1.	Accounting policies and basis of preparation The consolidated condensed financial statements have been prepared for the six months ended 30 June 2006 in accordance with International Financial Reporting Standards (IFRS), IAS 34 – Interim Financial Reporting and in compliance with the Listing Requirements of the JSE Limited. The consolidated condensed interim financial statements do not include all of the information required by IFRS for full annual financial statements. The results of insurance contracts underwritten in cells where the risks and rewards accrue to the cell owner are no longer included in Group profit. Property and equipment have been accounted for in accordance with IAS 16. The depreciable amount of property and equipment is now cost less residual value. In addition, the useful lives of assets have been reviewed at the balance sheet date. Operating lease expenses are now spread evenly over the lease period in accordance with IAS 17 and are no longer expensed as paid. Except for the change in terms of IFRS, the principal policies used in the preparation of the reviewed results for the period ended 30 June 2006 are consistent with those applied in the annual financial statements for the year ended 31 December 2005 and for the results for the six months ended 30 June 2005. Comparatives for the six months ended 30 June 2005 have been restated in respect of the accounting of cell activity, property and equipment and operating lease costs.
Rand thousands Reviewed at  30/06/06  Reviewed at  30/06/05  Restated  Audited at  31/12/05  2. Investment income         Interest and rental income 74,774  76,458  146,778    Dividends 20,423  9,928  28,634    Total investment income 95,197  86,386  175,412          3. Profit before tax after (crediting)/charging         Depreciation 13,203  12,846  14,302    Loss on disposal of property and equipment 29  28  636          4. Investments         Investment properties 9,811  16,938  10,946    Investment in associates 3,294  9,710  20,560    Originated loans 6,711  8,206  7,087    Available-for-sale investments 559,064  519,830  536,958    Ordinary shares            Listed 449,112  479,925  447,198       Unlisted 55,260  36,742  36,168    Preference shares            Listed 2,767  3,163  1,804       Unlisted 51,925  –  51,788    Trading investments 403,782  406,383  432,672    Total investments 982,662  961,067  1,008,223

5.	Segmental analysis
Rand thousands		Commercial	Risk  Financing	Personal	Investments	Total
5.1	Business segments
	30/06/06
	Gross insurance premium
	revenue	1,452,746	125,706	327,400	–	1,905,852
	Insurance premium ceded
	to reinsurers	275,884	88,514	9,819	–	374,217
	Net insurance premium
	revenue	1,176,862	37,192	317,581	–	1,531,635
	Change in provision for
	unearned premium	(26,531)	(6,463)	(3,065)	–	(36,059)
	Net insurance premium
	earned	1,150,331	30,729	314,516	–	1,495,576
	Investment income	–	–	–	95,197	95,197
	Fair value adjustment
	on trading investments	–	–	–	(28,680)	(28,680)
	Net realised gains on disposal
	of investments	–	–	–	68,425	68,425
	Income	1,150,331	30,729	314,516	134,942	1,630,518
	Net insurance claims	801,430	27,326	246,179	–	1,074,935
	Acquisition expenses	178,161	2	48,295	–	226,458
	Administrative and other
	operating expenses	136,966	2,464	21,442	–	160,872
	Investment expenses	–	–	–	2,250	2,250
	Expenses	1,116,557	29,792	315,916	2,250	1,464,515
	Profit before tax	33,774	937	(1,400)	132,692	166,003
	30/06/05 (restated)
	Gross insurance
	premium revenue	1,248,448	79,556	386,714	–	1,714,718
	Insurance premium ceded
	to reinsurers	264,162	58,809	8,515	–	331,486
	Net insurance premium
	revenue	984,286	20,747	378,199	–	1,383,232
	Change in provision for
	unearned premium	(14,966)	4,314	(662)	–	(11,314)
	Net insurance premium
	earned	969,320	25,061	377,537	–	1,371,918
	Investment income	–	–	–	86,386	86,386
	Fair value adjustment on
	trading investments	–	–	–	(928)	(928)
	Net realised gains on
	disposal of investments	–	–	–	40,875	40,875
	Income	969,320	25,061	377,537	126,333	1,498,251
	Net insurance claims	625,650	23,130	280,114	–	928,894
	Acquisition expenses	150,138	(1,018)	58,986	–	208,106
	Administrative and other
	operating expenses	128,517	2,262	26,427	–	157,206
	Investment expenses	–	–	–	1,914	1,914
	Expenses	904,305	24,374	365,527	1,914	1,296,120
	Profit before tax	65,015	687	12,010	124,419	202,131
	31/12/05 (audited)
	Gross insurance
	premium revenue	2,433,181	230,596	845,894	–	3,509,671
	Insurance premium ceded
	to reinsurers	481,923	144,320	20,031	–	646,274
	Net insurance premium
	revenue	1,951,258	86,276	825,863	–	2,863,397
	Change in provision for
	unearned premium	(34,709)	(22,258)	395	–	(56,572)
	Net insurance premium
	earned	1,916,549	64,018	826,258	–	2,806,825
	Investment income	–	6,087	–	169,325	175,412
	Fair value adjustment on
	trading investments	–	–	–	5,138	5,138
	Net realised gains on
	disposal of investments	–	–	–	172,932	172,932
	Income	1,916,549	70,105	826,258	347,395	3,160,307
	Net insurance claims	1,244,003	56,300	602,067	–	1,902,370
	Acquisition expenses	295,512	1,140	129,030	–	425,682
	Administrative and other
	operating expenses	257,245	2,491	58,539	–	318,275
	Investment expenses	–	–	–	5,368	5,368
	Expenses	1,796,760	59,931	789,636	5,368	2,651,695
	Profit before tax	119,789	10,174	36,622	342,027	508,612
	The segment assets and liabilities at 30 June 2006 are as follows:

