Investor presentation

Interim financial results30 June 2001

Highlights

Business highlights

Creation of New Africa Capital

Dynamic new operating structure implemented

Empowerment credentials of the board enhanced

Increase of earnings from diversified sources

Financial highlights

Total assets under management: approximately R40 billion

Positive net cash flow in excess of R2 billion

Sustained strong growth in Employee Benefits business

Increased profits from Health business

Features of results

6 months to

30/06/01 Rm

Annualised growth

%

15 months to 31/12/00

Rm Premium income 3 601 26.7 7 106 Total income 5 233 (5.2) 13 806 Administration expenses 377 11.5 845 Policyholders’ benefits paid 2 447 39.5 4 384 Total assets 31 473 13.4 29 492 Total assets under management 39 059 18.3 35 777 Earnings 247 10.7 558 Headline earnings 267 (4.5) 699 Earnings per share (cents) 34.02 8.3 78.56 Headline earnings per share (cents) 36.78 (6.6) 98.46 Dividend per share (cents) 15.50 0.6 38.50

•No June 2000 FSV valuation

•March 2000 not always comparable

Premium income

6 months to

30/06/01 Rm

6 months to 30/06/00

Rm

% Change

Premium income 3 601 3 092 16.5

Recurring premiums 1 910 1 852 3.1 Individual life 1 412 1 369 3.1 Employee benefits 533 522 2.1 Re-insurance (35) (39) (10.3) Single premiums 1 691 1 240 36.4 Individual life 560 215 160.5 Employee benefits 1 131 1 025 10.3

6 months to 30/06/01

Rm

6 months to 30/06/00

Rm

% Change

Metropolitan Life 1 055 1 037 1.7 Metropolitan Employee Benefits 431 391 10.2 Odyssey 123 109 12.8 Namibia 104 85 22.4 Botswana 44 22 100.0

Recurring premiums excluding Commercial Union 1 757 1 644 6.9 Commercial Union Life 153 208 (26.4)

Recurring premiums 1 910 1 852 3.1

Recurring premiums

Single premiums

6 months to 30/06/01

Rm

6 months to 30/06/00

Rm

% Change

Metropolitan Life 481 181 165.7 Metropolitan Employee Benefits 1 119 998 12.1 Odyssey 43 27 59.3 Namibia 38 7 442.9 Botswana - 1 Single premiums excluding Commercial Union 1 681 1 214 38.5 Commercial Union Life 10 26 (61.5)

Single premiums 1 691 1 240 36.4

Policyholders’ benefits paid

6 months to30/06/01

Rm

6 months to30/06/00

Rm

%Change

Death and disability claims 456 412 10.7Maturity claims 379 322 17.7Annuities 186 156 19.2Surrenders – individual policies 484 385 25.7Scheme member withdrawals 263 142 85.2Scheme terminations 703 281 150.2Re-insurance recoveries (24) (29) (17.2)

2 447 1 669 46.6

6 months to 30/06/01

Rm

6 months to 30/06/00

Rm

% Change

Metropolitan Life 854 825 3.5 Metropolitan Employee Benefits 504 332 51.8 Odyssey 107 99 8.1 Namibia 78 46 69.6 Botswana 16 3 433.3 Benefits paid excluding Commercial Union 1 559 1 305 19.5 Commercial Union 888 364 144.0

Policyholders’ benefits paid 2 447 1 669 46.6

Policyholders’ benefits paid

Benefit payments as a % of premiums

6 months to 30/06/01

%

6 months to 30/06/00

%

Death and disability claims 12.7 13.3 Maturity claims 10.5 10.4 Annuities 5.2 5.0 Surrenders – individual policies 13.4 12.5 Scheme member withdrawals 7.3 4.6 Scheme terminations 19.5 9.1

Administration expenses– life insurance

0

50

100

150

200

250

300

350

400

Rm

Mar-00 Jun-00 Jun-01

Metropolitan Life Limited CU Life

Metropolitan Odyssey Metropolitan Namibia

Metropolitan Botswana

9.5

10

10.5

11

11.5

12

%

Mar-00 Jun-00 01-Jun

Administration expenses as a % of premium income

Income from administration business

For the six months ended 30 June 2001

Administration income

Rm

Administration expenses *

Rm

Total Rm

Asset Management 30 22 8 Properties 7 5 2 Health group 199 165 34 Unit trusts 8 8 - Ovation 8 17 (9) Policy administration (Life insurance) 8 - 8 260 217 43 Taxation - (3) 3 Income from administration business 260 214 46

* Taxation is included in administration expenses for the period under review.

