Year ended 31 December 2022 Preliminary Results

RNS Number : 6857Q

Conduit Holdings Limited

22 February 2023

 

Pembroke, Bermuda - 22 February 2023

Conduit Holdings Limited

("CHL" LSE ticker: CRE)

Year ended 31 December 2022 Preliminary Results

Strong year-on-year growth: Gross premiums written increased by 68.3% and net premiums earned increased by 148.4%

Efficient underwriting model, strong capital base, ideally positioned for continued growth into exceptional market conditions

CHL, the parent company of Conduit Re, a pure-play reinsurance business based in Bermuda, today presents its preliminary results for the year ended 31 December 2022.

Trevor Carvey, Chief Executive Officer, commented: "Our planned growth path has continued over the last 12 months while all the time we have maintained our same disciplined approach to risk selection. We have seen exceptional growth, supported by our legacy-free balance sheet and a strong capital base. In a year where the industry has experienced extreme natural and man-made losses, the resilience of our results validates our business model.

Looking forward, we are perfectly positioned to take advantage of the current exceptional market conditions. As the business grows, we will see the benefit from increasing efficiencies of scale and the significant pipeline of revenue we have in place which will continue to flow through to earnings. We are excited by our business prospects for 2023."

Key financials ($m)	2022	2021
Estimated ultimate premiums written	659.9	458.5
Gross premiums written	637.5	378.8
Net premiums written	580.9	346.2
Net premiums earned	482.3	194.2
Underwriting profit (loss)	0.3	(7.0)
Investment loss	(52.8)	(3.1)
Comprehensive loss	(89.7)	(42.0)
Financial ratios (%)	2022	2021
Return on equity	(9.1)	(4.0)
Net loss ratio	71.7	73.2
Net acquisition expense ratio	28.2	30.4
Other operating expense ratio	7.1	15.8
Combined ratio	107.0	119.4
Total net investment return	(5.0)	(0.3)

Key highlights:

2022 Results

• Gross premiums written for the twelve months ended 31 December 2022 of $637.5 million, up 68.3% from the prior year

• Net premiums earned increased by 148.4% to $482.3 million reflecting strong renewals and significant new business, plus continued recognition of quota share premiums from the prior year

• In our second year of operation, in a year with extreme natural catastrophe and man-made losses for the industry, Conduit Re's balanced and diversified portfolio recorded a small underwriting profit of $0.3 million

• Conduit Re's estimated ultimate losses, net of reinsurance recoveries and reinstatement premiums, from Hurricane Ian and from the Ukraine crisis remain in line with previous announcements

• Net acquisition expense ratio reduced by 2.2 percentage points versus the prior year to 28.2% (from 30.4% in 2021)

• Other operating expense ratio of 7.1% on a continued downwards path due to increasing economies of scale and maturity of earnings

• High quality investment portfolio with average credit quality of AA; book yield 2.4%, market yield 5.2%

• Net investment loss of $52.8 million which includes net unrealised losses of $67.8 million

• Short 2.2-year duration of portfolio; opportunity to reinvest at higher interest rates

• Final dividend of $0.18 (approximately 15 pence) per common share (in respect of H2 2022). This takes the full 2022 dividend to $0.36 (approximately 30 pence) per common share in line with our stated dividend policy

Capacity for growth into a hard market

• $1.1 billion of estimated ultimate premiums written from launch in December 2020 up to 31 December 2022

• Significant pipeline of unearned premium of approximately $355 million which will flow through in subsequent years

• Single office location enables dynamic decision making in response to market opportunity

• Experienced team has rapidly developed a reputation for being a responsive, reliable and relevant counterparty

• Legacy-free balance sheet with ample capacity to support the growth we anticipate; AM Best A- (Excellent) rating affirmed, with "very strong" balance sheet strength

Outlook

• 1 January 2023 renewal season exhibited significant hardening of pricing and terms and conditions and Conduit Re's focused and disciplined approach delivered exceptional 1 January renewals

-  Estimated ultimate premiums written at 1 January 2023 of approximately $421.4 million (2022: $262.6 million), an annual increase of 60.5%

-  Overall portfolio year-on-year risk-adjusted rate change, net of claims inflation, increased by 19% at 1 January 2023

