41 slides from Sanlam Allianz Holdings (kenya)'s earnings presentation, Sep 5, 2024
Slide 1: Interim Results 2024
Interim Results 2024 5 September 2024
Slide 2: Table of contents
Table of contents 01 03 04 06 Financial results Overview and strategy Abigail Mukhuba Paul Hanratty 05 Priorities and outlook 02 Paul Hanratty 07 SanlamAllianz update India update Business performance Heinie Werth David Marshall Abigail Mukhuba Additional Information Sanlam Interim Results Presentat
Slide 3: Overview and strategy
Overview and strategy Paul Hanratty 3 Sanlam Interim Results Presentation 2024
Slide 4: Key messages
Key messages Consistent delivery on key performance metrics Our diversified portfolio remains a unique asset Focused capital deployment and strategic integration Sanlam people and partners central to our success On track to touch 100 million lives by 2030 Sanlam Interim Results Presentation 2024 4
Slide 5: Excellent performance on key financial metrics
Excellent performance on key financial metrics Earnings and cash Growth Value creation Capital +19% +14% 9,3% 166% NRFFS1 per share Life insurance new business volumes2 RoGEV3 per share (half-year) Group solvency cover ratio +20% +>100% 10,7% R1,3 billion Cash NRFFS per share Net client cash flow Ad
Slide 6: Diverse portfolio delivering across our three core regions
Diverse portfolio delivering across our three core regions South Africa Continues to deliver a solid base (six-month adjusted RoGEV: 8,5%1) Life insurance: Good risk experience, new business volumes, VNB and margins, retail mass persistency improving General insurance: Santam underwriting margin rec
Slide 7: Capital allocation: deployment of discretionary capital (2020 to 1H 2024)
Capital allocation | deployment of discretionary capital (2020 to 1H 2024) R billion ◼ Increase ◼ Decrease ◼ Total 4,6 2,7 3,8 (0,3) 2,5 2,7 (1,3) 0,2 (3,7) (0,9) Jan-20 Inflow from South Africa Pan-Africa Balance sheet Dec-23 Pan-Africa India Other Jun-24 corporate activity management Morocco SFL &
Slide 8: Capital allocation: most deployment to date has been bolt-on in South Africa
Capital allocation | most deployment to date has been to bolt-on in South Africa South Africa transactions Metric % contribution to group Mass Assupol1 New business Capital Legacy +5% volumes Affluent Brightrock2 Absa and Alexforbes LISP VNB +4% Afrocentric2 Corporate VNB margin Sale of stand-alone
Slide 9: Sanlam intention to acquire 25% of ARC Financial Services Holdings
Sanlam intention to acquire 25% of ARC Financial Services Holdings (ARC FSH) In 2021 Sanlam acquired 25% of ARC Financial Services Investments (ARC FSI) Pre-transaction • Attractive portfolio of non-banking financial services businesses in South Africa • Sanlam has earned strong returns on this inve
Slide 10: SanlamAllianz update
SanlamAllianz update Heinie Werth 10 Sanlam Interim Results Presentation 2024
Slide 11: SanlamAllianz: building a strong diversified foundation for future growth
SanlamAllianz1 | building a strong diversified foundation for future growth Grow and optimise our businesses Complemented by active portfolio management Underpinned by successful integrations post JV formation Further scale through mergers and acquisitions in “core” markets (Kenya, Nigeria (GI)1and
Slide 12: Integration is progressing well
Integration is progressing well Filing Closing Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Exp. end of Handover Country Status Status 24 24 24 24 24 24 24 24 24 25 25 25 integration status Comments Côte d'Ivoire Done Integration implementation Q4 2024 • On track Senegal Done Integration impleme
Slide 13: Tracking well on our key financial metrics
Tracking well on our key financial metrics SanlamAllianz key performance metrics on an unaudited pro forma basis in constant currency (including Namibia) General Insurance Gross written premiums (GWP) Net earned premium Net insurance ratio Expected growth: 12% - 15% Expected growth: 12% - 15% Expect
