Registrar of Short-term Insurance

N i n t h A n n u a l R e p o r t o f t h e Registrar of Short-term Insurance 2006

CONTENTS TABLE PAGE Report by the Registrar of Short-term Insurance Names and addresses of registered short-term insurers LIoyd s approved correspondents Policies for which short-term insurers were registered Name changes of short-term insurers Individual market share: Primary market Analysis of gross premiums: Primary market Review of overall business Gross underwriting results: Total business Net underwriting results: Total business Property business Transportation business Motor business Accident and health business Guarantee business Liability business Engineering business Miscellaneous business Reinsurance of total premiums Assets: Domestic and foreign Liabilities: Domestic and foreign Business placed with LIoyd s underwriters Contact information 2 1 15 2 19 3 22 4 26 5 28 5a 29 6 30 7 31 8 32 8a 33 8b 34 8c 35 8d 36 8e 37 8f 38 8g 39 8h 40 9 41 10 42 11 43 12 44 45 Short-term Insurance

REPORT BY THE REGISTRAR OF SHORT-TERM INSURANCE TO FINANCIAL THE MINISTER STATEMENTS OF FINANCE I, the Registrar of Short-term Insurance, hereby submit the ninth annual report in terms of section 5 of the Short-term Insurance Act, 1998 (Act). The text of the report, as well as the information contained in tables 1 to 4, relate to the period 1 January 2006 to 31 December 2006. Tables 5 to 11 contain figures for short-term insurance companies with financial years ending during 2006 1. Table 12 (Lloyd s business) is, however, for the 2006 calendar year. 1. Industry Overview 1.1 General Gross premiums of primary insurers in the short-term insurance industry grew by 12.5% in 2006 compared to a 14.2% increase in 2005 and an increase of 12.1% in 2004. The increase in 2006, similar to the previous year, is mainly attributable to increases in the values of residential property, which is the second largest class of business underwritten by the short-term insurance industry, inflationary adjustments to premiums and the growth in credit in the household sector where credit insurance policies are issued as protection for credit arrangements. Underwriting results (where underwriting profit is expressed as a percentage of net premiums) for the primary short-term insurance industry showed a decrease from 8.9% in 2005 to 8.4% in 2006, with all classes of business showing underwriting profits. The only significant natural disaster reported during the 2006 calendar year was the storms and related floods in the KwaZulu-Natal province. This natural disaster only occurred in the latter part of 2006. A number of claims relating to this event were only reported in the first quarter of 2007. The following challenges continue to face the short-term insurance industry: Effective management of costs Compliance with existing regulatory requirements and proposed changes to regulatory requirements Increased competition because of the number of new entrants into the market International financial reporting standards (IFRS), i.e. IFRS 4 - the possible impact of the proposals in Phase 2: Valuation of insurance contracts Availability of adequate and reliable data Impact of the National Credit Act Increase in the cost of motor vehicle parts Demarcation between the health insurance business and the business of a medical scheme Effective capital management, i.e. a focus on cost effective use of capital. The short-term insurance industry will face other challenges in the future, such as the possible legislative changes focusing on a riskbased capital approach. Operating profit, which includes investment income, expressed as a percentage of net premiums was 28.5% in 2006 compared to 22.2% in 2005. Surplus assets as a percentage of net premiums of primary insurers decreased from 70.2% in 2005 to 66.6% in 2006. 1 The financial years of short-term insurers do not end on the same date and may cover periods other than 12 months. 2 Short-term Insurance

REGISTRAR OF SHORT-TERM INSURANCE 1.2 Financial summary Summary of the results of the primary short-term insurance industry: Primary insurers 2004 2005 2006 Change Change 04 to 05 05 to 06 R million R million R million % % Gross premiums written 39 970 45 644 51 355 14.2 12.5 Income: Net premiums written 27 891 32 468 37 792 16.4 16.4 Investment income 3 488 4 324 7 566 24.0 75.0 Total 31 379 36 792 45 358 7.3 23.3 Expenditure: Claims paid 15 443 18 494 21 720 19.8 17.4 Management expenses 4 747 5 383 6 034 13.4 12.1 Commission 2 846 3 259 3 932 14.5 20.7 Total 23 036 27 136 31 686 7.8 16.8 Underwriting profits 3 280 2 880 3 188 (12.2) 10.7 Underwriting profits plus investment income 6 768 7 204 10 754 6.4 49.3 Assets 48 158 54 563 61 555 3.3 12.8 Liabilities 27 093 31 780 36 373 7.3 14.5 Summary of the short-term business of reinsurers: Reinsurers 2004 2005 2006 Change Change 04 to 05 05 to 06 R million R million R million % % Gross premiums written 4 835 4 388 4 083 (9.2) (7.0) Income: Net premiums written 1 918 1 558 1 623 (18.8) 4.2 Investment income 391 403 477 3.1 18.4 Total 2 309 1 961 2 100 (15.1) 7.1 Expenditure: Claims paid 1 316 888 811 (32.5) (8.7) Management expenses 261 287 287 10.0 0.0 Commission 462 271 392 (41.3) 44.6 Total 2 039 1 446 490 (29.1) 3.0 Underwriting profits 22 114 204 418.2 78.9 Underwriting profits plus investment income 413 517 681 25.2 31.7 Assets 5 391 5 885 6 379 9.2 8.4 Liabilities 4 176 4 217 4 449.0 5.5 Short-term Insurance 3

REGISTRAR OF SHORT-TERM INSURANCE 1.3 Investment spread The table below reflects the total investment spread for the short-term insurance industry, excluding Sasria Limited (Sasria): 2004 2005 2006 Kinds of assets R million % R million % R million % Shares 17 468 33.6 20 804 34.4 23 346 35.5 Stocks 6 953 13.4 7 572 12.5 7 343 11.1 Debentures and mortgages 1 003 1.9 545 0.9 2 760 4.2 Cash and deposits 16 850 32.4 20 936 34.6 20 496 31.1 Fixed assets 558 1.1 589 1.0 652 1.0 Outstanding premiums 3 511 6.8 4 087 6.8 4 565 6.9 Debtors 5 595 10.8 5 915 9.8 6 726 10.2 Total 51 938 100.0 60 448 100.0 65 888 100.0 1.4 Surplus asset ratio The table below gives an indication of the financial strength of the short-term insurance market, expressing net surplus assets as a percentage of net premiums written by those primary insurers that submitted unaudited quarterly reports as at 31 December 2004, 31 December 2005 and 31 December 2006, excluding Sasria: Number of insurers Surplus asset ratio % 2004 2005 2006 Below 15% 1 1 0 Between 15% and 20% 1 1 1 Between 20% and 25% 1 2 3 Between 25% and 30% 6 3 4 Between 30% and 40% 11 7 8 Between 40% and 50% 7 5 8 Between 50% and 100% 12 22 15 Above 100% 33 30 33 All insurers with surplus asset ratios below 25% 2 have been investigated and corrective measures have been implemented. 2 This ratio is made up of the 15% solvency margin and the 10% contingency reserve. 4 Short-term Insurance

