Creating a Sustainable Future

Transcription

1 Creating a Sustainable Future

2 Table of Contents Our Brand Promise; Vision and Mission; Core Values 2-3 Disclaimer 4 Foreword 5-6 ICEA LION Life Assurance Chairman s Statement 7-8 Chief Executive Officer s Message 9-10 Association of Kenya Insurers Executive Director s Message 11 Corporate Information Board of Directors Management Team Leadership with Purpose Profits with Purpose Risk Intelligence with Purpose Solutions with Purpose People with Purpose Environmental Protection with Purpose Our Achievements 72 GRI Content Index 73-79

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4 DISCLAIMER The financial performance information disclosed covers ICEA LION Life Assurance operations in Kenya and its subsidiaries for The word Group under financial performance data relates to that of ICEA LION Life Assurance Kenya and its subsidiaries. The human resource data is limited to for ICEA LION Life Assurance operations in Kenya and its subsidiaries. The environmental performance data disclosed in this report only covers operations in Kenya for In coming years, we aim to develop our approach further and set consistent reporting boundaries with regards to environmental performance for our subsidiaries. This is with an intention to improve reporting capability to enable uniform reporting across all metrics and regions within which we operate. If you have any questions regarding this report please send an to 4

5 FOREWORD IN PURSUIT OF SUSTAINABLE INSURANCE Welcome to ICEA LION Life Assurance s first annual sustainability report inspired by Creating a Sustainable Future. This report highlights the Company s approach to sustainability as well as progress from January 2014 to December The theme of our report Creating A Sustainable Future focuses on our commitment to the shared value approach and our desire to spearhead and propagate opportunities for future generations. In 2016, ICEA LION Life Assurance was confirmed as a signatory to the elite United Nations Environmental Program Finance Initiative (UNEP FI) Principles of Sustainable Insurance (PSI). We are the first in East and Central Africa to have become signatories to the PSI, joining 2 other insurers in West Africa and 2 in South Africa. These Principles, developed by the UN Environment Program s Finance Initiative and signed in June 2012 at the RIO+20 Summit in Brazil are a framework for the global insurance industry to address environmental, social and governance risks and opportunities. These principles provide a global roadmap to develop and expand innovative risk management and insurance solutions that promote social and environmental protection, inclusive insurance, renewable energy, food security, clean water, sustainable cities and disaster-resilient communities. Sustainable insurance aims to reduce risk, develop innovative solutions, improve business performance and contribute to environmental, social and economic sustainability while creating shared value. Shared value refers to policies and operating practices that enhance the competitiveness of a company while simultaneously advancing economic and social conditions in the communities it operates. PSI widens the scope of Principles of Responsible Investment (PRI) by going beyond investing to covering insurance operations. It addresses insurance risk management, insurance product development, claims management and sales and marketing processes. The aim of the Principles are to lay a foundation upon which as a player, we can build a stronger relationship that puts sustainability at the heart of risk management in the pursuit of a more forward-looking and better managed world. A global sustainability framework and initiative of the United Nations Environment Programme Finance Initiative 5

6 FOREWORD PLAYING OUR PART IN SUSTAINABLE DEVELOPMENT GOALS The UN Sustainable Development Goals (SDGs), adopted by countries in the year 2015, invite global action by 2030 in three overarching areas i.e. reduction of poverty, protection of the planet and ensuring prosperity for all. The SDGs include specific targets that can only be achieved by governments, civil society and businesses working together around the globe. As an insurance provider, we recognise our role in contributing to some of these SDGs. We see insurance as a powerful enabler to these SDGs. The section below highlights how our sustainability pillars align to the SDGs. Aligning our sustainability pillars with the sustainable development goals Profits with Purpose Leadership with Purpose People with Purpose Risk Intelligence with purpose Solutions with Purpose Energy, Environment, Climate Change with Purpose 6 For more information about SDGs, please refer to goals/

7 2. ICEA LION LIFE ASSURANCE CHAIRMAN S STATEMENT In November 2016, ICEA LION Life Assurance was confirmed as a signatory to the United Nations Environmental Program Finance Initiative (UNEP FI) Principles of Sustainable Insurance (PSI). Our organization is delighted to be the first insurer in East and Central Africa join this elite network. ICEA LION Life Assurance has been meeting the protection, savings and retirement income needs of our Customers for over 50 years. We focus on understanding our customers needs and requirements in our markets and indeed finding solutions that best serve their financial needs and challenges. These include saving for retirement or insuring for death, illness and critical life events. This approach is enshrined in one of our core values: We see through the eyes of the Customer. Their diverse and dynamic needs, based on their circumstances and age, have enabled us continually challenge ourselves to innovate and deliver viable solutions. As such, this achievement is particularly special for us at ICEA LION as innovation and long-term sustainability are at the very core of what we, as an organization, stand for. It is our firm belief that continually anticipating our customers needs and delivering solutions, as well as embracing internally adopted and award-winning best practice corporate governance practices, will set us on a clear path to creating a sustainable future. In our continuous pursuit of excellence in governance, ICEA LION Life Assurance participated in the Institute of Certified Public Secretaries (ICPSK) annual Champions of Governance (COG) Awards in 2015 and ICEA LION was the proud recipient of the following awards: Winner - Company Secretary of the Year - CS Kennedy Ontiti ICEA LION Group Winner - Insurance Sector - ICEA LION Life Assurance st Runners Up CEO of the Year Justus Mutiga - ICEA LION Life Assurance Winner - Company Secretary of the Year - CS Kennedy Ontiti ICEA LION Group nd Runners Up - Insurance Sector - ICEA LION Life Assurance

8 ICEA LION LIFE ASSURANCE CHAIRMAN S STATEMENT On behalf of the ICEA LION Board of Directors, I wish to commend our Chief Executive Officer for being awarded the first runners up award beating approximately 800 other CEOs, as well as our Company Secretary for being awarded the top honour for two years in a row. Their commitment to their integral role in our pursuit to champion integrity and excellence in governance is unwavering. Further, and in the spirit of continuous improvement, ICEA LION Life Assurance will be participating in the Champions of Governance Awards The gala event announcing the results will take place in November By signing onto these Principles of Sustainable Insurance, we articulate to our clients and partners our stance towards responsible action. Our adoption of these principles also provides assurance to our multinational clients and partners for whom sustainable business practices are core to their activities and value chain. We recognize the fact that collaboration with regulators and business partners and indeed building supportive industry clusters, is necessary to tackle big sustainability concerns including social and environmental protection, climate change and disaster resilience. These are crucial steps towards implementing the PSI while creating shared value between us and the communities we serve. ICEA LION will continue to stand by our commitment to recognise and abide by voluntary standards such as these Principles of Sustainable Insurance. Going forward, we intend to sign onto the United Nations Global Compact and its ten principles. These voluntary principles will be the cornerstones of our corporate responsibility activities. Our work however, will not just be confined to these measures, but we will progressively extend our ambitions and performance in terms of our corporate citizenship activities as we pursue a shared value approach. We are proud to be affiliated to this network and encourage other East African underwriters to sign onto these principles as they turn the principles into practice. True to our mission, to protect and create wealth, we are keen to work together with our stakeholders to shape the social and economic future we envision for the generations ahead. 8 James P. M. Ndegwa - Chairman, ICEA LION Life Assurance

9 3. CHIEF EXECUTIVE OFFICER S MESSAGE Our mission at ICEA LION Group is to protect and create wealth. Over the years, we have tapped into our rich heritage, innovative spirit and focus on delivering solutions has driven us to be at the forefront of delivering unique products to our markets. This has yielded a strong performance that has resulted in ICEA LION Life Assurance demonstrating financial stability, recording the largest asset base in Kenya and high capitalization. Indeed ICEA LION Life Assurance has been named the Life Assurer of the Year 5 years in a row at the Industry Awards. Our deep rooted desire to run a sustainable and profitable business has been driven by the fact that delighting the customer is at the heart of ICEA LION Life Assurance. Our focus on understanding our customers unique needs and requirements in our markets and indeed finding solutions that best serve their financial needs and challenges has seen us demonstrate not only resilience but growth in a highly dynamic market. The ICEA LION Life Assurance team is extremely delighted to become the 5th insurer in Africa to be confirmed as a signatory to the distinguished Principles of Sustainable Insurance. The aim of the Principles are to lay a foundation upon which as a player, we can build a stronger relationship that puts sustainability at the heart of risk management, in the pursuit of a more forward-looking and better managed world. In adopting these principles ICEA LION Life Assurance commits to: 1. Embed in our decision-making environmental, social and governance issues relevant to our insurance business. 2. Work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions. 3. Work together with governments, regulators and other key stakeholders to promote and develop integrated risk management approaches and risk transfer solutions. 4. Demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles. We will do this through an annual publication of a Sustainability and Integrated report for the Company. 9

10 CHIEF EXECUTIVE OFFICER S MESSAGE As part of our commitment towards improving transparency and our reporting practice, we are delighted to issue our inaugural sustainability report. This report is based on the Global Reporting Initiative (GRI) standards. We selected the reports contents based on the principle of stakeholder inclusiveness and materiality. Reporting is a journey and in the coming years we hope to employ more advanced engagement techniques and involve our external stakeholders in our materiality assessment. As an insurance provider, we further aligned our sustainability pillars to some of the Sustainable Development Goals (SDGs) since we acknowledge our global contribution towards delivery of the same. While there may be challenges for the local market in addressing Environmental Social Governance aspects in their day to day operations, underwriters in external markets have already embraced and complied with these principles. We are now trailblazing in this space for East Africa and our team is keen to take on and deliver on the challenge. in the high risk areas that are relevant to the longevity of our lion population and essentially impact the creation of wealth through tourism, effectively supporting the future of our economy. The ICEA LION Team takes on the challenge that is the pursuit of delivering on the Principles of Sustainable Insurance and invites all our stakeholders to SEE A LION with us, as we continue to protect and create the wealth of East Africa. Justus Mutiga - CEO, ICEA LION Life Assurance With regards to our corporate citizenship and indeed true to our corporate mission to protect and create wealth our journey from Corporate Social Responsibility (CSR) to true Corporate Social Investment (CSI) is a testament not only to our award-winning governance structures, but to the fact that we wish to positively impact the social and economic environments in which we operate. It is our belief that organizations that aspire to develop a soul, a purpose beyond financial gain and a reason to give back to the community have great advantage with regards to the Triple Bottom Line of People, Planet and Profit. 10 We like to think of ourselves as the King of the Financial Jungle and with that association, it is perhaps not unexpected that it has become our burning passion to safeguard the future of the Lion in Kenya; that almost forgotten noble and iconic beast that has unwittingly been relegated by the grand and beloved tusked giants, yet is a central part of this country s heritage. With the official conservation status for lions as threatened and vulnerable ICEA LION, via a Memorandum of Understanding with Kenya Wildlife Service (KWS) has entered into a long term partnership to fund the National Lion Census as well as support human-wildlife conflict intervention initiatives with other world renown local conservationists. Our I SEE A LION Campaign, aptly named, is aimed at ensuring that future generations get to experience and SEE lions roam freely in the wild in future and not in captivity. The ultimate objective is to establish informed initiatives

11 4. ASSOCIATION OF KENYA INSURERS EXECUTIVE DIRECTOR S MESSAGE I take this opportunity to congratulate ICEA LION Life Assurance for being confirmed as signatories to the United Nations Environmental Program Finance Initiative (UNEP FI) Principles of Sustainable Insurance (PSI). We are delighted that this Kenyan company is the 1st in East and Central Africa to be confirmed joining four other African companies: Two in West Africa and two in South Africa. In the insurance sector, company performance has traditionally been reported on material financial information. Realistically however, this is not holistic as it forms only one component of performance. There is now an increased focus on compliance with regulatory frameworks, governance and most vitally, bestpractice sustainability processes. PSI envisions a risk aware world, where the insurance industry is trusted to provide quality and reliable risk protection. This directly ties to the Association of Kenya Insurers (AKI) vision and mission, where sustainability and excellence are critical to the growth of the industry. The tenets of PSI and indeed sustainable insurance propagates the reduction of risk, development of innovative solutions, improving business performance and contributing to environmental, social and economic sustainability while creating shared value. These principles are certainly at the heart of what AKI stands for and encourages of its members. The confirmation of ICEA LION Life Assurance as a signatory to the PSI Initiative is a Kenyan industry first and a significant starting point to make sustainability a business culture. The economic and social implications of this initiative for Kenya cannot be overstated and as such AKI encourages all its members to follow the lead set by ICEA LION Life Assurance. Once again, I laud ICEA LION Life Assurance for setting the pace and I wish you success as you embed the Principles of Sustainable Insurance into your organizational culture. 11 Tom Gichuhi - Executive Director: Association of Kenya Insurers (AKI)

