Non-recurring items cost the Group R403 million before tax (R290 million after tax) and include, amongst others, the cost of the data loss incident previously reported on, the write-off of irrecoverable reinsurance and other balances, and large losses arising from the breach of underwriting mandates by a third party underwriting manager.

The underwriting result declined to a deficit of R564 million from a deficit of R38 million in 2008. The combined ratio for the year was 113.2% (2008: 100.9%). The general insurance result, inclusive of attributable investment income, declined from R31.9 million to a deficit of R458 million.

Investment income was maintained despite a reduction in interest rates in the current year. The sale of equities realised gains of R108 million (2008: R98 million).

The Group’s balance sheet and cash flows remain sound. At 39.0%, the solvency ratio is broadly within the target range as set by the Board. Net asset value decreased by 10.5% to R136.47 per share at the end of the year. Having regard to the headline loss, the Directors have decided to strengthen the statutory solvency of the Company by not declaring a dividend.