REGISTRAR OF SHORT-TERM INSURANCE 1.5 Primary insurance 1.5.1 Analysis of gross premiums per policy type These diagrams illustrate the composition of the gross premiums per policy type of primary insurers, excluding Sasria, during 2005 and 2006: 2005 Total R45 644 million 2006 Total R50 842 million Property 32% Transportation 2% Property 32% Transportation 3% Miscellaneous 14% Engineering 4% Miscellaneous 13% Engineering 4% Liability 4% Guarantee 3% Motor 37% Liability 3% Guarantee 2% Motor 38% Accident & health 4% Accident & health 5% 1.5.2 Results The following graph shows how underwriting results and operating results (which includes investment income) of primary insurers have fluctuated over the past fourteen calendar years. The figures exclude Sasria: Results as percentage of net premiums written Percentage 30 25 20 15 10 5 0-5 28 23 22 20 20 19 16 14 13 12 12 11 10 9 9 8 6 5 3 3 2 1 0-1 -1 0-2 - 4 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Operating Underwriting Short-term Insurance 5

REGISTRAR OF SHORT-TERM INSURANCE 1.5.3 Underwriting results by type of business The bar chart below indicates how the underwriting results, as a percentage of net premiums, per type of policy for primary insurers have fluctuated over the past three calendar years. The results exclude Sasria: 50 48 40 30 20 10 0 15 8 10 24 33 19 9 6 3 20 24 15 34 31 13 26 5 26 24 27-5 -8 10-10 Property Transportation Motor Accident & health 2004 2005 2006 Guarantee Liability Engineering Miscellaneous 1.6 Reinsurance 1.6.1 Results This graph shows how underwriting results and operating results (which include investment income) of short-term reinsurers have fluctuated over the past fourteen calendar years: 50 Results as percentage of net premiums written 40 42 30 28 33 Percentage 20 10 0-10 10-10 4 19-1 9-10 11-7 4-11 9 12-6 -4 9-7 14 0 22 1 7 13-20 -18-19 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Operating Underwriting 6 Short-term Insurance

REGISTRAR OF SHORT-TERM INSURANCE 1.6.2 Underwriting results by type of business This bar chart compares the underwriting results as a percentage of net premiums per type of policy for reinsurers (most reinsurers report in three classes only): 25 20 15 10 5 0-5 -10-15 24 25 16 12 4 5 1 0-12 Property Transportation Miscellaneous 2004 2005 2006 2. ECONOMIC TRENDS IN THE INSURANCE INDUSTRY 2.1 Contribution to gross domestic product This graph shows the contribution by the long- and short-term insurance industries to the GDP from 1994 to 2006 (previous years percentages are sometimes adjusted by the South African Reserve Bank in their benchmarking and annual revision exercises): 3.0 2.5 2.0 2.3 2.6 2.3 2.4 2.2 2.6 2.4 2.3 2.1 2.0 2.3 2.5 2.1 1.5 1.0.5 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Percentage of GDP Source: South African Reserve Bank Short-term Insurance 7

REGISTRAR OF SHORT-TERM INSURANCE 2.2 The market capitalisation of the insurance sector on the JSE Limited The market capitalisation of the short-term insurance sector on the JSE Limited (JSE) amounted to R28.4 billion on 31 December 2006, or 0.56% of the total market capitalisation of the JSE. When Sanlam was listed on the JSE in December 1998 it contributed R19 billion to market capitalisation. When Old Mutual was listed on the JSE in July 1999 it contributed R45 billion to the market capitalisation. Both companies are long-term insurers. The graph shows the market capitalisation of the combined long- and short-term insurance sectors on the JSE since June 1995, as at 30 June each year until June 2004 and then from December 2004 as at 31 December each year: 300 R billion 250 262.32 200 190.20 150 100 76.80 100.80 99.91 77.66 136.06 148.60 127.99 105.37 122.57 164.50 50 48.60 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 Jun Dec 2005 2006 2004 2004 Source: JSE 3. REGULATORY AND POLICY DEVELOPMENTS 3.1 Advisory committee The Advisory Committee on Short-term Insurance is a statutory committee appointed by the Minister of Finance to investigate and advise on matters relating to the short-term insurance industry. The committee held two meetings during the period under review. 3.2 Lloyd s business The Act authorises Lloyd s underwriters to carry on short-term insurance business in South Africa through Lloyd s correspondents. The authorisation of the correspondents is the responsibility of the Lloyd s Representative Office in South Africa. Lloyd s correspondents do not submit individual returns to the Financial Services Board (FSB) (Insurance division). The reporting function has been consolidated and one return is submitted by the Lloyd s Representative Office in South Africa. Lloyd s conducted business in all eight classes and the total gross premium income amounted to R1.5 billion (2005: R1.4 billion), making them the ninth largest insurer in South Africa. 3.3 Micro-insurance A working group comprising representatives from the FSB and National Treasury has been constituted to determine the way forward for the regulation of micro-insurance, which includes assistance business and short-term insurance business. The National Treasury has appointed Genesis: Analytics as the consultants and they have been tasked to draft a discussion paper on micro-insurance. It is envisaged that this discussion paper will be circulated to all interested stakeholders for comments, after which plans will be put in place for the future regulation of micro-insurance. 8 Short-term Insurance

REGISTRAR OF SHORT-TERM INSURANCE The International Association of Insurance Supervisors (IAIS) issues globally accepted principles, standards and guidance papers for insurance regulation and supervision. The IAIS through its Implementation Committee has expressed support for insurance markets in establishing a sound insurance supervisory system. In order to give practical support the IAIS created a joint working group to address the issues of micro-insurance. One member of the Insurance division took part in a workshop arranged by the IAIS on micro-insurance in Hyderabad, India from 31 August 2006 to 2 September 2006. The objective was to share experience of providing micro-insurance products to low income earners, to look at the regulatory barriers to insurers accessing these markets and to develop an IAIS guidance paper on micro-insurance. Visits to low income rural insurance projects which encompassed health insurance, asset insurance and life insurance formed part of the programme. 3.4 Commission regulation The decapping of commissions was not reconsidered during the year. We will continue to discuss with stakeholders whether to proceed with the proposed decapping of commissions. The outcome of the commission debate in the long-term insurance industry might also inform decisions on the future commission structures within the short-term insurance industry. 3.5 Road Accident Fund The total liabilities of the Road Accident Fund (RAF) as at 31 March 2006 exceeded its assets by R18.4 billion, which places the RAF in a technically insolvent position. The table below reflects the financial position of the RAF over the past five years: 31 March 2002 months 31 March 2003 31 March 2004 31 March 2005 31 March 2006 R million R million R million R million R million Total assets 1 632 1 250 768 1 708 4 360 Total liabilities 12 757 16 680 19 325 21 559 22 728 Surplus assets (11 125) (15 430) (18 557) (19 851) (18 368) The board of directors and management of the RAF developed a strategic plan in September 2005 which incorporates a detailed rescue plan for the RAF and which was approved by the Minister of Transport on 10 January 2006. The RAF is in the process of implementing elements of the rescue plan. According to the Chief Executive Officer s Report in the Annual Report of the RAF for the financial year-end 31 March 2006 the results of the rescue plan will only be realised during the period from 2008 to 2010. 3.6 Financial condition reporting In December 2006 the Insurance division together with the Actuarial Insurance team of the FSB circulated an Issues Paper on the Proposed Financial Condition Reporting to all registered short-term insurance companies for comments. The purpose of this paper was to inform the short-term insurance industry of the proposed method of statutory financial reporting that would be required in South Africa in the future. This method is called Financial Condition Reporting (FCR). The paper describes FCR and the methods of calculating a short-term insurer s insurance liabilities and capital adequacy requirement (CAR). By introducing FCR, the FSB is following a risk-based regulatory approach that is becoming more acceptable internationally. Some of the countries that have already adopted a risk-based regulatory approach are Australia, UK, USA, Germany, Canada, Holland and Switzerland. Short-term Insurance 9