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13 CORPORATE INFORMATION DIRECTORS J P M Ndegwa Chairman J M Mutiga Chief Executive Officer P W Kamau Non-executive D N Ndegwa Non-executive (Alternate - R M Ndegwa) A S M Ndegwa Non-executive (Alternate P K Mugambi) G A Maina Non-executive (Resigned on 1st August 2016) D G M Hutchison* Non-executive S O Oluoch Non-executive *British AUDIT, RISK & COMPLIANCE COMMITTEE P W Kamau Chairman A S M Ndegwa D G M Hutchison R M Ndegwa FINANCE & INVESTMENT COMMITTEE A S M Ndegwa Chairman G A Maina P K Mugambi BOARD ICT COMMITTEE D G M Hutchison Chairman A S M Ndegwa NOMINATION & REMUNERATION COMMITTEE J P M Ndegwa Chairman A S M Ndegwa G A Maina MANAGEMENT - ICEA LION LIFE ASSURANCE COMPANY LIMITED (KENYA) J M Mutiga Chief Executive Officer G G Nyakundi General Manager, Business Development and Technical Services E W Thinwa Assistant General Manager, Operations M O Oimo Assistant General Manager, Group Business Development C N Maina Assistant General Manager, ICT R K Nyamosi Assistant General Manager, Finance E A Otieno Internal Auditor K O Odenyo Manager, Business Development, Group Business F K Chomba Manager, Pension and Actuarial Services J M Waichinga Manager, Ordinary Life business P W Kihara Head of Agency SHARED SERVICES N K Munyi General Manager, Strategy and Innovation M M Mahinda General Manager, Human Resources and Administration D A Maseke Group Risk and Compliance Manager R N Gitonga Group Marketing and Communications Manager SUBSIDIARY COMPANIES ICEA General Insurance Company Limited J N Karionji Chief Executive Officer ICEA Life Assurance Company Limited J M Muli Chief Executive Officer ICEA LION Asset Management Limited E N Kihanda Chief Executive Officer ITSL Trust Company Limited J A Juma Head of Business SECRETARY Kennedy M Ontiti Certified Public Secretary (Kenya) First Chartered Securities Limited ICEA LION Center, Riverside Park Chiromo Road, Westlands P.O Box Nairobi REGISTERED OFFICE ICEA LION Centre Riverside Park - Chiromo Road, Westlands P.O Box Nairobi Tel: +254 (0) Mobile: Customer Service; (0) info@icealion.com 13

14 CORPORATE INFORMATION (continued) AUDITOR PricewaterhouseCoopers Certified Public Accountants (Kenya) PwC Tower - Waiyaki Way/Chiromo Road, Westlands P.O. Box Nairobi ADVOCATES Hamilton Harrison & Mathews Delta Office Suites, 1st Floor Block A Off Waiyaki Way, Muthangari P.O. Box Nairobi CONSULTING ACTUARIES Alexander Forbes Financial Services (E.A.) Limited P.O Box Nairobi BANKERS NIC Bank Limited City Centre Branch P.O Box Nairobi, Kenya Standard Chartered Bank Kenya Limited Kenyatta Avenue Branch P.O Box Nairobi, Kenya BRANCHES NAIROBI BRANCHES: Kenyatta Avenue Branch ICEA Building, 15th and Ground Floor Kenyatta Avenue P.O. Box Nairobi Tel: ; University Way Branch Ambank House, 9th Floor P.O. Box Nairobi Tel: Westlands Branch Unga House, 3rd Floor - Muthithi Road P.O. Box Nairobi Tel: UPCOUNTRY BRANCHES: Nakuru Branch Seguton Building, 1st Floor P.O. Box Nakuru Tel: Eldoret Branch Sakong House P.O. Box Eldoret Tel: ; Kisumu Branch Al Imran Plaza - Oginga Odinga Street P.O. Box Kisumu Tel: Thika Branch Zuri Centre, 4th Floor Kenyatta Highway P.O. Box Nairobi. Tel: Karen Branch Karen Office Park, Langata Rd Acacia Block, 1st Floor P.O. Box Nairobi Tel: Mombasa Road Branch Tulip House, 1st Floor P.O. Box Nairobi Tel: /9 Upper Hill Branch Williamson House, 1st Floor - 4th Ngong Avenue P.O. Box Nairobi Tel: Mombasa Branch Standard Chartered Building, 1st Floor P.O. Box Mombasa Tel: Nyeri Branch Konahauthi Building - Kimathi Way P.O. Box Nyeri Tel: Nyali Branch K K Building, 1st Floor - Links Road, Nyali P.O. Box Mombasa Tel: Meru Branch Tuskys Building - Mwendanto Road Tel:

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16 BOARD OF DIRECTORS BOARD OF DIRECTORS 16 Standing (left to right): A S M Ndegwa - Director D G M Hutchison - Director P K Mugambi - Alternate Director G A Maina - Director Seated on high chairs (left to right): S O Oluoch - Director K M Ontiti - Company Secretary R M Ndegwa - Alternate Director Seated on low chairs (left to right): J M Mutiga - Chief Executive Officer J P M Ndegwa - Chairman P W Kamau - Director

17 BOARD BOARD OF DIRECTORS OF DIRECTORS (continued) (continued) J M Mutiga Chief Executive Officer G A Maina Director J P M Ndegwa Chairman S O Oluoch Director R M Ndegwa Alternate Director 17

18 BOARD OF OF DIRECTORS (continued) A S M Ndegwa Director P K Mugambi Alternate Director P W Kamau Director 18 D G M Hutchison Director K M Ontiti Company Secretary

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20 MANAGEMENT TEAM MANAGEMENT TEAM Justus Mutiga Chief Executive Officer George Nyakundi General Manager, Business Development & Technical Services Eunah Thinwa Assistant General Manager, Operations Michael Oimo Assistant General Manager, Group Business Development 20 Caroline Maina Assistant General Manager, ICT Ronald Nyamosi Assistant General Manager, Finance Enid Otieno Internal Auditor Kennedy Odenyo Manager, Group Business Development

21 MANAGEMENT TEAM (continued) Felix Chomba Manager, Pension and Actuarial Services Muiri Waichinga Manager, Ordinary Life Business Patricia Kihara Head of Agency SHARED SERVICES Naomi K Munyi General Manager, Strategy & Innovation Micah M Mahinda General Manager, Human Resources & Administration Dorothy Maseke Group Manager, Risk & Compliance Nkatha Gitonga Group Manager, Marketing & Communications 21

22 5. LEADERSHIP WITH PURPOSE 5.1 The highest emphasis on corporate governance At ICEA LION Life Assurance, we have a reputation for honesty and integrity in our management practices. This indeed lives up to one of our four core values - We Champion Integrity. We have developed a robust corporate governance framework anchored on global best practice governance systems. These include the UK Corporate Governance Code, the Organization for Economic Co-operation and Development (OECD) Principles on Corporate Governance and The King III Report. We have also benchmarked ourselves against the locally adopted Code of Corporate Governance for the Private Sector in Kenya. The standards for conduct established by the Company s Code of Business Conduct and Ethics serve to implement these guidelines and principles which are obligatory for all employees. The Code of Conduct and other internal guidelines adopted on its basis provide all employees with clear guidance on conduct that is in accordance with the values of Company. They provide employees with practical guidelines for making their own decisions and avoiding potential conflicts of interest. These guidelines also help employees recognize when they are approaching a critical limit, such as the acceptance of gifts or invitations from business partners. We believe good ethics are paramount and that organisations should aim for a strong ethical culture that is self-policing. 5.2 Setting the tone Our corporate governance framework comprises guiding policies and procedures that mandate the highest standards of integrity in the way that we conduct our business. Our Board of Directors exercise ethical and effective leadership over the operations of ICEA LION Life Assurance, and have a duty to ensure all employees take responsibility in enhancing the ethical climate of the company Strengthened approach In 2013, we reviewed the Code of Business Conduct and Ethics as well as the Company s Whistle-Blowing Policy that allows employees to alert the compliance and audit departments confidentially about irregularities.

23 LEADERSHIP WITH PURPOSE Employees who voice concerns about irregularities in good faith should not fear retribution in any form, even if the charge later turns out to be unfounded. In 2017, in a quest to further improve the effectiveness of the Whistle-Blowing channel, the Company embarked on a project to deploy a third-party managed Whistle-blowing hotline. This is in a bid to increase employee trust and confidence when voicing their concerns. To transmit the principles of the Code of Conduct and other compliance guidelines and controls effectively, ICEA LION has developed interactive training programs. These policies have been well entrenched into the organisation and has provided an anchor that enables a good ethical climate. We also developed ICEA LION s Anti-Bribery Policy in 2015, way before Kenya s Bribery Act came into force. This shows that our governance activities go beyond compliance with an aim to add real value to the business. The Board has established Board Committees to assist it in fulfilling its duties and has delegated certain responsibilities, including the preparation and execution of its resolutions, to the following four committees: the Nomination and Remuneration Committee, the Audit and Risk Committee, the Board ICT Committee and the Finance and Investments Committee. The Board undergoes an annual board evaluation process with an aim of identifying areas of improvement for the Board. Over the past two years, the Company has undergone a governance audit. This, in addition to an ethical climate survey conducted in the year 2015 revealed areas that required attention within our governance process. In recognition of our strong governance processes, we have over the past two years received awards and commendations from the Institute of Certified Public Secretaries (ICPSK) of Kenya through their Champions of Governance Awards Initiative. The ICEA LION Group Company Secretary has for two years in a row received the Company Secretary of the Year award. These awards include: 2015 Winner Company Secretary of the Year - CS Kennedy Ontiti - ICEA LION Group 2015 Winner Insurance Sector - ICEA LION Life Assurance st Runners Up CEO of the Year Justus Mutiga - ICEA LION Life Assurance 2016 Winner Company Secretary of the Year - CS Kennedy Ontiti - ICEA LION Group nd Runners Up Insurance Sector - ICEA LION Life Assurance 2016 Winner Think Business - Lifetime Achievement Award Life Assurance CEO Justus Mutiga 2013 Winner Think Business Insurance Awards Life Assurer of the Year 2014 Winner Think Business Insurance Awards Life Assurer of the Year 2015 Winner Think Business Insurance Awards Life Assurer of the Year 2016 Winner Think Business Insurance Awards Life Assurer of the Year 2017 Winner Think Business Insurance Awards Life Assurer of the Year 23

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25 LEADERSHIP WITH PURPOSE OUR BOARD COMMITTEES BOARD OF DIRECTORS BOARD AUDIT, RISK & COMPLIANCE COMMITTEE BOARD FINANCE & INVESTMENT COMMITTEE NOMINATION & REMUNERATION COMMITTEE BOARD ICT COMMITTEE 25

26 6. PROFITS WITH PURPOSE 6.1 Delivering strong capital returns We believe that sustainability programs are not only strongly correlated with good financial performance but also play a role in creating it. Our focus on sustainability is driven largely by our desire to grow profitably. There is need to balance the flexibility needed to adapt to a rapidly changing market environment with that of a sustainable model that will ensure our resilience in the long run. We have put in place structures to improve performance and a philosophy that promotes sustainable value for all our stakeholders across the value chain. Our strong balance sheet mitigates against the pressure from low interest rates: Balanced business portfolio paves the way for sustainable profitability. Realising synergies and economies of scope. Leveraging on leading market position. Risk solutions increasingly valuable business segment with strong premium growth and bottom-line contribution. Well-balanced business portfolio supports earnings contribution. These efforts have been acknowledged by the industry awards initiative - Think Business Insurance Awards where ICEA LION Life Assurance was awarded as follows: Winner Life Assurer of the Year Winner Life Assurer of the Year Winner Life Assurer of the Year Winner Life Assurer of the Year Winner Life Assurer of the Year

27 PROFITS WITH PURPOSE Our financial stability in facts and figures Group Gross Written Premiums 10,755 9,415 Company Gross Written Premiums 9,526 KShs Million 5,810 7,372 7,566 KShs Million 5,014 6,456 6,541 8, YEAR YEAR The group s gross written premiums grew by 14% in 2016 while the company grew by 16% over the same period. Group Operating Expenses Company Operating Expenses 2,201 2,093 KShs Million 1,794 1,485 1, YEAR 1,372 1,413 1, YEAR Group s Operating expenses grew by 5% year 2015 to 2016 while the company s expenses grew by 3% over the same period which was well within the planned expenditure. KShs Million 27

28 PROFITS WITH PURPOSE Group Total Expenses Ratio Company Total Expenses Ratio 24% 24% 20% 22% 20% 16% 14% 17% 16% 15% YEAR YEAR Both the Group s and Company s total expenses ratio recorded an improved ratio of 20% and 15% respectively on account of both gross premium growth and prudent management of operating expenses during the period under review. Group Investment Income Company Investment Income 28 KShs Million 4,760 5,941 5,549 3,972 5, YEAR The group s investment income in 2016 increased by 44.6% to close at Shs 5.7b while the company s Investment Income close the period at Kshs 5.4 b recording a growth of 45%. The impressive Investment Income performance is on account of both generation of surplus funds and efficient management of Investments during the period under review. KShs Million 4,635 5,651 5,353 3,755 5, YEAR

29 PROFITS WITH PURPOSE Group Profit Before Tax Company Profit Before Tax 4,018 3,720 KShs Million 2,509 2,780 1, KShs Million 2,252 2,637 1, YEAR YEAR Group Profit before tax increased by 499% in 2016 to close at Kshs 4.02 billion. The company profit before tax grew by 691% to Kshs 3.7 billion over the same period. The impressive growth is on account of growth in gross premiums, Increased Investment Income and change of actuarial valuation methodology during the year. Group Surplus Company Surplus 7,867 9,125 8,458 11,121 7,780 8,975 8,332 10,922 KShs Million 5,368 KShs Million 5, YEAR YEAR Group and Company actuarial valuation surplus Increased by 31% in 2016 on account of prudent management of key drivers and change in acturial valuation methodology. 29

30 PROFITS WITH PURPOSE Capital Adequacy Ratio Company Return on Investments 441% 15% 15% 263% 12% 10% 8% YEAR Company capital adequacy stood at 441% against statutory requirement of 200% on acount of preduent risk management, sound investment strategy and growth of shareholders funds. Company return on investments in 2016 recovered from the drop recorded in 2015 to close the year at 10% on account of recovery of the NSE and sound investment decisions. YEAR Group Total Assets Company Total Assets 30 KShs Million 60,958 53,661 47,860 41,670 33, YEAR KShs Million 57,785 50,831 45,444 39,547 32, YEAR Group and company s assets grew by 13.6% in the period in 2016 on account of prudent management of profit drivers.

