Sanlam Allianz Holdings (kenya) Plc · NSEKE:SLAM
Sanlam Allianz Holdings (kenya) — Sanlam — Investor Presentation (October 2023)
23 slides from Sanlam Allianz Holdings (kenya)'s investor presentation, Oct 19, 2023
Slide 1: IFRS 17: Insurance Contracts
IFRS 17: Insurance Contracts Investor presentation 19 October 2023 Financial Planning | Retirement | Insurance | Health | Investments | Wealth | Credit
Slide 2: Contents
1. Key messages 2. Impact of IFRS 17 on GEV 3. Understanding earnings growth (CSM vs GEV) 4. Comparability of CSM metrics CONTENTS 5. Sanlam SHF accounting 6. Conclusion Annexure 1. Abbreviations
Slide 3: Key messages
Key messages Sanlam GEV remains IFRS 17 not expected to Specific factors influence Sanlam SHF reserves most representative store impact Sanlam’s ability the comparability of support sustainable of group value to grow earnings Sanlam’s CSM metrics operating performance GEV is based on cash earnings C
Slide 4: Impact of IFRS 17 on GEV
Sanlam GEV remains most representative store of group value IMPACT OF IFRS 17 ON GEV
Slide 5: IFRS 17 had limited impact on Sanlam GEV
Sanlam GEV remains most IFRS 17 had limited impact on Sanlam GEV representative store of group value GEV continues to be the primary focus of shareholders’ value creation and captures all lines of business % split of GEV Line of Key metrics by type of business business Impact of IFRS 17 (incl. SHF r
Slide 6: Understanding earnings growth (CSM vs GEV)
IFRS 17 not expected to impact Sanlam’s ability to grow earnings UNDERSTANDING EARNINGS GROWTH (CSM VS GEV)
Slide 7: Expressing the 30 June 2023 VIF in IFRS 17 terms
IFRS 17 not expected to impact Expressing the 30 June 2023 VIF in IFRS 17 terms Sanlam’s ability to grow earnings Components of VIF for covered business (approximate split) 33% 34% 8% 10% 15% CSM Risk adjustment SHF reserves PAA contracts and other Investment contracts Life insurance business CSM ma
Slide 8: Adjustments to CSM contributing to VIF (R billion)
IFRS 17 not expected to impact Adjustments to CSM contributing to VIF (R billion)¹ Sanlam’s ability to grow earnings IFRS CSM Sanlam-specific adjusted CSM 30 Jun 23 30 Jun 23 R30.8 billion R29.9 billion Santam SEM (held for sale) Exclude Santam amounts because R4.4 billion included in non-covered op
Slide 9: June 2023 YTD Change in adjusted CSM
IFRS 17 not expected to impact June 2023 YTD Change in adjusted CSM Sanlam’s ability to grow earnings R billion 1.2 0.3 29.7 1.3 29.9 -2.6 6-month period Closing CSM Dec 2022 New business Interest accretion Experience variance and CSM release Closing CSM Jun 2023 assumption changes Reallocation of u
Slide 10: Sanlam continues to grow GEV earnings
IFRS 17 not expected to impact Sanlam continues to grow GEV earnings¹ Sanlam’s ability to grow earnings R billion December June December June IFRS 17 has not significantly VIF growth 2022 2023 2022 2023 impacted the VIF growth Opening VIF of covered business 49.4 48.8 % of opening Value of new busin
Slide 11: Comparability of CSM metrics
Specific factors influence the comparability of Sanlam’s CSM metrics COMPARABILITY OF CSM METRICS
Slide 12: Factors impacting CSM metrics
Specific factors influence the Factors impacting CSM metrics comparability of Sanlam’s CSM metrics General impact (all else being equal) Sanlam impact Proportion of Lower CSM growth for fair value cohorts initially due to lower interest Slower CSM growth initially due to significant portion of busin
Slide 13: CSM release for Sanlam driven by product mix
Specific factors influence the CSM release for Sanlam driven by product mix comparability of Sanlam’s CSM metrics CSM interest accretion and release % for SLS (representative of the Group) split between broad product type are summarised below Risk products (General Measurement Model) Savings product
Slide 14: Illustration of CSM growth (high vs low interest)
Specific factors influence the Illustration of CSM growth (high vs low interest)¹ comparability of Sanlam’s CSM metrics Scenario 1: benefits / coverage units are increasing and similar gap between increases and discount rates applied to CU Significantly slower runoff for higher interest rates due to
Slide 15: Sanlam SHF accounting
Sanlam SHF reserves support sustainable operating performance SANLAM SHF ACCOUNTING
Slide 16: Shareholders' fund accounting
Shareholders’ fund accounting Sanlam SHF reserves support sustainable operating performance SHF accounting principles not affected by IFRS 17, however specific SHF reserves established and new SHF adjustments applied to achieve the same objectives as in the past 1. What is it: Sanlam’s SHF income st
Slide 17: Analysing the 30 June 2023 SHF reserves
Sanlam SHF reserves support Analysing the 30 June 2023 SHF reserves sustainable operating performance Split of specific SHF reserves for covered business Total reserves of R12.4bn (net of tax) for covered 32% business 52% 5% 11% Asset mismatch reserves Future-fit project expenses reserve Pandemic re
Slide 18: Conclusion
© CONCLUSION
Slide 19: Conclusion
Conclusion IFRS 17 has limited impact on GEV • By definition value is not affected (tax impact is behind us) Sanlam is driving the business on cash earnings • Cash earnings unaffected by IFRS 17 • Profits and value driven by the rate of new business growth, experience variances and asset levels (mar
Slide 20: Annexure
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Slide 21: Abbreviations
Abbreviations Abbreviations Description Abbreviations Description ANW Adjusted net worth SEM Sanlam Emerging Markets CB Covered business SHF Shareholders’ fund CSM Contractual service margin SLS Sanlam Life and Savings CU Coverage units SRA Sanlam Retail Affluent GEV Group Equity Value SRM Sanlam Re
Slide 22: Disclaimer
Disclaimer In this presentation, 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 presentation, we make certain statements that are not historical f
Slide 23: Live with confidence
© Sanlam Live with confidence