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					               Investor presentation




Interim financial results
        30 June 2001
                              Highlights



 Business highlights
     Creation of New Africa Capital
     Dynamic new operating structure implemented
     Empowerment credentials of the board enhanced
     Increase of earnings from diversified sources


 Financial highlights
     Total assets under management: approximately R40 billion
     Positive net cash flow in excess of R2 billion
     Sustained strong growth in Employee Benefits business
     Increased profits from Health business
                                      Features of results


                                      6 months to Annualised 15 months to
                                         30/06/01    growth      31/12/00
                                              Rm           %          Rm



Premium income                              3 601       26.7         7 106
Total income                                5 233       (5.2)       13 806
Administration expenses                       377       11.5           845
Policyholders’ benefits paid                2 447       39.5         4 384
Total assets                               31 473       13.4        29 492
Total assets under management              39 059       18.3        35 777
Earnings                                      247       10.7           558
Headline earnings                             267       (4.5)          699
Earnings per share (cents)                  34.02         8.3        78.56
Headline earnings per share (cents)         36.78       (6.6)        98.46
Dividend per share (cents)                  15.50         0.6        38.50

•No June 2000 FSV valuation
•March 2000 not always comparable
                       Premium income



                         6 months to    6 months to     %
                            30/06/01       30/06/00 Change
                                 Rm             Rm


Premium income                 3 601          3 092     16.5
 Recurring premiums            1 910          1 852       3.1
  Individual life              1 412          1 369       3.1
  Employee benefits              533            522       2.1
  Re-insurance                   (35)           (39)   (10.3)

 Single premiums               1 691          1 240     36.4
   Individual life               560            215    160.5
   Employee benefits           1 131          1 025     10.3
                                     Recurring premiums



                                                6 months to   6 months to     %
                                                   30/06/01      30/06/00 Change
                                                        Rm            Rm


Metropolitan Life                                     1 055         1 037      1.7
Metropolitan Employee Benefits                          431           391     10.2
Odyssey                                                 123           109     12.8
Namibia                                                 104            85     22.4
Botswana                                                 44            22   100.0
Recurring premiums excluding Commercial Union         1 757         1 644      6.9
Commercial Union Life                                   153           208   (26.4)
Recurring premiums                                    1 910         1 852     3.1
                                    Single premiums



                                             6 months to 6 months to
                                                30/06/01    30/06/00       %
                                                     Rm          Rm    Change


Metropolitan Life                                    481         181     165.7
Metropolitan Employee Benefits                     1 119         998      12.1
Odyssey                                               43          27      59.3
Namibia                                               38           7     442.9
Botswana                                               -           1
Single premiums excluding Commercial Union         1 681       1 214       38.5
Commercial Union Life                                 10          26     (61.5)
Single premiums                                    1 691       1 240      36.4
                                   Policyholders’ benefits paid



                                      6 months to   6 months to     %
                                         30/06/01      30/06/00 Change
                                              Rm            Rm


Death and disability claims                  456           412      10.7
Maturity claims                              379           322      17.7
Annuities                                    186           156      19.2
Surrenders – individual policies             484           385      25.7
Scheme member withdrawals                    263           142      85.2
Scheme terminations                          703           281    150.2
Re-insurance recoveries                      (24)          (29)   (17.2)
                                            2 447         1 669    46.6
                                     Policyholders’ benefits paid



                                           6 months to   6 months to       %
                                              30/06/01      30/06/00   Change
                                                   Rm            Rm


Metropolitan Life                                  854           825       3.5
Metropolitan Employee Benefits                     504           332      51.8
Odyssey                                            107            99       8.1
Namibia                                             78            46      69.6
Botswana                                            16             3     433.3
Benefits paid excluding Commercial Union         1 559         1 305      19.5
Commercial Union                                   888           364     144.0
Policyholders’ benefits paid                     2 447         1 669      46.6
                                   Benefit payments as a % of
                                   premiums




                                             6 months to   6 months to
                                                30/06/01      30/06/00
                                                      %             %


Death and disability claims                         12.7          13.3
Maturity claims                                     10.5          10.4
Annuities                                            5.2           5.0
Surrenders – individual policies                    13.4          12.5
Scheme member withdrawals                            7.3           4.6
Scheme terminations                                 19.5           9.1
                                                   Administration expenses
                                                   – life insurance