-  Reduced acquisition costs on new and renewed business

-  Continued high renewal retention ratio

-  Successful placement of planned retrocession coverage

• The significant movement in pricing and terms and conditions is evidence of a structural shift in the marketplace caused by a fundamental re-pricing of risk and an imbalance in the supply and demand of capital

• We see this as an enduring environment creating the opportunity for improved margins in our business throughout 2023 and beyond

• Exceptional pricing environment and continued focus on optimising our portfolio supports acceleration towards a mid-80's combined ratio in the medium-term, to deliver a mid-teens ROE across the cycle

Neil Eckert, Executive Chairman, commented: "We have delivered outstanding premium growth in 2022 and have continued that trajectory at the 1 January 2023 renewals.

More importantly, we have delivered our first underwriting profit in a year notable for its elevated catastrophe activity. Our business has capital to continue its planned growth and to take advantage of the opportunities that we see."

Underwriting update

During 2022, Conduit Re continued to show growth across all segments, benefiting from new business, high retention of renewal business and improving rates. Client count and submission numbers have increased in line with Conduit Re's growth strategy. Rate change continues to be positive, outpacing inflation.

Premiums

Estimated ultimate premiums written

	Year ended 31 December
	2022	2021	Change	Change
Segment	$m	$m	$m	%
Property	319.3	205.0	114.3	55.8%
Casualty	234.4	182.4	52.0	28.5%
Specialty	106.2	71.1	35.1	49.4%
Total	659.9	458.5	201.4	43.9%

Gross premiums written

	Year ended 31 December
	2022	2021	Change	Change
Segment	$m	$m	$m	%
Property	299.6	183.4	116.2	63.4%
Casualty	236.7	129.0	107.7	83.5%
Specialty	101.2	66.4	34.8	52.4%
Total	637.5	378.8	258.7	68.3%

As Conduit Re concludes its second year of operations, and as its earnings mature, the ratio of net premiums earned to net premiums written was 83.0% for the year ended 31 December 2022 compared with 56.1% for the prior year.

Pricing

Pricing and terms and conditions continued to improve in the markets we targeted. We were presented with an increasing number of opportunities to deploy our capital into the areas and products which we know well, and where both renewal and new prospects met our profitability requirements.

Conduit Re's overall risk-adjusted rate change, net of claims inflation, in 2022 was 4%, and by segment was:

Property	Casualty	Specialty
7%	1%	2%

Ceded reinsurance premiums

Ceded reinsurance premiums for the year ended 31 December 2022 were $56.6 million compared to $32.6 million for the year ended 31 December 2021. The increase in cost relative to the prior period reflects additional limits purchased as the inwards portfolio and exposures grew over the period.

Losses

Both 2021 and 2022 were characterised by higher than average natural catastrophe losses for the industry, with 2022 also experiencing losses from the crisis in Ukraine. The Group's net loss ratio was 71.7% compared with 73.2% for 2021. The accident year loss ratio for 2022, including the impact of foreign exchange revaluations, was 72.9% compared to 73.2% for 2021.

Hurricane Ian made landfall in Florida as a strong Category 4 hurricane on 28 September 2022, resulting in estimated industry losses of approximately $55 billion. It continued its path north-east across Florida before making a second landfall in South Carolina. Our ultimate loss estimate, net of reinsurance recoveries and reinstatement premiums, for Hurricane Ian is $40.9 million, which is in line with previously reported estimates, and contributed 8.8% to the net loss ratio. Our net loss ratio for the year, absent the impact of Hurricane Ian, was 62.9%.

As regards the ongoing conflict in Ukraine resulting from the Russian invasion commencing on 24 February 2022, Conduit Re has potential exposure across its property and specialty reinsurance books, via classes such as aviation, war on land and marine war. There is significant uncertainty in estimating losses emanating from the conflict, not least as it is an ongoing event. Based on current information, Conduit Re's previously announced estimated ultimate loss, net of reinsurance recoveries and reinstatement premiums, in relation to the conflict is unchanged at $24.6 million, which represented 5.1% of the net loss ratio. Our net loss ratio for 2022, absent the impact of the Ukraine conflict, would have been 66.6%.

While there were a number of other smaller catastrophe events, such as European storms Eunice and Dudley, hailstorms in France, floods in Australia and South Africa, and winter storm Elliott in the United States, none of these had a material impact on our 2022 results.

