RNS Number:0978Q
Beazley Group PLC
24 September 2003
24 September 2003
Beazley Group plc
Interim Results for the six months ended 30 June 2003
Maiden underwriting results show a highly satisfactory start
Beazley Group plc ("Beazley"), one of the Lloyd's market leaders, reports good
interim profits in its first year, and a highly promising outlook.
Highlights Beazley Group
* Gross written premiums #162m
* Pre-tax profits #2.5m
* Earnings per share 0.7p
* Interim dividend of 0.25p
* Prospects very good
Highlights managed syndicates
* Gross written premiums increased by 51%
* Claims ratio reduced to 41%
* Combined ratio of 80%
Commenting on Beazley's maiden interim results, Chief Executive Andrew Beazley
said:
"The underlying business is performing well, with the net earned premium at the
level expected, given that underwriting only commenced on 1 January. Trading
conditions remain good. We are underwriting a higher volume of business which is
good quality, and the outlook for the future is very promising."
Enquiries
Beazley Group plc Tel: 020 7667 0623
Andrew Beazley
Andrew Horton
Finsbury Tel: 020 7251 3801
Melanie Gerlis
Nicola Hobday
Interim Results Statement
This interim statement is the first time the Group has reported to shareholders
since it began underwriting on syndicate 2623. Beazley Furlonge continues to
manage Syndicates 623 and 2623 with a combined capacity of #660 million for
2003. The Group has a 50% share of the 2003 underwriting commencing from 1st
January 2003 with all business shared on a pro rata basis.
The Board is delighted with the ongoing performance of our underwriting teams.
A 51% growth in gross written premiums (between the 6 months to June 2003 and 6
months to June 2002) and improvement in the combined ratio of the managed
syndicates demonstrates the strength of our underlying business.
Overall Results
Profit before tax of #2.5m (2002 2nd half loss #1.2m) reflects a satisfactory
start to the new operation and the overall business performance is in accordance
with our expectations at the time of the IPO last November. Net asset value per
share has increased to 64p.
The Beazley Group commenced underwriting at the beginning of the year and has
net written premiums of #161m but net earned premiums of only #28m as a result
of the earnings pattern. The results will not fully reflect the earnings of the
business written and it will take over 12 months for the earnings to be fully
recognised.
Managed Syndicate result
The combined ratio of the managed syndicates has reduced to 80%. This is
indicative of a 2002 underwriting year relatively free of catastrophic losses
contributing to the substantial improvement in combined ratio where profits have
been recognised as the exposure has reduced. The forecast for the 2001 year
of account remains unchanged at breakeven including our expectation of the
ultimate loss for the World Trade Centre.
Managed Syndicate Financial Results
6 months to 6 months to Year to
30 June 2003 30th June 2002 31 December 2002
#m #m #m
Gross premiums written 351 232 438
Net premiums written 222 139 289
Net premiums earned 136 136 292
Net claims incurred 56 80 174
Total expenses 74 48 102
Profit/(loss) for the period 11 9 22
Claims ratio 41% 60% 60%
Expense ratio 39% 38% 34%
Combined ratio 80% 98% 94%
Trading Conditions
Overall trading conditions continue to be good. Rate increases achieved for the
first six months are 13%, coming on top of increases in 2002 of 33%. Premium
rates remain at a level that should generate healthy underwriting profits. We
believe the greatest opportunities lie in Specialty Lines as the market
conditions improve following the recognition of under pricing as the industry
has strengthened its reserves and as competition has reduced.
Departmental analysis
6 months to 6 months to Year to
30 June 2003 30 June 2002 31 December 2002
Gross Gross Gross
premium Claims premium Claims premium Claims
written Ratio written Ratio written Ratio
#m % #m % #m %
Specialty 145 63 71 73 166 80
Property 98 31 87 55 145 41
Reinsurance 69 25 47 50 67 68
Marine 39 47 28 57 60 55
Specialty Lines
Significant growth is being achieved in this area as the market correction
continues. We have achieved vertical growth within the team with the recruitment
of D&O and Healthcare specialists. This is further evidence of our continued
strategy of expansion in lines of business in which the syndicate has greatest
experience and expertise. Rate increases of 29% in the first 6 months of this
year are justification of our commitment to this exciting area and further
increases are anticipated next year.
Property Group
Our ability to take advantage of excellent trading conditions has resulted in
further growth of 13% in gross written premiums. We have invested in our skill
base, through the recruitment of a specialist UK market underwriting team, to
take continued advantage of the favourable market. We have achieved overall rate
increases of 7% for the period although US risk managed property premium rates
are facing competitive pressures. This has been achieved against a backdrop of
abnormally low losses experienced during 2002.