Rm                                                        %
400                                                      12
350
300                                                     11.5
250
200                                                      11
150
100                                                     10.5
 50
  0                                                      10
       Mar-00        Jun-00       Jun-01

                                                         9.5
Metropolitan Life Limited   CU Life                            Mar-00        Jun-00        01-Jun
Metropolitan Odyssey        Metropolitan Namibia
Metropolitan Botswana                                    Administration expenses as a % of premium income
                                                           Income from administration
                                                           business



                                                                       Administration   Administration
                                                                             income        expenses *     Total
  For the six months ended 30 June 2001
                                                                                  Rm               Rm      Rm


  Asset Management                                                                 30               22        8
  Properties                                                                        7                 5       2
  Health group                                                                    199              165      34
  Unit trusts                                                                       8                 8       -
  Ovation                                                                           8               17      (9)
  Policy administration (Life insurance)                                            8                 -       8
                                                                                  260              217      43
  Taxation                                                                          -               (3)       3
  Income from administration business                                             260              214      46




* Taxation is included in administration expenses for the period under review.
                                   Statement of actuarial values of
                                   assets and liabilities


                                                 30/06/01    31/12/00
                                                      Rm          Rm


Total assets per balance sheet                     31 473      29 492
Current liabilities per balance sheet              (1 324)     (1 332)
Outside shareholders’ interest per balance
sheet                                                 (68)        (62)
Actuarial liabilities under unmatured policies    (23 937)    (22 181)
Excess of assets over liabilities                   6 144       5 917

Total surplus arising during period                   110       1 569
FSV profit                                            267         705
 Operating profit                                     180         408
 Investment income on group excess                     87         297
Effect of change in basis                            (46)           -
Capital appreciation on group excess                (111)         864
                                 Analysis of headline earnings

                                             6 months to   15 months to
                                                30/06/01       31/12/00    %
                                                     Rm             Rm Change


Metropolitan Life                                   119           291
Metropolitan Employee Benefits                        52            97
Odyssey                                                7             7
Commercial Union Life                                 20            62
Namibia                                             (10)             3
Botswana                                             (1)             4
Health                                                29            13
Asset Management                                       8            11
Unit trusts                                            1             -
Ovation                                              (4)          (22)
CGU                                                    -            36
Other subsidiaries                                   (1)           (1)
                                                    220           501       9.8
Investment income                                     47          198    (40.7)
Headline earnings                                   267           699     (4.5)
  Goodwill                                          (20)          (46)
  Adjustment for minorities and 90:10 rule            20            52
FSV profit                                          267           705     (5.3)
                                             Embedded value


                                                                       30/06/01         31/12/00
                                                                            Rm               Rm


Adjusted net asset value                                                    5 357           4 987
Net value of in-force business                                              2 393           2 260
 Individual life                                                            1 939           1 898
   Gross value of in-force                                                  2 039           2 038
   Less: Cost of capital                                                    (100)           (140)
 Employee benefits                                                            454             362
   Gross value of in-force                                                    522             480
   Less: Cost of capital                                                      (68)          (118)

Embedded value                                                              7 750           7 247

Embedded value per share (cents)                                            1 066           1 018

Net value of new business for period                                            37           122



 No adjustment has been mad for CGT. The estimated reduction would be R153 million or 2%.
                              Embedded value by company



                                          30/06/01   31/12/00
                                               Rm         Rm


Commercial Union Life                          341        321
Odyssey                                        212        190
Namibia                                        176        189
Botswana                                        61         53
Asset Management                               197        180
Health group                                   456        343
Goodwill                                     (165)      (175)
Metropolitan SA                              6 472      6 146
 Value of in-force business                  2 066      1 951
 Residual net asset value                    4 403      4 195

                                             7 750      7 247
                                     Embedded value profit

                                             6 months to 15 months to
                                                30/06/01     31/12/00
                                                     Rm           Rm


Profit from new business                             178          197
  Point of sale                                      174          179
  Expected return to end of period                     4           18
Profit from existing business                        105          503
  Expected return                                    214          464
  Experience variance                              (109)           39

Embedded value profit from operations               283           700
Investment return on net worth                      (72)          941
Transitional tax                                       -          (95)
Changes in assumptions                              175           182
Total embedded value profit                         386         1 728
  Plus: Capital raised                              117             97
  Less: Dividend                                      -          (296)
Increase in embedded value                          503         1 529

