LONDON, Aug. 12, 2002 (PRIMEZONE) -- Old Mutual plc:
Highlights:
-- Operating profit*: 381m pounds (2001: 455m pounds), a decrease of 16%
in Sterling R6,059m (2001: R5,195m), an increase of 17% in Rand
-- Operating earnings per share*: 5.8p (2001: 7.2p**), a decrease of 19%
in Sterling 92.9c (2001: 82.4c**), an increase of 13% in Rand
-- Record life premiums of 2.7bn pounds (2001: 1.4bn pounds) and record
life sales of 288m pounds annual premium equivalent
(2001: 132m pounds)
-- Net fund inflows of $1.5bn for our .S. asset management business
-- Value of new life business: 58m pounds (2001: 28m pounds**), an
increase of 107% in Sterling R927m (2001: R319m**), an increase of
191% in Rand
-- Acquisition of BoE Limited by Nedcor Limited successfully completed
in July and integration now underway
-- Group return on equity of 17%
-- Embedded value: 3,775m pounds (December 31, 2001: 3,522m pounds),
an increase of 7% in Sterling R59,814m (December 31, 2001: R61,364m),
a decrease of 3% in Rand
-- Interim dividend of 1.7p (2001: 1.7p) maintained, representing an
increase of 21% in Rand***
Jim Sutcliffe, Chief Executive, commented: "These are solid results, given the depressed state of world stock markets. We are making good progress in our strategy to internationalise the Group. In particular, our U.S. life operations grew quickly and there were overall positive cash flows at our U.S. asset management business. Our South African life businesses showed good new business growth and, at Nedcor, the acquisition of BoE is expected to bring substantial benefits to shareholders. We do not expect market conditions to improve in the second half of 2002, but the diversity of our operations provides both a defence against difficult markets and the opportunity to take advantage of growth areas."
Wherever the items asterisked in the Highlights are used, whether in the Highlights, the Chief Executive's statement or the Business review, the following apply:
* Operating profit is based on a long term investment return before
goodwill amortisation, writedown of investment in Dimension Data
Holdings plc and short term fluctuations in investment return.
Operating profit for the six month period ended June 30, 2002
includes the release of a 25m pounds (R400m) exceptional general
risk provision at Nedcor. Operating earnings per share are similarly
based, but are also after tax and minority interests.
** Operating earnings per share for the first half of 2001 have been
restated (from 7.8p and 89.3c respectively) to incorporate a revised
policy for the recognition of deferred tax in accordance with
Financial Reporting Standard (FRS) 19. The value of new life business
in the first half of 2001 has been restated (from 27m pounds and
R310m respectively) in respect of transfers from the Guaranteed
Capital Fund that were not previously categorised as new business
premiums.
*** Indicative only, based on 26.9c, being the Rand equivalent of 1.7p
converted at the exchange rate prevailing on June 30, 2002. The
actual amount to be paid by way of interim dividend to holders of
shares on the South African branch register will be by reference to
the exchange rate prevailing at the close on October 3, 2002, as
determined by the Company, and will be announced on October 4, 2002.
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