31 PROFITS WITH PURPOSE Group Life Fund Company Life Fund 42,896 46,537 41,706 45,169 37,747 36,737 KShs Million 26,639 32,575 KShs Million 26,038 31, YEAR YEAR Group and company s Life fund grew by 8% in the period in 2016 on account of prudent management of key profit drivers. Group Return On Equity Company Return On Equity 46% 44% 42% 32% 30% 31% 16% 15% 9% 6% YEAR Both Group and company recorded an impressive return on equity on account of growth of gross premiums, increased investment income, prudent management of expenses and change in actuarial valuation methodology. YEAR 31

32 PROFITS WITH PURPOSE 6.2 Creating in-country value Contribution to Kenya s economic stability ICEA LION s contribution to economic sustainability in terms of payments to government in the form of taxes has been close to Kshs. 500 million over the past three years. KShs Million Corporate Tax Paid YEAR As an employer to 206 staff, we ensure our employees receive the best environment to enable them support hundreds of families. We strive to employ local people and inspire them to continuously develop professionally The trend over the past 3 years shows a heavy bias towards local suppliers. In the year 2016, 90% of our purchases was spent on local suppliers. Further, we have adopted a centralised procurement service which aims to bring with it enhanced efficiencies with regards to the procurement process. In our pursuit of best practice, we advertised nationwide via the way of a tender for vendor pre-qualification. This process is digitized via an external party platform where the vendors were vetted against best practice models. This ensured that ICEA LION cast its net wide offering greater opportunities for interested vendors and ensuring we got the best value from a wider vendor selection range. This coming year, our supply chain strategy is to engage with our suppliers and commit to our procurement, sustainability and environmental charters as we further embed the principles of sustainable insurance across the entire value chain. We plan to complete this before the end of We believe that together we can deliver economic solutions to support both our business as well as ensure continued socio-economic growth of Kenya. Since the year 2014, we have engaged a total of 35 interns through the graduate development program. 8 of these were engaged in the year 2016 alone. The interns are provided with meals and a daily stipend to cover their transport costs. During their period with us, they are also provide with unique classroom based, e-learning as well as other social engagement opportunities available to other staff. We aim to play our role in building the leaders of tomorrow by imparting these opportunities to students Prioritising local suppliers 32 ICEA LION has a formal supplier selection process for all products and services procured that is reviewed every three years. Since the year 2016, all new suppliers are expected to comply with our Anti-Bribery policy, a copy of which is provided to them when they come on board. All these suppliers are expected to sign off on this agreement before they can provide any good or services to ICEA LION. When procuring any goods and services, our first choice is always a local source provided they can meet all the key criteria.

33 PROFITS WITH PURPOSE Chart showing distribution of spend on local and foreign purchases Foreign Purchases 20% 80% Local Purchases 2014 Foreign Purchases 13% Foreign Purchases 10% 87% Local Purchases 90% Local Purchases

34 7. RISK INTELLIGENCE WITH PURPOSE 7.1 Building resilience through risk intelligence The Risk Management field has undergone dramatic transformation over the past couple of years. This field is now much broader, more sophisticated, and more diverse than ever before, encompassing new responsibilities. The current environment adds operational, systemic, technology, vendor, physical risk, as well as business continuity management to the more traditional financial risk categories. ICEA LION s success in weathering a difficult financial services market, a depressed stock market and ultimately gaining competitive advantage from its efforts, shows that companies can profit by adopting broader understanding of and more comprehensive processes for managing risk across the extended enterprise, in an increasingly complex economy. Over the past 4 years, we have had to shift our risk management strategy from serving as protection to creating value and now to Building Enterprise Resilience through Risk Intelligence. The internally adopted risk management framework has been based on the ISO Model. In 2014, ICEA LION Life Assurance was rated a Moderate Risk underwriter under the Risk-Based Supervision Model by the Insurance Regulatory Authority (IRA). During the year 2015, this rating moved to a Low Risk underwriter, the highest rating awarded under the new risk-based supervision model The Global Credit Rating (GCR) rating for the Company during the year 2016 is AA- with a stable outlook. Additionally, we have benchmarked our risk management processes to the AON Risk Maturity Index developed by AON Risk and Wharton School at the University of Pennsylvania. This Maturity assessment is designed to empower risk and finance leaders to assess the maturity of their organization s risk management structure and provide insight to support its continued development and implementation. 40 components of risk maturity that re grouped into ten overarching characteristics or statements of best practices in risk management. 34

35 RISK INTELLIGENCE WITH PURPOSE Our 5 action points in building enterprise resilience 1. Adaptation Imperative - Continually adjust to changing risks, endure disruptions to the Company s primary earnings drivers and create advantages over less adaptive competitors. 2. Diagnosis of enterprise-wide risk and interdependencies - Done through the determination of risks affecting earnings drivers and Determine interdependencies. 3. Adaptation of corporate strategy and operating model - Ensures that we are able to generate a reliable pattern of earnings growth ins pite of changes within the environment. 4. Endure increased risk and complexity - Through an enhanced sensing ability, BI has been used to improve situational awareness and therefore enhance risk-aware decision making. 5. Enterprise resilience planning - We have put in place processes to enhance the company s speed and flexibility by crafting an integrated first line of defense and an offensive strategy to guard the entire extended enterprise against new and unavoidable risks. 7.2 Turning risk into sustainable value ICEA LION has put in place a strong integrated risk management process in our daily business activities, as well as strong corporate governance structures that promote effective identification, monitoring and management of risk. It has established a fully-fledged risk management and compliance function headed by a senior officer. Independence of this function is maintained by a direct reporting line to the Board Audit and Risk Committee. This position is the focal point of inhouse risk management compliance monitoring, authentication and related activities. This function has coordinated the setup of the risk appetite by the Board of Directors which has been cascaded to the senior management team. Regular risk assessment exercises are also conducted in a bid to integrate risk management into the business. These structures include well developed and documented internal procedures, clearly defined reporting lines and well-structured regular training programs for staff. The latter is intended to enable staff attain a clear appreciation of the nature of business risk; the likely consequences of not giving adequate attention to, or failure to properly manage risk; and of the universally accepted and internally prescribed techniques of effectively managing risk. Integration of risk management has been a journey that has led to continuous improvement, the latest of which is the move towards quantification of risk through the risk based capital regime by the Insurance Regulatory Authority. 35

36 RISK INTELLIGENCE WITH PURPOSE Our robust approach to risk management 7.3 Embracing technology to support risk management In the advent of multiple off the shelf solutions, the company took the bold step of developing a bespoke Governance, Risk and Compliance system that is fit for purpose. This project was as a result of a vision to come up with a world-class GRC solution that is customized to our local needs. It is envisaged that this system can be a model system to be deployed to other risk management functions for companies associated with us and later to other institutions within this country. As such, improve the risk intelligence capabilities of East African institutions. The system, currently undergoing implementation, brings with it enhanced efficiency in the risk management, controls and compliance monitoring process. Risk and compliance issues will be available on a real-time basis including on ipads and other portable media. Our risk intelligence journey Risk Management Serving As Protection Our Journey Creating Value Through Risk Intelligence Building Resilience Through Risk Intelligence / and beyond Risk Category Insurance Risk Counterpart Default Risk Description Risk of loss due to a difference between actual experience and expected experience incorporated into pricing and design. This may be due to: underwriting process risk incorrect pricing product design claims risks e.g. increased service providers costs, cost of spare parts, etc. insured s behavioral risks e.g. increased fraudulent claims observed in the industry Socio-economic environment risks This refers to financial loss due to counterparties not being able to fulfill their contractual obligations. 36 Focus was embedding a risk culture within the organization Strengthening of Risk Governance through the development of policies and procedures that support risk management Articulation of Risk Appetite. Integration of Risk Management into Strategy and Operations The move towards Risk quantification. Risk intelligence heavily involves the quantification of risk as well as having the risk discussion embedded into capital allocation. Risk agenda is embedded in strategy and decision making with an aim of continuously building resilience. Market Risks These counterparties include brokers defaulting on premium payments, reinsurers and investment counterparts. Counterparties may not be able to pay their ongoing obligations (for example, interest on a corporate bond or rent by a lessee) or they may not be able to meet their obligations on time. This is the risk that are as a result of market movements which may expose the Company to fluctuations in the value of its assets, the amounts of its liabilities, or the income from its assets.

37 RISK INTELLIGENCE WITH PURPOSE Risk Category Description Risk Category Description Market Risks (continued) The market risks may be as a result of interest rates, foreign exchange rates and volatile equity and property market. Strategic Risks The risk that strategic outcomes may differ adversely to expectations or that the strategy chosen may be sub-optimal. Political Risks These are an institution may suffer as a result of political changes or instability in a country. The risk that we may be unable to achieve the business strategy. Operational Risks Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, among others. In election years there is risk of a possible slow-down in the economy which may impact the return of equity investments. Operational risk is the risk that there is loss as a result of inadequate or failed internal processes, people, technology and external events: These include: People Risks: e.g. losses arising from people Process Risk: i.e. losses arising from process design and or process implementation Technology Risks: arising from system failures, technological infrastructure to support business operation, internal control weaknesses within the systems, etc. Business Continuity Risks: arising from inadequate continuity planning, disruption of business in the event of natural disasters, among others. Liquidity Risks 7.4 Our risk landscape The risk that the Company may be unable to meet its liabilities as and when they fall due. In the execution of our strategy, some of the risks we face arise as a result of our decisions, and some result from operational processes, or the external environment. We classify risks under the following categories: In the course of business: Identify: Assess these risks, determine the appropriate risk response, and monitor the effectiveness of these actions and changes to the risk profile. Evaluate: Individuals and teams who manage processes identify and assess the proposed risks. Respond: Ensures risks are kept within appetite, the level of risk the Company is prepared to accept while pursuing its business strategy, and where appropriate taking necessary mitigation actions. Monitoring of the risks identified is on-going and proactive, and can often mean re-evaluating risks as well as changing our response actions. Regulatory/Legal Compliance Risks: arising from non-compliance with laws, regulations or emerging regulations that lead to changes in business practices or the need for strategic shifts Cyber Risks: risk of financial loss, disruption or damage to the reputation of an organisation from some sort of failure of its information technology systems. May be due to fraud, hacking attempts, etc. Reputation Risk: Loss in reputation of the company which may lead to a diminution of brand value. Fraud Risks: may be internal fraud (committed by employees) or external fraud (committed by those outside the organisation). 7.5 Risk governance model Responsibilities for the management of risk and control are aligned to a 3 lines of defense activity-based model as follows: First line of defense responsibilities rest with the colleagues who manage operational or business processes. They are responsible for identifying the related risks, and designing, operating, testing and remediating appropriate controls to manage those risks. 2nd line of defense designs frameworks and policies and providing independent oversight and challenge to ensure compliance. 3rd line of defense is the Internal Audit team that provides independent assurance. 37

38 RISK INTELLIGENCE WITH PURPOSE 7.6 Our Three Lines of Defense Model 1st Line of Defense 2nd Line of Defense 3rd Line of Defense The Board Business Units Technical support functions Finance Underwriting Risk Management Committees (RMC) Risk Management Function Actuarial Function Compliance Function Internal Audit Reinsurance General support functions IT HR Our Risk Management efforts have been acknowledged by the industry awards initiative - Think Business Insurance Awards where ICEA LION Life Assurance was awarded as follows: 2014 Winner Think Business Awards - Risk Management Award 2015 Winner Think Business Awards - Risk Management Award st Runners Up Think Business Awards - Risk Management Award 2017 Winner Think Business Awards - Inaugural Corporate Risk Manager of the Year - Dorothy Maseke (ICEA LION Group Risk & Compliance Manager) 2013 Winner Think Business Awards Life Assurer of the Year 2014 Winner Think Business Awards Life Assurer of the Year 2015 Winner Think Business Awards Life Assurer of the Year 2016 Winner Think Business Awards Life Assurer of the Year 2017 Winner Think Business Awards Life Assurer of the Year 38

39 8. SOLUTIONS WITH PURPOSE ICEA LION constantly seeks to develop new or improve on existing products that solve real-world challenges. We have a fully-fledged innovations team, led by a interdepartmental, diverse, multi-talented team with a millennials mindset. Their mandate is to identify new and unique opportunities, from where we can develop new products and services. They undertake research and due diligence then work with the evaluation team to refine the ideas, the product development team to design the solution and the marketing and communications teams to go to market. Some of the solutions that have emerged from these committee include: Innovations Online Portal to capture and manage ideas. Innovations Forum where staff members can listen to TED Talks and other engaging videos and discuss pertinent matters of the day. Lead Generation / Management System. Use of Corporate Uber to improve our cost and time efficiencies. New Products: Children s (Orphan) protection policy has been market tested and is awaiting actuarial review. Our Solutions With Purpose 8.1 Embracing Technology for Enhanced Customer Experience ICEA LION Life Management System: ICEA LION Life Assurance believes that through innovation, our business will not only achieve stronger growth, but also be more successful in the long run. ICEA LION Life Assurance is delighted to be the FIRST insurance company to innovate and deliver an internally developed bespoke Core Life Management System (ILMS) the ONLY PATENTED system in the Kenyan Insurance Industry. This in-house solution was a customer driven need - developed with the ever-evolving, increasingly techno savvy customer in mind. The preceding system (MICROLAN) was working well for the organization, but was not e-commerce compatible. As such, the organization invested in developing the system so that our customers can enjoy self-servicing and e-commerce functional. 39