REGISTRAR OF SHORT-TERM INSURANCE FCR is favoured because it requires each insurer to calculate risk capital that depends on the underlying risk of its business. This will allow insurers to make more efficient use of capital when they manage the underlying risk. FCR will aid insurers in their risk management. This is because the method requires insurers to implement sound risk management strategies and to use the report and models that accompany the method in the day-to-day running of their business. This will result in a better understanding of an insurer s risks by its management, its board and the FSB. The FSB s preferred approach to calculating risk capital and liabilities is through the use of an Internal Model because, of all the options that insurers have, it is the most accurate in calculating risk capital. To aid companies that will not be in the position to build their own Internal Model by the time that FCR becomes a requirement, a Prescribed Model has been developed. The Prescribed Model is based on the recalibration of the financial data for the whole short-term industry. Another option that companies have to calculate their risk capital and liabilities is the Certified Model. Many of the features of this model are the same as those of the Prescribed Model. However, individual insurers will be able to change some elements of the Prescribed Model to meet their specific circumstances. The diagram below summarises FCR, its requirements and the methods that can be used to calculate liabilities and risk capital. 3.7 Insurance group supervision The Insurance division continues to perform reviews on insurance groups with the cooperation of the management of insurers. The reviews are performed annually, except in the case of the five larger groups where reviews are quarterly. The Insurance division is continuing with research into the introduction of a formal approach to insurance group supervision. International developments are closely monitored. 3.8 Risk-based supervision During the period under review the Insurance division implemented its risk-based supervision framework. Initial risk assessments were done on all registered insurance companies. Staff was trained in 2006 and will undergo further training during the course of the following year to ensure continuous improvement in the supervision process. 3.9 Cross border operations The Insurance division conducted a survey to establish the extent of cross border operations of registered insurers with a view to- Monitor the group operations of insurance companies Identify those jurisdictions with which the FSB may need to cooperate Assess the key risks to insurance companies. Insurers were requested to provide information on their global activities and business conducted within the SADC region for their financial years ending in 2005. The information included reinsurance business conducted on a cross border basis. Fair value of assets Fair value of admissible assets Excess assets Free assets CAR Min R10mil PM,CM or IM Liabilities Best estimate + Prescribed margins PM,CM or IM Financial Condition Report Risk Management Use in day-to-day running of business The annual statutory return will be amended to provide for this information. 3.10 Registrations, run-offs and dormant insurers, transfers and name changes New insurers registered, run-offs of business and dormant companies are indicated in table 3 of this report. Licences were issued to five new insurance companies during the review period and one licence was cancelled. 10 Short-term Insurance

REGISTRAR OF SHORT-TERM INSURANCE The liabilities of Pick n Pay Insurance Company Limited were substituted for that of Guardrisk Insurance Company Limited. The office expressed its satisfaction that the policyholders were aware of the nature of the substitution and that they have signified their consent thereto in writing. Number % Black Female 19 43 White Female 6 13 Black Male 14 31 White Male 6 13 Name changes of insurers are indicated in table 4 of this report. 4. DIRECTIVES AND INFORMATION LETTERS ISSUED 4.1 Directives This Insurance division issued no directives during the period under review. 4.2 Information letters The Insurance division issued the following information letters: Executive Officer Rob Barrow (Registrar of Short-term Insurance) Deputy Executive Officer: Insurance Mashudu Munyai (Deputy Registrar of Short-term Insurance) Subject Number Issue date Cross-border operations of insurance companies 1/2006(LT&ST) 10 April 2006 Service level commitments by the Registrars of Long-term and Short-term Insurance 2/2006(LT&ST) 20 December 2006 Head: Insurance Prudential Suzette Vogelsang Head: Insurance Compliance Jacky Huma Head: Insurance Registration and Policy Patrick Ward 5. GENERAL INFORMATION 5.1 Staff of the Insurance division of the Financial Services Board As at 31 December 2006 the staff complement of the Insurance division was as follows: Deputy Executive Officer 1 Heads of departments 3 Managers 6 Analysts 24 Specialist Analysts 2 Specialists 3 Administrative staff 6 Short-term Insurance 11

REGISTRAR OF SHORT-TERM INSURANCE 5.2 Curatorship of South Union Reinsurance Company Limited (previously Zimbabwe Reinsurance Corporation SA Limited) South Union Reinsurance Company Limited was placed under final curatorship on 5 October 2004. The reason was to protect policyholder interests following the company s inability to submit annual statutory returns, their need for additional capital to continue business, high loss ratios resulting from bad underwriting practices, rapid business growth, questionable corporate governance principles, unreliable financial data and doubtful inter-group loans made by the company. The curator submitted his fifth report to Court on 26 October 2006. The curatorship was extended to 30 June 2007. The reasons for extending the curatorship were mainly the following: The company has still not recovered all amounts due to it by related and/or associated companies The company must still dispose of its property assets The liabilities of the company still exceed its assets T he total amount due by the company pursuant to its participation under the various reinsurance treaties is not yet known The company has paid no significant amounts to its insurance claimants. The shareholders of Sure have approached the FSB with a request for the lifting of the curatorship. In August 2005 the FSB advised the shareholders of the conditions which would have to be fulfilled prior to the lifting of the curatorship order. Amongst these conditions is the recapitalisation of Sure in order to place it in a financially sound condition. The shareholders of Sure have submitted documents in support of the request. The request for lifting of the curatorship has also been discussed with the curator and a decision will be made subsequent to a meeting with the curator at the end of June 2007. 5.3 Alleged contraventions of the Act 5.3.1 Inspections No inspections were requested during the period under review. The following table gives a breakdown of the cases that were inspected during 2005 and 2006: Activity Number of cases* 2005 2006 In progress 1 0 Finalised 1 0 Total 2 0 * May include cases relating to prior years. 5.3.2 Prosecutions No matters were referred for prosecution during the period under review. The following table gives a breakdown of the cases that were referred for prosecution during 2005 and 2006: Activity Number of cases* 2005 2006 In progress 1 0 Finalised 0 0 Reopened 0 0 Total 1 0 * May include cases relating to prior years. 5.4 On-site visits The Insurance division continues to conduct on-site visits. The visits focus on the various risk areas of insurers and include the following: Counterparty risk Market and balance sheet risk Insurance risk Operational risk Liquidity risk Strategic risk Group and contagion risk Legal and regulatory risk. 12 Short-term Insurance