Slide 14: India update
India update David Marshall 14 Sanlam Interim Results Presentation 2024
Slide 15: Shriram and Sanlam: our India growth story
Shriram and Sanlam | our India growth story Building a strong, trusted partnership with shared value Opportunity in India1 Connected businesses for both parties Partnership dates back to 2005 Population: 24x size of South Africa: Ecosystem with credit business supporting 1,4 billion people, 980 mill
Slide 16: Shriram Finance Limited (SFL)
Shriram Finance Limited (SFL) One of the largest non-banking Loan book growth2,3 (R billion) financial services entities1 in India 426 449 493 Market capitalisation: Rs1,1 trillion (R241 billion) on 30 June 2024 Number of customers: 8,71 million 1H23 FY23 1H24 Number of branches: 3,763 (including 68
Slide 17: SLIC: Key business metrics update
SLIC | Key business metrics update Market position and market share Gro 22% up ,O s tem pe Market position # 12 sy n o M Gro Ec 1 ar FY23 - FY24 growth rate # up IL, ke Li t 24% fe 49% Industry growth1 IL 51% Metric Year SLIC growth Individual life (IL) growth 8% 39% FY23-FY24 25% I L, O Group growt
Slide 18: SGIC: Key business metrics update
SGIC | Key business metrics update Market position and market share Market position # 12 n-m otor o N 9% % FY23 - FY24 growth rate # 5 20 age Eco Cumulative profit # 2 -sy Motor own dam s te m 39% Year Industry growth1 SGIC growth 16% 29% FY23-FY24 13% 34% Op en M a rk e t 6 1 % Year SGIC market sha
Slide 19: Financial Results
Financial Results Abigail Mukhuba 19 Sanlam Interim Results Presentation 2024
Slide 20: Robust performance on key financial metrics
Robust performance on key financial metrics R7,1 billion R51 billion +14% +14% (+19% per share) Life insurance new business volumes NRFFS1 (PVNBP) 2 R7,2 billion R24 billion +15% >100% (+20% per share) Net client cash inflow Cash NRFFS R8,1 billion R155,3 billion +8% Group equity value (31 December
Slide 21: Net result from financial services
Net result from financial services R million 1H24 1H23 % change -1 16 Life and health Life insurance and health 4 004 3 527 14% General insurance General insurance 1 447 1 246 16% 7 Line of Investment management business Investment management 531 481 10% (%) 57 Credit & structuring 21 Other Credit a
Slide 22: Cash earnings
Cash earnings % R million 1H24 1H23 change Net result from financial services1 7 056 6 177 14% Amortisation of capitalised IT projects and other 125 79 non-cash adjustments Cash net result from financial services 7 181 6 256 15% Project expenses not included in NRFFS (166) (154) Cash generated 7 015
Slide 23: Reconciliation of IFRS and shareholders' fund NRFFS
Reconciliation of IFRS and shareholders’ fund (SHF) NRFFS R billion 9,9 (1,2) 0,3 7,1 (1,9) Attributable earnings Net investment return SHF adjustments Net other NRFFS earnings Acceleration of profit recognition of recapture fee in attributable earnings, following regulatory approval of the terminat
Slide 24: Return on group equity value (RoGEV) half-year 2024
Return on group equity value (RoGEV) (%) – half-year 20241 10,7% per share 9,3% per share 12 Half-year 2,2 10,7 group hurdle of 7,5% 10 (0,3) 9,2 2,7 8 (1,5) 0,9 6 5,2 4 2 0 Expected VNB Operating experience Santam NAV expected return Adjusted RoGEV Currency Actual return variances and operational a
Slide 25: Group solvency cover ratio (SCR)
Group solvency cover ratio (SCR) (%) 170 3 180 167 166 (3) (3) (1) 140 Dec-23 Updates to Dec-23 Net unwind, operating Operating, economic Other Jun-24 annual group (post updates) profits and VNB variance and assumption regulatory return changes ◼ Increase ◼ Decrease ◼ Total Target range SCR cover in
Slide 26: Business Performance
Business Performance Abigail Mukhuba 26 Sanlam Interim Results Presentation 2024
Slide 27: Life insurance and health: strong earnings and new business performance
