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Notes to the annual financial statements
for the year ended 31 December 2008

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1. General information 2. Summary of significant accounting policies 3. Critical accounting judgements and estimates 4. Segment information - Group 5. Basic and diluted earnings and dividend per share 6. Property and equipment 7. Management of financial risks 8. Investments 9. Financial assets 10. Employee benefit obligations 11. Insurance risk management 12. Insurance liabilities and reinsurance assets 13. Intangible assets 14. Current taxation asset and current taxation liability 15. Cash and cash equivalents 16. Share capital 17. Share premium 18. Revaluation reserves (non-distributable reserves) 19. Share-based payment reserve 20. Deferred taxation 21. Accounts payable and accrued expenses 22. Provisions 23. Deferred reinsurance commission 24. Investment income 25. Net fair value losses on assets held at fair value through income 26. Net realised gains 27. Administrative and other operating expenses 28. Income tax expense 29. Cash generated from operations 30. Taxation paid 31. Related-party transactions 32. Directors' emoluments 33. Post balance sheet events 34. Contingency

				2008	2007
				R'000	R'000
8.	Investments
8.1	Investment property
	Group
	At beginning of the year			5,674	9,641
	Reclassified to property and equipment			(5,674)	–
	Disposal			–	(1,640)
	Exchange rate movement			–	(2,327)
	At end of the year			–	5,674
	Cost			–	947
	Revaluation			–	4,727
	Total			–	5,674
	The building is now occupied by the Group and has, accordingly, been reclassified as owner-occupied property (see note 6).
		Unquoted	Unsecured	Current
		shares at cost	loans	accounts	Total
		R’000	R’000	R’000	R’000
8.2	Investment in subsidiaries
	Company
	At 31 December 2006	71,826	2,268	1,044	75,138
	Advances to subsidiaries	–	23,648	8,336	31,984
	Repayments from subsidiaries	–	(25,873)	(8,174)	(34,047)
	At 31 December 2007	71,826	43	1,206	73,075
	Reclassified to loans and receivables	–	(43)	(1,206)	(1,249)
	Additions and transfers	3,509	–	–	3,509
	Carrying value at 31 December 2008	75,335	–	–	75,335
	With effect from 1 September 2008, the Group acquired an additional 3,647 shares (or 16.33%) of an associate company, IDI Technology Solutions (Pty) Limited (IDI), at the par value of the shares, ie R233. Consequently, the Group now holds 52.33% of IDI and therefore recognised it as a subsidiary in the consolidated financial statements of the Group from the effective date. IDI’s contribution to the income of the Group subsequent to it becoming a subsidiary is not significant.
	The assets and liabilities in subsidiary companies at date of acquisition and consolidated during the year were as follows:
	Plant and equipment				95
	Goodwill				4,004
	Loans and receivables				1,287
	Payables				(1,877)
	Total net assets				3,509
	Investment in associates transferred				(3,509)
					–
				Group
				2008	2007
				R’000	R’000
8.3	Investment in associates
	Equity-accounted carrying amount
	At beginning of the year			–	3,295
	Cost of investments			4,597	–
	Share of loss			(345)	–
	Impairments			–	(3,295)
	Transferred to investment in subsidiaries			(3,509)	–
	At end of the year			743	–
				Company
				2008	2007
	Associates at cost			R’000	R’000
	BnB Sure (Pty) Ltd			211	–
	Liquid Underwriting Managers (Pty) Ltd			877	–
	Zurich Aviation Underwriting Managers (Pty) Ltd			–	–
				1,088	–

	Details of associates	Country of	% interest	Assets	Liabilities	Revenue	Profit/(loss)
	Year ended 31 December 2008	incorporation	held	R'000	R'000	R'000	R'000
	BnB Sure (Pty) Ltd	RSA	20	1,657	735	9,266	893
	Liquid Underwriting
	Managers (Pty) Ltd	RSA	30	224	2,401	14	(2,477)
	Zurich Aviation Underwriting
	Managers (Pty) Ltd	RSA	50	1,724	1,073	3,392	580
	The carrying amounts of investments in associates approximates their fair value for the current year.