REGISTRAR OF SHORT-TERM INSURANCE The majority of insurers reported the following top five risks (not ranked) in their annual statutory returns: Compliance risk Credit risk Operational risk Insurance risk Market risk. 5.5 Consumer complaints This Office received 103 complaints (2005: 154) during the period under review and 100% of these were resolved. Consumer complaints can be broadly categorised as follows: Premium refunds/other premium complaints 1% Consumer complaints Claims disputes 42% 5.7 Involvement in international developments 5.7.1 Southern African Development Community The Committee of Insurance, Securities and Non-banking Financial Authorities (CISNA) was established in June 1998. It consists of the regulatory authorities of capital markets, retirement funds, collective investment schemes, insurance companies and providers of intermediary services from the Southern African Development Community (SADC) countries. The secretariat for CISNA is located at the FSB. The main objectives of CISNA can be summarised as addressing the three principal challenges namely: market development, market harmonisation and systemic stability in the SADC region. During the year under review CISNA met at the Victoria Falls in Zimbabwe on 27 and 28 April 2006 and in Ezulwini, Swaziland on 26 & 27 October 2006. The Zimbabwe meeting focused on the projects identified during the special CISNA meeting held in South Africa in August 2004, updates on the activities of the Committee of SADC Stock Exchanges, FIRST Initiative s SADC training programme and understanding the operation of hedge funds and the regulation thereof. Alleged Act contraventions 5% The Swaziland meeting focused on the progress made with the Finance and Investment Protocol and the harmonisation of the regulatory frameworks of CISNA. Policy not received/ understood 4% Other/poorr service 48% The SADC Finance and Investment Protocol was approved and signed by member states at the summit in Maseru, Lesotho on 17 August 2006. 5.6 Inducements The Insurance division became aware of and had identified certain practices as inducements. This prompted the division to conduct an industry-wide investigation to determine the prevalence of such practices. The division will analyse the results and decide on the way forward. One specific practice involves a long-term policy. The FSB held discussions with the company and made it clear that aspects of the benefits constitute an inducement. The company did not share the FSB s view and it was agreed that the company could seek a declaratory order from the courts. At the time of writing the report the outcome was not known. 5.7.2 Memoranda of Understanding The FSB is party to a number of bilateral Memoranda of Understanding (MOU s) with international supervisors. A list of these supervisory authorities is available on the FSB website. 5.7.3 Membership of international associations The FSB is a member of the International Association of Insurance Supervisors (IAIS), the African Insurance Organisation (AIO) and of the Association of African Insurance Supervisory Authorities (AAISA). FSB staff members serve on the executive committees of IAIS and AAISA respectively and also act as secretary-general and treasurer of AAISA. Short-term Insurance 13

REGISTRAR OF SHORT-TERM INSURANCE The FSB attended the general assembly and executive committee meetings of the AAISA that were held in Cape Town, South Africa in May 2006. The objectives of the AAISA is to promote cross-border co-operation and sharing of information, assisting in the establishing, monitoring and developing of African insurance supervisory authorities, enhancing of standards of supervision on the African continent and discussion of issues of mutual concern. 6. CONCLUSION I, the Registrar, wish to record my appreciation for the cooperation this Office received from insurers and representative bodies of insurers, intermediary associations and consumer forums, as well as the auditing and actuarial professions. The close working relationship with the National Treasury is much appreciated. Membership of these international associations provides opportunities to participate in the formulation of principles, implementation of standards and focusing attention on the special needs of emerging market countries. Through its membership of the IAIS, the FSB is also committed to the sharing and transfer of knowledge to other emerging market jurisdictions in Africa. r j g barrow Registrar of Short-term Insurance 16 November 2007 The FSB s staff members are continuously involved in the ongoing work of the IAIS, including the hosting of an annual training seminar for African Insurance Supervisors. A training session on capital adequacy and risk assessment was hosted from 27 to 30 November 2006. The FSB hosted the programme and the IAIS funded the training. Twentyseven delegates from fifteen African countries attended the training seminar. The IAIS Annual Conference took place in Beijing, China from 18 to 21 October 2006. The Deputy Executive Officer in his capacity as member of the Executive Committee of the IAIS, also attends the subcommittee meetings that are held three times a year. 5.7.4 Liaison with foreign supervisors The FSB is in regular contact with international supervisors, responds to numerous queries from abroad and liaises with Interpol in the policing of global financial fraud and crime. 14 Short-term Insurance

TABLE 1 - REGISTERED SHORT-TERM INSURERS NAMES AND ADDRESSES** AS AT 31 DECEMBER 2006 Primary insurers POSTAL ADDRESS 1 Absa Insurance Company Limited P O Box 421 Johannesburg 2000 2 Absa Insurance Risk Management Services Limited P O Box 421 Johannesburg 2000 3 Ace Insurance Limited P O Box 1192 Saxonwold 2132 4 AECI Captive Insurance Company Limited Private Bag X21 Gallo Manor 2052 5 Aegis Insurance Company Limited P O Box 3881 Tyger Valley 7536 6 African General Insurance Company Limited P O Box 61489 Marshalltown 2107 7 Agre Insurance Company Limited P O Box 62117 Marshalltown 2107 8 Agri Risiko Spesialiste Beperk Private Bag X15 Brandhof 9324 9 AIG South Africa Limited P O Box 31983 Braamfontein 2017 10 AIM Insurance Limited P O Box 2130 Parklands 2121 11 Alexander Forbes Insurance Company Limited P O Box 786015 Sandton 2146 12 Allianz Insurance Limited P O Box 62228 Marshalltown 2107 13 Attorneys Insurance Indemnity Fund P O Box 781521 Sandton 2146 14 Auto and General Insurance Company Limited P O Box 11250 Johannesburg 2000 15 Aviation Insurance Company Limited P O Box 6777 Johannesburg 2000 16 Bensure Insurance Underwriters Limited P O Box 3315 Randburg 2125 17 Centriq Insurance Company Limited P O Box 55674 Northlands 2116 18 CGU Insurance Limited P O Box 1120 Johannesburg 2000 19 Coface South Africa Insurance Company Limited P O Box 1657 Sunninghill 2157 20 Compass Insurance Company Limited P O Box 37226 Birnam Park 2015 21 Constantia Insurance Company Limited P O Box 3518 Cramerview 2060 22 Corporate Guarantee (South Africa) Limited P O Box 2878 Randburg 2125 23 Credit Guarantee Insurance Corporation of Africa Limited P O Box 125 Randburg 2125 24 Customer Protection Insurance Company Limited P O Box 122 Bedfordview 2008 25 Densecure (Pty) Limited P O Box 8322 Hennopsmeer 0046 26 Dial Direct Insurance Limited P O Box 109 Auckland Park 2002 27 Emerald Insurance Company Limited Suite 354 Private Bag X51 Bryanston 2021 28 Enpet Africa Insurance Limited P O Box 781692 Sandton 2146 29 Escap Limited P O Box 1091 Johannesburg 2000 30 Export Credit Insurance Corporation of SA Limited P O Box 28177 Sunnyside 0132 Short-term Insurance 15

