About the Sanlam Group

Transcription

1 About the Group About this report Operational structure The Corporate Office of the Group is responsible for a set of centralised functions, as shown below. Our financial products and are provided through four clusters, each containing a set of entrepreneurial business units. Each cluster has its own board of directors with delegated authority levels governing the execution of the principles and standards set by the Board. 5 We are a leading financial group, originally established as a life insurance company in 98. We demutualised and listed on the JSE Limited and Namibian Stock Exchange in 998. Our head office is in Bellville near Cape Town in South Africa. financial R6 879 million (0: R5 9 million) Group Office Responsible for Group strategy, capital management and capital allocation to clusters. The following Group functions provide Group-wide support and coordination: Finance Actuarial and Risk Management Information Technology Human Resources Market Development Brand Services financial -R07 million (0: -R6 million) Personal Finance Emerging Markets Investments Santam Responsible for s retail business in South Africa. It provides clients across all market segments (entry-level, middle-income and affluent) with a comprehensive range of appropriate and competitive financial solutions. Designed to facilitate long-term wealth creation, protection and niche financing, these solutions are engineered around client needs. financial R 76 million (0: R 90 million) 5% Responsible for s financial offering in emerging markets outside South Africa with the aim of ensuring sustainable delivery and growth across the various businesses that make up this cluster. financial R million (0: R 0 million) 8% Provides retail and institutional clients in South Africa, the UK and elsewhere in Europe access to a comprehensive range of specialised investment management and risk management expertise. financial R 68 million (0: R 0 million) % Specialises in general insurance products for a diversified market in South Africa. These include personal, commercial, agricultural and specialised insurance products. Santam s international diversification strategy focuses on reinsurance business, specialised insurance products and the role as technical partner and co-investor in Emerging Markets expansion into Africa, India and South-East Asia. financial R80 million (0: R million) % Sustainability Report 0 9

2 About the Group continued Our vision To be the leader in client-centric wealth creation and protection in South Africa, to lead that process in emerging markets, and play a niche role in developed markets. What we achieved Value creation for stakeholders What we offer our clients Products and Shareholders RoGEV 8,5% financial R6,9 billion Life Insurance Risk products Monetary benefit for unexpected events death, disability, trauma, retrenchment Investment products Wealth accumulation and providing for income at retirement through a full range of investment options that offer varying levels of investment guarantees Clients Policy benefits paid and increase in value of policies R, billion 90,6% of funds under management outperforming benchmark over three years Employees, agents and brokers Employee benefits and sales remuneration R, billion Training and development spend R70 million General Insurance Investment Management Credit and structuring Monetary benefit to compensate for loss of physical property, loss of trading income or liability incurred. Includes motor, property, aviation, crop, engineering, guarantee, liability, accident, transportation and alternative risk transfer Retail client solutions Savings options through a wide range of collective investment schemes. Wealth management, including stockbroking Institutional client solutions Traditional and specialist asset management in South Africa and abroad Retail client solutions Personal loans Traditional banking Institutional client solutions Asset-based financing Debt origination and structuring Asset-liability management Equity and interest rate derivatives Collateralised lending Society CSI spend R67 million Empowerment and infrastructure financing R5,9 billion Direct and indirect taxes paid R,9 billion Carbon footprint reduction per FTE 8% Reduction in electricity usage 5% Administration, Health and Other Financial needs analysis and advice Estate planning Trusts Wills Health management Retirement fund administration Focus areas of Group strategy: Earnings growth Optimal capital utilisation Operational efficiencies Diversification Transformation 0 Sustainability Report 0

3 Our business model We provide financial solutions to retail and institutional clients across a number of market segments and geographies. In line with our philosophy of client-centricity and treating customers fairly, we provide appropriate advice and products to our clients, at a fair price, tailored to their specific needs and circumstances. This we achieve through the application of a number of resources, the most important of which are our people (financial, actuarial, risk management and other skills) and the financial capital that we hold as a safeguard against the risk of potential life events. About the Group What we spend it on Activities What we use Value deployed 5 Product management Investment management Asset-liability matching Experience analysis Governance of participating products Financial capital Group Equity Value: R95,9 billion Subordinated debt: R billion Public listings on the JSE Limited and Namibian Stock Exchange afford us access to share capital. Our financial strength also enables us to issue subordinated debt as part of our capital structure. Distribution and client support Product development Business support Agents South Africa: 5 68 Rest of Africa: 6 India: Malaysia: 07 Brokers South Africa: 79 Client support Administration Actuarial Human resources Information Technology Retail client solutions Other Bancassurance Affinity groups Direct Institutional client solutions Business support Financial and management accounting Actuarial valuations Regulatory reporting Human resources Information technology Human capital Employees: 98 Agents: We depend on the individual competencies, capabilities, talent and experience of our employees to manage the business efficiently, understand client needs, develop and distribute appropriate products and and effectively manage the risks we are exposed to. Intellectual capital We depend on and continually refine our proprietary structures, systems and protocols such as our actuarial research, enterprise risk management, product development and distribution structures. Physical capital Owner-occupied properties: R, billion Equipment: R0,7 billion The majority of our staff is housed in the, Santam and Investments head offices in Cape Town. We also have additional offices and branches across the regions where we operate. We make use of IT equipment throughout and depend on the existing infrastructure such as road and air travel, as well as ICT communication technology. Capital and risk management Redeployment of discretionary capital Optimal allocation of financial capital to clusters Financial and actuarial risk management Regulatory compliance Social and relationship Brokers: 79 capital Shareholders: 85 8 Clients Business partners Government and regulators Society We rely on our relationships with key stakeholders as discussed in the online Sustainability Report Natural capital Carbon footprint: 5 09 tonnes Our direct impact is low and predominantly limited to electricity and water usage. We, however, invest on behalf of our clients in businesses that are very dependent on natural resources such as those in the mineral and mining sectors. Sustainability Report 0

4 About the Group continued Life insurance General insurance Investment management Credit and structuring Administration, health and other Sustainability Report 0

5 About the Group 5 Region financial South Africa R5 08 million Namibia R8 million Botswana R9 million Rest of Africa R5 million India R56 million Malaysia R56 million Other international R87 million Indirect presence via above operations Sustainability Report 0