WHY SANTAM BONDS AND GUARANTEES IS THE BEST SOLUTION IN THE MARKET

Transcription

1 BONDS & GUARANTEES

2 1 ABOUT SANTAM Santam is the leading general insurer in South Africa with an annualised gross written premium of US$ 2,033 billion and total assets of US$ 2,132 million. Sanlam (with a market cap of US$12 billion) has a 60% shareholding in Santam. Santam has been offering insurance for 100 years and over this time, we have made it our business to understand what is important to our clients and the risks they face. This is why over 85 of the top 100 companies listed on the Johannesburg Stock Exchange (JSE) trust us to protect their businesses. This is what insurance good and proper is about. KEY FACTS Annualised gross written premium of US$ 2,033 billion and total assets of US$ 2,132 million Contribution to Sanlam Group net result from financial services 10% (2017: 10%) 22% market share in South Africa claims handled each year on average Unmatched technical expertise and knowledge found in Specialist Business Technically competent employees (qualified engineers, admitted attorneys, financial analysts, etc.) 85 of the top 100 listed JSE companies are insured by Santam permanent employees US$19 billion paid out in claims in 2017 WHY SANTAM BONDS AND GUARANTEES IS THE BEST SOLUTION IN THE MARKET Credit rating: Standard & Poor s (S&P) affirmed Santam s rating at BB+ ; Outlook Stable global scale rating, at zaaa+ national scale rating and bbb stand-alone credit profile. Large capacity: We have a large capacity which means we have the ability to provide our clients with spare capacity to use for unexpected projects and / or very large last minute tenders. Due to our strong balance sheet capability and BB+ rating we are the preferred Eskom and Transnet guarantor for all construction related guarantees. Bank guarantee solutions: We have established strategic partnerships with four major international banks and have the capacity to iss ue bank paper guarantees.

3 2 A large African footprint: Our target market over the years has expanded to include emerging markets in Africa as growth rates and international investment in these markets are buoyant and growing. This footprint is made possible through our partnership with SEM. We have successfully issued guarantees into more than 30 countries in Africa. In-house legal capability: Translates into service efficiency, cost effectiveness and the capability to engage with local and international experts to facilitate the issuance of local and foreign guarantees on behalf of our clients. In-house financial consulting expertise: This is through Sanlam Capital Markets, it enables us to provide our clients with world-class financial advisory and support. OUR RANGE OF PRODUCTS ARE AS FOLLOWS: PRODUCT BID BOND ADVANCE PAYMENT GUARANTEE PERFORMANCE GUARANTEE RETENTION GUARANTEE PAYMENT GUARANTEE MATERIALS ON-SITE / OFF-SITE GUARANTEE FUEL GUARANTEE UTILITY BONDS AND GUARANTEES CUSTOMS AND EXCISE BONDS DESCRIPTION Covers the employer during the bidding process, and guarantees that the bidder abides by the conditions of the tender. Covers the employer for the prepayment of monies advanced to the contractor, usually to cover cost of capital materials and equipment and to aid cash flow. Covers the beneficiary against the risk of the contractor not fulfilling his contractual obligations in terms of the contract. Replaces monies ordinarily retained by the employer until project completion. Also used to protect the employer against failure of the contractor to rectify defects after project completion. Covers the supplier of goods and services against non-payment by the buyer. Covers the employer for the value of materials stored either on or off site by the contractor. Enables payment of these materials before these materials form part of Work Done Covers a bulk fuel supplier against non-payment by a fuel purchaser. Purchasers can be commercial (distributors, wholesalers, fuel station owners) or retail (airlines, mines, construction and engineering companies, or logistics companies). It serves to ease the financial burden on bulk fuel purchasers to pay for fuel upfront or incur interest expenses by acquiring funding in the banking sector to purchase fuel. Utility payment bond: Covers the principal for the deposit or payment of monthly accounts on an electricity or water account that is, should a company fail to pay their bill, Santam will pay the utility provider. Utility performance bond: Covers a state owned utility provider against the risk of the contractor not fulfilling his contractual obligations in terms of the contract. Covers businesses involved in import, export, manufacturing, sales or distribution of goods. These bonds guarantee that either taxes or duties or both will be paid by the principal when invoiced by the government. These bonds also ensure that companies comply with all legal and tax acts and requirements related to their business.

