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 No. 73  Board of Directors  Administration

Notes

1.	Accounting policies
	The principal policies used in the preparation of the results for the year ended December 31, 2007 are consistent with those applied in the annual financial statements for the year ended December 31, 2006 in terms of International Financial Reporting Standards, except as follows.
	The Group has adopted the following new and amended IFRS and IFRIC interpretations during the year. Adoption of these revised standards and interpretations did not have any effect on the financial performance or position of the Group. They did however give rise to additional disclosures, including in some cases, revisions to accounting policies.
	– IFRS 7 Financial Instruments: Disclosures – IAS 1 Amendment: Presentation of Financial Statements – IFRIC 8 Scope of IFRS 2 – IFRIC 9 Reassessment of Embedded Derivatives – IFRIC 10 Interim Financial Reporting and Impairment
	This announcement is also IAS 34 compliant.
2.	Prior years under/(over) provision for taxation
	This relates to adjustments to taxes in respect of assessments finalised relating to prior 2003. Included under net investment income is the interest paid in respect of these assessments.
3.	Financial highlights
	Rand thousands           2007   2006    % Change   Net profit attributable to members of the Company IAS 33 Earnings 289,860   320,580   (9.6%)  Adjusted for:           Less gains on the disposal of plant and equipment IAS 16 (1,405)  (2,170)    Less gains on the disposal of land and buildings IAS 16 (2,498)  –     Less realised gains on disposal of available-for-sale financial assets IAS 16 (92,013)  (71,334)    Add tax effect   9,552   4,675     Headline earnings   203,496   251,751   (19.2%)  Headline earnings per share (cents)   1,670.8   2,067.0   (19.2%)  Earnings per share (cents)   2,379.9   2,632.1   (9.6%)  Ordinary dividends declared per share (cents)   700   650   7.7%   Dividends paid per share (cents)   690   820   (15.9%)  Number of shares in issue   12,179,500   12,179,500     Net asset value per share (cents)   15,601   14,442   8.0%   Solvency margin (%)   53.2%   55.8%   (4.7%)  Combined ratio (%)   97.5%   97.3%   0.2%   Return on equity (%)   15.8%   19.6%   (19.4%)

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