40 SOLUTIONS WITH PURPOSE Electronic Data Management System (edms): In 2015, the organization also deployed the The organization is not only going paperless, but the customer has benefited from more efficient service. We have also upgraded our financial service platform Navision that has led to faster services for our Clients as well as faster turnaround time for financial reporting. 8.2 Africa s First Qualifying Recognised Overseas Pension Scheme (QROPS) Outside South Africa In 2015, we were delighted to introduce be the FIRST and ONLY QROPS provider outside South Africa. ICEA LION Individual Retirement Benefits Scheme is recognised by the UK s HMRC (Her Majesty s Revenue and Customs) as a Qualifying Recognised Overseas Pension Scheme (QROPS), with an approval letter Dated: December 17, 2014; and Ref No. QROPS There was a change in UK Revenue and Customs Law in 2016 and ICEA LION Life Assurance remained compliant. We are still the only insurer outside South Africa to offer this product. This QROPS product was aimed at improving in-country value by allowing Clients with Corporate Pensions in the UK to move their funds back to Kenya Tax Free! This product confirms our commitment to innovation and to finding solutions as insights from an October 2010 report by the International Organization for Migration: Harnessing the Development Potential of Kenyans Living in the United Kingdom indicated the below: ICEA LION Life Assurance innovated on this and other research information to apply to deliver this solution to the UK Market. The advantages of this product include: Clients enjoy tax efficiencies where they avoid 55% UK tax on death benefits on some transfers There is a minimum guaranteed return of 4%. The average return has been above 10% in the last 3 years. Clients enjoy an earlier retirement age of 55. Clients can also access their funds in lump-sum, income draw down or annuities. Another advantage is that there is no Life Time Allowance (LTA). The product offers security in that clients are protected from creditors, funds can be more easily monitored from home as opposed to having the pension sitting overseas. There is also a limit on the amount of pension benefit that can be drawn from pension schemes and this amount can be paid without triggering an extra tax charge. ICEA LION Life Assurance launched the campaign to market this product to the diaspora in 2015 and has seen growth even despite the pre 2017 election reticence as well as the vagaries caused on the Great Britain Pound by Brexit. Some imagery from the online campaign is outlined below: 40

41 SOLUTIONS WITH PURPOSE 8.3 ICEA LION Social Media Engagement Strategy ICEA LION in its marketing and communications strategy, seeks to deliver relevant and impactful engagement channels between ICEA LION and its desired target audiences. Additionally, as part of our goal to deliver profitability, it was integral to utilize solutions that can grow our brand sustainably. The digital sphere was a key channel in this regard. It is evident that Generation Y & Millennials have a voracious appetite for information, however the traditionally conservative and verbose insurance/ financial services industry struggles to put forward product information in a palatable & relevant format. ICEA LION sought to demystify insurance/ financial services, and also get intimate with our target audience via a relevant and engaging social media platform. Our end goal was to leapfrog our social 41

42 SOLUTIONS WITH PURPOSE media platforms & address our challenge by utilizing a disruption & engaging social media strategy. Our key insight was that everyone seeks financial success. As such, we wanted to own the platform where we facilitate our audience learn about and FOCUS on their financial success. Especially the millennial generation that believes in instant success. We sought to be their partner on that journey and our theme - #Preparation Pays was developed. This was a more partner driven approach to financial education than the tradition prescriptive one that had been adopted by financial service brands. We also reduced the amount of posts from 3 per day to 3 per week. We ingratiated ourselves into their lives in a relevant manner rather than bombarding them with product and corporate information and it paid off immediately. The ICEA LION brand rose to the most engaged insurance brand. Indeed on the very first week, it beat out brands like Safaricom. Engagement is measured based on comments/replies to our posts, likes of our posts and shares of our posts. In order to differentiate the brand online, we also adopted a look and feel that is an extension of the Gold & Grey in our corporate colours. The effect was striking, set our brand apart and has been widely appreciated by our audiences. Below is a snapshot of the Facebook Engagement within the first week of launching the #PreparationPays Campaign: 42

43 SOLUTIONS WITH PURPOSE Below is a snapshot of some of the most popular Facebook posts within the #PreparationPays Campaign: 43

44 44 SOLUTIONS WITH PURPOSE ICEA LION s Individual Retirement Benefits Scheme was also marketed the QROPS (Qualifying Recognized Overseas Pension Scheme) on the digital platforms. The engagement on the Corporate Social Investment I SEE A LION Initiative outlined in Section 10 below demonstrated our ability to offer product, services and indeed engagement platforms in the digital space. As a result of our this initiative that not only demonstrates ICEA LION s commitment to deliver relevant and impactful engagement channels with our desired target audiences, offer solutions to our current an potential customers and and indeed deliver on our strategy to grow our brand sustainably, ICEA LION was in July 2017 awarded with the following award: Winner - Think Business Insurance Awards Best Insurer in Product Marketing. 8.4 The Revamped ICEA LION Website In our bid to continue to enhance our engagement platforms, and indeed to offer real solutions to our customers needs. Our intent was to leapfrog our website to a World-Class site. ICEA LION reinvested in the design and development of its recently deployed website in 3 main phases: 1. Phase I Enhancing the User Experience: The previous iterations of our website had been more a repository of corporate & product information and delivered from an organizational perspective rather than from the customer perspective. As such, this website was developed with the Customer in mind. For this reason, we aligned the site to our corporate mission which is to protect and create wealth. As such, our customers find the product solutions immediately, rather than sifting through company information to get to their core need. Additionally, we also noted that with the proliferation of mobile phones & data bundles usage, our intention was to ensure that our website was optimized for our customer s experience bearing this insight in mind. Our website adopts responsive design optimized for any device. It is also one the fastest loading sites in Africa due to the Lightness of the site. It does not have many images and the ones present are very light so customers do not have to pay too much (in data bundles) to interact with our brand online. It also provides content that provides advice for those seeking insurance and financial services related information. 2. Phase II Deploying Self Service Functionality: From October 2017, the website will enable our customers access their account information and lodge claims. This will offer practical solutions that will not only enhance our customers experience, but also free up our teams to do other work that technology has bridged. 3. Phase III Full e-commerce Functionality: Plans are underway to have our customers purchase their products online end to end. This is scheduled to be deployed at the end of the year/early Further, our site: Adopts Responsive Web Design (RWD) meaning that the provides an optimal viewing & interaction experience. Easy reading & navigation with a minimum of resizing, panning, and scrolling across a wide range of devices (from desktop computer monitors to mobile phones). Our site is Light so it does not cost our visitors time and money to load page after page. We utilize Scalable Vector Graphics (SVG), an XML-based vector image format for two-dimensional graphics with support for interactivity and animation. We utilize Low Quality Image Placeholder (LQIP) Technology. Leading global sites take 3.7MB 10 seconds to load a page, ours is loading 2.7KB in 1.5 seconds. The parameters considered in developing the site are as follows:

45 SOLUTIONS WITH PURPOSE Our Website Aligns to our Company s Corporate Mission: To Protect & Create Wealth Our Content That Provides Guidance and Advice 8.5 Income Draw Down Product This scheme is established as a trust and is separate legal entity from ICEA LION Life Assurance Company Limited. It is registered and regulated by both Retirement Benefits Authority (RBA) and Kenya Revenue Authority (KRA). The fund assets are held and invested in a guaranteed fund recognized by the Retirement Benefits Authority. ICEA LION Life Assurance Company Limited, the approved issuer (founder) of the Income Drawdown Fund makes Investment decisions and bears the investment risks. This is an arrangement in which a retirement scheme member opts to access retirement benefits as a regular income through an investment fund from which retirement benefits payments are drawn. The income is entirely dependent on the performance of the underlying investments backing the member s accrued benefits, the amount of the periodic withdrawal and member s lifespan. An individual member has flexibility as regards frequency of withdrawal, timing and amount of withdrawals. The flexibility therefore allows a member to access a portion of the fund as and when the need arises. A member also has the freedom to top up the fund at future dates or defer receipt of regular income. 45 In the unfortunate event of death, the fund can be used to provide an income

46 SOLUTIONS WITH PURPOSE to the nominated beneficiaries either by a continuation of income drawdown arrangement or purchase of an annuity or if income is not taken in this way, the balance may be paid to the nominated beneficiaries. The advantages of this product to members are: Insurance and available to anyone who requests the same including our competitors. The inaugural version was released in January of 2016 with an updated version having been release in June This handbook is also available on our website - Tax Benefits: Benefits moved into the income drawdown plan are tax exempt as opposed to cases where a scheme member decides to take the lumpsum. Flexibility: The scheme member gets to decide how they want to exercise withdrawals from the fund, when to access the funds e.g. the date, monthly, quarterly, or semiannually. Investment Income: The member enjoys credited investment income while drawing from the funds. Switching: The member may purchase an annuity at the point they deem appropriate. The risk of outliving the fund assets may be mitigated by purchase of annuity. In mitigating against living longer than the number of years provided by the product, the fund value can be reviewed annually to safeguard unplanned depletion and comply with regulatory requirements. Fund assets are protected from impairment by subsequent investment loses. Apart from that investment income credited to the fund assets are not impaired by subsequent investment loses. These funds are secured by a strong asset base. 8.6 Development of a Trustee Handbook ICEA LION Life Assurance innovated on the need for trustees to have access to critical information to guide their actions from a regulatory and best practice view point. We introduced the first Trustee Handbook by an insurer. It is intended that the handbook will assist trustees by providing more detailed guidance on trustees duties under the Retirement Benefits Act under the various sections of the Retirement Benefits regulations and other relevant legislation, and under trust law generally. 46 The handbooks is also to be of assistance to trustees in outlining good practice, which should be the aim, even when it is not a mandatory requirement by law. It also contains a foreword from our ICEA LION Life Assurance CEO. The handbook was released to our trustees, shared with the College of

47 SOLUTIONS WITH PURPOSE 8.7 Personal Retirement Scheme Newsletter: The LION s Perspective In order for us to improve our brand recall and indeed stand out from our competitors, in 2017 we introduced The LION s Perspective. This name reflects what we wish to share with our Clients our perspective as we protect and create their wealth! ICEA LION Life Assurance was also the first to develop products that returned premium to the insured once the term had expired. These products include our Value Added Term Product, Value Added Mortgage and Annuity with Return of Purchase Price. In addition to other Newsletters by the Group, this PRS newsletter was a shorter and more targeted bulletins sent to the relevant recipients. The first newsletter was sent out in January 2017 with the second scheduled for release in Mid The newsletter provides an economic review and market updates as well as an FAQ relevant to the audience. It also provides some information about activities ICEA LION has engaged in that may be of interest to the audience. Our Alterative Distribution Channels Team also continually seeks strategic partnerships that have seen us deliver innovation for our partners with some of them registering insurance agencies as a result. Partnerships have been undertaken with the following organizations and has seen us effectively make strides towards insuring the micro-insurance market segment. NIC Bank Optiven Real Estate LIMLAK Sacco Naivas Supermarket Kenya Medical Association Sacco ICEA LION Life Assurance is also working on new products that are in testing/ actuarial stage. These include: Education Policy in conjunction with one of the Top 5 Tier 1 Banks Post-Retirement Medical Cover Children s (Orphan) Protection Policy Micro Insurance Aggregator Model Product 47

48 9. PEOPLE WITH PURPOSE 9.1 Our People are important to us Our people are vital to our success. Indeed, one of our core values is Our People Are Important To Us. Our strategy unquestionably articulates that our People are our most important asset. Our ability to attract, retain skilled, diverse talent will provide us with strong potential to achieve our vision and mission and indeed deliver on our strategic objectives. This will be realized by providing a consistently excellent experience for our customers and our People. The Human Resources manual was revised in the 2016 to include the changes in the ICEA LION Business Code of Conduct as well as the new ICEA LION Expatriate Policy. We continue to create and maintain an environment that attracts and retains the best staff and have put in place the conditions and structures to enable all our People to fulfil their career aspirations in a manner that is not only Employer choice for them, but also challenges them and supports their development. A testament to this drive to delight our employees is evidenced in the awards achieved by ICEA LION internal and external customers: 2013 Winner Think Business Insurance Awards - Life Assurer of the Year 2014 Winner Think Business Insurance Awards - Life Assurer of the Year 2015 Winner Think Business Insurance Awards - Life Assurer of the Year 2016 Winner Think Business Insurance Awards - Life Assurer of the Year 2017 Winner Think Business Insurance Awards - Life Assurer of the Year 2016 Winner 2017 Winner Think Business - Lifetime Achievement Award Life Assurance CEO Justus Mutiga Think Business Inaugural Corporate Risk Manager of the Year Dorothy Maseke st Runners Up ICPSK - Champions of Governance - CEO of the Year Justus Mutiga 2015 Winner ICPSK - Champions of Governance Awards Insurance Sector nd Runners Up ICPSK - Champions of Governance Awards Insurance Sector 2014 Winner Deloitte s Best Company To Work For Insurance Sector Winner Deloitte s Best Company To Work For Insurance Sector Winner 1st Runners Up - overall Deloitte s Best Company To Work For - Mid-Size Companies (under 500 employees) Think Business Inaugural Corporate Risk Manager of the Year Dorothy Maseke nd Runners Up Think Business Insurance Awards Training

