Sanlam Allianz Holdings (kenya) Plc · NSEKE:SLAM
Sanlam Allianz Holdings (kenya) — Sanlam — FY2021 Earnings Presentation
38 slides from Sanlam Allianz Holdings (kenya)'s earnings presentation, Mar 10, 2022
Slide 1: Annual Results Presentation
Annual Results Presentation 10 March 2022
Slide 2: Contents
Contents 1. Overview 2. Financial results 3. Business performance 4. Priorities and outlook 5. Additional information 2
Slide 3: Overview
Overview Paul Hanratty 3
Slide 4: Key messages
Key messages • Delivered excellent outcomes to clients, including R22 billion of gross mortality claims and R3,2 billion of CBI claims (including R1 billion interim relief in 2020) • Strong financial performance despite ongoing pandemic • Operational performance base restored to pre-pandemic levels
Slide 5: Key performance indicators for 2021
Key performance indicators for 2021 Strong financial performance despite the continuing pandemic 14,6% R9,5 billion R10,3 billion R355,9 billion ➔ ➔ ➔ 13% 23% 14% Adjusted Return on GEV Net result from Net operational New business volumes per share financial services earnings (Hurdle rate of 13,6%)
Slide 6: Operating base restored to pre-pandemic levels
Operating base restored to pre-pandemic levels Key metrics relative to 2019* Net result from financial services (Rbn) -2% New business volumes (Rbn) +42% Net fund inflows (Rbn) +38% 80 10 +4% 360 8 excluding 60 one-off 270 gains in 6 40 9.7 2019 180 354.1 78.3 9.5 4 249.3 56.8 90 20 2 0 0 0 2019 202
Slide 7: Strategy execution delivering on existing platform
Strategy execution delivering on existing platform Fortress SA Other EM Digital • Significant new business and net • Strong growth from life insurance • Technology enabled improvement inflows in life insurance and asset platform at improved margins in agent productivity and client management experie
Slide 8: Strategy execution enhancing our platforms for future growth
Strategy execution enhancing our platforms for future growth Fortress SA Pan Africa Other markets • Asset management scale and • MTN InsurTech platform to reach • Exit UK life insurance, wealth and empowerment through ARC and millions of underserved clients to financial planning businesses Absa tran
Slide 9: Strategy execution disciplined capital allocation
Strategy execution disciplined capital allocation Discretionary capital (R billion) 1.0 0.1 2.9 3.0 2.5 2.0 1.2 1.5 1.0 0.6 0.5 0.0 Dec-20 Nucleus sale Release of capital Other Dec-21 from operations • Balance sheet optimisation releases R1 billion • Proceeds from sale of UK life, wealth and financi
Slide 10: Our Purpose: Sustainability and governance
Our Purpose: Sustainability and governance • Execution of strategy driven by our purpose of empowering generations to be financially confident, secure and prosperous • Focus on shared value creation, financial inclusion, sustainable investment decisions and strategic partnerships to uplift communiti
Slide 11: Financial results
Financial results Abigail Mukhuba 11
Slide 12: Overview of key performance indicators
Overview of key performance indicators +16% Net result from financial services (Rbn) +18% New business volumes (Rbn) +14% 361 12 400 311 9.7 9.9 300 214 244 249 10 +30% 156 8.4 200 8 0% 80 100 72.8 6 5.3 5 5.0 +6% 6 4 5.3 5.0 5.0 2.4 1.9 3.0 60 53.9 56.1 +43% 2.0 1.4 0.9 43.7 2 0.7 0.7 1.0 39.8 41.1
Slide 13: Overview of key performance indicators
Overview of key performance indicators +32% +48% Net fund inflows (Rbn) Net value of new life business (Rm) +58% 95 81 3 000 2 840 62 +36% 70 51 57 45 +15% 26 33 2 500 2 235 2 280 -9% 20 17 1 937 1 921 16 2 000 16 15 15 15 1 638 13 1 500 12 1 000 +88% 8 >+100% 459 4 500 261 244 82 39 146 0 0 Life Ge
Slide 14: Excess mortality claims
