Sanlam Allianz Holdings (kenya) Plc · NSEKE:SLAM
Sanlam Allianz Holdings (kenya) — Sanlam Emerging Markets — Investor Day (October 2018)
33 slides from Sanlam Allianz Holdings (kenya)'s investor day presentation, Oct 16, 2018
Slide 1: Sanlam Emerging Markets Investor Days
SANLAM EMERGING MARKETS INVESTOR DAYS 16th & 17th October 2018
Slide 2: Agenda
Agenda Our Vision Our Pan-African opportunity The Saham rationale How we will deliver on the Pan-African opportunity The SEM business model Synergy initiatives
Slide 3: Our Vision
| Our Vision Sanlam IC)
Slide 4: A strategy that supports sustainable performance
A strategy that supports sustainable performance A key focus is to deliver on the Pan-African opportunity Our vision To lead in client-centric wealth creation, management and protection in South Africa To be a leading Pan-African financial services group with a meaningful presence in India & Malaysi
Slide 5: SEM's vision is to be a leading pan-African diversified financial services player
SEM’s vision is to be a leading pan-African diversified financial services player with a significant focus in India & Malaysia 1 2 3 4 5 Leading Pan Go-to partner to Provide a complete Employ the best Leading suite of products to African footprint multinational and talent in Africa companies in meet
Slide 6: Pan African
Pan African What it means to be a truly Pan African player 1 2 3 4 5 Having a group of Being a company Being a company Being a company Having relevant leading companies in that has the ability whose business that reflects the trusted brands Africa that benefit from to conduct business model is built
Slide 7: Our Pan-African opportunity
Our Pan-African opportunity A medium to long term growth engine
Slide 8: Pan-African GDP growth
Pan-African GDP growth Driving accelerated organic growth over the medium to long term 10 9 8 7 6 % yr 5 4 3 2 1 0 2012-2017 2018-2022 Source: World Bank
Slide 9: Pan-African insurance penetration
Pan-African insurance penetration Leveraged organic growth over the medium to long term Insurance penetration as % of GDP 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% World Africa SA Namibia Botswana India Morocco Ivory Coast Kenya Ghana Nigeria Life Non-Life
Slide 10: Key drivers of insurance penetration
Key drivers of insurance penetration Africa’s demographic dividend – population growth and urbanisation Underlying economic growth (GDP) Low insurance penetration presents opportunity for growth – nascent markets Rising consumer demand (emerging middle class and increasing disposable income) New tec
Slide 11: Key risks
Key risks Why others have failed in Africa Key risk identified Mitigating actions We reviewed our Target operating Model. Complexity of managing a large and diverse business We are moving away from a regional approach to a focus on across Africa product lines. In-country risk of change (Political, R
Slide 12: The Saham rationale
The Saham rationale
Slide 13: An unmatched Pan-African footprint
An unmatched Pan-African footprint Unique offering to multinationals wrapped around local presence Luxembourg United Kingdom Ireland France Switzerland USA Tunisia Algeria Lebanon Morocco Niger Mali Senegal Saudi Arabia The Gambia Egypt Guinea Ethiopia Philippines Burkina Faso Kenya India Ivory Coas
Slide 14: Saham Finances acquisition
Saham Finances acquisition A key component in our Pan-African strategy SEM Santam Opportunities Strong life footprint and Drive organic growth in current SEM GI Strong GI expertise in SA expertise portfolio in conjunction with Saham Finances Specialist and reinsurance GI presence characterised Grow
Slide 15: Return on Saham Finances acquisition
Return on Saham Finances acquisition Meeting return hurdles on a comparable basis Annualised Annualised Annualised ZAR’m 2016 RoGEV 2017 RoGEV 2018 RoGEV Opening GEV 3 880 8 195 Purchase price 4 263 4 599 – Goodwill adjustment – life (172) -5% (43) -1% – Acquisition premium adjustment (184) -5% (268
Slide 16: Saham Finances GEV contribution
Saham Finances GEV contribution Saham GEV breakdown at 30 June 2018 15% 34% 21% 9% 21% Morocco Ivory Coast Lebanon Saham Re (Mauritius) Other
