The Directors announce the Group results
for the year ended 31 December 2002.

Notes
       
2002 
2001 
       
R'000 
R'000 
 
1.

Accounting policies

 
The annual financial statements have been prepared in accordance with the South African Statement of Generally Accepted Accounting Practice. The accounting policies and methods of computation followed are consistent with those of the previous years.        
 
2.

Determination of headline earnings

       
Net income attributable to members of the company    
115 136 
142 303 
After-tax adjustment for:        
  Net realised surplus on disposal of investments and
fixed assets 		   
(52 702)
(113 001)
– Exceptional item     14 000  – 
– Impairment of investment in Zimbabwe subsidiary     –  10 000 
– Reverse provision for restructuring cost     –  (12 112)
  – Provision for restructuring cost     –  8 400 
     
  Headline earnings     76 434 35 590 
       
Headline earnings per share – cents     627,56  292,21 
         
         
The 2001 headline earnings was calculated after taking into account a once-off tax charge in respect of the change in legislation relating to the tax deductibility of the contingency reserve. Without this adjustment the headline earnings per share would have been
659,96 cents per share in 2001. 		       
         
         
3.

Segmental information

Foreign
 
South Africa 
subsi-diaries
Total
     
R'000 
R'000 
R'000 
2002:        
Gross written premium        
General insurance business
2 394 705 
 199 415  2 594 120 
Alternative risk transfer business   333 977  –  333 977 
     
   
2 728 682 
 199 415  2 928 097 
           
Profit before taxation        
General insurance business   88 278  40 535  128 813 
Alternative risk transfer business   16 325  –  16 325 
     
      104 603  40 535  145 138 
           
Net assets        
General insurance business   851 603  69 597  921 200 
Alternative risk transfer business   109 795  –  109 795 
     
    961 398 69 597  1 030 995 

2001:

       
Gross written premium        
General insurance business
1 945 478 
 219 097  2 164 575 
Alternative risk transfer business   214 422  –  214 422 
     
   
2 159 900 
 219 097  2 378 997 
           
Profit before taxation        
General insurance business   183 800  37 269  221 069 
Alternative risk transfer business   17 289  –  17 289 
     
      201 089  37 269  238 358 
           
Net assets        
General insurance business   904 159  66 315  970 474 
Alternative risk transfer business   98 795  –  98 795 
     
   
1 002 954 
 66 315  1 069 269 
         
4. Other financial information        
Earnings per share before adjustment – cents     945,3  1 168,4 
Earnings per share after excluding exceptional items, exceptional tax charges, interest from NBS case, restructuring cost and impairment of investments in subsidiary – cents     1 060,3  1 567,0 
Dividend per share – cents        
– Paid in year     700,0  700,0 
– Declared for year     400,0  700,0 
Number of shares in issue     12 179 500  12 179 500 
Net asset value per share – cents     8 002  8 321 
Solvency margin %     43,3  53,9 
Dividend cover     2,36  1,67 
         
5. Underwriting loss after charging/ (crediting)        
Depreciation     23 913  13 666 
Surplus on disposal of fixed assets     (794) (240)
         
6. Investment income        
Interest     108 617  113 998 
Dividends     20 610  42 209 
       
Total investment income     129 227  156 207
     
7. Exceptional item        
The exceptional item of R14m arises as a result of the cancellation of software licences and IT outsourcing agreements for the Golden Eagle "E-Commerce" business to business solution, where a more effective long term alternative was identified.        
         
8. Investments        
Fixed properties     29 886 57 414 
Mortgages and loans     44 827 54 534 
Government and other approved securities     190 683 178 674 
Municipal annuities, other fixed interest securities     69 102 
       
      265 465 290 724 
Listed shares     435 581 582 964 
Unlisted shares     53 955 84 261 
       
Total investments     755 001 957 949 
       
           
9. The preliminary announcement has been reviewed by the company's external auditors, PricewaterhouseCoopers Inc. A copy of their review opinion is available on request at the company's registered office.