TUESDAY, 1.00PM
LIFE assurance group Old Mutual lifted total assets under management by 19% to R235,9-billion in the year to June, according to group MD Gerhard van Niekerk. The increase translates into a 23,9% increase in the excess of assets over liabilities to R29,3-billion, which will be paid to policy holders when Old Mutual demutualises before its listing.
“The 19% increase … encapsulates the money that people entrust to us … less administration costs and payouts to policyholders … [and] reflects the net result of our activities …” said Van Niekerk. The excess of assets over liabilities represents slightly less than 19% of the actuarial value of policy liabilities, which places the group’s capital base in a strong position to meet the demands of a changing financial market, he said.
Old Mutual’s’s premium income grew 18% to R27,5-billion, accompanied by a 19,5% rise in investment income to R9,8-billion, helping to lift total income to R37,8-billion compared with R31,8-billion in the same period last year.
BUSINESS BRIEFS
LIBERTY WANTS UK MALL
LONDON-listed Capital Shopping Centres, a Liberty International subsidiary, is in talks with British property and transport giant, P&O, to buy Arndale shopping centre in Manchester for more than R2,3-billion. Arndale, the biggest city-centre shopping complex in Britain, recorded 750 000 visitors a week before being bombed by the Irish Republican Army last year. The talks are said to be led by Liberty chairman Donny Gordon and P&O chairman Lord Sterling.
ROVIC ‘NOT DANGEROUS’
A JUDICIAL inquiry in the Virginia Circuit Court has been told by mine manager Pieter Smith that there was no indication that the opencast pit at the Rovic mine in the Free State was dangerous. The pit collapsed on November 28 last year, killing 20 people. During cross-examination, Smith said that he had inspected the area before the collapse, but had found no instability in the mud. He said the mud was covered by a thin layer of water, but that the surface had been firm.
TAIWAN OFFERS FISHING TRAINING
TAIWAN’s Pretoria embassy says the island will train 20 South African fishermen at a cost of R1-million, in the first technical co-operation programme since President Mandela announced that diplomatic relations between South Africa and Taiwan will be downgraded from next year. The trainees will leave for Taipei on September 20 for a six-week course.
GOLD PRODUCTION UP
SOUTH African gold production has risen more than 4,5% to 41,53 tons in August after slumping to 39,81 tons in July. The rise comes in the wake of an agreement between producers and unions to raise production by 90 tons over the next two years. August’s production was also up from 41,21 tons in the same month last year.
RAND GAINS
The rand has gained 1,4c on the US dollar after closing firmer at R4,6765 on Monday, up from Friday’s R4,6905. Dealers say the currency’s gains are a result of South African exporters selling their dollar earnings. One dealer says: “I think we may see more strength. There’s good exporter selling still to be done.”
STATE OVERSPENDS
STATE finances have come under strain with state spending outpacing the budget and income lagging, according to figures released by the finance department. Analysts say that to achieve the budgeted 4,1% of gross domestic product, expenditure will have to decrease significantly in the last seven months of the financial year. In the first five months of the year 42,7% of the budgeted R186,7-billion was spent. In the same period only R59,8-billion, or 36,9% of the budgeted R161,9-billion had been collected, leaving a deficit of R20-billion after five months aginst a budgeted deficit of R24,8-billion for the full year.