During 2021, we experienced net losses from the significant events of Hurricane Ida and the European floods of $27.1 million, net of reinsurance recoveries and reinstatement premiums. Absent these events our loss ratio would have been 58.8%.

Our ultimate loss estimates, net of reinsurance and reinstatement premiums, for the previously reported 2021 loss events remain relatively stable.

Our loss and reserve estimates have been derived from a combination of reports from brokers and cedants, modelled loss projections, pricing loss ratio expectations and reporting patterns, all supplemented with market data and assumptions. We will continue to review these estimates as more information becomes available.

Investments

In line with our stated strategy, we continue to maintain our conservative approach to managing our invested assets with a strong emphasis on preserving capital and liquidity. Our strategy remains maintaining a short duration, highly-rated portfolio, with due consideration of the duration of our liabilities.

The Federal Reserve raised rates seven times in 2022, and has indicated further increases going forward. As a result, the portfolio return is negative 5.0% for the year ended 31 December 2022, mostly due to unrealised losses. Conduit recorded a small loss on the investment portfolio in the year ended 31 December 2021 due to rising yields in the fourth quarter of the year. While we expect market volatility to remain elevated in the near term, Conduit expects to be able to reinvest at higher rates as the existing portfolio matures.

Net investment income, excluding realised and unrealised losses, was $17.8 million for 2022 compared to $5.5 million for 2021. Total investment return, including net investment income, net realised gains and losses, and net change in unrealised gains and losses, was a loss of $52.8 million for 2022 compared to a gain of $3.1 million in 2021.

The breakdown of the managed investment portfolio is as follows:

	As at 31 December 2022	As at 31 December 2021
Fixed maturity securities	91.3%	95.3%
Cash and cash equivalents	8.7%	4.7%
Total	100.0%	100.0%

Key investment portfolio statistics for our fixed maturities and managed cash were:

	As at 31 December 2022	As at 31 December 2021
Duration	2.2 years	2.4 years
Credit Quality	AA	AA-
Book yield	2.4%	0.9%
Market yield	5.2%	1.2%

Other operating expenses and equity-based incentives

Other operating expenses were $34.3 million for the year ended 31 December 2022 compared with $30.6 million for the prior year, while our equity-based incentives expense was $2.1 million compared with $0.3 million.

Other operating expenses contributed 7.1% to Conduit's combined ratio in 2022 compared with 15.8% for the same period of 2021.

The prior year ratio was a reflection of our start-up nature with earnings yet to mature but employment costs and technology platform development costs incurred upfront.

Capital & dividends

Total capital and tangible capital available was $0.81 billion as at 31 December 2022 compared to $0.98 billion as at 31 December 2021.

Tangible net assets per share as at 31 December 2022 were $5.08 (31 December 2021: $5.93).

CHL continued on-market purchases of its shares under a share purchase programme announced on 29 December 2021, where shares may be repurchased pursuant to authority obtained at CHL's most recent annual general meeting. Shares repurchased by CHL and CHL's employee benefit trust during 2022 amounted to $19.9 million and will be held in treasury and/or trust to meet future obligations under CHL's variable incentive schemes.

On 22 February 2023 CHL's Board of Directors declared a final dividend of US$0.18 (approximately 15 pence) per common share, resulting in an aggregate payment of $28.8 million. The dividend will be paid in pounds sterling on 21 April 2023 to shareholders of record on 24 March 2023 (the "Record Date") using the pound sterling / US dollar spot exchange rate at 12 noon BST on the Record Date.

CHL previously declared and paid an interim dividend during 2022 of US$0.18 (approximately 15 pence) per common share. Consequently, the full 2022 dividend is $0.36 (approximately 30 pence) per common share in line with our stated dividend policy.

Webcast

Conduit's management will host a virtual meeting for analysts and investors via a webcast and conference call on Wednesday, 22 February 2023 at 12.00 noon UK time / 8.00 am Bermuda time.

To access the webcast, please register in advance here:

https://www.lsegissuerservices.com/spark/ConduitHoldingsLtd/events/c11d3e02-007d-4e43-b1b9-eb4f44638b0e

To access the conference call, please register to receive unique dial-in details here:

https://cossprereg.btci.com/prereg/key.process?key=PFFY677FE

A recording of the conference call will be made available later in the day on the Investors section of Conduit Re's website at www.conduitreinsurance.com.