Reinsurance
Overall rate increases of 4% were achieved in the period showing that rating
levels are at least being maintained or even increased. The growth in the
account is in line with the overall growth of managed syndicates. The improved
claims ratio reflects the recognition of profits following a relatively
catastrophe free year in 2002.
Marine
We are continuing to expand our cargo and energy accounts following the
recruitment of specialist underwriting teams this year. Further rate increases
of 11% have been achieved to date with the expectation that the market will
continue to tighten.
Capital resources
Since the placing in November 2002, #132m of the #137m net proceeds has been
used to support the underwriting of the Beazley Group for 2003. We currently
underwrite capacity of #330m, 50% of the overall managed capacity, and we expect
to write premiums that will effectively utilise this capacity. The capacity of
the combined syndicates is planned to increase by 11.6% to #736.5m for the 2004
underwriting year, increasing Beazley's capacity to at least #368m. The
additional capital required for the increased capacity will be funded through
our existing bank resources.
Investments
Total funds under management have increased from #137m to #180m as the funds
from our underwriting activities have increased. We are maintaining a
conservative investment strategy in the medium term limiting duration and credit
risk.
Dividend
The Board is pleased to report that it has decided that trading conditions merit
the payment of a maiden interim dividend of 0.25p per ordinary share (2002 -
nil). This will be paid on 28 November 2003 to shareholders on the register at
the close of business on 7 November 2003.
Board Changes
This is the first time we have reported to you under the Chairmanship of
Jonathan Agnew. Joseph Sargent was Chairman from 1993 to June 2003 and we are
delighted that Joseph has agreed to continue to be a non-executive director of
the Board and we look forward to his further contributions. We welcome Andy
Pomfret (non executive director and chairman of the Audit Committee) and Andrew
Horton (Finance Director) to the Board; their experience will further strengthen
the management of the Group.
Outlook
Taking the portfolio as a whole we expect premium rates to increase for both
2003 and 2004. Trading conditions remain good and rates are at levels that
should provide healthy underwriting returns.
All lines of our business have excellent positions in their respective markets
and we face the future with confidence. The overall business is growing as
expected and we will deliver long-term value to our shareholders.
Andrew Beazley
Chief Executive officer
24 September 2003
Consolidated Profit and Loss Account
6 months ended 30 June 2003
Technical account - general business
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Note
Earned premiums, net of
reinsurance
Gross premiums written 161,625 - -
Outward reinsurance premiums (57,905) - -
---------- ----------- ------------
103,720
Net premiums written - -
Change in the gross provision for
unearned premiums (119,325) - -
---------- ----------- ------------
Change in the gross provision for
unearned premiums, reinsurers'
share 43,908
---------- ----------- ------------
(75,417) - -
---------- ----------- ------------
Net earned premiums 28,303 - -
---------- ----------- ------------
Investment return transferred
from the non technical account 3 3,647 - -
Claims paid
Gross amount (652) - -
Reinsurers' share 1 - -
---------- ----------- ------------
(651) - -
Change in the provision for
claims
Gross amount (26,786) - -
Reinsurers' share 11,538 - -
---------- ----------- ------------
(15,248) - -
Claims incurred, net
of reinsurance (15,899) - -
---------- ----------- ------------
Net operating expenses 5 (13,370) - -
Balance on the technical
account for general business 2,681 - -
---------- ----------- ------------
Consolidated Profit and Loss Account
6 months ended 30 June 2003
Non-technical account
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Note
Balance on the technical
account for general business 2,681 - -
Investment income 3,206 - 724
Unrealised losses on investments (98) - -
Realised losses on investments (29) - -
Investment management expenses
and charges (333) - -
----------- ----------- ------------
2,746 - 724
Allocated investment return
transferred to the general
business technical account (3,647) - -
----------- ----------- ------------
(901) - 724
Other income 4 8,325 2,176 3,187
Other charges:
- ordinary items (7,562) (1,580) (3,141)
- exceptional items - - (1,933)
----------- ----------- ------------
Profit/(loss) before tax 2 2,543 596 (1,163)
Analysis of profit/(loss) before tax
Group operating profit/(loss)
based on longer term
investment return 2,212 441 (1,635)
Share of operating
profit in associate 1,232 155 472
----------- ----------- ------------
3,444 596 (1,163)
Short term fluctuation
in investment return (901) - -
----------- ----------- ------------
2,543 596 (1,163)
----------- ----------- ------------
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Taxation:
- on ordinary activities (496) (276) 21
- on associate's profit (370) (47) (112)
- on exceptional items - - 180
----------- ----------- -----------
Profit/ (loss) after tax 1,677 273 (1,074)
Dividends proposed (574) - -
----------- ----------- ------------
Retained profit/ (loss)
for the financial year 1,103 273 (1,074)
----------- ----------- ------------
Basic earnings per share
(pence per share) 0.7p n/a (1.7)p
----------- ----------- ------------
Diluted earnings per share
(pence per share) 0.7p n/a (1.7)p
----------- ----------- ------------
The group's turnover and expenses all relate to the continuing operations. There
were no recognised gains or losses during the period other than those passing
through the profit and loss account.
