Liberty Corporate Customer Update | August 2011
July was savings month, and what better time is there to take some time out to consider how you can save for your short, medium and long-term goals. Striking a balance between accumulating wealth and paying off debt is something that many people struggle with, but learning not to be enslaved by credit is essential for your long term financial security. Looking after your needs goes beyond just saving; it also means ensuring that you have the right cover in place when you need it. Liberty recently launched a unique market first concept - disability cover for life, providing you with continuous cover which changes with your needs as you get older, and beyond retirement, removing the risk of you not being covered for life's eventualities. Similarly, being prepared for the day something happens to you will ensure that your loved ones are looked after, even when you aren't around to protect them yourself. Updating your will can ensure the ongoing management of your assets for the benefit of your dependants and beneficiaries. Without sound estate planning, it is always the loved ones left behind who are burdened with the financial realities of death. Looking at the local economy, as was expected, the Reserve Bank's Monetary Policy Committee kept interest rates on hold last month, leaving the repo rate unchanged at 5.5%. South Africa's latest inflation data showed that in June headline CPI inflation came in at 5.0%y/y, up from 4.6%y/y in May. This was in-line with market expectations, but is the highest since March 2010. The three key drivers of the increase in inflation were rental increases, further increases in food inflation and a sharp rise in transportation costs. The recent increases in electricity prices as well as growing wage demands could also continue to push inflation higher over the next few months. At the same time, consumers are feeling the effects of South Africa's regular strike season, which significantly impacted fuel availability in some parts of the country. Internationally, the financial state of the Euro-Zone, and Greece in particular, remains an area of concern. Despite the promised EU / IMF bail-out package, the Greek economy is not expected to recover quickly and uncertainty continues to filter through to emerging markets. Some good news is that in July global ratings agency Fitch Ratings revised Liberty's outlook upward to "positive". This achievement can be attributed to the strength of our core operations, our robust capital position, strong and diversified distribution networks, a well-established franchise in South Africa and enhanced risk management. The AA-rating signifies a very high credit quality, denoting expectations of very low default risk and very strong capacity for payment of financial commitments. Please note that the Amalgam Umbrella and Corporate Selection Umbrella annual reports are now available and can be viewed here. Until next time Liberty Corporate: Communications
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