49 PEOPLE WITH PURPOSE 2016 Winner Think Business Insurance Awards Training 2014 Winner Institute of Customer Service ICS Insurance Sector 2014 Winner Think Business Insurance Awards Customer Service 2016 Winner Think Business Insurance Awards Customer Service 2016 Winner Think Business Insurance Awards Customer Satisfaction st Runners Up Think Business Insurance Awards Customer Service 2015 Winner Think Business Insurance Awards Claims Settlement st Runners Up Think Business Insurance Awards Claims Settlement st Runners Up Think Business Insurance Awards Claims Settlement 2016 Winner Think Business Insurance Awards ICT st Runners Up AKI Agents of the Year Award Company of the Year st Runners Up AKI Agents of the Year Award Overall Agent of the Year 2014 Top 10 qualified AKI Agents of the Year Award - 6 Agents Qualified 2014 Top qualified AKI Agents of the Year Award - 25 Agents Qualified 2015 Winner AKI Agents of the Year Award Best Loss Ratio st Runners Up AKI Agents of the Year Award Most Improved Company nd Runners Up AKI Agents of the Year Award Company of the Year st Runners Up AKI Agents of the Year Award Overall Agent of the Year 2015 Top 10 qualified AKI Agents of the Year Award - 5 Agents Qualified 2015 Top qualified AKI Agents of the Year Award - 24 Agents Qualified st Runners Up AKI Agents of the Year Award Company of the Year st Runners Up AKI Agents of the Year Award Overall Agent of the Year 2016 Top 10 qualified KI Agents of the Year Award - 5 Agents Qualified 2016 Top qualified AKI Agents of the Year Award - 20 Agents Qualified st Runners Up - overall 1st Runners Up - overall Association of Kenya Insurers Sports Day Champions 2017 Winner Insurance Institute of Kenya Annual Quiz Association of Kenya Insurers Sports Day Champions 2017 Winner Insurance Institute of Kenya Annual Quiz 9.2 Encouraging Innovation Innovation integral to our sustainability strategy at ICEA LION. In place is an innovation committee comprised of members drawn from different functions, with diverse skills and more recently, with a millennial mindset. The main purpose of this committee is to act as a catalyst in collection of innovative ideas from the staff and external stakeholders focusing on the following areas: products, processes and policy. This team is guided by an innovations policy and strategy. The committee is made up of two teams that is, the incubation team which is responsible for receiving ideas from internal sources (employees) and external sources, discussing and filtering them for relevance to the business. The evaluation team then refines these ideas for business alignment, whilst the product development team designs the solution. The marketing and communications team then develops and implements the go to market strategy. In 2015, the innovation team rolled out a digitized innovation platform the ICEA LION Innovations Portal - which serves as a repository for ideas generated by staff. Several new (or repackaged) ideas have been derived from this innovations platform. Examples of the innovations from the team are outlined in section 8 above. The Mulika Gharama project which aimed to highlight where the company is leaking resources has helped reduce expenses and encouraged responsible consumption within ICEA LION. 49

50 50 PEOPLE WITH PURPOSE 9.3 Engaged Employees ICEA LION is cognizant of the fact that engaged and committed employees are at the core of our sustainability agenda. We are keen to continue improving to meet the constantly changing needs of the multiple age groups at ICEA LION ranging from baby boomers to millennials we have sought benchmark solutions from outside ICEA LION. We have participated in Deloitte s annual Best Company to Work For (BCTWF) Survey conducted by Deloitte South Africa. The survey assesses employees perception/experience of the organisation s people practices. Ten (10) parameters are measured, including; leadership, operational effectiveness, inclusion, relationship with manager/supervisor, fairness and equity, learning and development, values and culture, performance and recognition, remuneration and overall job satisfaction. The results of this survey shows that our people are highly engaged and are proud to work for ICEA LION. Key aspects (on employee engagement) 2014 score 2015 score 2016 score Job satisfaction Manager employee relations *A score of 3.7 out of 5 achieves the Deloitte Seal of Excellence which identified the company as having best practices in people management Inclusion Career Development The commendable result for ICEA LION in the past 3 years is as outlined below: : Winner - Deloitte s Best Company To Work For Insurance Sector : Winner - Deloitte s Best Company To Work For Insurance Sector : 1st Runners Up - Overall Deloitte s Best Company To Work For - Mid Size Companies (under 500 employees) : 1st Runners Up - Association of Kenya Insurers Sports Day Champions : Winner - Insurance Institute of Kenya Annual Quiz Other internal employee engagement surveys have been administered and the results show that employees are highly engaged. To improve on employee engagement levels, ICEA LION has taken the following steps over last three years: Survey results are shared with employees in order for them to know that their voices have been heard and steps taken to close the gaps. Managers and Supervisors have been sensitized as to the critical role they play in ensuring high employee engagement levels and its correlation to their individual relationships with employees. Employee wellness program has been revamped to include medical checks, counselling services that is also extended to family members. Wellness/Fitness programmes have been deployed over lunch hour an afterhours to improve health and general wellbeing. 9.4 Sustainable Work-Life Balance Employee Wellness Employees spend most of their waking hours at work. We depend on a healthy workforce, and we support our employees through a range of initiatives that create a productive and health-promoting workplace. Our workplaces are designed and maintained to reflect the ambience and ergonomics critical to superior employee productivity. To achieve employee wellness, we have put in place an elaborate and comprehensive employee wellness programme to ensure a preventative rather than curative approach to the health of employees. ICEA LION partners with employees to encourage individuals to take charge of their own health and wellbeing by giving them the tools and information they need to understand their own health care needs. The program s aim is to increase the number of employees and their families who are healthy at every stage of life. The initiative recognizes that good health comes not just from receiving quality medical care but from stopping ill health before its onset. Good health also comes from clean air and water, safe outdoor spaces for physical activity, safe worksites, healthy foods, violence-free environments and healthy homes.

51 PEOPLE WITH PURPOSE Our approach to employee wellness incorporates the following: Nutritional assessment and consultancy. Regular cancer and HIV screening. Nursing Mothers Room: In a bid to support breastfeeding mothers, a nursing room for lactating mothers has been allocated and furnished to allow new mothers express milk for their babies. Blood sugar examination. 24 hour counselling service that is open to both employees and their immediate family members via a toll free number. Professional Health Education sessions facilitated by professionals in expert areas e.g. lifestyle related illnesses, stress management, financial management, alcoholism and drug abuse. Dental and Optical services. Follow up to ensure employees follow recommendations. Other initiatives includes: Sports: To enhance and sustain the wellness program, the business has undertaken the following: 1. We have hired an outdoor sporting facility at the Stima Sports Club where employees participate in various sporting activities. A bus is on hand to ferry employees to this facility three times a week. Proposals are underway to move to a sporting facility closer to the Head Office in the coming months. ICEA LION Team Members enjoy a fitness class in at the ICEA LION Centre basement. 2. Various indoor games such as darts and table tennis are available during lunch hours and in the evenings. 3. Aerobic sessions facilitated by a qualified instructor are held two times a week during the lunch break. On average, 30 employees participate in each of these sessions. 4. Annual Family Fun day that incorporates sports activities. 5. Participation in industry events such as the AKI Association of Kenya Insurers - football and volleyball tournaments that culminate in the annual AKI Sports Day. ICEA LION was ranked 2nd overall in Participation in industry events such as the IIK Insurance Institute of Kenya Quiz Tournament. ICEA LION were crowned the overall winners in An End Year Staff Party is hosted annually. ICEA LION Team members enjoy the end year cowboy themed staff party. 51

52 PEOPLE WITH PURPOSE 9.5 Fair and Transparent Reward Our compensation mechanism focuses on total reward; where people and performance matter. We provide a transparent, fair and integrated offering to attract, motivate and retain highly qualified employees. The reward package not only includes salaries, but the direct and indirect rewards and benefits employees are provided with in return for their contribution to the Company goals. The compensation and benefits program comprise of both financial and nonfinancial as illustrated below: ICEA LION has a robust award-winning employee training and development programme. Our office environment (at ICEA LION Centre) is state of the art. The ambience, décor, ergonomics and general environment is a morale booster. The office walls are enhanced with images that ignite a feeling of pride and belonging. These walls are used for strategic internal messaging. ICEA LION organizes sports and team building events for team integration and collective inspiration throughout the year. Employee recognition Recognition for employees who demonstrate exemplary performance. 9.6 Competency in focus The performance management process at ICEA LION is based on the Balanced Scorecard (BSC) performance management model. The corporate strategy is cascaded down to individual level through the Balanced Scorecard system where strategies and targets at corporate level are broken down into specific and measurable activities for individual employees. In 2016, our priorities were the improvement of the balanced score card processes in a bid to further align them to corporate goals and objectives. A multi-rater feedback tool that allows for 360 degree evaluation reviews by supervisors, peers and subordinates had been deployed in 2015 and further served to improve the performance appraisal processes. The BSC score counts for 80% of the total score and the 360 degree evaluation reviews for 20%. 52 To ensure that we are giving competitive salaries for all positions and that our benefits are also competitive, we participate in salary and benefits surveys. As a result: Employee salaries were benchmarked to the market as per the latest PWC salary survey. Employees enjoy a host of benefits that are among the most competitive in the market. 9.7 A learning organisation ICEA LION provides opportunities for staff to develop and grow themselves. A robust in-house process of upskilling employees technically is in place and has largely contributed to our people being recognised for their high level professionalism and technical expertise. ICEA LION pursues various approaches to deliver training and development, including in-house training, e-learning platform training, mentoring, coaching, local and overseas technical

53 PEOPLE WITH PURPOSE and leadership training, paid membership in professional organizations, and an in-house Company library. Some of key milestones achieved in the area of staff training and development over the last three years include: Number of qualified Associate Member of Chartered Institute of Insurance (ACII) holders: In 2016 alone, a total of 2 employees achieved the Chartered Institute of Insurance (CII) UK qualification. In the market we have one of the highest number of ACII qualified employees totaling 15 in number. Number of in-house training programmes: In the last few years a number of in-house training have been conducted. The learning penetration rate is shown in the table at the end of this section. E-Learning Café: Our e-learning platform available to all staff enables staff to access the portal from anywhere and on any device. The modules range from customer experience, to business etiquette to developing emotional intelligence. The team are also required to undertake some mandatory courses in line with the departmental strategy and this is included in their Balanced Scorecards. ICEA LION Academy: The need to establish the ICEA LION academy was informed by the need to utilize internal capacity and expertise to upskill others employees. The purpose of the academy is to address both technical and personal skills development training. The approach to staff development and growth under the academy is as follows: 1. Up skill employees technically through attachments: A number of employees from Uganda have been attached to various departments within ICEA LION Kenya, in particular, Asset Management, Underwriting, Claims, Finance, ICT, HR, and Sales. 2. Build the capacity of the branches and the subsidiaries in Uganda: our ICT team in Kenya has spent time within our subsidiaries in a bid to transfer skills and knowledge on our core systems. Over the past year, the HR team has carried out performance management and Balance Scorecard training across the East African units. The ICEA LION Academy e-learning Portal 3. Make a contribution towards career progression: A number of employees have been seconded to Uganda as part of their own personal development processes. 4. Identification and utilization of talent: A number of employees identified as talent have been assigned additional responsibilities through assignment of special tasks and projects. Number of employees who have been trained overseas: In the last three years a total of 7 employees have been sponsored to undergo overseas training. The countries where staff have been sponsored to train in include Canada, Sweden, South Africa, United Arab Emirates, Germany among others. ICEA LION Team members listen to a Health and Wellness talk 53

54 PEOPLE WITH PURPOSE Senior Management Development and Growth To develop strategic leadership skills for managers, all senior staff were enrolled for a mandatory one year management program. This was in recognition of the fact that the success, execution and translation of the corporate strategy developed to drive the business; would be determined by the extent to which the leadership cadre is equipped with the pertinent skills. The training was to equip senior managers with the advanced decisionmaking, and execution skills they need to excel as multifaceted leaders. The focus of the programme therefore was to up-skill managers in leadership, ability to motivate, customer service, goal setting and planning, leading change, and coaching and mentoring, among other skill areas. 9.9 Middle Management Development and Growth A total of 21 first line managers undertook a one-year mandatory program on leadership and performance. This training which was in a bid to set the foundation for developing exemplary leadership and creating a performance oriented environment for this level of management. Continuous development for middle management is through sponsorship to facilitated sessions and learning through the e-learning platform. Specific approaches towards employee development and growth includes: On-the-Job Training Formal Training Short Term Courses Professional Examinations E-Learning Further Education/Private Education 9.10 Retaining talent and succession planning Talent Management: At ICEA LION, talent management involves acquiring, hiring and retaining talented employees. To drive optimal levels of success, we need engaged, high-performing employees. A key strategic focus the Human Resources team is to facilitate the growth of the workforce to greatness by aligning talent management with company strategy, defining consistent leadership criteria across all functional areas, and identifying specific competencies (analytical, technical, education, experience) to cultivate for continuing growth. Succession Planning: A change in executive leadership is inevitable for all organizations and can be a very challenging time. Therefore, it is the policy of ICEA LION to plan appropriate actions in case a person acknowledged as a key person or who currently occupies a critical position in the Company is no longer available to the business. This will ensure stability and accountability of the Company. In 2016, a succession planning project in which critical roles, potential successors, current skills and competency gaps were developed. Mentorship programs: To empower staff to take ownership of their roles and the business, a coaching and mentoring culture is imperative. Coaching allows managers to adopt a more facilitative style in their management helping their staff to solve their own problems and take responsibility for results. The business put in place a structured coaching and mentorship programme in Training Support We believe in developing our people and rewarding those who work hard and invest their time and energy in contributing to ICEA LION s success. Professional courses are fully funded and comprise of the following support: 1. Tuition fees at an approved College or for an approved correspondence course. 2. Examination fees. 3. Registration/Entry fees for student membership of approved professional bodies. 4. Examination exemption charges. 5. Registration fees for full membership. 6. Cost of the set text books.

