38 slides from Sanlam Allianz Holdings (kenya)'s earnings presentation, September 2023
Slide 1: Interim results investor presentation
Interim results INVESTOR PRESENTATION
Slide 2: Disclaimer
Disclaimer In this document, Sanlam Ltd (SLM or Sanlam), its subsidiaries and, where applicable, its joint ventures and associates are referred to as “we”, “us”, “our”, “Sanlam” and the “group”. Forward-looking statements In this report, we make certain statements that are not historical facts and r
Slide 3: Interim results presentation
Interim RESULTS PRESENTATION Financial Planning | Retirement | Insurance | Health | Investments | Wealth | Credit Notes
Slide 4: Table of contents
TABLE OF CONTENTS 1. Overview Paul Hanratty 2. Financial results Abigail Mukhuba 3. Business performance Abigail Mukhuba 4. Priorities and outlook Paul Hanratty 5. Additional information SANLAM INTERIM RESULTS PRESENTATION 2023 2 Notes
Slide 5: Overview
OVERVIEW Paul Hanratty SANLAM INTERIM RESULTS PRESENTATION 2023 Notes
Slide 6: Key messages
KEY MESSAGES 1. STRONG OPERATING RESULTS Adjusted RoGEV for the six-month period (per share): 8,5% Cash net result from financial services: +30% 2. STRATEGIC PROGRESS IN AFRICA Formation of SanlamAllianz heralds the creation of a new force on the African continent 3. POSITIVE OUTLOOK Strong full-yea
Slide 7: Key features
KEY FEATURES Excellent performance on key metrics across line of business and cluster Profit pattern back on track after series of 1-in-25 / 100-year events General insurance operations recovering well Robust sales growth in challenging environment Fortress South Africa transactions strengthen the c
Slide 8: Excellent performance on key financial metrics
EXCELLENT PERFORMANCE ON KEY FINANCIAL METRICS Sanlam Strong profitability Capital strength Value creation is growing and cash generation and allocation +19% +26% 167% 12,0% Total new business volumes Net result from financial services Group solvency cover ratio RoGEV per share (six-month period) +2
Slide 9: Profit pattern on track after series of 1-in-25 / 100-year events
PROFIT PATTERN ON TRACK AFTER SERIES OF 1-IN-25 / 100-YEAR EVENTS LIFE CAGR 1H19 to 1H23 GENERAL INSURANCE Mortality experience recovered strongly, Underlying performance improving higher asset-based fees Consistent delivery through challenging period, as management actions take hold solid base for
Slide 10: Capital allocation
CAPITAL ALLOCATION R2,4 billion invested in strategic transactions in line with Fortress South Africa strategy • AfroCentric (R1,1 billion) • BrightRock (R400 million) • Capital Legacy (R904 million) R2,4 billion purchase of Standard Bank preference share funding for B-BBEE SPV R737 million share re
Slide 11: Return on capital allocation
RETURN ON CAPITAL ALLOCATION 1 ACCRETIVE 2 MEDIUM TERM 1YR+ 3 LONGER TERM 3YR+ AlexForbes Life | actual profits better than AfroCentric | difficult trading conditions in SanlamAllianz | revenue and cost expected due to good claims experience current financial year, Sanlam now able to synergies, stro
Slide 12: SanlamAllianz heralds the creation of a new force on the African continent
SANLAMALLIANZ HERALDS THE CREATION OF A NEW FORCE ON THE AFRICAN CONTINENT SanlamAllianz footprint (excluding South Africa) Morocco SanlamAllianz has a highly diversified geographical portfolio in 27 countries, Egypt with strong presence in the key markets Niger for both general insurance (GI) and L
Slide 13: SanlamAllianz has a very experienced leadership