Consolidated Balance Sheet
as at 30 June 2003
At 30 June 2003 At 30 June 2002 At 31 December 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Note
Assets
Intangible assets 6,096 6,440 6,268
--------- --------- ----------
6,096 6,440 6,268
Investments
Debt securities and other
fixed income securities 132,249 - 132,398
Investment in
associated undertaking 6,105 4,911 5,242
Current asset investments - 84 -
Other financial investments 20 20 20
--------- --------- ----------
138,374 5,015 137,660
Reinsurers' share of technical provisions
Provision for unearned premiums 43,167 - -
Claims outstanding 11,347 - -
--------- --------- ----------
54,514 - -
Debtors
Debtors arising out of direct insurance
operations 67,151 - -
Debtors arising out of reinsurance
operations 5,634 - -
Other debtors 1,839 731 1,239
--------- --------- ----------
74,624 731 1,239
Other assets
Cash at bank and in hand 47,947 781 4,990
--------- --------- ----------
Prepayments and accrued income
Deferred acquisition costs 20,365 - -
Other prepayments and accrued
income 11,253 1,063 2,339
--------- --------- ----------
31,618 1,063 2,339
--------- --------- ----------
Total assets 353,173 14,030 152,496
========= ========= ==========
Consolidated Balance Sheet
as at 30 June 2003 - continued
At 30 June 2003 At 30 June 2002 At 31 December 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Note
Liabilities
Capital and reserves
Called up share capital 11,474 504 11,474
Share premium 132,377 - 132,377
Merger reserve 1,675 1,675 1,675
Profit and loss reserve 2 485 456 (618)
--------- --------- ----------
146,011 2,635 144,908
Technical Provisions
Provision for unearned premiums 117,327 - -
Claims outstanding 26,373 - -
--------- --------- ----------
143,700 - -
Creditors
Creditors arising out of direct
insurance operations 42,748 - -
Creditors arising out of
reinsurance operations 1,850 - -
Other creditors
(including taxation and
social security) 10,805 10,719 5,552
--------- --------- ----------
55,403 10,719 5,552
--------- --------- ----------
Accruals and deferred income 7,453 676 2,036
--------- --------- ----------
Loans 606 - -
--------- --------- ----------
Total liabilities 353,173 14,030 152,496
--------- --------- ----------
Net tangible assets per share 61p n/a 60p
Net asset value per share 64p n/a 63p
--------- --------- ----------
Consolidated Cash Flow Statement
6 months ended 30 June 2003
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Note
Net cash inflow from 7
operating activities 42,583 891 (1,604)
Return on investment
and servicing of finance
Interest received - 6 694
Interest paid - (232) (1,172)
Taxation
Corporation tax paid (232) (147) (1)
Capital Expenditure & Financial Investment
Management of liquid resources - - -
Purchase of fixed asset investments - - (132,398)
Financing
Increase/ (decrease) in debt 606 (500) (4,657)
Issue of ordinary shares - 112 143,347
Cash flows were invested as follows:
----------- ---------- ------------
Increase/ (decrease) in cash holdings 42,957 130 4,209
=========== =========== ============
Reconciliation of the movement in shareholders' funds
Profit/(loss) for the financial period 1,677 273 (1,074)
Dividends (574) - -
----------- ----------- ------------
Retained profit/(loss) for the financial period 1,103 273 (1,074)
----------- ----------- ------------
Proceeds from issue of shares net of issue costs - - 143,347
----------- ----------- ------------
Net addition/(reduction) to shareholders' funds 1,103 273 142,273
Opening shareholders' funds 144,908 2,362 2,635
----------- ----------- ------------
Closing shareholders' funds 146,011 2,635 144,908
=========== =========== ============
Notes to the Financial Statements
For the 6 months ended 30 June 2003
Principal accounting policies
The financial information has been prepared in accordance with applicable
accounting standards and under the historical cost convention rules, modified by
the revaluation of investments, and in compliance with the Statement of
Recommended Practice, "Accounting for Insurance Business" issued by the
Association of British Insurers in December 1998 ('the ABI SORP'). The annual
basis of accounting as described in the ABI SORP has been adopted. They also
comply with Section 255A of, and Schedule 9A to the Companies Act 1985. The
interim accounts do not constitute statutory accounts of the Group within the
meaning of Section 240 of the Companies Act 1985.
