 515          (6 016)      499
Total assets                                     7 871          (1 356)           6 515          (6 016)      499
Liabilities                                                                                                      
Liabilities held for trading and for hedging     6 311             (56)           6 255          (6 016)      239
Repurchase agreements liabilities                4 671                            4 671          (4 671)        
Collateral deposits payable                      4 426                            4 426          (4 426)        
Total liabilities                               15 408             (56)          15 352         (15 113)      239
  
(1) Financial collateral relates to these instruments that are subject to MNA or similar agreements.

ACCOUNTING CLASSIFICATIONS OF FINANCIAL
INSTRUMENTS UNDER IFRS 9
as at 31 December 2018

Opening transition adjustment as at 1 January 2018

                                                                                               As
                                                                                       previously                       As classified
                                                                                         reported                        under IFRS 9
                                                                                     under IAS 39                       at fair value
                                                                                     at amortised         Transition          through
Rm (Audited)                                                                                 cost         adjustment   profit or loss
Loan receivables                                                                              894               (63)              831
Financial liabilities                                                                     (5 581)              (105)          (5 686)
Gross transition adjustment                                                                                    (168)                
Taxation                                                                                                          47                 
Net transition adjustment                                                                                      (121)                

as at 31 December 2018
                                 Fair value through profit or loss            
                                                                                                                            Total per
                                  Held for                                                                        Other     statement
                               trading and       Desig-                             Total fair   Amortised  measurement  of financial
Rm (Audited)                       hedging        nated        Default     FVOCI         value        cost        basis      position
Financial assets                                                                                                                  
Interests in joint ventures                                      1 297                   1 297                       56         1 353
Interests in associates                                         13 824                  13 824                       10        13 834
Financial investments                             2 486        308 339    16 803       327 628                                327 628
Loan receivables                                                   737                     737         340                      1 077
Assets held for hedging       
and for trading                     10 340                                              10 340                                 10 340
Repurchase agreements,       
scrip and collateral assets                                     12 658                  12 658                                 12 658
Prepayments, insurance       
and other receivables                                            3 037                   3 037         664        1 252         4 953
Cash and cash equivalents                                       10 024                  10 024       6 950                     16 974
Total                               10 340        2 486        349 916    16 803       379 545       7 954        1 318       388 817
Financial liabilities                                                                                                                    
Financial liabilities under       
investment contracts                             99 813                                 99 813                                 99 813
Third-party financial       
liabilities arising on       
consolidation of       
mutual funds                                     48 186                                 48 186                                 48 186
Financial liabilities                             6 478                                  6 478       1 626                      8 104
Liabilities held for trading       
and for hedging                      8 457                                               8 457                                  8 457
Repurchase agreements       
liabilities and collateral       
deposits payable                                 11 747                                 11 747                                 11 747
Insurance and other       
payables                                          4 628                                  4 628         708        6 635        11 971
Total                                8 457      170 852                                179 309       2 334        6 635       188 278
   
The table above reflects the classification of the group's financial assets and financial liabilities as at 31 December 2018 split into the
IFRS 9 measurement categories. The financial assets categories have been determined based on the contractual cash flow characteristics
and business model of the entity.

Sponsor
Merrill Lynch
A subsidiary of
Bank of America Corporation

Date: 28/02/2019 07:10:00 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.

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