55 PEOPLE WITH PURPOSE As part of support and motivation, staff who pass professional papers are given a token amount for each paper passed. Once they qualify, the success is celebrated with their colleagues within their departments. Monetary rewards are also extended to others pursuing academic courses such as degrees, diplomas and certificates upon completion/graduation Welcoming New Members to the ICEA LION Family Employees are introduced into this fulfilling relationship on the day they join the family. An elaborate onboarding process ensures that all newly joining staff get to navigate through and understand their new environment as fully and as quickly as possible. Our on-the-job training and mentorship programmes are focused on assisting new employees to settle down and commence the value adding process expeditiously. We aim at providing both a supportive and welcoming environment to all its new members of staff with a goal of making it easy for them to be assimilated into ICEA LION s unique culture Rotation/Secondment Practices We provide employees with opportunities for job enrichment, career development and recognize that job rotation provides opportunities that broaden an employee s knowledge and understanding of a work unit and its processes. It also provides an opportunity for the business to place employees where their strength lie, ensuring employees within the department are able to work in any sections within department in line with the Company strategic objective of One Stop Shop for customers. In this regard, we provide employees with the opportunity to participate in job rotation. Job rotation involves moving employees through one or more positions outside of their functional units with a view to helping them to gain exposure to the full scope of an activity. The rotation of employees through one or more positions occurs from time to time subject to the operational requirements Shaping a diverse, inclusive workforce Diversity and inclusion are strategic to our business. A workforce with a broad range of backgrounds, perspectives and experiences drives innovation and makes the business more resilient. It is a key success factor in an increasingly global, multi-faceted and competitive market. Diversity for us extends beyond gender, race, religion, ethnicity, disability, marital status and age to include other aspects like experience and family situations that individuals bring to the workplace. Inclusion for us, is about treasuring diversity and building a community of engaged employees. Consistent with our Code of Conduct, we have a zero-tolerance policy for discrimination and harassment in the workplace. In 2016, we revamped the innovation team by bringing on board a more multifaceted and millennial-oriented team to the committee. This team represents the interests of our younger employees. All employees are entitled to all benefits as per the Employee Act 2007 including maternity and paternity leave entitlements Getting the balance right Our workforce statistics as at December 2016, males to females, were 46% and 54% respectively. 21% of our employees are below 30 years of age, 67% are between ages years while 12% are over 50 years. Our workforce profile, including demographic indicators such as age and gender, is shown in the employee data section Integrated inclusive culture across the company At ICEA LION, employees enjoy a familial and enabling social environment where all employees feel the warmth, friendship and heartfelt support of colleagues. Well-structured and fun filled team building events are held regularly to motivate employees to take on new challenges, think outside of their normal routine. This has increasingly helped to break barriers and ignite creativity. The camaraderie experienced in the ICEA LION workplace, within an atmosphere that is uniquely cordial has been praised by employees, past and present. The process of developing strategic plans at corporate and departmental level involves staff at all levels through focus group sessions in a bottomup approach meant to ensure that staff are consulted about matters that affect them. Upon conclusion and approval of strategic plans, an elaborate cascading process is embarked upon to enhance staff appreciation of strategic goals at Company and departmental level. 55

56 PEOPLE WITH PURPOSE 9.17 Bringing people together The ICEA LION team provides forums through which also participates in Corporate Social Responsibility events sponsored by the Company. Section 10 below outlines the various initiatives the company has supported since These involve the Insurance Regulatory Authority Annual Cerebral Palsy Walk, The Association of Kenya Insurers Annual Medical Camps, the Insurance Institute of Kenya Annual Golf Charity Tournament, the Nairobi Hospital Annual Children s Heart Fund Charity Golf Tournament, the Kenya Diabetes Management Walk and many others. Closer to home, the ICEA LION family joined their neighbours, the Consolata Catholic Church to clean up a low income dwelling area known as the Deep Sea Slum. This is addition to numerous other engagements in this regard. There are also adhoc requests that come through from our Clients and Business Partners which are considered and adopted as required. Between 2015 and 2017, the ICEA LION team put in approximately 1805 hours of community service. For more information, see the Corporate Social Responsibility report under Section 10. The ICEA LION Family Fun Day is hosted annually. During the event, family members of employees interact with other employees and their families in an event full of fun and enjoyment. The function plays a major role in our efforts to break barriers across various divides, as well as engage with the wider ICEA LION family who we don t interact with in the office. Women represented 59% of our total workforce in the year We strive to continuously improve the working environment to enable us build women in talent pools. ICEA LION Staff and Family Members from one of the teams at the Family Fun Day Client engagements are hosted as required either on site or at various hotels across the country. ICEA LION has hosted several Client engagements over the years to interact with Clients outside the office environment. This takes many forms including cocktails, golf events, luncheons, breakfasts and so on. These take place countrywide in each town where we have a branch. Over the past 3 years, we have participated in several events and activities highlighting diversity and inclusion. In 2015, we co-sponsored the Women on Boards Network (WOBN) graduation event. WOBN is a body that is supporting the advancement of women in senior leadership positions Women in Management We have over the years increased the number of women in management positions and taken appropriate steps to support future female leaders. In 2016, the 32% of managers were women, up from 29% in the year A group selfie by the ICEA LION Team during the AKI Medical Camp in Naivasha

57 PEOPLE WITH PURPOSE 9.19 Making a difference through our Employee Volunteer Program Our employee volunteer program provides a way for our people to be change makers in society, within their local communities and globally. Employees are provided with opportunities to volunteer their time and skills to make a positive contribution to society. It complements local volunteer activities that have taken place over many years. Some employees are mentoring University Students through programmes such as AISEC. Other employees sit in industry round tables and contribute towards the development of emerging general insurance matters. This includes the marine committee, claims committee, anti-money laundering, risk management, ICT, marketing and so on. As outlined above, between 2015 and 2017, about 180 staff have engaged in corporate social responsibility engagement events. This has culminated in approximately 1805 hours of community support Safeguarding Health and Safety Ensuring a safe and healthy workplace is a fundamental part of our corporate responsibility. Our inclusive approach to Occupational Health and Safety (OHS) includes all persons who are employed by the Company. Our vision is zero major incidents and we work actively to prevent injuries and workrelated ill health. To avoid incidents and prevent work-related hazards, we apply a risk-based approach that is based on transparency and inclusiveness. We have over the past year made progress towards our target; to increase frequency and quality of incident reporting and handling, and to increase knowledge and awareness within incident handling for selected job roles. Competence and awareness are key to reducing major incidents. We have therefore set out training requirements as part of a comprehensive approach towards achieving a high standard of OHS performance. To fulfil our vision, in 2017 we launched our program designed to increase OHS training and awareness to OHS committee members and champions and eventually to all staff. This program includes the launch of an incident reporting tool which has been rolled out as part of the Governance Risk and Compliance system. Through this tool, incidents that occur throughout the organisation can be reported immediately. Follow-up actions can then be taken. In 2016, there were no ICEA LION fatalities. As part of our inclusive approach, we also address and report on agents and contractors. No workplace fatalities were reported among these. In 2016, only one workplace injury resulted in an employee being off-duty for more than three days Looking Ahead A job evaluation project is in place to gauge internal equity and fairness as well as deploy a salary survey that will inform employees how their salaries compare with the market. The planned survey will be specific to insurance and financial sector comparators. This is to be carried out in Other planned initiatives in 2017 include: Establishment of a fully- fledged crèche before the end of Gym facility: approval has been granted towards the establishment of a Gym facility within the Head Office. This project is ongoing and expected to be complete before end of In the interim, staff utilize the basement during lunch hour and afterhours for workouts facilitated by skilled instructors. This very popular initiative has been well received by the team including a Wellness Challenge that runs from June September The prizes for winners include cross trainers and other wellness and fitness related gifts. We are currently working on flexi-time policy for approval and implementation by the last quarter of Facts and Figures Our facts and figures are highlighted overleaf. 57

58 PEOPLE WITH PURPOSE 58

59 PEOPLE WITH PURPOSE HEADCOUNT % PER AGE GROUP 55.3% 59.5% 58% 39.3% 34.8% 37% 5.3% 5.7% 6% Under Over NEW HIRES BY GENDER NEW HIRE BY AGE Female Male Under Over 50

60 PEOPLE WITH PURPOSE STAFF ATTRITION RATE COMPANY - STAFF SEPARATION 5% 24 5% % Dismissal Resignations Restructuring EMPLOYEE LEARNING AND DEVELOPMENT 100% LEARNING COSTS PER EMPLOYEE (KES) 77% 44% 44% 42% 32% 53,952 71, , Percentage classroom learning penetration rate Average learning days per employee Percentage e-learning penetration rate

61 PEOPLE WITH PURPOSE OTHER PARAMETERS Exchange programs Number of staff surveys Wellness program Our Awards Speak For Us The Human Resource function has received the following industry level awards over the past years: : Winner - Deloitte s Best Company To Work For Insurance Sector : Winner - Deloitte s Best Company To Work For Insurance Sector : 1st Runners Up - Overall Deloitte s Best Company To Work For - Mid-Size Companies (under 500 employees) : 2nd Runners Up - Think Business Insurance Awards Training : Winner - Think Business Insurance Awards Training This is a testament to our people-centric focus as we aim to continually improve and deliver on our strategic pillar - to be the Employer of Choice. 61

62 10. ENVIRONMENTAL PROTECTION WITH PURPOSE Our journey towards excellence in corporate citizenship 10.1 Our beginnings as a socially responsible corporate Like any other process, the journey toward corporate citizenship at ICEA LION has been an evolving one. Previously, projects were deliberated on by a committee and the approved projects funded. The CSR focus areas between 2013 and 2015 were as illustrated below: 62 The tables below outline the Corporate Social Responsibility Initiatives ICEA LION Group has invested in between January 2013 and July The Group has invested Kes 22 Million in these initiatives. ICEA LION Life Assurance has met has met the costs to the tune of Kes 8.6 Million. Of this amount, Kes 5.9 Million falls under the Corporate Social Investment Strategy Project outlined further below. Once again, half that amount has been met by ICEA LION Life Assurance totaling Kes 2.93 Million.

63 ENVIRONMENTAL PROTECTION WITH PURPOSE National Level DUKE OF EDINBURGH'SAWARD SCHEME Under the President s Award, in conjunction with the Duke of Edinburgh s International Award Foundation, we supported the Seeing is believing initiative themed Connecting today s leaders with those of tomorrow. Our contribution was to cover the costs of feeding the youth throughout their climb of Mt. Kenya. One of our ICEA LION Group CEOs mentored the students and walked H.E. The President through their discussions. RHINO CHARGE We supported Team 23 during the 2016 Rhino Charge. The funds contributed work towards the conservation and protection of Kenya s mountain range ecosystems, the so-called Water Towers. Industry Level 2016 AKI MEDICAL CAMP In support of our industry, we joined in the Association of Kenya Insurers/Diabetes Management Centre Annual Medical Camp in Karagita Naivasha. IRA/CPSK Annual charity walk 2016 We supported the annual Insurance Regulatory Authority charity walk that aims to raise awareness about Cerebral Palsy. 63

64 ENVIRONMENTAL PROTECTION WITH PURPOSE 64 I SEE A LION LAUNCH At ICEA LION we like to think of ouselves as the King of the Financial Jungle and with that association, it is perhaps not unexpected that we are passionate about safeguarding the future of the Lion in Kenya; that almost forgotten noble and iconic beast that has unwittingly been relegated by the grand and beloved tusked giants, yet is a central part of this country s heritage. The population of lions in the wild has been noted to have decreased significantly throughout Africa and is currently at 20,000 with an estimated 2000 being from Kenya. The lion s official conservation status is threatened and vulnerable. Africa is synonymous with lions and people all over the world travel to Kenya to witness and experience our spectacular natural and wildlife wealth. Protecting lions in the wild is an important part of securing our economic future as a nation. At ICEA LION we strongly believe that our partnering with KWS and other world renown local conservationists insures the future of our economy. Our I SEE A LION Campaign, aptly named, is aimed at ensuring that future generations get to experience and SEE lions roam freely in the wild in future and not in captivity. ICEA LION s journey into lion conservation, in partnership with KWS, has resulted in the Company investing Kes 12M into conducting a Nationwide Lion Census and investing in Human-Wildlife Conflict Interventions. The Nationwide Lion Census: A key need for lion conservation teams and the country at large is to determine exactly how many lions we have in our 8 conservation areas. ICEA LION has partnered with KWS to the tune of Kes 12 Million to fund the census in the 4 regions where the census is yet to take place. The initial phase of our partnership with KWS will be to establish the actual population of lions in the entire country. This will form a baseline to determine the areas where the lion population is most vulnerable or at risk. We anticipate that the census will run for a period of about one and half years after which we will review the findings with KWS and related stakeholders. Human-Wildlife Conflict Intervention: Wealth creation strongly depends on consistency and sustainability, therefore they will be collaborating with communities within these areas working towards securing the future of the lion and in essence the future of Kenya s heritage. They identified Ewaso Lions in Samburu as an organization that has truly embraced sustainable conservations initiatives. They will continue to engage them and like-minded organizations to reduce human-wildlife conflict. The ICEA LION Group Board & Management and the KWS Director General interact with guests at the launch of the I SEE A LION initiative at Sankara Hotel in December 2016

