"Your Board of Directors has declared a dividend of 22 cents per share payable to shareholders of record on March 29, 2002. We have therefore enclosed a cheque for your quarterly dividend or, if we have been so instructed, we have credited your bank account.
In our report for the half-year ended September 30, 2001 we commented on the deteriorating experience in our health insurance portfolio. Unfortunately, this experience has worsened since then with many additional claims being incurred for very expensive overseas care. Our motor account also remains challenging although steps have been taken to improve our underwriting results in this area.
On the positive side, a number of initiatives in our international life insurance area should provide a significant contribution to the earnings of the Group in the months to come.
Our financial year ended on March 31, 2002 and the preparation of our financial report for the year has commenced. The past twelve months have been very difficult given world events, the uncertainty in international investment markets and our poor underwriting experience. We, therefore, expect earnings, whilst acceptable in the circumstances, to be below the level achieved in the previous year."
Signed Gerald D. E. Simmons, President & Chief Executive Officer