The auditors have reported on the Report and Accounts for the six months ended
31 December 2002, their report was not qualified and did not contain a statement
under Section 237(2) or (3) of the Companies Act 1985.
The following accounting policies have been applied consistently in dealing with
items which are considered material to the financial information.
Premiums
Gross premiums written represent premiums on business incepting in the financial
year together with adjustments to premiums written in previous accounting
periods and estimates for 'pipeline premiums'. Gross premiums written are stated
before deduction of commissions but net of taxes, duties levied on premiums and
other deductions.
Earned premiums represent premiums written adjusted for the change in the
provision for unearned premiums.
Unearned premiums
The provision for unearned premiums represents the proportion of gross premium
written and the applicable reinsurers' share, which is estimated to relate to
exposures in subsequent financial periods.
Claims
Claims incurred represent the cost of claims and claims handling expenses paid
during the financial year, together with the movement in provisions for
outstanding claims, claims incurred but not reported (IBNR) and future claims
handling provisions. Reinsurance recoveries are accounted for in the same period
as the incurred claims for the related business.
The provision for claims comprises amounts set aside for claims advised and
IBNR. The IBNR amount is based on estimates calculated using statistical
techniques which are reviewed annually by external consulting actuaries. The
techniques generally use projections, based on past experience of the
development of claims over time, to form a view on the likely ultimate claims to
be experienced. For more recent underwriting, regard is given to the variations
in the business portfolio accepted and the underlying terms and conditions.
Thus, the critical assumptions used when estimating claims provisions are that
past experience is a reasonable predictor of likely future claims development
and that the rating and other models used to analyse current business are a fair
reflection of the likely level of ultimate claims to be incurred.
The reinsurers' share of provisions for claims is based on calculated amounts
for outstanding claims and projections for IBNR, net of estimated irrecoverable
amounts having regard to the reinsurance programme in place for the class of
business, the claims experience for the year and the current security rating of
the reinsurance companies involved. Statistical techniques are used to assist
in making these estimates.
Every effort is made to ensure that all claims incurred are adequately provided
for but adjustments may be necessary in later periods as a result of subsequent
information and events. Any adjustments to original provisions are made in the
financial period in which the need for a further provision becomes apparent.
Acquisition costs
Acquisition costs comprise brokerage, staff and staff related costs of the
underwriters acquiring the business, and premium levy. Premium levy is an
additional central levy on all members of Lloyd's underwriting in 1997 and
subsequent years of account to ensure adequate funding of the Lloyd's central
guarantee fund.
The proportion of acquisition costs incurred in respect of unearned premiums is
deferred at the balance sheet date and recognised in later periods when the
related premiums are earned.
Syndicate expenses
Because of the nature of the Syndicate, the Group provides the infrastructure
which enables the Syndicate to operate. The Group recharges the Syndicate for
the services provided including its share of depreciation of fixed assets;
salaries, wages and other costs of employment including pensions; and lease
rental payments. Syndicate expenses recharged are recognised on an accruals
basis.
Managing agents fees and profit commission
Managing agents fees and profit commission are paid to Beazley Furlonge Limited
as the managing agent of the Syndicate, and are based on Members' capacity and
profits respectively, and are recognised on an accrual basis.
Members' personal expenses
Members' personal expenses include central fund contributions and Lloyd's
subscription charges.
Investments
All investments are stated at their market value at the balance sheet date.
Investment income, interest receivable and investment management expenses are
included in the profit and loss account on an accruals basis. Unrealised gains
and losses on investments represent the difference between the current value of
investments at the balance sheet date and their purchase price. Realised gains
and losses represent the difference between net sales proceeds and purchase
price. On disposals during the accounting period, an adjustment is made for
previously recognised unrealised gains and losses.
Allocation of investment return
All of the investment returns arising in the year are reported in the
non-technical account. In accordance with the ABI SORP, a transfer is made from
the non-technical account to the technical account which represents the income
earned on the investments held for underwriting purposes. In Syndicate 2623's
case, all the investments are held for underwriting purposes.
Deferred taxation
Except where otherwise required by accounting standards, full provision without
discounting is made for all timing differences which have arisen but not
reversed on the balance sheet date.
Pension costs
The expected cost of providing pensions is recognised in accordance with SSAP 24
on a systematic and rational basis over the period from which the benefit from
the employee's service is derived. Contributions are assessed in accordance with
advice of a qualified actuary, using the projected unit method of funding.
