41 slides from Sanlam Allianz Holdings (kenya)'s earnings presentation, Mar 6, 2025
Slide 1: Annual Results 2024
Annual Results 2024 6 March 2025
Slide 2: Disclaimer
Disclaimer In this presentation we make certain statements that are not historical facts and relate to analyses and other information based on forecasts of future results not yet determinable, relating, among others, to new business volumes, investment returns (including exchange rate fluctuations)
Slide 3: Contents
Overview and Pan-Africa South Africa Financial Outlook strategy update update results and priorities Contents Overview and strategy Pan Africa update South Africa update Paul Hanratty Heinie Werth Anton Gildenhuys Financial results Outlook and priorities Abigail Mukhuba Paul Hanratty Additional info
Slide 4: Overview and strategy
Overview and strategy 4
Slide 5: Key messages
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Key messages Strong operating results Continuing organic growth Capital allocation promoting future growth Integrations progressing well Sanlam people and partners central to our success 5
Slide 6: Consistent delivery on financial metrics
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Consistent delivery on financial metrics Earnings and cash +17% +26% +52% Cash NRFFS1,2 per share Net operational earnings2 per share Attributable earnings per share Growth +9% +52% +2% Group Net cli
Slide 7: Strong performance driven by underlying organic growth
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Strong performance driven by underlying organic growth 16 +15% per Corporate activity share 12 CAGR Asia R billion 8 NRFFS1 Pan-Africa 4 South Africa 0 2020 2021 2022 2023 2024 26 20,3% 22 19,5% 18,0
Slide 8: Three core regions driving growth
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Three core regions driving growth South Africa Pan-Africa Asia Leadership delivers growth SanlamAllianz is the leading franchise Focused India growth opportunity NRFFS1 +16%, new business volumes +8%
Slide 9: Ubuntu-Botho central to our success in South Africa
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Ubuntu-Botho central to our success in South Africa Ubuntu-Botho partnership renewed for a further 10-year period until 31 December 2034 Commitment to remain an anchor shareholder in Sanlam Ensure mu
Slide 10: Pan-Africa update
Pan-Africa update 10
Slide 11: SanlamAllianz strategy: building a strong diversified foundation for future growth
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities SanlamAllianz | strategy remains building a strong diversified foundation for future growth Grow and optimise our businesses Complimented by portfolio management Underpinned by successful integration
Slide 12: 2025 focus areas: Solidifying foundation and growing responsibly
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities 2025 focus areas | Solidifying foundation and growing responsibly Deliver Finalise integration Drive an inclusive Solid systems, process Ensure proper balance 2025 budgets and rebranding high-perform
Slide 13: Integration progressing well, synergies realised in completed countries
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Integration progressing well, synergies realised in completed countries as per plan Filing Closing Surv. Exp. end of Status Status Entity Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-2
Slide 14: Tracking well on our key financial metrics
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Tracking well on our key financial metrics SanlamAllianz key performance metrics on an unaudited pro forma basis in constant currency (including Namibia) General Insurance Net earned premium Net insu
Slide 15: South Africa update
South Africa update 15
Slide 16: Sanlam + Assupol: leading player in South Africa mass market segment
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Sanlam + Assupol: leading player in South Africa mass market segment Largest player in the mass Market dominance across market by size of book1 traditional channels1 What has been achieved thus far?
Slide 17: Focus for 2025
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Focus for 2025 The Sanlam Assupol merger creates significant strategic advantages and financial benefits Strategic initiatives Implementation with focus on handovers and smooth transition between lea
Slide 18: Financial results
Financial results 18
Slide 19: Strong performance on financial metrics
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Strong performance on financial metrics R14,1 billion1 R103 billion +14% +3% (+16% per share) Life insurance new business NRFFS volumes (PVNBP) R17,1 billion1 R54 billion +24% +52% (+26% per share) N
Slide 20: Net result from financial services
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Net result from financial services1 R million 2024 2023 % change (3) 15 Life and health Life insurance and health 7 961 7 282 9% General insurance 10 Line of General insurance 3 047 2 179 40% busines
Slide 21: Return on group equity value (RoGEV) (%)
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Return on group equity value (RoGEV) (%) Group hurdle of 30 15,6% 18,0% per share 20,3% per share 25 3,0 20,2 20 17,9 1,0 2,5 1,4 (0,6) 15 1,9 1,5 (1,1) 10,6 10 5 0 Expected VNB Operating Santam NAV
Slide 22: Strategic deployment of discretionary capital in 2024
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Strategic deployment of discretionary capital in 2024 (R billion) 1,4 2,3 (1,3) 2,7 (2,6) 0,1 4,1 2,7 (1,2) 31-Dec-23 India SFL Namibia Reinsurance Morocco ARC Multichoice Other 31-Dec-24 partial sal
Slide 23: Group solvency cover ratio (SCR) (%)
