June 2009 Financial Results Presentation 27 August 2009 ReNaissance Park.

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June 2009 Financial Results Presentation

27 August 2009ReNaissance Park

Presentation Order

Financial Performance OverviewReview Of OperationsOutlookQuestions

Financial Performance

Overview

Income Statement – June 2009

INCOME June 2009 Dec 2008

USD USD

Gross premium income 9.079,000 7,122,000

Net premium income 6,484,000 3,130,000

Unearned premium reserve (1,196,000) (883,000)

Rental income 1,617,000 394,000

Actuarial fee income 102,000 63,000

Investment income 118,000 0

Other income 228,000 0

Total Income 7,353,000 2,704,000

Income Statement – June 2009EXPENDITURE June 2009 Dec 2008

USD USD

Claims 1,465,000 690,000

Net Commission 966,000 9,000

Operational expenses 2,367,000 2,059,000

Total Expenditure 4,798,000 2,758,000

Surplus/(Loss) from Operations

2,555,000 (54,000)

Fair value – properties (19,114,000)

Fair value – equities 37,226,000

Taxation 1,192,000

Transfer to policyholders (20,827,000)

Transfer from minority interests 3,967,000

Profit for the period 4,999,000

Key Statistics – June 2009KEY STATISTICS June 2009 Dec 2008

Claims ratio – short term 36% 27%

Claims ratio – total 28% 27%

Combined ratio 85% 31%

Rental yield – annualised 4.48% 1.21%

Income growth 172%

Expenses growth 74%

Basic EPS – cents 2.31

Balance Sheet – June 2009

ASSETS June 2009

USD

Cash At Bank 1,305,000

Premium Debtors 2,656,000

Investments – Property 70,334,000

Investments – Equities And Other 41,370,000

Property & Equipment 4,267,000

Other current assets 1,994,000

Total Assets 121,926,000

Balance Sheet – June 2009EQUITY & LIABILITIES June 2009

USD

Insurance Creditors 2,896,000

Other Creditors 3,793,000

Taxation 20,409,000

Policyholders Liabilities 32,897,000

Profit for the year 4,999,000

Non-distributable reserves 60,249,000

Minority Interests (3,317,000)

Total Liabilities 121,926,000

Cash Flow Statement – June 2009June 2009

USD

Operating cash flows 2,452,000

Working capital changes (1,593,000)

Cash generated from operations 859,000

Taxation paid (64,000)

Cash utilised in investing activities (568,000)

Net increase in cash 227,000

Balance at the end of the period 1,305,000

Premium Analysis

Rental AnalysisJune 2009

ActualJune 2009

TargetDec 2008

Rental yield – annualised 4.48% 5.82% 1.21%

Regional rental yields 8%-15% 7.5%-10%%

Average monthly rental per square metre

$2.83 $3.50 $0.28

Regional average monthly rental per square metre

$4-$30 $10-$15

Claims Analysis

Expenses Analysis

Review of Operations

First Mutual Life Assurance

Actuarial valuation of past policies and schemes completedPensions being paid to pensionersNew products – Medical Savings

Group Eternal Peace PlanAggressive marketing

TristarInsurance

Product innovationService deliveryNew products - Travel insuranceStrategic partnership - Tourism insurancePrudent risk management

FMRE Property & Casualty

Consolidating existing businessMarket share growthRegional operationsPrudent underwriting

FMRE Life & Health

Product developmentRetrocession arrangementsRegional work

African Actuarial Consultants

Conversion of policies to foreign currencyRegional opportunitiesStaff training and development

Pearl Properties

Reduce deferred maintenanceIn-house property managementLand banksIncrease rent per square metreProvide hands-on tenant supportTrading stock

Outlook

Capitalisation of subsidiariesRegional reinsurance officeStreamlining operational processesEntry into strategic economic sectorsAcquisition of land banksStaff retention and developmentRegional market entryProduct innovationMarket share growth

Questions