The Directors announce the audited group results
for the year ended 31 December 2001

Notes
1.

Accounting policies
  Other than the change in accounting policy detailed in note 2, the same accounting policies and methods of computation are followed in the current financial statements as compared with the previous years' annual financial statements.    
   
2.

Change in accounting policy

2.1     Basis of consolidation

During the past four years, the results of
SA Eagle Risk Financing Limited were consolidated excluding the cell captive results. This basis was changed during the current year and SA Eagle Risk Financing Limited is now fully consolidated with cell captive results taken as a minority interest.

Comparative figures have been restated.

    
     
 

2.2     Post-retirement medical aid cost

During the year, the company changed its accounting policy with respect to the recognition of the cost of post-retirement medical aid benefits. Liabilities relating to these benefits are now recognised in terms of the revised accounting statement on employee benefits. The after-tax effect of this change on the reserves brought forward is R42m.

    
       
3. Taxation  
  Included in the taxation charge in the current year is R44,8m additional taxation in respect of the withdrawal of the tax benefits previously permissible in respect of the statutory contingency reserve.  
       
  Rand thousands 2001  2000 
4. Determination of headline earnings    
  Net income attributable to members of the company 142 303  186 734 
  After-tax adjustment for:  
  – Net realised surplus on disposal of  
        investments and fixed assets (113 001) (182 834)
  – Impairment of investment in Zimbabwe    
        subsidiary 10 000  – 
  – Reverse provision for restructuring cost (12 112) (24 710)
  – Provision for restructuring cost 8 400  12 112 
   
  Headline earnings 35 590  (8 698)
   
  Headline earnings per share (cents) 292,21  (71,4)
     
5. Other financial information  
  Earnings per share before adjustment (cents) 1 168,4  1 533,2 
     
  Earnings per share after excluding exceptional  
     tax charges, interest from NBS case,  
     restructuring costs and impairment    
     of investment in subsidiary (cents) 1 567,0  2 394,1
     
  Dividend per share (cents)  
  –     Normal paid/declared 700,0  700,0 
  –   Special paid –  4 900,0 
  Number of shares in issue 12 179 500  12 179 500 
  Net asset value per share (cents) 8 321  7 687 
  Solvency margin (%) 53,9  60,3 
  Dividend cover (excluding special dividend) 1,67  2,19 
     
6. Underwriting loss after  
        charging/(crediting)    
  Depreciation 13 666  18 076 
  (Surplus)/Loss on disposal of fixed assets (240) 372 
     
7. Investment income  
  Interest 113 998  125 317 
  Dividends 42 209  44 675 
   
  Total investment income 156 207 169 992 
   
     
8. Investments  
  Fixed properties 57 414  52 734 
  Mortgages and loans 54 534  19 303 
  Government and other approved securities 178 674  192 411 
  Public boards, annuities and other fixed  
     interest securities 102  120 
   
    290 724  264 568 
  Listed shares 582 964  625 409 
  Unlisted shares 84 261  90 033 
   
  Total investments 957 949  980 010