SANLAMALLIANZ HAS A VERY EXPERIENCED LEADERSHIP Operations and Information Technology Hennie de Villiers Life Insurance (incl Asset Management and HR, Training and Development, Change Management Retail Credit) Betty Sayinzoga Robert Dommisse Strategy, Brand, Customer and Marketing, Communication and
Slide 14: Sustainability pillars
SUSTAINABILITY PILLARS Investing for good in Financial inclusion Partnership Trust and reputation Thought leadership people and the planet Climate Fund Managers Our products touch WWFSA and Sanlam Sanlam Investments Launched the Sanlam $1 billion green hydrogen fund the lives of Year one of the thre
Slide 15: Financial results
FINANCIAL RESULTS (IF IFRS FRS 17 adopted adopte opte p e with effect 1 Jan 2023, 2022 restated ed) ed Abigail Mukhuba SANLAM INTERIM RESULTS PRESENTATION 2023 Notes
Slide 16: Restated metrics pre and post IFRS 17 implementation
RESTATED METRICS PRE AND POST IFRS 17 IMPLEMENTATION: 1H22 Attributable earnings Net result from financial Shareholders’ equity on 1H22 (R billion) services 1H22 (R billion) transition1 (R billion) 5,6 96,5 5,1 4,9 4,6 82,9 Pre-IFRS 17 Post-IFRS 17 IFRS 4 IFRS 17 implementation implementation IFRS 4
Slide 17: IFRS 17 balance sheet on transition
IFRS 17 BALANCE SHEET ON TRANSITION1 Total policyholder liabilities (R billion) Insurance contract liabilities split 800 700 600 BEL 181 227 CSM 31 19% 222 500 RA 10 38% 400 300 200 455 442 100 43% 0 IFRS 4 IFRS 17 Investment contract liabilities Insurance contract liabilities GMM VFA PAA Contractua
Slide 18: Return on group equity value
RETURN ON GROUP EQUITY VALUE (%) 8,5% per share 12,0% per share 14 for the six-month period for the six-month period 12 0,9 0,9 11,3 2,7 10 Six-month group hurdle of 7,5% (1,1) 0,8 7,9 8 1,1 6 0,9 0,1 5,0 4 2 0 Expected VNB Operating Santam NAV expected Adjusted Currency Santam IFRS 17 Other (incl A
Slide 19: Cash earnings
CASH EARNINGS R million 1H22 1H23 % change Net result from financial services 4 895 6 177 26% Amortisation of capitalised IT projects 19 62 IFRS 17 specific and other non-cash adjustments (86) 17 Cash net results from financial services 4 828 6 256 30% Project expenses not included in NRFFS (127) (1
Slide 20: Solvency position
SOLVENCY POSITION Solvency cover ratio (%) 250 240 230 230 230 210 190 176 176 173 169 169 167 170 150 130 Sanlam Group Sanlam Life Insurance Limited Sanlam Life Insurance Limited covered business Jun-22 Dec-22 Jun-23 Target range Solvency ratios remain well within target range Sanlam group solvency
Slide 21: Business performance
BUSINESS PERFORMANCE Abigailil Mukhuba ba SANLAM INTERIM RESULTS PRESENTATION 2023 Notes
Slide 22: Life insurance: strong profitability
LIFE INSURANCE: STRONG PROFITABILITY Net result from financial New business volumes1 Value of new business1 Net client cash flow services R3,6 billion R44,8 billion R1,3 billion R7,5 billion +28% +4% +21% -46% Net results from financial services New business volumes PVNBP Value of new business (R mi
Slide 23: General insurance: steady recovery
GENERAL INSURANCE: STEADY RECOVERY Net result from financial services New business volumes R1,2 billion R24,0 billion +38% +10% Net result from financial services Net earned premiums (R billion) Net insurance result (%) (R billion) 168 0,9 39,9 +33% 0,7 +16% 126 33,4 8,7 +16% 459 +10% 7,5 418 14,4 9
Slide 24: Investment management: benefiting from diversity
INVESTMENT MANAGEMENT: BENEFITING FROM DIVERSITY Net result from financial services New business volumes Net client cash flow R481 million R134,3 billion -R4,8 billion +2% +28% (2022: +R15,8 billion) Net results from financial services (R million) Sanlam Investments assets under management and net f