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Group solvency cover ratio (SCR) (%) 170 167 2 180 168 (3) (1) 140 Dec-23 Updates to Dec-23 Operating capital generation Other Dec-24 annual group (post updates) regulatory return ◼ Increase ◼ Decrea
Slide 24: Life insurance and health: strong earnings and new business performance
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Life insurance and health | strong earnings and new business performance New business volumes Value of new business NRFFS1 Net client cash flow (PVNBP) (VNB) R8,0 billion R103 billion R2,9 billion R1
Slide 25: General insurance: strong recovery in South Africa
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities General insurance | strong recovery in South Africa NRFFS New business volumes R3,0 billion R49,1 billion +40% +4% Net earned premiums Net insurance result NRFFS (R billion) (R million) 272 (%) 2,1 2
Slide 26: Outlook and priorities
Outlook and priorities 26
Slide 27: Priorities for 2025
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Priorities for 2025 Build on leading position in South Africa Implement transactional banking capabilities Complete Ninety One, SanlamAllianz and India transactions Sanlam Fintech and Rewards Sanlam
Slide 28: Outlook for 2025
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Outlook for 2025 Cash NRFFS (R billion)1 16,5 2 14,2 15,0 12,4 10,5 9,5 8,4 2020 2021 2022 2023 2024 2025 RoGEV to remain above hurdle Dividend growth to continue in our long-term range Timing of Nin
Slide 29: Confident in long-term outlook for Sanlam
Overview Pan-Africa South Africa Financial Outlook and strategy update update results and priorities Confident in long-term outlook for Sanlam Consistent performance and strategic execution Growth from three engines each with competitive advantage Value creation – unique diverse portfolio, growing n
Slide 30: Thank you
Shaping our future with y fore) al ice(=)aler= 5 i & h iss “SS ' . ¢ a. Oe ee . Ae “> © @ Sanlam 77” Thank you Live with confidence Financial Planning | Retirement | Insurance | Health | Investments | Wealth | Credit
Slide 31: Additional information
Additional information 31
Slide 32: Cash earnings
Cash earnings % R million 2024 2023 change Net result from financial services1,2 14 071 12 379 14% Amortisation of capitalised IT projects and other non-cash adjustments 93 19 Cash net result from financial services 14 164 12 398 14% Project expenses not included in NRFFS (423) (339) Retained in bus
Slide 33: Reconciliation of IFRS earnings and SHF NRFFS
Reconciliation of IFRS earnings and SHF NRFFS R billion 22,2 (3,5) 2,5 15,4 (2,2) 1,372 (3,6) 1 Attributable (IFRS) earnings Net investment return Shareholders' Net profit on disposal of Impairment and other Shareholders' fund fund subsidiaries and associates NRFFS adjustments NRFFS excludes investm
Slide 34: Policyholder liabilities on Sanlam group balance sheet
Policyholder liabilities on Sanlam group balance sheet at 31 December 2024 Change in CSM is more important than the size Sanlam has significant Net IFRS 17 insurance liabilities per measurement model of CSM investment contract liabilities R billion 28% (R213 billion) Group 39 138 9 27 SLS and Malays
Slide 35: Change in CSM (reported)
Change in CSM (reported)1 R billion SLS only, with zero balances Increase Decrease Total for Namibia and Malaysia SLS and Malaysia reclassified as held for sale 1,2 (HFS) 2,0 2,8 0,4 27,1 3,3 (5,1) 22,5 Malaysia no longer HFS at 31 Dec 24, opening balance added back here 1 Jan 2024 CSM acquired New
Slide 36: Change in CSM on normalised (adjusted) basis
Change in CSM on normalised (adjusted) basis1 R billion Increase Decrease Total 3,3 1,2 2,9 3,0 31,7 (5,1) 6,0 28,5 (2,1) 27,1 22,5 (4,6) 1 Jan 2024 HFS / JV 1 Jan 2024 Net increase in New Interest Variances and CSM release Forex and 31 Dec 2024 Exclude SAZ 31 Dec 2024 (reported) balances (adjusted)
Slide 37: Rate of CSM release on normalised basis for FY23 and FY24
Rate of CSM release on normalised basis for FY23 and FY24 Similar rate of CSM release on adjusted basis compared to prior year For the 12 months ended 31 December 2023 For the 12 months ended 31 December 2024 16,0% 15,7% 0,5% 1,4% 14,5% 0,3% 14,2% (1,2%) 13,1% (1,8%) (2,2%) Include SAZ balances / In
Slide 38: Components of gross value in-force (VIF) of covered business
Components of gross value in-force (VIF)1 of covered business at 31 December 2024 CSM contributes ~35% 1% to gross VIF of R58,8 billion 28% Insurance contracts (GMM+VFA) Insurance contracts (PAA) 45% SHF reserves Investment contracts (IFRS 9) Other 20% Life insurance business 6% ~65% of gross VIF fr
Slide 39: Bridging between new business CSM and gross VNB of covered business
Bridging between new business CSM and gross VNB of covered business R billion New business balances for GMM + VFA (gross of tax, net of reinsurance) Gross VNB Reported basis Adjusted basis 1,2 0,6 3,8 (0,2) 0,2 3,2 0,2 2,8 (0,6) (1,0) Contract modifications not new business in terms of EV of covered
Slide 40: Glossary of terms
Glossary of terms Technical terms and definitions Excludes from RoGEV the impact of actual investment return relative to long-term assumptions, interest rate changes, exchange rate movements and other impacts not under “Adjusted RoGEV” management control. The reserve created in the group statement o
Slide 41: Glossary of terms
Glossary of terms Technical terms and definitions The annualised value of all new policies (insurance and investment contracts) that have been issued during the financial year according to the group’s embedded value assumptions “New business volumes” and have not subsequently been refunded. “PAA” Pr