Rand thousands		Commercial	Risk   Financing	Personal	Investments	Total
	Reinsurers’ share of provision for
	outstanding claims	173,159	16,055	63,071	–	252,285
	Reinsurers’ share of provision for
	unearned premium	177,730	10,880	5,082	–	193,692
	Technical assets	350,889	26,935	68,153	–	445,977
	Deferred acquisition cost	65,383	3,995	23,126	–	92,504
	Non-current assets	–	–	–	640,857	640,857
	Current assets, including
	cash and cash equivalents	–	407,515	–	2,395,608	2,803,123
	Total assets	416,272	438,445	91,279	3,036,465	3,982,461
	Provision for outstanding
	claims	603,238	101,923	210,632	–	915,793
	Provision for unearned
	premium	640,846	26,635	111,448	–	778,929
	Technical provisions	1,244,084	128,558	322,080	–	1,694,722
	Reinsurers’ share of deferred
	acquisition cost	25,932	1,632	6,083	–	33,647
	Non-current liabilities	–	–	–	47,449	47,449
	Other liabilities	–	205,229	–	236,242	441,471
	Total liabilities	1,270,016	335,419	328,163	283,691	2,217,289
	The segment assets and liabilities at 30 June 2005 (restated) are as follows:

Rand thousands		Commercial	Risk   Financing	Personal	Investments	Total
	Reinsurers’ share of provision for
	outstanding claims	183,334	11,720	83,594	–	278,648
	Reinsurers’ share of provision for
	unearned premium	159,007	25,427	4,862	–	189,296
	Technical assets	342,341	37,147	88,456	–	467,944
	Deferred acquisition cost	60,095	9,792	20,351	–	90,238
	Non-current assets	–	–	–	621,186	621,186
	Current assets, including
	cash and cash equivalents	–	297,005	–	2,046,350	2,343,355
	Total assets	402,436	343,944	108,807	2,667,536	3,522,723
	Provision for outstanding
	claims	586,617	25,253	264,178	–	876,048
	Provision for unearned
	premium	590,023	65,283	109,425	–	764,731
	Technical provisions	1,176,640	90,536	373,603	–	1,640,779
	Reinsurers’ share of deferred
	acquisition cost	27,665	3,814	729	–	32,208
	Non-current liabilities	–	–	–	42,338	42,338
	Other liabilities	–	130,155	–	258,753	388,908
	Total liabilities	1,204,305	224,505	374,332	301,091	2,104,233
	The segment assets and liabilities at 31 December 2005 (audited) are as follows:

Rand thousands		Commercial	Risk   Financing	Personal	Investments	Total
	Reinsurers’ share of provision
	for outstanding claims	189,758	45,080	44,318	–	279,156
	Reinsurers’ share of provision for unearned
	premium	139,926	79,265	30,666	–	249,857
	Technical assets	329,684	124,345	74,984	–	529,013
	Deferred acquisition cost	85,676	28,427	20,097	–	134,200
	Non-current assets	–	–	–	633,669	633,669
	Current assets, including
	cash and cash equivalents	–	210,496	–	2,349,823	2,560,319
	Total assets	415,360	363,268	95,081	2,983,492	3,857,201
	Provision for outstanding
	claims	644,824	61,588	148,556	–	854,968
	Provision for unearned
	premium	579,168	175,574	115,122	–	869,864
	Technical provisions	1,223,992	237,162	263,678	–	1,724,832
	Reinsurers’ share of deferred
	acquisition cost	25,932	14,723	6,083	–	46,738
	Non-current liabilities	–	–	–	56,032	56,032
	Other liabilities	–	5,535	–	508,968	514,503
	Total liabilities	1,249,924	257,420	269,761	565,000	2,342,105

Rand thousands		South Africa	Foreign subsidiaries	Total
5.2	Geographical segments
	30/06/06
	Gross insurance premium revenue	1,780,100	125,752	1,905,852
	Total assets	3,470,138	512,323	3,982,461
	Total liabilities	1,943,577	332,569	2,276,146
	Profit before tax	138,251	27,752	166,003
	30/06/05 (restated)
	Gross insurance premium revenue	1,563,464	151,254	1,714,718
	Total assets	3,215,938	306,785	3,522,723
	Total liabilities	1,837,230	325,033	2,162,263
	Profit before tax	177,055	25,076	202,131
	31/12/05 (audited)
	Gross insurance premium revenue	3,293,113	216,558	3,509,671
	Total assets	3,695,791	161,410	3,857,201
	Total liabilities	2,263,465	78,640	2,342,105
	Profit before tax	477,302	31,310	508,612