Slide 17: Saham Finances summarised STOFP
Saham Finances summarised STOFP Including the type of assets driving returns Investment Assets 13% Property 21% equity 23% bonds cash 25% mutual funds 18% Other Assets Stocks 14% 23% Insurance and Reinsurance debtors Other debtors 23% 40% Cash
Slide 18: Saham Finances own Income Statement
Saham Finances own Income Statement KMAD – 6 months results June June 2018 2017 Gross written premium 6,431,280 5,950,555 The transaction was done at a PE ratio of Gross unearned premium -748,601 -672,394 Gross earned premiums 5,682,679 5,278,161 between 22 – 23 Other products out of insurance activ
Slide 19: Saham Finances margin
Saham Finances margin Underwriting margin trends and what is a sustainable margin The underwriting margin for non-life business is targeted to be within the 5% to 9% range, with the following components: An average loss ratio of 60% An average acquisition cost of 12% An average management expenses o
Slide 20: How we will deliver on the Pan-African opportunity
How we will deliver on the Pan-African opportunity New target operating model
Slide 21: SEM group target operating model (ToM)
SEM group target operating model (ToM) Move from regional set up to line of business verticals Migrate from a SEM / Saham set up to line-of-business verticals • Current Saham becomes SEM General Insurance, including Assistance and Health • Current SEM becomes SEM Life Insurance, including Asset Mana
Slide 22: New ToM business structure (LI and GI Africa only)
New ToM business structure (LI and GI Africa only) Life sub-cluster (excludes AM and credit) As is 21 businesses in 11 countries To be 22 businesses in 22 countries Country LI GI Country LI Country LI Botswana Botswana Angola Kenya Kenya Benin Malawi Malawi Burkina Faso Mozambique Mozambique Cameroo
Slide 23: New ToM business structure (LI and GI Africa only)
New ToM business structure (LI and GI Africa only) GI sub-cluster (excluding assistance and reinsurance)
Slide 24: Managing an expanded GI business with Santam
Managing an expanded GI business with Santam Santam participation post the acquisition of the remaining stake in Saham Finances Santam increased its effective stake in Saham Finances from 7% to 10% Align Santam’s economic participation in the other SEM general insurance businesses in Africa, excludi
Slide 25: SEM Group executive team
SEM Group executive team Junior Ngulube Group Chief Executive Officer Robert Dommisse Nadia Fettah Emmanuel Brule Annari van Niekerk SEM Life CEO SEM GI CEO SEM GI Deputy CEO & Multinationals Group CFO Cornie Foord Margaret Dawes Thabied Majal Niel Joubert Lizelle Nel Group COO Synergies & Governanc
Slide 26: The SEM business model
a CX) the SEM business model @ sanlam
Slide 27: Our business is underpinned by partnerships
Our business is underpinned by partnerships A key success factor - unique partner ecosystem
Slide 28: Saham main partnerships - Morocco
Saham main partnerships - Morocco SAHAM Assurance Morocco 18.7% The most important partner is the SANAM Group which is operating in various industries mainly food, distribution of technical equipment and real estate. The Group is chaired by Mr. Said ALJ who is also chairing, since September 2018 22.
Slide 29: Saham main partnerships - CIMA zone
Saham main partnerships - CIMA zone Benin Burkina Faso Cameroon Mali 28.5% 25.4% NonLife NonLife 10.3% 24.5% 74.6% 71.5% Life NonLife 14.1% 22.6% 89.7% 75.5% Life Life 85.9% 77.4% SAHAM Finances Local partnerships SAHAM Finances Local partnerships SAHAM Finances Local partnerships SAHAM Finances Loc
Slide 30: Synergies
Synergies @ Sanlam
Slide 31: Synergy initiatives
Synergy initiatives Significant business growth opportunities exist Multinational offerings across a broad footprint Growing Saham’s Life businesses – particularly individual life lines Reinsurance optimisation across all businesses Business growth opportunities utilising Saham’s expertise in Motor
Slide 32: Thank you
thank you®
Slide 33: Wealthsmiths
© Sanlam IC Cs) Wealthsmiths
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