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5 OUR UNDERWRITING RISK CRITERIA In the current volatile economic climate, security for payment and risk management are important. We realise that although banks have started to lend money again, they remain cautious and as a result they demand high levels of collateral security from their clients. With the backing of Santam s financial strength, we offer clients Guarantee capacity of a world-class standard. 4 In order to qualify for a Guarantee Facility of this nature, the following criteria are evaluated. Facility terms will then be offered on the basis of a successful underwriting outcome. FACILITY PARAMETERS Years of trading Revenue Retained income Order book size Project references, track record, resources Solvency, profitability, liquidity, gearing Paper security indemnity, suretyship Material security collateral GUARANTEE PARAMETERS Experience Scope Time/programme Cash flow Quantum Wording Max tenor: 72 months Employer Geography, etc.

6 5 INDUSTRIES AND SECTORS WE SUPPORT 1. Main contractors 2. Key sub-contractors: Earthworks, roads, infrastructure services 3. Engineer Procure Construction (EPC) 4. Operate and maintain contracts 5. Oil and gas 6. Renewable energy 7. Conventional energy (including nuclear energy)

7 ABOUT SANTAM Santam is the leading general insurer in South Africa with an annualised gross written premium of US$ 2,033 billion and total assets of US$ 2,132 million. Sanlam (with a market cap of US$12 billion) has a 60% shareholding in Santam. Santam has been offering insurance for 100 years and over this time, we have made it our business to understand what is important to our clients and the risks they face. This is why over 85 of the top 100 companies listed on the Johannesburg Stock Exchange (JSE) trust us to protect their businesses. This is what insurance good and proper is about. KEY FACTS Annualised gross written premium of US$ 2,033 billion and total assets of US$ 2,132 million Contribution to Sanlam Group net result from financial services 10% (2017: 10%) 22% market share in South Africa claims handled each year on average Unmatched technical expertise and knowledge found in Specialist Business Technically competent employees (qualified engineers, admitted attorneys, financial analysts, etc.) 85 of the top 100 listed JSE companies are insured by Santam permanent employees US$19 billion paid out in claims in

8 7 ABOUT THE SANLAM GROUP Established in 1918 as a life insurance company, the Sanlam Group (Sanlam) is a leading diversified Pan-African financial services group. Listed on the Johannesburg and Namibian Stock Exchanges, it is one of the 50 largest internationally active insurance groups in the world with a presence in 45 countries (37 in Africa then USA, UK, France, Luxembourg, India, Saudi Arabia, Malaysia, Philippines and Australia). Sanlam is made up of five operating clusters-sanlam Personal Finance, Sanlam Emerging Markets (SEM) including Saham Finances, Sanlam Investments, Sanlam Corporate, Santam Limited (Santam). Two of these clusters (SEM including Saham Finances and Santam) have the capability of issuing Bonds and Guarantees in parts of Europe, the USA, UK, Asia and some African countries.

9 THE SANLAM GROUP AT A GLANCE The extent of our business (2017 results) Total assets under management (Sanlam Investments) = R882 billion (US $57.9 billion) Operating profit before tax = R13.6 billion (US $866.7 million) New business volumes = R230.2 billion (US $17.1 billion) Net fund flows = R34.6 billion (US $2.8 billion) Market capitalisation = R202 billion (US $11 billion) (9/3/2017) Personnel = in Sanlam South Africa and in associates and subsidiaries Shareholders = The Sanlam Group Office is responsible for centralised functions that include strategic direction, financial and risk management, marketing and communications, human resources and information technology, sustainability management, corporate social investment and general services. 8 SANLAM CLUSTERS CAPABLE OF ISSUING BONDS AND GUARANTEES SANLAM GROUP Sanlam Emerging Markets Santam Limited Saham Finances Emerging markets excluding South Africa: Long-term insurance, general insurance, investments, credit and banking General insurance in South Africa and co-invest in SEM general insurance business Largest Pan-African insurer in terms of issued premium (excluding South Africa)