TABLE 1 - REGISTERED SHORT-TERM INSURERS NAMES AND ADDRESSES** AS AT 31 DECEMBER 2006 Primary insurers POSTAL ADDRESS 31 Federated Employers` Mutual Assurance Company Limited Private Bag X87109 Houghton 2041 32 Ferrosure (South Africa) Insurance Company Limited P O Box 75368 Lynnwoodridge 0040 33 Fidelity Insurance Limited Private Bag X54 Bryanston 2021 34 First Central Insurance Limited Private Bag X2900 Houghton 2041 35 Firstrand Insurance Services Company Limited P O Box 786273 Sandton 2146 36 FNB Credit Guarantee Limited P O Box 652659 Benmore 2010 37 General Accident Insurance Company SA Limited P O Box 6451 Cresta 2118 38 Gerling General Insurance of SA Limited P O Box 66 Saxonwold 2132 39 Global Insurance Company Limited P O Box 421 Johannesburg 2000 40 Guardian National Insurance Company Limited P O Box 3881 Tyger Valley 7536 41 Guardrisk Insurance Company Limited P O Box 786015 Sandton 2146 42 Hollard Insurance Company Limited, The P O Box 87419 Houghton 2041 43 Home Loan Guarantee Company P O Box 23 Auckland Park 2006 44 Indequity Specialised Insurance Limited P O Box 5433 Weltevredenpark 1715 45 Infiniti Risk Solutions Limited P O Box 206 Howard Place 7450 46 Intermediaries Guarantee Facility Limited P O Box 30619 Braamfontein 2017 47 Investec Specialised Insurance Limited P O Box 785700 Sandton 2146 48 Khula Credit Guarantee Limited P O Box 28423 Sunnyside 0132 49 Kingfisher Insurance Company Limited P O Box 781692 Sandton 2146 50 Legal Expenses Insurance Southern Africa Limited P O Box 6144 Weltevredenpark 1715 51 Lion of Africa Insurance Company Limited P O Box 100 Parklands 2121 52 Lombard Insurance Company Limited P O Box 2740 Parklands 2121 53 Lloyd s underwriters* P O Box 787163 Sandton 2146*** 54 McSure Limited P O Box 794 Durban 4000 55 Momentum Short-term Insurance Company Limited Private Bag X6784 Centurion 0046 56 Monarch Insurance Company Limited P O Box 43 Woodstock 7915 57 MUA Insurance Company Limited P O Box 31327 Tokai 7966 58 Mutual & Federal Insurance Company Limited P O Box 1120 Johannesburg 2000 59 Mutual & Federal Risk Financing Limited P O Box 1120 Johannesburg 2000 60 Natsure Limited P O Box 14098 Hatfield 0028 16 Short-term Insurance

TABLE 1 - REGISTERED SHORT-TERM INSURERS NAMES AND ADDRESSES** AS AT 31 DECEMBER 2006 Primary insurers POSTAL ADDRESS 61 Nedcor Insurance Company Limited P O Box 1144 Johannesburg 2000 62 Nedcor (SA) Insurance Company Limited P O Box 1144 Johannesburg 2000 63 Nedgroup Insurance Company Limited P O Box 1144 Johannesburg 2000 64 New National Assurance Company Limited P O Box 1610 Durban 4000 65 Nova Risk Partners Limited P O Box 55674 Northlands 2116 66 Old Mutual Health Insurance Limited P O Box 172 Howard Place 7450 67 Outsurance Insurance Company Limited P O Box 8443 Centurion 0046 68 Pick n Pay Insurance Company Limited P O Box 23087 Claremont 7735 69 Pinnafrica Insurance Limited P O Box 98758 Sloane Park 2052 70 Rand Mutual Assurance Company Limited P O Box 61413 Marshalltown 2107 71 Regent Insurance Company Limited P O Box 674 Edenvale 1610 72 Relyant Insurance Company Limited P O Box 47353 Greyville 4023 73 Renasa Insurance Company Limited P O Box 412072 Craighall 2024 74 Resolution Insurance Company Limited P O Box 1115 Bromhof 2154 75 RMB Specialised Lines Limited P O Box 652659 Benmore 2010 76 RMB Structured Insurance Limited P O Box 652659 Benmore 2010 77 Sabsure Limited P O Box 1099 Johannesburg 2000 78 Safire Insurance Company Limited P O Box 11475 Dorpspruit 3206 79 Sage Specialised Insurances Limited P O Box 9745 Johannesburg 2000 80 SAHL Insurance Company Limited P O Box 3918 Durban 4000 81 Santam Limited P O Box 3881 Tyger Valley 7536 82 Sasguard Insurance Company Limited P O Box 20 Huguenot 7645 83 Sasria Limited P O Box 7380 Johannesburg 2000 84 Saxum Insurance Limited P O Box 1634 Houghton 2041 85 Sentrasure Limited P O Box 1120 Johannesburg 2000 86 Shoprite Insurance Company Limited P O Box 215 Brackenfell 7561 87 South African Eagle Insurance Company Limited P O Box 61489 Marshalltown 2107 88 South African Eagle Risk Financing Limited P O Box 61489 Marshalltown 2107 89 South African Reserve Bank Captive Insurance Company Limited, The P O Box 427 Pretoria 0001 90 Southern Insurance Association Limited P O Box 7400 Centurion 0046 Short-term Insurance 17

TABLE 1 - REGISTERED SHORT-TERM INSURERS NAMES AND ADDRESSES** AS AT 31 DECEMBER 2006 Primary insurers POSTAL ADDRESS 91 Standard Insurance Limited P O Box 32587 Braamfontein 2017 92 Sunderland Marine (Africa) Limited First Floor ICR House Alphen Office Park Constantia 7806 93 St Paul Insurance Company South Africa Limited P O Box 2242 Saxonwold 2132 94 Truck and General Insurance Company Limited P O Box 68589 Bryanston 2021 95 Unitrans Insurance Limited P O Box 69574 Bryanston 2021 96 Unity Insurance Limited P O Box 11250 Johannesburg 2000 97 Westchester Insurance Company (Pty) Limited P O Box 781692 Sandton 2146 98 XL Insurance Company Limited P O Box 198 Strathavon 2031 Reinsurers 99 African Reinsurance Corporation (SA) Limited P O Box 3013 Houghton 2041 100 Central Reinsurance Corporation Limited P O Box 61248 Marshalltown 2107 101 General Reinsurance Africa Limited P O Box 444 Cape Town 8000 102 Hannover Reinsurance Africa Limited P O Box 10842 Johannesburg 2000 103 Imperial Reinsurance Company Limited P O Box 72409 Parkview 2122 104 Munich Reinsurance Company of Africa Limited P O Box 6636 Johannesburg 2000 105 Saxum Reinsurance Limited P O Box 1634 Houghton 2041 106 South Union Reinsurance Company Limited (in curatorship) P O Box 1198 Crown Mines 2025 107 Swiss Re Africa Limited P O Box 72209 Parkview 2122 * Lloyd s underwriters are authorised to carry on short-term insurance business in terms of the Short-term Insurance Act, 1998 (Act No. 53 of 1998). ** The most recent addresses appear in the table. *** The address of the Lloyd s Representative Office in South Africa. 18 Short-term Insurance