Foreign exchange
Premium trust funds are maintained in Sterling, US dollars and Canadian dollars.
Monetary assets and liabilities expressed in US dollars and Canadian dollars are
translated at rates of exchange ruling at the balance sheet date. Revenues and
costs denominated in US dollars and Canadian dollars are recorded at average
exchange rates. Transactions denominated in foreign currencies are recovered in
the local currency or the actual exchange rates as at the date of the
transaction. All differences arising on the translation of the foreign currency
accounts are dealt with in the non-technical account.
Notes to the Financial Statements
1. Change to accounting policy
These financial statements have been prepared in accordance with Section 255A
of, and Schedule 9A to the Companies Act 1985. Previous financial statements
were prepared in accordance with Schedule 4 to that Act. The effect of this
change to the results of the Group is minimal.
2. Segmental Analysis
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Profit/loss before taxation
Underwriting and investment 2,681 - -
Managing agencies 585 177 148
Share of operating profit in associates 1,232 155 472
Other Group income and expenses (1,955) 264 (1,783)
----------- ----------- ------------
Total 2,543 596 (1,163)
----------- ----------- ------------
Net assets
Underwriting and investment 138,300 - 132,418
Managing agencies and related activities 1,606 (2,276) 7,248
Investment in associates 6,105 4,911 5,242
----------- ----------- ------------
Total 146,011 2,635 144,908
----------- ----------- ------------
In the profit and loss account, the income and costs of the managing agency are
reported within "other income and "other charges".
3. Investment return on funds at Lloyds and other corporatefunds
The investment return transferred to the technical account represents the
estimated long term rate of return applied to the Group's investments assets,
the managed syndicates and Funds at Lloyds. The long term rates were established
having regard to historic asset performance and current and prospective bond
yields.
The long term rates of return used for both funds at Lloyds and syndicate funds
were:
Fixed interest - sterling 5%
- US dollar 4%
4. Fees and other income #'000 #'000 #'000
Profit commissions 6,160 1,354 759
Agency fees 931 684 1,440
---------- ---------- -----------
Other income (including share of
profit in associated companies)
1,234 138 988
---------- ---------- -----------
8,325 2,176 3,187
---------- ---------- -----------
All of the profit commission recognised in this period is payable to directors
and employees under the terms of the pre-IPO agreement.
5.Net Operating Expenses
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Brokerage and other business
acquisition expenses 26,616 - -
Change in deferred acquisition costs (19,201) - -
Administration expenses 5,955 - -
----------- ---------- ------------
13,370 - -
----------- ---------- ------------
6. Earnings per share
The calculation of basic earnings per share is based on earnings of #1,677,000
(2002 n/a) being the profit for the period and on 229.48 million (2002 n/a)
shares, being the weighted average number of shares in issue during the period.
The diluted earnings per share is based on earnings of #1,677,000 (2002 n/a) and
on 229.51 million (2002 n/a) ordinary shares.
7.
Reconciliation of operating profit to net cash inflow/ outflow from
operating activity
6 months ended 6 months ended 6 months ended
30 June 2003 (unaudited) 30 June 2002 (unaudited) 31 December 2002 (audited)
#'000 #'000 #'000
Profit before tax on ordinary activities 2,543 596 (1,163)
Amortisation of goodwill 172 172 172
(Increase) in investments (714) (154) (247)
(Increase)/decrease in debtors (102,663) (701) 1,784
Decrease in reinsurer's share
of technical provision (54,514) - -
Increase/(decrease) in creditors 54,059 978 (2,150)
Increase in technical provisions 143,700 - -
----------- ---------- ------------
Net cash inflow from operating activities 42,583 891 (1,604)
----------- ---------- ------------
8. Comparative figures
Comparative figures are provided for the 6 months ended 31 December 2002 because
the last published results for the Group were for this period. This was because
the accounting reference date was changed to 31 December during 2003 so as to
coincide with the accounting reference date of Syndicate 2623. The Group
formerly made up its accounts to 30 June in each year.
Independent review report by KPMG Audit Plc to Beazley Group Plc
Introduction
We have been engaged by the company to review the financial information for the
six months ended 30 June 2003 which comprises the consolidated profit and loss
account, consolidated balance sheet, consolidated cash flow statement and the
related notes. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the company for
our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules which require that the accounting policies and presentation applied to the
interim figures should be consistent with those applied in preparing the
preceding annual accounts except where they are to be changed in the next annual
accounts in which case any changes, and the reasons for them, are to be
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/
4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.
KPMG Audit Plc
Chartered Accountants
Registered Auditor London
24 September 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
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