10 9 ABOUT SANLAM EMERGING MARKETS The Sanlam Emerging Markets cluster is responsible for Sanlam s financial business services (life insurance, general insurance, banking, retail credit, health, bancassurance, asset management and specialist general insurance products) in emerging markets outside South Africa with the aim of ensuring sustainable delivery and growth across the various businesses that make up this cluster. As part of the Group s vision, it strives to lead wealth creation and protection in those markets. In March 2018, Sanlam Emerging Markets increased its stake in SAHAM Finances to 100% enabling Sanlam to have a meaningful presence across sub-saharan and North Africa as a natural extension of Sanlam s international expansion strategy. KEY FACTS Net result from financial services US$135 million (2017: US$117 million) Contribution to Group net result from financial services 21% (2017: 19%) Number of employees (subsidiaries): 1 947

11 THE SANLAM GROUP TERRITORIAL SCOPE 10 GLOBAL NORTH AFRICA CENTRAL AFRICA SOUTHERN AFRICA EAST AFRICA WEST AFRICA Lebanon Morocco Angola South Africa Rwanda Ghana India Tunisia Cameroon Lesotho Kenya Nigeria Malaysia Algeria Gabon Swaziland Uganda Côte d Ivoire Democratic Republic of the Congo Republic of the Congo Namibia Zimbabwe Botswana Mauritius Tanzania Malawi Zambia Togo Benin Senegal Mali Madagascar Burkina Faso Guinea Niger

12 11 ABOUT SAHAM FINANCES Founded in 1995 by Moulay Hafid Elalamy, Saham Finances is the largest Pan-African insurer in terms of issued premium (excluding South Africa). It predominantly writes personal lines general insurance business (which exceeds 80% of its portfolio). The Group has built its success by tapping into the values and core beliefs guiding its work, namely the search for excellence, the commitment to the wider world and the achievement of social solidarity. Saham has created a network that enjoys both a sound local foundation and openness to the macroeconomic and multicultural tendencies of a continent in full growth. KEY FACTS In every country in Africa and the Middle East where it is present, the Group has been able to create a sustainable growth context while diversifying its activities. It has been able to develop new opportunities and position itself as a genuine reference partner in Africa. US$+1 billion dollars in Net Sales in staff SAHAM FINANCES Largest Pan-African insurer in terms of issued premium (excluding South Africa) 65 subsidiaries and a network of 700 branches Presence in 26 countries across North, West and East Africa and the Middle East

13 FOR MORE INFORMATION OR REQUEST FOR A GUARANTEE, FEEL FREE TO CONTACT: 12 SOUTH AFRICA: SANTAM LTD. BONDS AND GUARANTEES 11 Alice Lane, Sandton, Johannesburg Clinton Spence Head: Bonds and Guarantees T clinton.spence@santam.co.za Lebo Mashego Business Developer T: lebogang.mashego@santam.co.za Kishan Suka Senior Underwriter T kishan.suka@santam.co.za Bonga Somhlahlo Senior Underwriter T: bonga.somhlahlo@santam.co.za KENYA: SANLAM KENYA Sanlam House, Kenyatta Ave, Nairobi Nemwel Singombe Niche Business Manager T C nsingombe@sanlam.co.ke

14 13 TANZANIA: SANLAM TANZANIA 4th Floor, Amani Place, Ohio Street, Dar es Salaam Jared Awando Business Development Manager T C jawando@sanlamgeneralinsurance.co.tz UGANDA: SANLAM UGANDA Plot 18B, Clement Hill Road, Shimoni Office Village, Kampala Brian Kayima Business Development Manager T C brian.kayima@sanlam.co.ug ZAMBIA: NICO INSURANCE FOR SANLAM GROUP 1131 Corner, Parirenyatwa & Protea Roads, Fairview, Lusaka, Zambia Tionge Simbeye Manager: Specialized Risks T C tsimbeye@nicoinsurance.co.zm

15 2019 CALENDAR 14 JANUARY APRIL JULY FEBRUARY MAY AUGUST MARCH JUNE SEPTEMBER OCTOBER NOVEMBER DECEMBER

16 Santam is an authorised financial services provider (licence number 3416)