Slide 1: Mass and Foundation Cluster: Strengthening Our Business
Mass and Foundation Cluster Strengthening Our Business
Slide 2: The Mass and Foundation Cluster
The Mass and Foundation Cluster
Slide 3: Our market
Retail Mass Market Old Mutual Our Foundation Funeral Market Services Old Mutual market Finance Simplicity and Peace of Mind Value for money and Choice Digital enablement
Slide 4: Our challenge: New business sales decline
Our challenge: New business sales decline 5000 4500 4000 APE sales 3500 3000 2500 2000 1500 1000 500 0 2015 2016 2017 2018 2019 2020
Slide 5: Rectify
Rectify Rectify Simplify Amplify
Slide 6: Total Intermediary Productivity Recovery: Issued Lives per week
Total Intermediary Productivity Recovery 7,00 6,29 6,25 6,04 6,00 5,08 Issued Lives per week 5,00 4,00 3,00 3,14 2,00 1,00 0,33 - Jan20 Feb20 Mar20 Apr2 0 May20 Jun20 Jul20 Aug20 Sep20 Oct20 Nov2 0 Dec20 Jan21 Feb21 Mar21 Rectify Simplify Amplify
Slide 7: Our strengths
Our strengths Rectify Simplify Amplify
Slide 8: Integrated Financial Services
Insurance Integrated Financial Services Savings Lending Transactional Rectify Simplify Amplify
Slide 9: Non-field contribution to APE
54% Non-field contribution to APE (2018 - 2020) Rectify Simplify Amplify 44%
Slide 10: Alternative channels APE contribution - 2020
*Alternative channels APE contribution - 2020 R1.4bn in sales* Rectify Simplify Amplify
Slide 11: The strength of our IFS approach
The strength of our IFS approach 100,0% 90,0% Customer persistency per number of needs met 80,0% 70,0% 60,0% 50,0% 40,0% 1 Need 2 Needs 3 Needs 4 Needs 5 Needs 6 Needs 7 Needs 2<= Years 2> > 22Years Years Rectify Simplify Amplify
Slide 12: We've geared up!
We've geared up! Rectify Simplify Amplify
Slide 13: The Old Mutual Value
The Old Revenue Growth Operating Margin Mutual Value Capital Competitive Execution & Drivers Efficiencies Strengths Delivery Rectify Simplify Amplify
Slide 14: Simplify
Simplify Rectify Simplify Amplify
Slide 15: Enabled digitalisation
Enabled digitalisation Through WhatsApp and USSD Extended non-advice 368 Retail branches 1600 lending consultants Rectify Simplify Amplify
Slide 16: What we're doing is working
What we’re doing is working Rectify Simplify Amplify
Slide 17: IFS Model strength
IFS Model strength Growth in YTD risk sales on OMP (2021) relative to previous product (2019) 720 700 680 8% 660 640 620 600 580 May 2019 May 2021 Funeral Life (incl. underwritten) Rectify Simplify Amplify
Slide 18: Growth in life risk sales
Growth in life +8% risk sales Rectify Simplify Amplify
Slide 19: Building a stronger IFS offering
Building a stronger IFS offering APE Product Mix 2023 2022 Non-underwritten risk Underwritten risk 2021 Credit Life Savings - RA Savings - non-RA 2020 Savings - VPI & SP 2019 0% 20% 40% 60% 80% 100% Rectify Simplify Amplify
Slide 20: Our unique components: Product VNB margin
Our unique components Product VNB margin and % risk sales % 60% % 59% % 58% % 57% % 56% % 55% % 54% % 53% % 2015 2016 2017 2018 2019 2020 Q12021 % 52% % 51% Proportion of risk APE sales Total VNB margin Risk VNB margin Savings VNB margin Rectify Simplify Amplify
Slide 21: Our unique components: Performance of lending book
Our unique components Performance of lending book 20000 20 18% 18,00% 18000 18 16% 16,00% 16 16000 14% 14,00% 14 14000 12% 12,00% 12 12000 10% 10,00% 10 10000 8% 8,00% 8 8000 6 6000 6% 6,00% 4 4000 4% 4,00% 2 2000 2% 2,00% 00 0% 0,00% 2015 2016 2017 2018 2019 2020 Q1 2021 Lending book size (R'bn) Ne
Slide 22: Amplify
Amplify Rectify Simplify Amplify
Slide 23: Winning through a stronger IFS proposition
Winning through a stronger IFS proposition Rectify Simplify Amplify
Slide 24: Increase reach into the foundation market
Increase reach into the foundation market by increasing our non-traditional partner networks Rectify Simplify Amplify
Slide 25: Old Mutual Rewards
Old Mutual Rewards 70% 245k Data of >1m existing non-existing analytics & customers customers have behavioural belong to MFC signed up economics Rectify Simplify Amplify
Slide 26: Strengthened core, Diversified
Diversified Strengthened Advice and Strong risk proposition core non-advice margin and channels
Slide 27: VNB margin and net lending margin targets
50% of Net lending 6% - 9% current customers margin to reported VNB with 2 or more stabilise margin needs around 11%