TABLE 2 - LLOYD S APPROVED CORRESPONDENTS AS AT 31 DECEMBER 2006 NAME POSTAL ADDRESS 1 Abrina 872 (Pty) Limited t/a Global Consulting Solutions P O Box 8538 Edleen 1625 2 Absa Brokers (Pty) Limited P O Box 3992 Randburg 2125 3 Admiral Liability Acceptances (Pty) Limited P O Box 72057 Parkview 2122 4 African Independent Brokers Private Bag X7 Selcourt 1567 5 African Motor Underwriters (Pty) Limited P O Box 2847 Parklands 2121 6 Airborne Insurance Consultants (Pty) Limited P O Box 1768 Morningside 2057 7 Alexander Forbes Financial Services (Pty) Limited P O Box 787240 Sandton 2146 8 Alexander Forbes Management Service (Pty) Limited P O Box 787240 Sandton 2146 9 Alexander Forbes Personal Services (Pty) Limited t/a Meridian P O Box 35325 Menlo Park 0102 10 Alexander Forbes Risk Services (Pty) Limited P O Box 781692 Sandton 2146 11 Anderson Insurance Brokers (Pty) Limited P O Box 2548 Fourways 2055 12 Aon Re (Africa) (Pty) Limited P O Box 2130 Parklands 2121 13 Aon South Africa (Pty) Limited P O Box 1874 Parklands 2121 14 Associated Insurance Brokers (Pty) Limited t/a Capital Risk Serv P O Box 785063 Sandton 2146 15 B n B Sure (Pty) Limited P O Box 4047 Randburg 2125 16 Baronscourt SA (Pty) Limited P O Box 130 Cramerview 2060 17 Bell Price & Associates (Pty) Limited P O Box 3953 Cape Town 8000 18 Benfield Greig SA (Pty) Limited P O Box 61176 Marshalltown 2107 19 Bloodstock & General Insurance Intermediaries (Pty) Limited P O Box 39 Nottingham Road 3280 20 Businessure Specialist Underwriters (Pty) Limited P O Box 34876 Glenstantia 0010 21 Camargue Underwriting Managers (Pty) Limited Postnet Suite 250 Private Bag X4 Bedfordview 2008 22 Carl Greaves Brokers (Pty) Limited P O Box 4164 Old Oak 7537 23 CGM Insurance Brokers CC P O Box 48920 Roosevelt Park 2129 24 Cooper Gay Africa Financial Services (Pty) Limited P O Box 785553 Sandton 2146 25 Daly s & Associates (Pty) Limited P O Box 1342 Cape Town 8000 26 Delphisure Group Insurance Brokers (Pty) Limited P O Box 3388 Tygerpark 7536 27 Dennis Jankelow & Associates (Pty) Limited P O Box 71626 Bryanston 2021 28 Devereux Marine CC 18 Orchard Heights Newlands 7700 29 Dexdata (Pty) Limited P O Box 10592 Johannesburg 2000 30 DMKC Insurance Brokers (Pty) Limited P O Box 30245 Tokai 7966 Short-term Insurance 19

TABLE 2 - LLOYD S APPROVED CORRESPONDENTS AS AT 31 DECEMBER 2006 NAME POSTAL ADDRESS 31 Econorisk (Pty) Limited P O Box 3428 Rivonia 2128 32 Eikos Risk Applications P O Box 413292 Craighall 2024 33 Equine Insurance Brokers (Pty) Limited P O Box 78035 Avondale Rd 4101 34 FGA Insurance Brokers (Pty) Limited P O Box 41617 Craighall 2024 35 First Equity Risk Management Services t/a Expanded Risk Consulting CC P O Box 71931 Bryanston 2021 36 Flightsure Aviation Brokers (Pty) Limited P O Box 5072 Halfway House 1685 37 General & Professional Liability Acceptance (Pty) Limited t/a GLPA P O Box 2667 Fourways 2055 38 GIB Insurance Brokers P O Box 3211 Houghton 2041 39 Glencairn Insurance Brokers (SA) (Pty) Limited Postnet Suite 105 Private Bag X11 Birnam Park 2015 40 Glenrand MIB Limited P O Box 2544 Randburg 2125 41 G M Thomas & Associates P O Box 28103 Malvern 4055 42 Goldfield Insurance Administration CC P O Box 619 Randburg 2125 43 Goss & Company Insurance Brokers P O Box 430 Mooi River 3300 44 Hamford (Pty) Limited P O Box 12044 Centurion 0046 45 Health & Accident Underwriting Managers (Pty) Limited P O Box 324 Rivonia 2128 46 Heritage Insurance Brokers (Pty) Limited Private Bag X11 Benmore 2010 47 Interactive Trading (332) (Pty) Limited/ t/a RMIS P O Box 1773 Pinegowrie 2123 48 International Marine Insurance Managers SA (Pty) Limited P O Box 347 Plumstead 7801 49 Investec Insurance Brokers (Pty) Limited P O Box 785700 Sandton 2146 50 Kapara Insurance Brokers P O Box 2812 Houghton 2041 51 Kiln SA (Pty) Limited P O Box 3304 Rivonia 2128 52 Leppard & Associates (Pty) Limited t/a SCS Underwriting Managers P O Box 2730 Houghton 2041 53 Longsmith Reinsurance Brokers International (Pty) Limited No 7 Abbotswold Saxonwold 2196 54 M R Woollam & Associates (Pty) Limited P O Box 1384 Pietermaritzburg 3200 55 Manwood Underwriters (Pty) Limited Postnet Suite 31 Private Bag X75 Bryanston 2021 56 Manny Garrun & Sons (Pty) Limited P O Box 92337 Norwood 2117 57 Marsh SA (Pty) Limited Private Bag X14 Benmore 2010 58 Multirisk Managers (Pty) Limited P O Box 254 Pinegowrie 2123 59 Nacora Insurance Brokers (Pty) Limited P O Box 2141 Saxonwold 2132 60 Paladin Underwriting Managers (Pty) Limited P O Box 613 Rondebosch 7701 20 Short-term Insurance