65 ENVIRONMENTAL PROTECTION WITH PURPOSE No. Project Description Category Amount Kenya Paraplegic Organization Charity Golf Tournament Health 200, The Nairobi Hospital Children s Charity Heart Fund Golf Tournament Health 200, The Association of Kenya Insurers Annual Medical Camp Health 50, KCB Safari Rally Official Event Insurer June June 2014 Brand Equity - Sports 1,000, Kenya Diabetes Management and Information Centre Annual Diabetes Walk Health 100, Lewa Wildlife Conservancy Safaricom Lewa Marathon Brand Equity - Environment 200, Rhino Ark Charitable Trust Support of Rhino Charge Team Environment 100, Kahawa Garisson High School Project Education 300, August 7 Memorial Trust In Support of the Needy Special Projects - Support of Needy 100, SOS Children s Villages In Support of the Needy Children Special Projects - Support of Needy 100, Lions Club of Kenya Charity Golf Tournament Special Projects - Support of Needy 250, Faraja Cancer Support Trust Faraja Cancer Centre Development Health 2,000, Total Support Amount 4,600,000.00

66 ENVIRONMENTAL PROTECTION WITH PURPOSE No. Project Description Category Amount Alexis Foundation Charity Golf Tournament Education 75, Lewa Wildlife Conservancy Safaricom Lewa Marathon Brand Equity - Environment 500, Heart to Heart Foundation Heart Run (Karen Hospital) Health 50, Faraja Cancer Support Trust White Water Rafting - Official Event Insurer Health - 5 Faraja Cancer Support Trust Purchase of Branded Tee Shirts Health 200, Kenya Diabetes Management and Information Centre Annual Diabetes Walk Health 50, Insurance Regulatory Authority Cerebral Palsy of Kenya Annual Walk Health 100, The Nairobi Hospital Children s Charity Heart Fund Golf Tournament Health 100, The Association of Kenya Insurers Annual Medical Camp - Kamangu Primary - Kiambu Health 50, Amazing Maasai Marathon Supporting Girl Child Secondary Education in Maasailand - Official Event Insurer 11 The Kenya Red Cross Annual Gala Dinner for the Disaster Kitty Education 130, Special Projects - Disaster Preparedness 300, Total Support Amount 1,555, Insurance Institute of Kenya IIK Annual Charity Golf Tournament Special Projects - Support of Needy 50, Special Olympics Kenya 3 Air Tickets for Special Olympics Swim Team Special Projects - Sports 500, Insurance Regulatory Authority Cerebral Palsy of Kenya Annual Walk Health 20, Lewa Wildlife Conservancy Safaricom Lewa Marathon Brand Equity - Environmnet 300, The Association of Kenya Insurers 6 Consolata Youth Rehabilitation Programme Annual Medical Camp - Ngurubaini Primary School - Mwea COYREP & ICEA LION Visit to Clean Up Deep Sea Slum Health 70, Brand Equity - Environment 100, The Nairobi Hospital Childrens Charity Heart Fund Golf Tournament Health 100, Wema Centre Trust Annual Fund Raising Dinner Special Projects - Support of Needy 250, Help Baby Ivannah Medical Bill Support For The Late Baby Ivannah Special Projects - Support of Needy 30, KCB Safari Rally Official Event Insurer Jun Dec 2015 Brand Equity - Sports 3,000, Total Support Amount 4,420,000.00

67 ENVIRONMENTAL PROTECTION WITH PURPOSE No. Project Description Category Amount Insurance Institute of Kenya IIK Annual Charity Golf Tournament Special Projects - Support of Needy 50, Kenya Diabetes Management & Information Centre Annual Diabetes Walk Health 50, Faraja Cancer Support Trust White Water Rafting - Official Event Insurer Health - 4 Lewa Wildlife Conservancy Safaricom Lewa Marathon Brand Equity - Environment 300, Association of Kenya Insurers Joint Insurers Pensions Awareness Campaign Special Projects - Financial Literacy 1,000, Jockey Club of Kenya - Horse Derby 111th Kenya Derby Prize Money for Riders Brand Equity - Sports 1,000, Jockey Club of Kenya - Horse Derby Social Media Boosting to Advertise Event Brand Equity - Sports 17, Duke of Edinburgh s Presidential Award Scheme Feeding Youth During Mt. Kenya Climb Education 500, Insurance Regulatory Authority Cerebral Palsy of Kenya Annual Walk Health 20, East African & Kenya Motor Sports Club 11 East African Motor Sports Club FIM MotoCross Of African Nations 2016 Brand Equity - Sports 500, Refurbishing 16 Spectator Stands and Constructing 14 new ones Brand Equity - Sports 1,397, The Association of Kenya Insurers Annual Medical Camp - Karagita - Naivasha Health 85, Ewaso Lions - Lion Conservation Project Ewaso Lions - Lion Conservation Project Warrior Watch and Lion Monitoring Equipment Corporate Social Investment Initiative 862, Production of the Lion Conservation Video Corporate Social Investment Initiative 3,838, Total Support Amount 1,555, The Association of Kenya Insurers 2 Insurance Institute of Kenya IIK Annual Charity Golf Tournament 2017 Annual Medical Camp - Gatanga - Thika Health 85, , , Special Projects - Support of Needy 50, , , Faraja Cancer Support Trust White Water Rafting - Official Event Insurer Health Lewa Wildlife Conservancy Safaricom Lewa Marathon Brand Equity - Environment 500, , ,

68 ENVIRONMENTAL PROTECTION WITH PURPOSE No. Project Description Category Amount 5 6 I SEE A LION Conservation Project I SEE A LION Conservation Project 2017 (continued) Promoting the Lion Conservation Video & Initiative on Social Media (Facebook, Instagram & YouTube) KWS Methodology & Standardization Corporate Social Investment Initiative Corporate Social Investment Initiative 600, , , , , , Total Support Amount 21,998, ,574, ,424, Our Corporate Social Investment Strategy #I SEE A LION From 2014, ICEA LION began the journey departing from Corporate Social Responsibility that was more philanthropic and short term, toward Corporate Social Investment. The strategy was to find a single, impactful cause for which the ICEA LION Brand could be associated with. Further, the sustainability and the social enterprise tenets across the value chain were critical. The Lion Conservation project selected ticked the following boxes: 1. Adhered to ICEA LION Group s corporate governance sustainability policy that enhances sustainability of social and natural environments. 2. Adopted business excellence tactics: One of the 7 parameters of the Organizational Performance Index (OPI). 3. Supported a single, impactful and emotive cause that we can own and be associated with for posterity. 4. Created the opportunity to trailblaze for the industry in our execution. 5. Linked to our Corporate Mission Creating & Protecting Wealth. 6. Linked to our Corporate Brand (LION). At ICEA LION, we like to think of ourselves as the King of the Financial Jungle. It was a natural fit to inculcate the passion to safeguard the future of the Lion in Kenya; that almost forgotten noble and iconic beast that has unwittingly been relegated by the grand and beloved tusked giants, yet is a central part of this country s heritage. Following sessions and conferences held with KWS at their Carnivore Conference, the passion to save this vulnerable/threatened icon of East Africa was born. This passion burned through from the team that conceptualized the idea, to the Management Team who endorsed it, right through to Board who approved the strategy in November Included in the approval was the decision to minimize the previously supported philanthropic Corporate Social Responsibility initiatives.these were to be supported only when necessary. The adopted project not only demontrated true sustainability in the viability of projects that ICEA LION could support, but also impacted the socio-economic prosperity of East Africa. The population of lions in the wild has been noted to have decreased significantly throughout Africa and is currently at 20,000 with an estimated 2000 being from Kenya. The lion s official conservation status is threatened and vulnerable. Africa is synonymous with lions and people all over the world travel to Kenya to witness and experience our spectacular natural and wildlife wealth. Protecting lions in the wild is an important part of securing our economic future as a nation. As an organization we strongly believe that our partnering with KWS and other world renown local conservationists insures the future of our economy. Our I SEE A LION Corporate Social Investment Campaign, aptly named, is aimed at ensuring that future generations get to experience and SEE lions roam freely in the wild in future and not in captivity. The I SEE A LION name is intriguingly close to what some people call us I-C-A-LION as opposed to I.C.E.A LION our actual name. It is as

69 ENVIRONMENTAL PROTECTION WITH PURPOSE though our connection with lions was always meant to be. Our journey into lion conservation, in partnership with KWS, has involved our teams attending the KWS Carnivore Conferences over the past few years to understand the true need of the lion conservation teams. We identified two key initiatives in this regard: 1. The Nationwide Lion Census: A key need for lion conservation teams and the country at large is to determine exactly how many lions we do have in our 8 conservation areas. We have partnered with KWS to the tune of Kes 12 Million to fund the census in the 4 regions where the census is yet to take place. The initial phase of our partnership with KWS will be to establish the actual population of lions in the entire country. This will form a baseline to determine the areas where the lion population is most vulnerable or at risk. The Census would essentially run for a period of about two years after which we will review the findings with KWS and related stakeholders. ICEA LION funded the KWS and conservation partners methodologies and standardization workshop in July 2017 to the tune of Kes 0.5 Million. The workshop was conceptualized to ensure that we are effective in use of resources time and money to get the most value out of the investment. The census is scheduled to commence in September The scoped census areas include Lake Nakuru National Park, Machakos & Athi Kapiti Plains, Amboseli National Park and Meru Conservation Area. The investment for the 2017 period will be approximately Kes 5.5 million. 2. Human-Wildlife Conflict Intervention: Wealth creation strongly depends on consistency and sustainability, therefore we will be collaborating with communities within these areas working towards securing the future of the lion and in essence the future of our heritage. We identified Ewaso Lions in Samburu as an organization that has truly embraced sustainable conservations initiatives. Since 2007, Ewaso Lions has used science, education, and local capacity building to guide and facilitate long-term carnivore conservation in northern Kenya. Their flagship community programme, Warrior Watch Programme, engages the Samburu warriors in conservation in Northern Kenya through various community and research activities. They aim to strengthen and scale up our research activities by employing efficient and effective methods in our lion and wildlife monitoring across our study area. In November 2017, ICEA LION supported Ewaso Lions with Kes 0.9M to facilitate their various lion monitoring programmes. ICEA LION also invested Kes 3.8 million to develop a captivating and engaging video to showcase Ewaso Lions efforts whilst starting the movement amongst Kenyans to #JoinTheMovement with regards to lion conservation The video has had tremendous success on our social media platforms namely Facebook, Instagram and YouTube. There were over 100,000 views on Facebook and a little over 100,000 on YouTube. The video can be viewed on the ICEA LION website www. icealion.com/corporate-downloads. We will continue to engage them and like-minded organizations to reduce human-wildlife conflict. The ultimate objective is to establish informed initiatives in the high risk areas that are relevant to the longevity of our lion population and essentially impact the creation of wealth through tourism. Our goal is to restore the pride, to bring focus to our heritage the lion - as seen on our coat of arms as a symbol of strength, unity and security. The digital and social media space will be a critical factor in sharing this journey with lion enthusiasts, particularly the youth who are quite keen on conservation. ICEA LION Group is a Kenyan owned brand known for providing reliable insurance solutions as well as rewarding investments. We seek to change the perception that money spent on insurance is a waste and rather have people understand that securing what is important to them is worth the investment. Our Heritage is important to us. We wish to secure it. We are keen to lead the charge on changing customer perceptions around insurance and investment products beyond the confines of the corporate world. Most vitally, we wish to challenge ourselves to support initiatives that have actual impact on our heritage, economy and our future as a nation. As a result of our shift from Corporate Social Responsibility (CSR) to Corporate Social Investment (CSI), and indeed our commitment to sustainability, ICEA LION was in July 2017 awarded with the following award: 2017: 1st Runners Up - Think Business Insurance Awards Best Insurer in Sustainable CSR 69

70 ENVIRONMENTAL PROTECTION WITH PURPOSE 10.3 Responsible Consumption We continuously work to reduce the carbon footprint of our activities. This has been largely driven by the Mulika Gharama project initiated by the HR department in conjunction with the innovation committee in the year This project aims to encourage employees to identify areas where wastage and consumption can be reduced from paper. Various internal communication programs were initiated resulting in reduced consumption as highlighted in the facts and figures section. economy model, ICEA LION started the use of Corporate Uber as a means of reducing motor vehicle, time and energy costs. We have also reduced our footprint through the use of plan offices. We regularly conduct energy audits which will assist us in meeting the Energy Regulatory Commission Guidelines. In our day to day operations, automation and an automated document management system deployed in 2014 has led to reduced paper usage. Some staff members have opted for to e-newspapers as a means of reducing paper usage. We have a four-pronged approach: 1. Reducing energy usage in facilities (offices and data centres). 2. Reducing use of paper. 3. Reducing business travel impact. 4. Improving fleet vehicle management. 70 We recognise that we still have some way to go in these area. Towards the end of 2017, we will set environmental performance baselines as we set up an Environmental Management System (EMS). The importance of environmental protection to minimise business related environmental risks and maximise environmental benefits such as sustainability, recycling, waste minimisation, pollution prevention and ecological preservation forms a key part of our operating philosophy going forward Facility Energy Usage As part of our focus towards environmental sustainability, we are intent on measuring, monitoring and lowering our carbon footprint. Our carbon emissions have been measured according to the general accepted standards of the Greenhouse Gas (GHG) Protocol. In measuring this, we have limited our energy consumption to electricity as well as motor vehicle and fuel consumption. As we mature in this process, we will include air travel and water consumption with an aim to move towards a more environmentally way of operation. In future reports, we will track the carbon footprint from our subsidiaries. Various strategies were deployed in 2016 including the release of 4 company owned vehicles. Apart from that in pursuing the shared The Mulika Gharama Campaign wall mural inside the ICT Department 10.5 ICT and Green Technology at ICEA LION With rising energy consumption, global warming and e-waste, we have deliberately taken into serious consideration the concept of green computing as our contribution to best practice for sustainable development. We have aligned our ICT processes and practices to find innovative and alternative ways of using ICT across the organisation and beyond to deliver environmental benefits.

