Notes to the annual financial statements
for the year ended 31 December 2008
| Group | Company | ||||
| 2008 | 2007 | 2008 | 2007 | ||
| R’000 | R’000 | R’000 | R’000 | ||
| 29. | Cash generated from operations | ||||
| Profit before tax | 267,295 | 421,160 | 201,018 | 365,733 | |
| Adjustment for: | |||||
| Depreciation and amortisation | 23,365 | 16,645 | 11,719 | 14,890 | |
| Foreign exchange adjustments | (7,081) | (5,967) | – | – | |
| (Profit)/loss on disposal of: | |||||
| – Property and equipment | (2,483) | 816 | (2,272) | 1,397 | |
| – Investment property | – | (2,498) | – | – | |
| Net capital gains and impairments on financial assets | (57,251) | (82,294) | (57,251) | (85,589) | |
| Interest paid | 39,599 | 10,564 | – | 10,564 | |
| Investment income before investment expense | (313,753) | (304,333) | (213,013) | (259,885) | |
| Other non-cash items | 21,348 | (24,205) | 12,463 | (24,205) | |
| Underwriting activities – Increase/(decrease) in liabilities for insurance contracts, gross |
298,017 | (27,606) | 234,450 | 48,481 | |
| – (Decrease)/increase in amounts recoverable from reinsurers | (58,919) | 123,686 | (55,598) | 81,409 | |
| – Deferred acquisition costs | (9,280) | (14,391) | (7,423) | (3,944) | |
| – (Decrease)/increase in reinsurance commission |
(9,157) | 993 | (8,909) | (574) | |
| Movement in working capital – Due by agents and other insurance companies |
(49,644) | (287,093) | (1,543) | (101,316) | |
| – Other receivables | 161,590 | 75,749 | 128,911 | 45,788 | |
| – (Decrease)/increase in amounts due to cell shareholders | (13,861) | 83,691 | – | – | |
| – (Decrease)/increase in other payables | (34,756) | 138,390 | (39,917) | (62,156) | |
| – Intangible assets – software purchases | (8,927) | – | (2,832) | – | |
| 246,102 | 123,307 | 199,803 | 30,593 | ||