Media contacts

H/Advisors Maitland - Vikki Kosmalska / Alistair de Kare-Silver [phone]

[e-mail]

Investor relations and other enquiries:

[e-mail]

Panmure Gordon (UK) Limited (Joint Corporate Broker)

[phone]

Berenberg (Joint Corporate Broker)

[phone]

Peel Hunt (Joint Corporate Broker)

[phone]

About Conduit Re

Conduit Re is a pure-play reinsurance business based in Bermuda. Conduit Reinsurance Limited is licensed by the Bermuda Monetary Authority as a Class 4 insurer. A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of a- (Excellent) to Conduit Reinsurance Limited. The outlook assigned to these ratings is stable.

Conduit Holdings Limited is the ultimate parent of Conduit Reinsurance Limited and is listed on the London Stock Exchange (ticker: CRE). References to "Conduit" include Conduit Holdings Limited and all of its subsidiary companies.

Learn more about Conduit Re:

Website: https://conduitreinsurance.com/

LinkedIn: https://www.linkedin.com/company/conduit-re

Market abuse regulation

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

Important information (disclaimers)

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "goals", "objective", "rewards", "expectations", "projects", "anticipates", "expects", "achieve", "intends", "tends", "on track", "well placed", "estimated", "projected", "may", "will", "aims", "could" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, targets, future events or intentions. Forward-looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, unearned premiums pricing rate changes, terms and conditions, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, claims development, losses and loss estimates and future business prospects; and (ii) business and management strategies and the expansion and growth of Conduit's operations.

Forward-looking statements may and often do differ materially from actual results. Forward-looking statements reflect Conduit's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Conduit's business, results of operations, financial position, liquidity, prospects, growth and strategies. These risks, uncertainties and assumptions include, but are not limited to: the possibility of greater frequency or severity of claims and loss activity than Conduit's underwriting, reserving or investment practices have anticipated; the reliability of catastrophe pricing, accumulation and estimated loss models; the actual development of losses and expenses impacting estimates for claims which arose as a result of recent loss activity such as the Ukraine crisis, Hurricanes Ian and Ida, the European storms and floods in 2021 and 2022 and the earthquake in Turkey; the impact of complex causation and coverage issues associated with attribution of losses to wind or flood damage; unusual loss frequency or losses that are not modelled; the effectiveness of Conduit's risk management and loss limitation methods, including to manage volatility; the recovery of losses and reinstatement premiums from our own reinsurance providers; the development of Conduit's technology platforms; a decline in Conduit's ratings with A.M. Best or other rating agencies; the impact that Conduit's future operating results, capital position and ratings may have on the execution of Conduit's business plan, capital management initiatives or dividends; Conduit's ability to implement successfully its business plan and strategy during 'soft' as well as 'hard' markets; the premium rates which are available at the time of renewals within Conduit's targeted business lines; increased competition on the basis of pricing, capacity or coverage terms and the related demand and supply dynamics as contracts come up for renewal; the successful recruitment, retention and motivation of Conduit's key management and the potential loss of key personnel; the credit environment for issuers of fixed maturity investments in Conduit's portfolio; the impact of swings in market interest rates, currency exchange rates and securities prices; changes by central banks regarding the level of interest rates and the timing and extent of any such changes; the impact of inflation or deflation in relevant economies in which Conduit operates; Conduit becoming subject to income taxes in the United States or in the United Kingdom; and changes in insurance or tax laws or regulations in jurisdictions where Conduit conducts business. Forward-looking statements contained in this trading update may be impacted by the escalation or expansion of the Ukraine conflict on Conduit's clients, the volatility in global financial markets and governmental, regulatory and judicial actions, including coverage issues.

Forward-looking statements speak only as of the date they are made. No representation or warranty is made that any forward-looking statement will come to pass. These forward-looking statements speak only as at the date of this announcement. Conduit disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by law or regulation.

"Estimated ultimate premiums written" is the estimated total gross premiums written that is expected to be earned assuming all bound contracts run to the end of the period of cover, after management discount for prudence.