Return on embedded value (%)                        10.7         24.2
                                                   Value of new business


                                                                       6 months to 15 months to
                                                                          30/06/01     31/12/00
                                                                               Rm           Rm

  Value of life insurance new business
  Individual life                                                                    (4)                44
     Gross value of new business                                                       0                71
     Less: Cost of capital                                                           (4)              (27)
  Employee benefits                                                                  41                 78
     Gross value of new business                                                     44                 92
     Less: Cost of capital                                                           (3)              (14)
                                                                                      37              122



  Value of non-life new business
  Metropolitan Health                                                               109                49
  Metropolitan Asset Managers                                                        29                 8



The comparative period figures have been reallocated to reflect the group’s internal restructuring.
                                    Value of new business per
                                    company



                         6 months to 30/06/01        15 months to 31/12/00
                        Gross   Cost of       Net   Gross    Cost of         Net
                                capital                      capital
                          Rm        Rm        Rm      Rm         Rm          Rm


Metropolitan               47       (6)       42      163        (39)        124
  Individual life          (1)      (3)       (4)      77        (26)         51
  Employee benefits        48       (2)       46       86        (13)         73
Commercial Union Life        -        -         -                   -           -
Odyssey                    (3)      (1)       (3)      (8)          -         (8)
Namibia                    (2)      (1)       (3)        2        (1)           1
Botswana                     1        -         1        6        (1)           5
                           43       (7)       37      163        (41)        122
                     New business premiums



                            6 months to   15 months to
                               30/06/01       31/12/00
                                    Rm             Rm


Recurring premiums
Individual life                     252            705
Employee benefits                    71            241
Total                               323            946

Single premiums
Individual life                     560            453
Employee benefits                 1 131          1 715
Total                             1 691          2 168
                                  Assets under management




                                        30/06/01   31/12/00       %
                                             Rm         Rm    Change


Investment assets                         29 339     27 598      12.6
Strategic assets                              64         64          -
Goodwill                                     396        410      (6.8)
Equipment and intangibles                    183        179        4.4
Current assets and deferred tax            1 491      1 241      40.2
Total on-balance sheet assets             31 473     29 492      13.4
Unit trusts                                1 898      1 740      18.2
Health group                               1 300      1 159      24.4
Ovation                                      872        741      35.4
Asset Management                           3 516      2 645      65.8
Total assets under management             39 059     35 777      18.3
                                                   Assets backing shareholders’
                                                   funds



                                                                    30/06/01   31/12/00
                                                                          %          %


 Equities                                                                46         48
 Foreign investments                                                     18         18
 Properties                                                               9         10
 Fixed interest                                                           -          -
 Money market                                                             2          2
 Group companies                                                         25         22
                                                                        100        100




Assets backing shareholders’ funds for Metropolitan Life Limited.
                               Excess capital in Metropolitan
                               Life Limited




                                               30/06/01    31/12/00
                                                    Rm          Rm


Company excess                                     5 058       4 739
Less:   Transfer to New Africa Capital           (1 838)     (1 838)
        2 x CAR (eg)                             (2 240)     (1 544)
        Interim dividend and STC                   (113)           -
                                                     867       1 357
                                Capital management strategy



 New structure will enhance capital management ability

 Identify use of and return on capital

 Manage capital adequacy requirement

 Utilise capital effectively
   • Business growth
   • Strategic acquisitions
   • Share bay-back
   • Dividend policy
                              Focus areas




 Investment performance

 New business volumes

 Expense levels

 Return on shareholders’ value
                               Focus areas




   Capital management                Creation of NAC
   Empowerment credentials           Board appointments
   Surrender and lapse rates         Agreement with PolicyLink
   New business levels               Creation of MARS
   Increase presence in Gauteng      Project Goldrush
   Financial disclosure              Group actuary appointed
   Market segmentation               Research completed
                        Corporate successes




                             Cost Embedded     Embedded
                                       value        value
                                    30/06/01     31/12/00
                              Rm         Rm           Rm


Commercial Union Life         149        341          321
Odyssey                       200        212          190
Namibia                        40        176          189
Botswana                       19         61           53
Asset Management                -        197          180
Health group                  241        456          343

				
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posted:9/22/2011
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