| |
|
|
2006
Number
of shares |
2005
Number
of shares |
 |
|
Opening number of treasury
shares as previously reported |
|
(8
728 867) |
| |
|
Adoption of IFRS |
|
(14
802 060) |
| |
|
Restated opening number
of treasury shares |
(25
515 549) |
(23
530 927) |
| |
|
Movement during year:
|
|
|
| |
|
Net increase in treasury
shares held for policyholders |
(2
338 262) |
(1
106 678) |
| |
|
Net treasury shares acquired |
(3
214 993) |
(877
944) |
| |
|
Treasury
shares purchased by group subsidiary company |
(2
558 437) |
—
|
| |
|
Unallocated
shares sold by employee share purchase trusts |
3
408 182 |
—
|
| |
|
Purchase
of shares from participants in the employee
share
purchase trusts |
(4
064 738) |
(877
944) |
|
|
|
|
|
| |
|
Closing number of treasury
shares |
(31
068 804) |
(25
515 549) |
| |
|
Treasury shares are held
by the following entities: |
|
|
| |
|
Subsidiary company through
share buybacks |
(9
174 735) |
(6
616 298) |
| |
|
Employee share purchase
trusts (unallocated shares) |
(3
647 069) |
(2
990 513) |
| |
|
Multi-manager investment
subsidiary for policyholders |
(18
247 000) |
(15
908 738) |
| |
|
|
(31
068 804) |
(25
515 549) |
| |
|
Shares held by multi-manager
investment subsidiary for policyholders
as a % of issued share capital |
3,9% |
3,4% |
| |
|
Other treasury shares
as a % of issued share capital |
2,7% |
2,0% |
| |
|
At each annual general
meeting, the shareholders have authorised
the directors to approve the repurchase
of Alexander Forbes Limited or any of its
subsidiaries shares, subject to the provisions
of the South African Companies Act No. 61
of 1973, as amended, and the Listings Requirements
of the JSE Limited. |
|
|
| |
36.5 |
Cash flow hedges |
|
|
| |
|
The
group has cash flow hedges in place
in the United Kingdom. These cash flow
hedges result from forward exchange contracts
designated as a hedge from the date that
the derivatives were entered into. The cash
flow hedges arise from an established
policy of forward selling approximately
50% of the US dollar denominated brokerage
income of the UK Risk Services business
on a rolling 12 month basis. The policy
has been established to limit the variability
in cash flows and profits arising
from fluctuations between the US dollar
and Sterling on brokerage income earned
by the UK Risk Services business. During
the current year, a gain of £134 595
(R2 million) was recognised in the income
statement relating to matured forward exchange
contracts. This gain was transferred from
the cash flow hedge reserve to income
from operations in the income statement.
Forward exchange contracts entered into
during the current year have a fair value
loss of £301 798 (R3 million) and
have been recognised in non-distributable
reserves until the underlying transactions
occur. |
|
|
| |
|
|
2006
Rm |
2005
Rm |
| |
36.6 |
Non-distributable
reserves |
|
|
| |
|
Available-for-sale financial
assets reserve |
(1) |
(1) |
| |
|
Capital redemption cancellation
reserve |
2 |
2 |
| |
|
Capital distribution reserve |
161 |
161 |
| |
|
Other reserves |
28 |
28 |
| |
|
|
190 |
190 |
