Investor presentation

1
Investor presentation

• Interim financial results
• 30 June 2001

2
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

3
Features of results

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

4
Premium income
5
Recurring premiums
6
Single premiums
7
Policyholders benefits paid
8
Policyholders benefits paid
9
Benefit payments as a of premiums
10
Administration expenses life insurance
11
Income from administration business
Taxation is included in administration expenses
for the period under review.
12
Statement of actuarial values of assets and
liabilities
13
Analysis of headline earnings
14
Embedded value
No adjustment has been mad for CGT. The
estimated reduction would be R153 million or 2.
15
Embedded value by company
16
Embedded value profit
17
Value of new business
The comparative period figures have been
reallocated to reflect the groups internal
restructuring.
18
Value of new business per company
19
New business premiums
20
Assets under management
21
Assets backing shareholders funds
Assets backing shareholders funds for
Metropolitan Life Limited.
22
Excess capital in Metropolitan Life Limited
23
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

24
Focus areas

• Investment performance
• New business volumes
• Expense levels
• Return on shareholders value

25
Focus areas
New initiatives since June 2001

• Capital management
• Empowerment credentials
• Surrender and lapse rates
• New business levels
• Increase presence in Gauteng
• Financial disclosure
• Market segmentation

• Creation of NAC
• Board appointments
• Agreement with PolicyLink
• Creation of MARS
• Project Goldrush
• Group actuary appointed
• Research completed

26
Corporate successes