The Conduit renewal year on year indicative pricing change measure is an internal methodology that management intends to use to track trends in premium rates of a portfolio of reinsurance contracts. The change measure reflects management's assessment of relative changes in price, exposure and terms and conditions. It is also net of the estimated impact of claims inflation. The calculation involves a degree of judgement in relation to comparability of contracts and the assessment noted above, particularly in Conduit's initial years of underwriting. To enhance the methodology, management may revise the methodology and assumptions underlying the change measure, so the trends in premium rates reflected in the change measure may not be comparable over time. Consideration is only given to renewals of a comparable nature so it does not reflect every contract in the portfolio of Conduit contracts. The future profitability of the portfolio of contracts within the change measure is dependent upon many factors besides the trends in premium rates.

Additional Performance Measures (APMs)

Conduit presents certain APMs to evaluate, monitor and manage the business and to aid readers' understanding of Conduit's financials and methodologies used. These are common measures used across the (re)insurance industry and allow the reader of Conduit's financial reports to compare those with other companies in the (re)insurance industry. The APMs should be viewed as complementary to, rather than a substitute for, the figures prepared in accordance with IFRS. Conduit's Audit Committee has evaluated the use of these APMs and reviewed their overall presentation to ensure that they were not given undue prominence. This information has not been audited.

Management believes the APMs included in the consolidated financial statements are important for understanding Conduit's overall results of operations and may be helpful to investors and other interested parties who may benefit from having a consistent basis for comparison with other companies within the (re)insurance industry. However, these measures may not be comparable to similarly labelled measures used by companies inside or outside the (re)insurance industry. In addition, the information contained herein should not be viewed as superior to, or a substitute for, the measures determined in accordance with the accounting principles used by Conduit for its consolidated financial statements or in accordance with IFRS.

Below are explanations, and associated calculations, of the APMs presented by Conduit:

APM	Explanation	Calculation
Net loss ratio	Ratio of net losses and loss adjustment expenses expressed as a percentage of net premiums earned in a period.	Net losses and loss adjustment expenses / Net premiums earned
Net acquisition expense ratio	Ratio of net acquisition expenses charged by insurance brokers and other insurance intermediaries to Conduit expressed as a percentage of net premiums earned in a period.	Net acquisition expenses / Net premiums earned
Other operating expense ratio	Ratio of other operating expenses expressed as a percentage of net premiums earned in a period.	Other operating expenses / Net premiums earned
Combined ratio	The sum of the net loss ratio, net acquisition expense ratio and other operating expense ratio. A combined ratio below 100% generally indicates profitable underwriting, whereas a combined ratio over 100% generally indicates unprofitable underwriting, each prior to the consideration of total net investment return.	Net loss ratio + Net acquisition expense ratio + Other operating expense ratio
Accident year loss ratio	Ratio of the net accident year ultimate liability revalued at the current balance sheet date expressed as a percentage of net premiums earned in a period.	Accident year net losses and loss adjustment expenses / Net premiums earned
Underwriting year loss ratio	Ratio of net losses and loss adjustment expenses of an underwriting year (or calendar year) expressed as a percentage of net premiums earned in a period.	Underwriting year net losses and loss adjustment expenses / Net premiums earned
Total net investment return	Conduit's principal investment objective is to preserve capital and provide adequate liquidity to support the payment of losses and other liabilities. In light of this, Conduit looks to generate an appropriate total net investment return. Conduit bases its total net investment return on the sum of non-operating cash and cash equivalents and fixed maturity securities. Total net investment return is calculated daily and expressed as a percentage.	Net investment income + Net unrealised gains (losses) on investments + Net realised gains (losses) on investments / Non-operating cash and cash equivalents + Fixed maturity securities, at beginning of period
Return on equity	ROE enables Conduit to compare itself against other peer companies in the immediate industry, it is also a key measure internally, and is integral in the performance-related pay determinations. ROE is calculated as the profit for the period divided by the opening total shareholders' equity.	Profit (loss) after tax for the period / Total shareholders' equity, at beginning of period
Total shareholder return	TSR allows Conduit to compare itself against other public peer companies. TSR is calculated as the percentage change in common share price over a period, after adjustment for common share dividends.	Closing common share price - Opening common share price + Common share dividends during the period / Opening common share price
Dividend yield	Calculated by dividing the annual dividends per common share by the common share price on the last day of the given year and expressed as a percentage.	Annual dividends per common share / Closing common share price
Underwriting profit / loss	Profit or loss directly related to the underwriting activities of Conduit.	Net premiums earned - net losses and loss adjustment expenses - net acquisition costs