71 ENVIRONMENTAL PROTECTION WITH PURPOSE Our initiatives include: 1. Intelligent Cooling Systems 2. Multi-Core Computing Systems 3. Energy Efficient Servers 4. Clustering And Virtualization 5. Load Distribution 6. Processing Units Power Management 7. Energy Efficient Data Centre These initiatives are elaborated below: 1. Green Deployment Virtualization Our data centre runs all our core application systems on a virtualized environment that has eliminated the need for dedicated servers for applications, allowing for the running of multiple operating system on minimal hardware at optimal performance. Our server footprint has reduced 15-fold. Cloud computing We have migrated some of our processes to cloud computing providers who are focused on environmental sustainability. We have adopted cloud deployments for services such as , business intelligence, back-ups and disaster recovery with sustainability cloud providers such as Google Cloud, Microsoft Azure and Chartio. 2. Green Disposal and Re-use 3. Data Centre Sustainability improvements In building our data centre towards eco-friendliness, the following targeted initiatives have been implemented. Air reticulation Our data centre design has incorporated the separation of the cold and hot aisles to reduce cooling power required. With this, our data centre air conditioning systems settings have been adjusted up by 4 C leading to a reduction in energy consumption. Cooling System We deployed in-row self-contained air conditioners by Tripplite that provide large amounts of cooling power for much less electrical power compared to traditional cooling systems. This combined with air reticulated design of the data centre has resulted in reduction of cool air leakages and allowed for the reduction of run time of the installed Air conditioners from full time run to every other week. 4. Green Use of Technology Wireless Telecommuting Our Head Office has deployed wireless connectivity across all offices and meeting rooms. This allows meetings to take place without the need for paper reports. Paperless processing We have implemented end to end document processing system and automated workflows which has ensured elimination for papers flows across offices. We have partnered with our vendors for recycling used equipment and parts such as inverter power back batteries which are collected upon expiry of recommended run time and recycled in socially and environmentally desirable processing and re-use methodologies. Replaced computing equipment are appraised and reused within the organisation. 71

72 OUR ACHIEVEMENTS OUR AWARDS & ACCOLADES 2013 Winner Think Business Life Assurer of the Year 2014 Winner Think Business Life Assurer of the Year 2015 Winner Think Business Life Assurer of the Year 2016 Winner Think Business Life Assurer of the Year 2017 Winner Think Business Life Assurer of the Year 2016 Winner Think Business -Lifetime Achievement Award Life Assurance CEO Justus Mutiga st Runners Up ICPSK-Champions of Governance - CEO of the Year Justus Mutiga 2015 Winner ICPSK - Champion of Governance Awards Company Secretary of the Year - Kennedy Ontiti 2015 Winner ICPSK - Champions of Governance Awards Insurance Sector 2016 Winner ICPSK - Champions of Governance Awards Company Secretary of the Year - Kennedy Ontiti nd Runners Up ICPSK - Champions of Governance Awards Insurance Sector 2014 Winner Deloitte s Best Company To Work For Insurance Sector 2015 Winner Deloitte s Best Company To Work For Insurance Sector Winner 1st Runners Up - Overall Deloitte s Best Company To Work For Mid-Size Companies (under 500 employees) Think Business Awards Inaugural Corporate Risk Manager of the Year - Dorothy Maseke 2014 Winner Think Business Awards Risk Management Award 2015 Winner Think Business Awards Risk Management Award st Runners Up Think Business Awards Risk Management Award nd Runners Up Think Business Insurance Awards Training 2016 Winner Think Business Insurance Awards Training 2014 Winner Institute of Customer Service - ICS - Insurance Sector 2014 Winner Think Business Insurance Awards Customer Service 2016 Winner Think Business Insurance Awards Customer Service 2016 Winner Think Business Insurance Awards Customer Satisfaction st Runners Up Think Business Insurance Awards Customer Service 2015 Winner Think Business Insurance Awards Claims Settlement st Runners Up Think Business Insurance Awards Claims Settlement st Runners Up Think Business Insurance Awards Claims Settlement st Runners Up AKI Agents of the Year Award - Company of the Year st Runners Up AKI Agents of the Year Award - Overall Agent of the Year 2014 Top 10 qualified AKI Agents of the Year Award - 6 Agents Qualified 2014 Top qualified AKI Agents of the Year Award - 25 Agents Qualified 2015 Winner AKI Agents of the Year Award - Best Loss Ratio st Runners Up AKI Agents of the Year Award - Most Improved Company nd Runners Up AKI Agents of the Year Award - Company of the Year st Runners Up AKI Agents of the Year Award - Overall Agent of the Year 2015 Top 10 qualified AKI Agents of the Year Award - 5 Agents Qualified 2015 Top qualified AKI Agents of the Year Award - 24 Agents Qualified st Runners Up AKI Agents of the Year Award - Company of the Year st Runners Up AKI Agents of the Year Award - Overall Agent of the Year 2016 Top 10 qualified AKI Agents of the Year Award - 5 Agents Qualified 2016 Top qualified AKI Agents of the Year Award - 20 Agents Qualified OUR MEMBERSHIPS Platinum Member Member Member OUR RATINGS American Chamber of Commerce Association of Kenya Insurers Insurance Institute of Kenya The Company has been rated at AA-(KE); with the outlook accorded as Stable Winner Think Business Insurance Awards ICT st Runners Up Think Business Insurance Awards Marketing Initiative of the Year Winner Think Business Insurance Awards Best Insurer in Product Marketing st Runners Up Think Business Insurance Awards Best Insurer in Sustainable CSR st Runners Up Association of Kenya Insurers Sports Day Champions 2017 Winner Insurance Institute of Kenya Annual Quiz

73 GRI CONTENT INDEX GRI Standard Disclosure General Disclosures GRI 102: General Disclosures 2016 Disclosure Organizational Profile Page Number(s) and/or URL(s) Name of the Organization Cover page Activities, brands, products, and services Location of headquarters Location of operation Ownership and legal form Markets served Scale of the organization 13, Information on employees and other workers 19, 20, 21, Omission Supply chain Partially covered ICEA LION aims to develop a detailed supply chain map for Significant changes to the organization and its supply chain Precautionary principle or approach Not available Not available External initiative Not available Membership of association 72 Strategy Statement for senior decisionmaker Ethics and Integrity Values, principles, standards, and norms of behaviour Governance 7 and 9 3, 7-10, Governance 3, 7, 10, 22-25,

74 GRI CONTENT INDEX 74 GRI Standard Disclosure GRI 102: General Disclosures 2016 Disclosure Stakeholder engagement Page Number(s) and/or URL(s) List of stakeholder groups Partially covered; Collective bargaining agreements Identifying and selecting stakeholders Approach to stakeholder Engagement Key topics and concerns raised Reporting Practice Entities included in the consolidated financial statements Defining report content and topic boundaries N/A Omission Partially covered; ICEA LION aims to develop a stakeholder map for 2018 Partially covered; ICEA LION will develop a stakeholder engagement plan for 2018 Not available List of material topics Partially covered 4 4 ICEA LION to include external stakeholders in its materiality assessment Restatements of information N/A This is ICEA LION s first sustainability report Changes in reporting N/A This is ICEA LION s first sustainability report Reporting period Date of most recent report Reporting cycle Contact point for questions regarding the report Claims of reporting in accordance with the GRI standard GRI content index External assurance Partially reviewed ICEA LION will seek complete external assurance for its sustainability report in 2018

75 GRI CONTENT INDEX GRI Standard Disclosure Disclosure Page Number(s) and/or URL(s) Omission Material Topics Market Presence GRI 103: Market Management Approach 2016 GRI 202: Market presence Explanation of the material topic and its boundaries The management approach and its component Evaluation of the management approach Proportion of senior management hired from the local community 14 14, , Energy GRI 103: Management approach 2016 GRI 302: Energy Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach Energy consumption within the organization Energy consumption outside the organization Reduction of energy consumption Not available ICEA LION will disclose energy parameters from the branches and other subsidiaries Employment GRI 103: Management approach Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach

76 GRI CONTENT INDEX 76 GRI Standard Disclosure GRI 401: Employment Disclosure Occupational Health and Safety GRI 103: Management approach GRI 403: occupational Health and safety 2016 Training and Education GRI 103: Management approach 2016 GRI 404: Training and education New employee hires and employee turnover Benefits provided to full-time employees that are not provided to temporary of part-time employees Page Number(s) and/or URL(s) 55, Parental leave Explanation of the material topic and its boundaries The management approach and its components evaluation of the management approach Workers representation in formal joint management-worker health and safety committees Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Workers with high incidence or high risk of diseases related to their occupation Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach Average hours of training per year per employee 50-51, 57, , 57, , 57, Not available Omission

77 GRI CONTENT INDEX GRI Standard Disclosure GRI 404: Training and education 2016 (Continued) Disclosure Programmes for upgrading employee skills and transition assistance programmes Percentage of employees receiving regular performance and career development reviews Page Number(s) and/or URL(s) 49, 52-55, 57 49, 52-55, 57 Omission Diversity and Equal Opportunities GRI 103: Management approach Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach GRI 405: Diversity and equal opportunities Diversity of governance bodies and employees Non-discrimination GRI 103: Management approach Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach 20-21, , , GRI 406: Nondiscrimination Incidents of discrimination and corrective actions taken None noted in the period under review Child Labour GRI 103: Management approach Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach N/A N/A N/A The company does not hire anyone under the legal working age 77

78 GRI CONTENT INDEX GRI Standard Disclosure GRI 408: Child Labour Local Communities GRI 103: Management approach 2016 GRI 413: Local Communities Indirect Economic Disclosure Operations and suppliers at significant risk for incidents of child labour Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach Operations with local community engagement, impact assessments, and development programmes Operations with significant actual and potential negative impacts on local communities Page Number(s) and/ or URL(s) N/A Omission The company does not hire anyone under the legal working age Social impact assessment is one of the targets placed for Social impact assessment is one of the targets placed for GRI 103: Management approach 2016 GRI 203-1: Indirect economic impact Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach 203-1: Infrastructure investments and services supported 32-33, , , , 40, 39-47, Procurement Practices 78 GRI 103: Management approach Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach

79 GRI CONTENT INDEX GRI Standard Disclosure GRI : Procurement practices Water GRI 103: Management approach 2016 GRI 303-1: Water withdrawal by source Disclosure Proportion of spending on local suppliers Explanation of the material topic and its boundaries The management approach and its components Evaluation of the management approach Page Number(s) and/or URL(s) Partially covered Partially covered Partially covered Water withdrawal by source Partially covered Omission ICEA LION s water consumption will be supported as part of environmental baselines in 2018 ICEA LION s water consumption will be supported as part of environmental baselines in 2018 ICEA LION s water consumption will be supported as part of environmental baselines in 2018 ICEA LION s water consumption will be supported as part of environmental baselines in

80 ICEA LION Centre Riverside Park, Chiromo Road, Westlands P.O. Box Nairobi Tel: +254 (0) Mobile: Customer Center: Kenyatta Avenue Branch ICEA Building, 15th Floor Tel: +254 (0) Mobile: University Way Branch Ambank House, 9th Floor Tel: +254 (0) Mobile: Westlands Branch Unga House, 3rd Floor Tel: +254 (0) Mobile: Karen Branch Karen Office Park, 1st Floor Tel: +254 (0) Mobile: st Floor st Floor Eldoret Branch Sakong House, Kenyatta Street P.O. Box Eldoret Mobile: Nakuru Branch Seguton Building, 1st Floor Kenyatta Avenue P.O. Box Nakuru Mobile: Nyeri Branch Konahauthi Building, Kimathi Way P.O. Box Nyeri Mobile: Thika Branch Zuri Centre, 4th Floor Kenyatta Highway P.O. Box Nairobi Mobile: Meru Branch Tusky s Building, Mwendato Road P.O. Box Meru Mobile: ICEALION.com Better Together