Excess mortality claims South Africa gross monthly mortality claims (Rm) Excess mortality claims (net of tax, reinsurance, annuity and disability offsets) (Rm) 5 000 4 197 Wave 1 Wave 2 Wave 3 Wave 4 SLS 3 567 900 2 443 3 000 800 656 630 1 000 700 600 -1 000 600 468 500 383 383 400 400 284 300 200 2
Slide 15: Return on Group Equity Value
Return on Group Equity Value RoGEV (%) Group Hurdle of 13.6% 14.6% per share 13.9% per share 16 13.7% 0.8% 13.1% 14 1.9% 12 2.1% 2.6% (0.6%) 10 8.7% 8 (2.4%) 6 4 2 0 Expected VNB Operating Operating Listed and Expected Adjusted Investment Actual return experience assumption other investment return R
Slide 16: Solvency position
Solvency position Sanlam Group SCR cover ratio change (%) Operational factors Regulatory factors 200 17 186 7 190 180 174 (6) 173 170 (6) (12) (13) 160 150 140 130 120 110 100 31-Dec-20 FY20 31-Dec-20 Net unwind, Experience Higher Accounting FY21 31-Dec-21 foreseeable (after operating variances, pre
Slide 17: Business performance
Business performance Abigail Mukhuba 17
Slide 18: Life insurance net operating earnings
% of Group Life Life insurance net operating earnings 51 Other 49 (Rm) 0% 6 000 5 014 5 035 5 000 >+100% -27% 4 000 3 047 3 000 2 742 +9% >-100% 2 011 >+100% -6% 2 000 >-100% -16% 1 000 703 769 488 597 564 354 38 175 31 61 51 0 (34) (1 000) (2 000) (1 548) Retail Retail SLS SPA Mass Affluent Corpora
Slide 19: Life insurance new business volumes
% of Group 20 Life Life insurance new business volumes* Other 80 (Rbn) +31% 97.8 100 +27% 74.6 80 54.7 60 43.1 40 30 +50% +43% +35% 20 +14% 11.7 13.0 10.9 7.8 9.0 8.0 7.5 10 6.7 0 Retail Mass Retail Affluent Corporate SPA Life Other Group 2020 2021 • Retail Mass recurring premiums: Individual Life +
Slide 20: Life insurance net client cash flows
% of Group 16 Life Life insurance net client cash flows Other 84 -9% (Rbn) 16 14.6 +87% 13.2 14 12 -21% 10 8 -6% 6.9 8 6 >-100% 5.3 4.4 4.1 4.2 +8% 3.7 4 -7% 2 1.3 1.2 1.3 0 (2) (1.3) (1.4) (1.9) (4) Retail Mass Retail Affluent Corporate SPA Life India Other Group 2020 2021 • All life insurance busi
Slide 21: Life insurance net value of new business
Life insurance net value of new business +48% (Rm) +16% 2 840 3 000 +60% 1 921 2 000 1 032 1 192 821 1 000 +88% 0 550 512 459 450 >+100% 350 222 244 >+100% +64% 250 150 94 64 82 50 50 ( 50) (11) Retail Mass Retail Affluent Corporate SPA Life India Other Group 2020 2021 • Strong growth in all life in
Slide 22: General insurance net operating earnings
% of Group GI General insurance net operating earnings 28 Other 72 +43% (Rm) >+100% 2 749 3 000 +26% 2 400 1 920 1 800 1 418 847 1 065 1 200 686 600 0 500 -22% 400 315 300 244 -70% 200 100 72 22 0 Santam SPA GI India Other Group 2020 2021 • Santam improved in commercial and personal lines, released
Slide 23: General insurance new business volumes
% of Group 12 GI General insurance new business volumes Other 88 +6% (Rbn) 43.8 45 41.1 35 +8% 30 25 26.6 24.7 25 +9% 20 15.0 15 13.7 10 -13% -57% 5 2.1 1.9 0.6 0.3 0 Santam SPA GI India Other Group 2020 2021 • Santam conventional business benefited from good growth at MiWay and Santam Re • SPA GI h
Slide 24: General insurance underwriting and insurance margins
General insurance underwriting and insurance margins Underwriting margin (%) Insurance margin (%) 10 35 31.2 8.0 8 6.7 30 6.1 25.2 6 4.4 25 22.5 4 3.4 2.5 2 20 16.3 0 15 12.9 (2) 9.5 9.0 (1.9) 10 (4) 4.6 5 (6) (6.2) (8) 0 Santam* SPA GI India Malaysia Santam* SPA GI India Malaysia 2020 2021 • Santam
Slide 25: Asset management net operating earnings
% of Group 9 AM Asset management net operating earnings Other 91 +29% (Rm) >+100% 1 000 1 000 +2% 720 800 390 400 600 357 364 350 300 +15% 250 200 180 +53% 157 153 150 100 81 53 50 0 Sanlam Investments* Wealth Management International SPA AM Group 2020 2021 • Sanlam Investments net earnings impacted
