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| Africa Financial
Services |
Our Africa Financial Services
business had an excellent year in which it broke
the one billion rand revenue mark for the first
time and recorded a 12% growth in profits.
In the increasingly complex area of financial
planning consulting, and as the leading provider
of actuarial, consulting and administration products
and services, Financial Services provides independent
advice, products and administration support for
corporates and individuals, employers, trustees
and employees.
We have offices in most of the major centres in
South Africa, as well as in Namibia, Botswana,
Swaziland, Kenya and Nigeria. |
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Income from operations |
Trading results |
March
2006
Rm |
% |
March
2005
Rm |
March
2006
Rm |
% |
March
2005
Rm |
|
1 125 |
+16 |
972 |
219 |
+12 |
195 |
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| Divisional review |
| Retirement Funds
division |
| Retirement Funds is the largest
division within Africa Financial Services and
provides consulting, actuarial and administration
services to trustees of retirement funds and to
corporates. The core Actuarial Consulting division
delivered a strong performance with increased
revenue from special projects, including those
relating to legislative change. The Retirement
Funds Administration division delivered a strong
result with members under administration increasing
to almost 1,5 million at year end. |
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| Asset Consulting |
| The Asset Consulting division
provides specialist advice to retirement funds
and other institutional investors in relation
to the design and implementation of investment
strategies. Revenue and profits of the division
continued to display good growth over the past
year through a combination of client retention
and new business growth. |
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| Alexander Forbes
Retirement Fund and Synergy Retirement Fund |
The Alexander Forbes Retirement
Fund and Synergy Retirement Fund are umbrella
funds which provide a packaged, cost-effective
retirement benefit programme run by professional
trustees for SMEs and larger employers.
During the year, there was significant growth
in the umbrella retirement fund business as evidenced
by the 35% increase in members under administration.
Members under administration totalled 97 000 at
year-end. This division is expected to continue
to record strong growth into the future. |
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| Health Care |
The Health Care Consulting
and Health Management Solutions divisions provide
clients with holistic advice and creative solutions
in formulating sustainable corporate healthcare
strategies.
The divisions recorded both revenue and profit
growth in a dynamic and challenging legislative
environment. There are opportunities to continue
to grow into the future. |
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| HomePlan |
| As the pioneer in pension-backed
lending products, this division offers members
of retirement funds the option of using their
retirement fund withdrawal benefit as security
for a home loan. For thousands of South Africans
who previously were unable to obtain home loans
through formal lending institutions, this product
continues to be well received by members of retirement
funds. The loan book has increased by R550 million
to R2,1 billion over the year. |
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| Financial Planning |
| The Financial Planning Consultants
division provides financial advice and services
to individual clients. The division experienced
exceptional growth during the year, benefiting
from high volumes of new business written and
the strong equity market conditions. It is expected
to continue to grow strongly into the future. |
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| Alexander Forbes
Trust |
| The Alexander Forbes Trust
is an umbrella trust enabling death benefits to
be managed on behalf of beneficiaries of deceased
retirement fund members, especially widows and
orphans. This business has continued to grow its
profits over the year. |
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| Alexander Forbes
Life |
| Alexander Forbes Life offers
niche group risk benefits, including group life
and disability schemes, under a separate life
insurance licence. The division has a limited
risk-taking mandate and a major portion of the
risk is reinsured with large reputable reinsurers.
The division has traded profitably during the
year. It recently launched a risk product aimed
at the professional market which is expected to
contribute to future growth. |
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| Afrinet |
| The Afrinet region includes
Financial Services offices in Namibia, Botswana,
Kenya, Swaziland and Nigeria. The region produced
a moderate growth in profits with Namibia being
the best performer in terms of profit growth in
the region. |
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| Africa Board |
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| 1 |
Cyril
Ramaphosa: |
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Chairman |
| 2 |
Steven
Braudo |
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| 3 |
Brad
Eliot |
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| 4 |
Rael
Gordon |
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| 5 |
Paul
Heinamann |
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| 6 |
Mike
Ilsley |
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| 7 |
Kojo
Mills |
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| 8 |
Peter
Moyo |
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| 9 |
Mpho
Nkeli |
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| 10 |
Geoffrey
Nzau |
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| 11 |
Anton
Ossip |
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| 12 |
John
Vickers |
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| 13 |
Deon
Viljoen |
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| 14 |
Howard
Walker |
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