Gross premium income has followed the strong growth pattern experienced in the latter half of 2000 following the major consolidations in the market with gross premium up 29,8% for the year to date.

The underwriting loss has reduced to R16,6 million (2000 – R32,5 million) due to the absence of the extreme weather conditions experienced in 2000. Despite the improved performance compared to the same period last year further rating action has been taken to rectify areas of unsatisfactory performance.

Investment income is 27,5% down on the year 2000 as a result of the payment of special dividends amounting to R596,8 million in 2000 and also the decline in interest rates experienced in the first half of the year.

Adjusted headline earnings per share are down to 368,6 cents from 403,2 cents in 2000 due to the reduction in investment income.

The net realised surplus on disposal of investments is R55,3 million compared to
R30,8 million in 2000 as the Company seeks to realign the equity component in its investment portfolio following the reduction in cash reserves due to the payment of special dividends in 2000.

Solvency stands at 60,3% (December 2000 – 62,7%) notwithstanding the substantial increase in premium volumes.