Slide 26: Asset management net client cash flows
% of Group AM Asset management net client cash flows 37 63 Other +58% (Rbn) 55 51.3 50 >+100% 32.5 35 45 30 26.4 25 20 >+100% -21% +16% -31% 15 >-100% 10.4 9.1 9.6 10 8.5 7.2 8.3 5 3.0 2.7 1.9 0 (5) (1.0) (2.3) Retail Affluent* Corporate* Sanlam Investments Wealth Management International SPA AM Gro
Slide 27: Credit and structuring
% of Group 16 Credit Credit and structuring Other 84 +60% +13% Net result from financial services (Rm) Credit book size (gross) (Rbn) 1 486 1 500 111.8 926 120 98.9 950 1 000 +13% 100 +19% 500 80 80 850 727 70 63.8 750 642 650 60 53.8 550 >+100% 50 +11% +58% 450 >+100% 40 318 30.3 350 262 +2% 27.2 3
Slide 28: Priorities and outlook
Priorities and outlook Paul Hanratty 28
Slide 29: Priorities
Priorities Operational Strategic People • Ongoing monitoring of COVID-19 • Complete acquisitions announced • Enhance our culture with particular pandemic to assess adequacy of in 2021 and integrate them emphasis on growing our talent pricing and other measures successfully into Sanlam and improving
Slide 30: Outlook
Outlook • Sanlam is well-positioned to capture growth opportunity in Africa • Ongoing focus on digital transformation • Sanlam has a Fortress position in South Africa that will continue to thrive even in a modest growth environment • COVID-19 pandemic will take time to transform itself into an endem
Slide 31: Additional information
Additional information 31
Slide 32: Cluster contributions
Cluster contributions Net result from financial services New business volumes Net inflows % % % R million 2021 2020 % (CC) 2021 2020 % (CC) 2021 2020 % (CC) Sanlam Life and Savings 4 806 4 600 4 4 108 752 77 847 40 40 15 257 11 351 34 34 Sanlam Emerging Markets 2 227 2 377 (6) 9 48 799 46 898 4 13 1
Slide 33: Sanlam Life and Savings
Sanlam Life and Savings Net result from financial services (R million) New business volumes (R million) 7 000 +4% 120 000 +40% 6 000 100 000 13 925 5 000 3 047 354 4 000 80 000 612 9 848 3 000 60 000 2 000 2 931 2 381 90 977 40 000 1 000 65 441 703 769 0 20 000 (1 391) (1 000) 0 2 558 3 850 (2 000)
Slide 34: Sanlam Life and Savings
Sanlam Life and Savings Net fund inflows (R million) Net value of new business (R million) +34% 20 000 2 500 +36% 222 15 000 2 000 344 15 430 94 1 500 10 000 1 192 6 645 1 000 1 032 5 000 4 362 4 097 500 0 821 (2 470) 512 0 (5 000) 2020 2021 2020 2021 Retail Mass Retail Affluent Corporate 34
Slide 35: Sanlam Emerging Markets
Sanlam Emerging Markets Net result from financial services (R million) New business volumes (R million) 3 500 60 000 +9% +13% 3 000 50 000 2 500 989 808 40 000 24 048 2 000 53 81 21 178 1 500 30 000 1 234 1 331 1 000 20 000 17 136 16 479 500 689 581 10 000 0 9 241 11 785 ( 407) ( 380) ( 500) 0 2020
Slide 36: Sanlam Emerging Markets
Sanlam Emerging Markets Net fund flows (R million) Net value of new business (R million) 25 000 +4% 700 +115% 600 2 389 20 000 2 096 146 500 5 044 7 139 1 15 000 400 138 6 236 300 10 000 6 066 38 16 2 200 5 000 7 816 227 320 6 413 100 0 0 2020 2021 2020 2021 Southern Africa North and West Africa Eas
Slide 37: Sanlam Investment Group
Sanlam Investment Group Net result from financial services (R million) New fund inflows (R million) +63% 1 400 40 000 +59% 35 000 1 200 492 5 355 30 000 1 000 1 912 25 000 800 135 20 000 600 390 8 016 175 15 000 26 426 400 157 2 755 180 10 000 200 5 000 10 359 338 251 0 0 2020 2021 2020 2021 Sanlam
Slide 38: Contact
Contact Sanlam Client Care Centre: 021 916 5000 or 0860 SANLAM (0860726 526), (021)947-9111/ +2721 947-9111 (International) Sanlam Head Office, 2 Strand Road Bellville, South Africa ir@sanlam.co.za 33"45'09.77S 18"38'28.32E ..we are sanilam.com