Maintaining a dividend within the target cover range will take due account of capital adequacy requirements and cash generation with particular reference to the following factors:

  • the liquidity of the Group’s earnings as measured by Free Surplus;
  • the optimal regulatory solvency range of the Group and approval of the Head of Actuarial Function;
  • capital required to implement its business strategy for enhanced returns;
  • the sufficiency of liquidity under stress scenarios as per the Group’s liquidity risk appetite within the financial management framework (See “Part XIII – Capital Position and Liquidity Risk Management Framework in the Pre-Listing Statement") and
  • the quality and quantity of capital under normal and stress scenarios as per the Group’s Financial Management Framework and evolving regulatory regimes.

The Directors will target full-year ordinary dividends that are covered by Adjusted Headline Earnings between 1.75 and 2.25 times. The Directors will target an interim dividend at a level of 40% of the current year interim Adjusted Headline Earnings. Any dividends will take into account the Group’s underlying local cash generation, fungibility of earnings, targeted liquidity and solvency levels, business strategy needs and market conditions at the time. Given the profile of earnings and above considerations, it is anticipated that the dividend cover may vary between reporting periods and dividends will be set using the full flexibility of the range.

The Company will declare dividends in Rand. Conversion rates for non-South African shareholders will be communicated before dividends are paid.

The Company may revise its dividend policy from time to time. In particular the Company may revise its policy in anticipation of the implementation of IFRS 17, due in 2021, based on the impact of this new standard on its financial results, or if the final SAM rules are materially different to the Group’s current expectations.

The Company may, from time to time, distribute additional returns to shareholders outside of the ordinary dividend cover. This may occur if (for example) the Directors determine that there is excess permanent capital in the business. The Directors will make such a determination after considering the factors set out above for maintaining an ordinary dividend.

As at the Last Practicable Date, the Company has not paid any dividends since incorporation in May 2017.

Relevant extracts of the Company MOI and the memorandum of incorporation of the Major Subsidiary relating to dividends are set out in Annexe 14 to the pre-listing statement.