Statement of actuarial values of assets and liabilities

30/06/01

Rm

31/12/00 Rm

Total assets per balance sheet 31 473 29 492

Current liabilities per balance sheet (1 324) (1 332) Outside shareholders’ interest per balance sheet

(68) (62)

Actuarial liabilities under unmatured policies (23 937) (22 181) Excess of assets over liabilities

6 144 5 917

Total surplus arising during period 110 1 569

FSV profit 267 705

Operating profit 180 408 Investment income on group excess 87 297 Effect of change in basis (46) - Capital appreciation on group excess (111) 864

Analysis of headline earnings

6 months to 30/06/01

Rm

15 months to 31/12/00

Rm

%

Change Metropolitan Life 119 291 Metropolitan Employee Benefits 52 97 Odyssey 7 7 Commercial Union Life 20 62 Namibia (10) 3 Botswana (1) 4 Health 29 13 Asset Management 8 11 Unit trusts 1 - Ovation (4) (22) CGU - 36 Other subsidiaries (1) (1) 220 501 9.8 Investment income 47 198 (40.7) Headline earnings 267 699 (4.5)

Goodwill (20) (46) Adjustment for minorities and 90:10 rule 20 52

FSV profit 267 705 (5.3)

Embedded value

30/06/01

Rm

31/12/00 Rm

Adjusted net asset value 5 357 4 987 Net value of in-force business 2 393 2 260 Individual life 1 939 1 898 Gross value of in-force 2 039 2 038 Less: Cost of capital (100) (140) Employee benefits 454 362 Gross value of in-force 522 480 Less: Cost of capital (68) (118)

Embedded value 7 750 7 247 Embedded value per share (cents) 1 066 1 018 Net value of new business for period 37 122

No adjustment has been mad for CGT. The estimated reduction would be R153 million or 2%.

Embedded value by company

30/06/01

Rm

31/12/00 Rm

Commercial Union Life 341 321 Odyssey 212 190 Namibia 176 189 Botswana 61 53 Asset Management 197 180 Health group 456 343 Goodwill (165) (175) Metropolitan SA 6 472 6 146 Value of in-force business 2 066 1 951 Residual net asset value 4 403 4 195

7 750 7 247

Embedded value profit

6 months to 30/06/01

Rm

15 months to 31/12/00

Rm

Profit from new business 178 197 Point of sale 174 179 Expected return to end of period 4 18 Profit from existing business 105 503 Expected return 214 464 Experience variance (109) 39

Embedded value profit from operations 283 700

Investment return on net worth (72) 941 Transitional tax - (95) Changes in assumptions 175 182

Total embedded value profit 386 1 728

Plus: Capital raised 117 97 Less: Dividend - (296)

Increase in embedded value 503 1 529

Return on embedded value (%) 10.7 24.2

Value of new business

6 months to 30/06/01

Rm

15 months to 31/12/00

Rm

Value of life insurance new business Individual life (4) 44 Gross value of new business 0 71 Less: Cost of capital (4) (27) Employee benefits 41 78 Gross value of new business 44 92 Less: Cost of capital (3) (14)

37 122

Value of non-life new business

Metropolitan Health 109 49 Metropolitan Asset Managers 29 8

The comparative period figures have been reallocated to reflect the group’s internal restructuring.

Value of new business per company

6 months to 30/06/01 15 months to 31/12/00

Gross

Rm

Cost of capital

Rm

Net

Rm

Gross

Rm

Cost of capital

Rm

Net

Rm Metropolitan 47 (6) 42 163 (39) 124 Individual life (1) (3) (4) 77 (26) 51 Employee benefits 48 (2) 46 86 (13) 73 Commercial Union Life - - - - - Odyssey (3) (1) (3) (8) - (8) Namibia (2) (1) (3) 2 (1) 1 Botswana 1 - 1 6 (1) 5

43 (7) 37 163 (41) 122

New business premiums

6 months to 30/06/01

Rm

15 months to 31/12/00

Rm

Recurring premiums

Individual life 252 705 Employee benefits 71 241 Total 323 946

Single premiums

Individual life 560 453 Employee benefits 1 131 1 715 Total 1 691 2 168

Assets under management

30/06/01

Rm

31/12/00 Rm

% Change

Investment assets 29 339 27 598 12.6 Strategic assets 64 64 - Goodwill 396 410 (6.8) Equipment and intangibles 183 179 4.4 Current assets and deferred tax 1 491 1 241 40.2 Total on-balance sheet assets 31 473 29 492 13.4 Unit trusts 1 898 1 740 18.2 Health group 1 300 1 159 24.4 Ovation 872 741 35.4 Asset Management 3 516 2 645 65.8

Total assets under management 39 059 35 777 18.3

Assets backing shareholders’ funds

30/06/01

%

31/12/00 %

Equities 46 48 Foreign investments 18 18 Properties 9 10 Fixed interest - - Money market 2 2 Group companies 25 22 100 100

Assets backing shareholders’ funds for Metropolitan Life Limited.

Excess capital in Metropolitan Life Limited

30/06/01

Rm

31/12/00 Rm

Company excess 5 058 4 739 Less: Transfer to New Africa Capital (1 838) (1 838) 2 x CAR (eg) (2 240) (1 544) Interim dividend and STC (113) - 867 1 357

Capital management strategy

New structure will enhance capital management ability

Identify use of and return on capital

Manage capital adequacy requirement

Utilise capital effectively

• Business growth

• Strategic acquisitions

• Share bay-back

• Dividend policy

Focus areas

Investment performance

New business volumes

Expense levels

Return on shareholders’ value

Focus areas

Capital management Empowerment credentials Surrender and lapse rates New business levels Increase presence in Gauteng Financial disclosure Market segmentation

Creation of NAC Board appointments Agreement with PolicyLink Creation of MARS Project Goldrush Group actuary appointed Research completed

Corporate successes

Cost Embedded

value Embedded

value 30/06/01 31/12/00 Rm Rm Rm Commercial Union Life 149 341 321 Odyssey 200 212 190 Namibia 40 176 189 Botswana 19 61 53 Asset Management - 197 180 Health group 241 456 343