Consolidated statement of comprehensive loss (unaudited)

For the year ended 31 December 2022

	2022 $m	2021 $m
Gross premiums written	637.5	378.8
Ceded reinsurance premiums	(56.6)	(32.6)
Net premiums written	580.9	346.2
Change in unearned premiums	(99.6)	(152.8)
Change in unearned premiums on premiums ceded	1.0	0.8
Net premiums earned	482.3	194.2
Net investment income	17.8	5.5
Net realised losses on investments	(2.8)	(1.0)
Net unrealised losses on investments	(67.8)	(7.6)
Net foreign exchange losses	-	(0.5)
Total net revenue	429.5	190.6
Insurance losses and loss adjustment expenses	386.1	191.0
Insurance losses and loss adjustment expenses recoverable	(40.2)	(48.9)
Net insurance losses	345.9	142.1
Net insurance acquisition expenses	136.1	59.1
Equity-based incentives expense	2.1	0.3
Other operating expenses	34.3	30.6
Total expenses	518.4	232.1
Results of operating activities	(88.9)	(41.5)
Financing costs	(0.8)	(0.5)
Total comprehensive loss for the year	(89.7)	(42.0)
Loss per share
Basic and diluted	$(0.55)	$(0.25)

Consolidated balance sheet (unaudited)

As at 31 December 2022

	2022 $m	2021 $m
Assets
Cash and cash equivalents	112.9	67.5
Accrued interest receivable	5.5	3.7
Investments	1,021.7	1,008.4
Inwards premiums receivable	260.5	155.0
Reinsurance assets
- Unearned premiums on premiums ceded	1.8	0.8
- Reinsurance recoverable	76.6	48.9
- Other reinsurance receivables	12.8	0.3
Other assets	3.6	1.6
Right-of-use assets	2.2	2.9
Deferred acquisition expenses	69.4	44.6
Intangible assets	1.4	1.1
Total assets	1,568.4	1,334.8
Liabilities
Reinsurance contracts
- Losses and loss adjustment expenses	459.3	171.6
- Unearned premiums	252.4	152.8
- Other reinsurance payables	15.0	-
Amounts payable to reinsurers	16.2	7.3
Other payables	8.7	19.0
Lease liabilities	2.4	2.9
Total liabilities	754.0	353.6
Shareholders' equity
Share capital	1.7	1.7
Own shares	(20.1)	(0.2)
Other reserves	1,058.1	1,056.0
Retained loss	(225.3)	(76.3)
Total shareholders' equity	814.4	981.2
Total liabilities and shareholders' equity	1,568.4	1,334.8

Statement of consolidated cash flows (unaudited)

For the year ended 31 December 2022

	2022 $m	2021 $m
Cash flows from operating activities
Comprehensive loss	(89.7)	(42.0)
Depreciation	0.9	0.1
Interest expense on lease liabilities	0.1	0.1
Net investment income	(18.7)	(6.2)
Net realised losses on investments	2.8	1.0
Net unrealised losses on investments	67.8	7.6
Net foreign exchange losses	0.3	0.3
Equity-based incentives	2.1	0.3
Change in operational assets and liabilities
- Reinsurance assets and liabilities	239.6	82.0
- Other assets and liabilities	(2.0)	5.5
Net cash flows from operating activities	203.2	48.7
Cash flows used in investing activities
Purchase of investments	(304.9)	(1,570.4)
Proceeds on sale and maturity of investments	206.2	558.9
Interest received	21.1	7.5
Purchase of intangible assets	(0.3)	(0.9)
Purchase of property, plant and equipment	-	(0.5)
Net cash flows used in investing activities	(77.9)	(1,005.4)
Cash flows used in financing activities
Lease liabilities paid	(0.6)	(0.1)
Dividends paid	(59.3)	(29.7)
Purchase of own shares	(19.9)	(0.2)
Net cash flows used in financing activities	(79.8)	(30.0)
Net increase (decrease) in cash and cash equivalents	45.5	(986.7)
Cash and cash equivalents at the beginning of the year	67.5	1,054.0
Effect of exchange rate fluctuations on cash and cash equivalents	(0.1)	0.2
Cash and cash equivalents at end of year	112.9	67.5

 

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