Solvency

All of the life insurance businesses within the Group were sufficiently capitalised at the end of December 2011. The total admissible regulatory capital (including identified discretionary capital) of Sanlam Life Insurance Limited, the holding company of the Group¡¦s major life insurance subsidiaries, of R27,5 billion covered its capital adequacy requirements (CAR) 3,7 times. No policyholder portfolio had a negative bonus stabilisation reserve at the end of December 2011.

Fitch Ratings has affirmed the following ratings of the Group in 2011 and the outlook remained stable:

Sanlam Limited

• National Long-term: AA- (zaf)

Sanlam Life Insurance Limited

• National Insurer Financial Strength: AA+ (zaf)
• National Long-term: AA (zaf)
• National Short-term: F1+ (zaf)
• Subordinated debt: A+ (zaf)

Santam Limited

• National Insurer Financial Strength: AA+ (zaf)
• National Long-term: AA (zaf)
• Subordinated debt: A+ (zaf)