TABLE 2 - LLOYD S APPROVED CORRESPONDENTS AS AT 31 DECEMBER 2006 NAME POSTAL ADDRESS 61 Praesidio Risk Managers (Pty) Limited P O Box 337 Cramerview 2060 62 Prestmarine International (Pty) Limited P O Box 231 Bedfordview 2008 63 Proficient Marketing CC t/a Promark Insurance Brokers P O Box 147 Maitland 7404 64 Ram International Insurance Brokers (Pty) Limited P O Box 506 Isando 1600 65 Reinsurance Solutions (Brokers) (Pty) Limited P O Box 784507 Sandton City 2146 66 Safari & Tourism Insurance Brokers (Pty) Limited P O Box 250 Umhlanga Rocks 4320 67 Shield Financial Services P O Box 2294 Houghton 2041 68 Southern Cross Underwriters P O Box 1113 Pinegowrie 2123 69 Stalker Hutchinson & Associates (Pty) Limited P O Box 55347 Northlands 2116 70 Standard Bank Insurance Brokers (Pty) Limited P O Box 31435 Braamfontein 2017 71 Staple Hall Risk Solutions (SA) Limited t/a SIPA P O Box 2667 Fourways 2055 72 Steve Slatter Insurance Brokers (Pty) Limited 17 Lynn Avenue Glenashley Durban 4051 73 Thebe Risk Services P O Box 667 Johannesburg 2000 74 Thomson Credit Insurance Consulting (Pty) Limited P O Box 3211 Houghton 2041 75 T.I.V. Insurance Brokers CC P O Box 31417 Tokai 7966 76 Tradeforth Six (Pty) Limited t/a Abelard Underwriting Agency P O Box 68345 Bryanston 2021 77 Universal Acceptances (Pty) Limited P O Box 190 Witkoppen 2068 78 Vunani Dougall Insurance Brokers (Pty) Limited P O Box 47593 Greyville 4023 79 Willis South Africa (Pty) Limited P O Box 55509 Northlands 2116 Short-term Insurance 21

TABLE 3 - POLICIES FOR WHICH SHORT-TERM INSURERS WERE REGISTERED AS AT 31 DECEMBER 2006 TRANSPORTATION PROPERTY MOTOR MISCELLANEOUS LIABILITY ACCIDENT & HEALTH GUARANTEE ENGINEERING Primary insurers 1 Absa Insurance Company Limited X X X X X X X X 2 Absa Insurance Risk Management Services Limited X X X X X X X X 3 Ace Insurance Limited X X X X X X X X 4 AECI Captive Insurance Company Limited X X X X X X X X 5* Aegis Insurance Company Limited X X X X X X X X 6* African General Insurance Company Limited X X X X 7 Agre Insurance Company Limited X X X X X X X X 8* Agri Risiko Spesialiste Beperk X 9 AIG South Africa Limited X X X X X X X X 10* AIM Insurance Limited X X X X X X X X 11 Alexander Forbes Insurance Company Limited X X X X X X X 12 Allianz Insurance Limited X X X X X X X X 13 Attorneys Insurance Indemnity Fund X X 14 Auto and General Insurance Company Limited X X X X X X X X 15* Aviation Insurance Company Limited X X X 16 Bensure Insurance Underwriters Limited X 17 Centriq Insurance Company Limited X X X X X X X X 18* CGU Insurance Limited X X X X X X X X 19 Coface South Africa Insurance Company Limited X 20 Compass Insurance Company Limited X X*** X X X X X X 21 Constantia Insurance Company Limited X X X X X X X X 22 Corporate Guarantee South Africa Limited X X X X X X X X 23 Credit Guarantee Insurance Corporation of Africa Limited X 24 Customer Protection Insurance Company Limited X X X X X X 25 Densecure (Pty) Limited X X X X X X X X 26 Dial Direct Insurance Limited X*** X*** X*** X X X X*** 27 Emerald Insurance Company Limited X X X X X X X X 28 Enpet Africa Insurance Limited X X X X X X X X 29 Escap Limited X X X X X X X X 30 Export Credit Insurance Corporation of SA Limited X 22 Short-term Insurance

TABLE 3 - POLICIES FOR WHICH SHORT-TERM INSURERS WERE REGISTERED AS AT 31 DECEMBER 2006 TRANSPORTATION PROPERTY MOTOR MISCELLANEOUS LIABILITY ACCIDENT & HEALTH GUARANTEE ENGINEERING Primary insurers 31 Federated Employers` Mutual Assurance Company Limited X 32 Ferrosure (SA) Insurance Company Limited X X X X X X X X 33 Fidelity Insurance Limited X X X X X X 34* First Central Insurance Limited X X X X X X X X 35 Firstrand Insurance Services Company Limited X X X X X X X X 36 FNB Credit Guarantee Limited X X X X 37* General Accident Insurance Company South Africa Limited X X X X X X X X 38 Gerling General Insurance of South Africa Limited X X X X X X X X 39 Global Insurance Company Limited X X X X X X X X 40* Guardian National Insurance Company Limited X X X X X X X X 41 Guardrisk Insurance Company Limited X X X X X X X X 42 Hollard Insurance Company Limited, The X X X X X X X X 43 Home Loan Guarantee Company X 44 Indequity Specialised Insurance Limited X X X X X X X X 45** Infiniti Risk Solutions Limited X X X 46 Intermediaries Guarantee Facility Limited X 47* Investec Specialised Insurance Limited X X X X X X X X 48 Khula Credit Guarantee Limited X 49 Kingfisher Insurance Company Limited X X X X X X X X 50 Legal Expenses Insurance Southern Africa Limited X 51 Lion of Africa Insurance Company Limited X X X X X X X X 52 Lombard Insurance Company Limited X X X X X X X X 53**** Lloyd s underwriters X X X X X X X X 54 McSure Limited X X X X X 55 Momentum Short-term Insurance Company Limited X X X X X 56 Monarch Insurance Company Limited X X X 57 Mua Insurance Company Limited X X*** X X*** 58 Mutual & Federal Insurance Company Limited X X X X X X X X 59 Mutual & Federal Risk Financing Limited X X X X X X X X 60 Natsure Limited X X X X X X Short-term Insurance 23

TABLE 3 - POLICIES FOR WHICH SHORT-TERM INSURERS WERE REGISTERED AS AT 31 DECEMBER 2006 TRANSPORTATION PROPERTY MOTOR MISCELLANEOUS LIABILITY ACCIDENT & HEALTH GUARANTEE ENGINEERING Primary insurers 61* Nedcor Insurance Company Limited X X 62 Nedcor (SA) Insurance Company Limited X X X X X X X X 63 Nedgroup Insurance Company Limited X X X X X X X X 64 New National Assurance Company Limited X X X X X X X X 65 Nova Risk Partners Limited X X X X X X X X 66* Old Mutual Health Insurance Limited X X 67 Outsurance Insurance Company Limited X X X X X X X 68* Pick n Pay Insurance Company Limited X X X X X X X X 69 Pinnafrica Insurance Limited X X X 70 Rand Mutual Assurance Company Limited X X X 71 Regent Insurance Company Limited X X X X X X X X 72 Relyant Insurance Company Limited X X X X X X 73 Renasa Insurance Company Limited X X X X X X X X 74** Resolution Insurance Company Limited X X X X X X 75** RMB Specialised Lines Limited X X X X X X X 76 RMB Structured Insurance Limited X X X X X X X X 77 Sabsure Limited X X X X X X X X 78 Safire Insurance Company Limited X X X X X X X 79 Sage Specialised Insurances Limited X X X X X 80** SAHL Insurance Company Limited X 81 Santam Limited X X X X X X X X 82 Sasguard Insurance Company Limited X X X X X X X 83 Sasria Limited X X X X X X X X 84 Saxum Insurance Limited X X X X X X X X 85* Sentrasure Limited X X X X X X X 86 Shoprite Insurance Company Limited X X X X 87 South African Eagle Insurance Company Limited X X X X X X X X 88 South African Eagle Risk Financing Limited X X X X X X X X 89 South African Reserve Bank Captive Insurance Company Limited, The X X X X X X X X 24 Short-term Insurance