Life insurance and health | strong earnings and new business performance New business volumes Value of new business NRFFS Net client cash flow (PVNBP) (VNB) and margin R4,0 billion R51 billion R1,4 billion R10,6 billion +14% +14% +10% +42% NRFFS New business volumes (PVNBP) Value of new business (R
Slide 28: General insurance: continuing recovery in South Africa
General insurance | continuing recovery in South Africa NRFFS New business volumes R1,4 billion R23,7 billion +16% -2% NRFFS Net earned premiums (R million) (R billion) Net insurance result (%) 1,0 1,3 153 +32% 158 (3%) 6,4 25,9 8,7 (27%) 23,4 569 +4% 545 16,0 8,8 9,5 11,3 14,4 +11% 6,0 725 +34% 543
Slide 29: Investment management: benefiting from diversity
Investment management | benefiting from diversity NRFFS Net client cash flow (NCCF) R531 million R4,1 billion inflow +10% (2023: R4,8 billion outflow) NRFFS Sanlam Investment Group (SIG) assets under management SIG 1H24 asset under management mix (R million) and NCCF (R billion) (%) 44 30,9 1 250 40
Slide 30: Credit and structuring: sustained performance in India
Credit and structuring | sustained performance in India NRFFS Total loan book1 R1,1 billion R565 billion +9% +9% NRFFS Net interest margin (%) 15,4 15,7 (R million) 8,9 9,0 South Africa 6,4 6,7 Namibia2 +16% 757 876 1H23 1H24 India Bad debt ratio (%) 6,4 6,6 140 105 (25%) 125 137 +10% 2,8 2,7 1H23 1
Slide 31: Outlook
Outlook Paul Hanratty 31 Sanlam Interim Results Presentation 2024
Slide 32: Track record of delivery and return of capital to shareholders
Track record of delivery and return of capital to shareholders NRFFS (R billion) Capital returned to shareholders (R billion) Dividend Share repurchase 7,1 6,2 8,7 7,8 7,3 4,9 4,5 CAGR 16% 3,2 1,0 1H21 1H22 1H23 1H24 FY21 FY22 FY23 Delivering consistent earnings growth and returning capital to share
Slide 33: Priorities for second half of 2024
Priorities for second half of 2024 Continued focus on persistency improvement Conclusion of Capitec funeral JV and implement Assupol1 and MultiChoice1 Integration and synergies in SanlamAllianz Continued strong performance in India Sanlam Interim Results Presentation 2024 1 Pending regulatory approv
Slide 34: Confident in long-term outlook for Sanlam
Confident in long-term outlook for Sanlam Strong first half with continued performance track record Well positioned for the future with growth momentum in all our markets while focusing on strategic execution and integration Delivering attractive value for shareholders – unique diverse portfolio, gr
Slide 35: Additional information
Additional information 35 Sanlam Interim Results Presentation 2024
Slide 36: Operating environment: bond yields and currency
Operating environment | bond yields and currency Bond yields (%) 1H24 exchange rate (% change) Impact on Group EXCHANGE RATES 1H23 FY23 1H24 20,8 Closing Average -1,3% Cash NRFFS -1,5% 4,6 RoGEV 1,6 15,9 15,8 -0,2 -0,6 -1,0 -1,4 -3,4 12,0 11,8 11,7 11,2 11,0 10,7 10,4 9,9 10,2 -20,7 8,2 7,2 7,3 7,1
Slide 37: Change in contractual service margin (CSM) for six months ended 30 June 2024
Change in contractual service margin (CSM ) for the six months ended 30 June 2024 1 R billion 2,1 1,0 1,3 23,1 22,5 (3,4) (0,4) Opening 1 Jan 2024 New business Interest accretion Variance and assumption CSM release Held for sale and other Closing 30 Jun 2024 changes impacts Rate of CSM release (expr
Slide 38: 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 39: SanlamAllianz JV formation impact on Sanlam group reporting
SanlamAllianz JV formation impact on Sanlam group reporting In the financial commentary provided, all reference to South Africa includes Sanlam Life and Savings, Sanlam Investment Group and Santam. Pan-Africa refers to the Sanlam Emerging Markets (SEM) operations in Africa outside of South Africa (S
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