Slide 25: Credit and structuring: India operations performing well
CREDIT AND STRUCTURING: INDIA OPERATIONS PERFORMING WELL Net result from financial services Credit book size1 (gross) R1,0 billion R453 billion +36% +9% Net result from financial services (R million) Gross credit book size1 (R billion) +9% 600 +10% 500 453 757 +65% 414 458 400 350 384 300 +9% 200 +2
Slide 26: Priorities and outlook
PRIORITIES AND OUTLOOK Paul Hanratty SANLAM INTERIM RESULTS PRESENTATION 2023 Notes
Slide 27: Priorities and outlook
PRIORITIES AND OUTLOOK Priorities Financial Macro environment Strategic flexibility Strong focus on improving Positive outlook for Efforts in South Africa to Strong solvency and efficiencies in South Africa RoGEV and dividends improve energy supply and balance sheet Integration of acquisitions Trend
Slide 28: Additional information
Additional information SANLAM INTERIM RESULTS PRESENTATION 2023 Notes
Slide 29: Reconciliation of IFRS and shareholders' fund NRFFS
RECONCILIATION OF IFRS AND SHAREHOLDERS’ FUND (SHF) NRFFS R million 1H22 1H23 % change IFRS profit after tax attributable to SHF 5 117 7 916 55% Items outside of NRFFS (898) (1 732) Investment return 120 (1 538) Project expenses 218 229 Net other earnings (1 236) (423) Net result from financial serv
Slide 30: Group transition balance sheet
GROUP TRANSITION BALANCE SHEET1 R billion 58,9 1,5 (1,1) (31,1) 96,5 (10,2) (4,4) 82,9 IFRS 4 Release IFRS 4 Intangibles Treasury shares CSM Risk adjustment Deferred tax IFRS 17 shareholders' equity margins shareholders' equity R13,6 billion increase in equity on transition driven by release of IFRS
Slide 31: Change in CSM
1 JANUARY 2022 TO 30 JUNE 2023 CHANGE IN CSM R billion 1,4 1,8 3,7 1,0 1,4 31,1 2,0 0,2 30,8 (5,3) 29,1 (2,9) (3,6) 12-month period Six-month period Opening CSM New Interest Experience CSM release Held for sale Closing CSM New Interest Experience CSM release Non-operating Closing CSM Jan 2022 busine
Slide 32: Components of 1H23 net result from financial services
COMPONENTS OF 1H23 NET RESULT FROM FINANCIAL SERVICES R billion 2,3 1,4 2,1 6,2 (3,5) 0,4 0,6 2,9 Release of CSM Release of Experience Underwriting result Investment Other including Tax and NCI Net result from risk adjustment variances (short-duration result non-insurance financial services business
Slide 33: 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 34: 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. The PAA
Slide 35: Disclaimer
DISCLAIMER In this document, Sanlam Ltd (SLM or Sanlam), its subsidiaries and, where applicable, its joint ventures and associates are referred to as “we”, “us”, “our”, “Sanlam” and the “group”. Forward-looking statements In this report, we make certain statements that are not historical facts and r
Slide 36: Contact
Contact Sanlam Client Care Centre: 021 916 5000 or 0860 SANLAM (0860 726 526), (021) 947-9111 / +27 21 947-9111 (International) Sanlam Head Office: 2 Strand Road Bellville, South Africa ir@sanlam.co.za 33”45’09.77S 18”38’28.32E ͘͘͘ǁĞĂƌĞ VDQODPFRP Notes
Slide 37: Administration
ADMINISTRATION Registered name ,X\P[`ZWVUZVY[V:HUSHT Sanlam Limited The Standard Bank of South Africa Limited (Registration number: 1959/001562/06) +LI[ZWVUZVY[V:HUSHT3PML0UZ\YHUJL (Tax reference number: 9536/346/84/5) JSE share code (primary listing): SLM Limited NSX share code: SLA Absa Bank Limit
Slide 38: Contact
Contact Sanlam Client Care Centre: 021 916 5000 or 0860 SANLAM (0860 726 526), (021) 947-9111/+27 21 947-9111 (International) Sanlam Head Office, 2 Strand Road, Bellville, South Africa ir@sanlam.co.za 33”45’09.77S 18”38’28.32E ...we are sanlam.com