TABLE 3 - POLICIES FOR WHICH SHORT-TERM INSURERS WERE REGISTERED AS AT 31 DECEMBER 2006 TRANSPORTATION PROPERTY MOTOR MISCELLANEOUS LIABILITY ACCIDENT & HEALTH GUARANTEE ENGINEERING Primary insurers 90* Southern Insurance Association Limited X X 91 Standard Insurance Limited X X X X X X 92** Sunderland Marine (Africa) Limited X X X X 93* St Paul Insurance Company SA Limited X X X X X X X X 94* Truck & General Insurance Company Limited X X X X X X 95 Unitrans Insurance Limited X X X X X X X X 96 Unity Insurance Limited X*** X*** X X X X X X*** 97* Westchester Insurance Company (Pty) Limited X X X X X X X X 98* XL Insurance Company Limited X X X X X X X X Reinsurers 99 African Reinsurance Corporation (SA) Limited X X X X X X X X 100* Central Reinsurance Corporation Limited X X X X X X X X 101 General Reinsurance Africa Limited X X X X X X X X 102 Hannover Reinsurance Africa Limited X X X X X X X X 103 Imperial Reinsurance Company Limited X X X X X X X X 104 Munich Reinsurance Company of Africa Limited X X X X X X X X 105* Saxum Reinsurance Limited X X X X X X X X 106 South Union Reinsurance Company Limited (in curatorship) X X X X X X X X 107 Swiss Re Africa Limited X X X X X X X X Total 73 85 90 85 89 86 90 82 * Run-off of business as well as dormant companies during the period under review. ** New insurers registered during the period under review. *** New policies included in the registration of insurers during the period under review. **** Lloyd s underwriters are authorised to carry on short-term insurance business in terms of the Short-term Insurance Act, 1998 (Act No. 53 of 1998). Short-term Insurance 25

TABLE 4 - NAME CHANGES OF SHORT-TERM INSURERS UP TO 31 DECEMBER 2006 PREVIOUS NAME CHANGED NAME EFFECTIVE DATE 1 AGF (Southern Africa) Insurance Limited Emerald Insurance Company Limited 13/05/1997 2 AI Insurance Company Limited AIG South Africa Limited 09/02/1995 3 Allianz Risk Transfer Limited Santam Risk Finance Limited 13/03/2003 4 BOE Insurance Company Limited Nedinsurance Company Limited 13/08/2003 5 CGU Risk Finance Limited Cougar Risk Finance Limited 21/06/2001 6 Cigna Insurance Company Limited Ace Insurance Limited 02/11/1999 7 Cologne Reinsurance Company of South Africa Limited, The General & Cologne Re Africa Limited, The 01/06/1999 8 Commercial Union Insurance of SA Limited CGU Insurance Limited 03/09/1999 9 Commercial Union Risk Finance Limited CGU Risk Finance Limited 11/10/1999 10 Concord Insurance Company Limited Cigna Insurance Company Limited 23/03/1995 11 Denel Versekeringsmaatskappy (Edms) Beperk Densecure (Edms) Beperk 01/06/1995 12 Fedgen Insurance Limited Fedsure General Insurance Limited 04/10/1996 13 First National Insurance Company Limited Outsurance Insurance Company Limited 08/02/2002 14 General & Cologne Re Africa Limited, The GeneralCologne Re Africa Limited 21/10/2002 15 GeneralCologne Re Africa Limited General Reinsurance Africa Limited 11/06/2004 16 Gerling Global Reinsurance Company of SA Limited Saxum Reinsurance Limited 08/12/2003 17 Guardian Insurance Company Limited Alexander Forbes Insurance Company Limited 18/09/2001 18 HMS Insurance Company Limited Fedsure Health General Insurance Limited 03/02/2000 19 Hollandia Reinsurance Company Limited Hannover Reinsurance Africa Limited 27/03/2000 20 Lion of Africa Insurance Company Limited, The Lion of Africa Insurance Company Limited 08/03/2004 21 Lombard Waarborg Versekering Maatskappy Beperk Lombard Insurance Company Limited 05/05/1998 22 Maritime & General Insurance Company Limited Quantum Insurance Company Limited 05/06/1995 23 Mercantile and General Reinsurance Company of SA Limited Swiss Re Life and Health Southern Africa Limited 31/10/1997 24 Munich Reinsurance Company of SA Limited Munich Reinsurance Company of Africa Limited 25/08/1995 25* Nasionale Versekeraars Beperk Natsure Limited 19/09/2006 26 NBS Insurance Company Limited BoE Insurance Company Limited 11/10/1999 27* Nedinsurance Company Limited Nedgroup Insurance Company Limited 14/09/2006 28 Outsurance Insurance Company Limited Outsurance Holdings Limited 08/02/2002 29 Outsurance Holdings Limited Firstrand STI Holdings Limited 09/11/2005 30 Phoenix Assurance of South Africa Limited Mutual & Federal Risk Financing Limited 03/08/1999 26 Short-term Insurance

TABLE 4 - NAME CHANGES OF SHORT-TERM INSURERS UP TO 31 DECEMBER 2006 PREVIOUS NAME CHANGED NAME EFFECTIVE DATE 31 Prefsure Limited Relyant Insurance Company Limited 02/02/1999 32 PSG Insurance Company Limited PSG Vantage Limited 26/10/1999 33 PSG Vantage Limited Indequity Specialised Insurance Limited 24/01/2001 34 Quantum Insurance Company Limited RMB Structured Insurance Limited 13/03/2000 35* Ritesure Limited Infiniti Risk Solutions Limited 28/03/2006 36* Santam Risk Finance Limited Centriq Insurance Company Limited 14/09/2006 37 Sentraboer (Koöp) Beperk Sentrasure Beperk 17/03/1994 38 Sentraoes Beperk Agri Risiko Spesialiste Beperk 07/04/2003 39 Sentraoes (Koöp) Beperk Sentraoes Beperk 08/01/1997 40 South African Special Risks Insurance Association Sasria Limited 05/11/1999 41 Stanbic Insurance Limited Standard Insurance Limited 05/11/2004 42 Suid-Afrikaanse Nasionale Mediese Fonds Beperk Sanlam Health Risk Management Limited 30/03/1998 43 Swiss Re Southern Africa Limited Swiss Re Africa Limited 04/11/2003 44 Swiss South African Reinsurance Company Limited Swiss Re Southern Africa Limited 23/01/1996 45 Universal Healthcare Insurance Company Limited Universal Insurance Limited 28/01/1998 46 Winterthur Insurance Company Limited XL Winterthur International Insurance Company Limited 04/12/2001 47 XL Winterthur International Insurance Company Limited XL Insurance Company Limited 21/05/2003 48 Zimbabwe Reinsurance Corporation SA Limited South Union Reinsurance Company Limited 15/04/2004 * Name changes during the period under review. Short-term Insurance 27