Structuring: Uses a portfolio of on and offshore insurance licenses and technical specialist skills to create tailored financial solutions.

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1 CREDIT INSURANCE

2 ABOUT SANTAM Santam is the leading general insurance group in SA. Through our partnership with Sanlam Emerging Markets (SEM), we have investments and clients in 32 countries in Africa, the Middle East, Southeast Asia and China. We have built a diverse group that stretches into all areas of general insurance, across personal, commercial, agriculture and specialist markets. About Santam Structured Insurance Santam Specialist Business drives the group s growth and diversification strategy into niche segments. The business has grown organically through the purchase of other businesses, including Santam Structured Insurance. Santam Structured Insurance, which encompasses trade credit insurance and risk finance, has given Santam access to new clients and markets. The Santam Structured Insurance business uses a portfolio of onand offshore insurance licenses, complemented by highly specialised skill sets to create tailored financial solutions aimed at optimising capital structures and enhancing profitability.

3 WHY INSURE WITH SANTAM STRUCTURED INSURANCE (SSI) We are backed by Santam, the leading general insurer in Africa. We are an industry innovator in specialist insurance structuring; offering partners and clients individually designed financial solutions. Our team is uniquely positioned to assist clients in the rapidly changing insurance regulatory environment. 1 Our team of specialists work closely together to combine insurance, underwriting and financial knowledge to harness synergies and drive six business pillars: Structuring: Uses a portfolio of on and offshore insurance licenses and technical specialist skills to create tailored financial solutions. Strategic investments: Explores opportunities to invest in existing or start-up businesses in order to create value and achieve shared business goals. Underwriting solutions: Enables organisations to offer an existing client base bespoke insurance products, creating new revenue streams. Risk finance: Offers alternative risk transfer solutions for businesses looking to benefit from their own effective risk management procedures. Credit insurance: Provides trade credit insurance to protect businesses against loss due to payment default on trade receivables. Supply chain finance: Unlocks value in the supply chain by enabling suppliers to be paid early while allowing buyers to maximise payment terms with their suppliers. ABOUT CREDIT INSURANCE Offering open terms to your customers makes you more competitive and levels the global playing field. But can you afford to foot the bill if your customer doesn t pay? Our clients operate in most sectors and are companies of all sizes. Our service: While credit insurance will indemnify you against losses incurred if your customers fail to pay their trade debts, the pro-active approach of our credit management services is to help your business avoid bad debt losses from occurring in the first place. The key is having the best information about companies, countries, sectors and economic trends in order to make informed credit decisions, minimize losses and expand into new markets. Our offering: Bespoke credit insurance solutions to meet your business s specific needs, whether you trade locally, export or are engaged in trade financing activities. Innovative products which are relevant to the market and to business requirements. Includes performance and no-claims bonuses, flexible premiums and risk retention options.

4 2 VALUE ADDED SERVICES AS A POLICYHOLDER YOU WILL RECEIVE Access to a dedicated team of risk analysts to assess customer risk. A professional mitigation team to assist you in securing payment plans, business rescue and liquidation matters. A dedicated specialist claims team to help you collect your overdue accounts. Access to a team of underwriting specialists. Access to our latest micro and macro economic overviews by our economist. Access to an online portal to apply for and monitor your credit limits, report and track your overdue accounts and manage your policy.

5 POLICY MECHANICS 3 You receive an application for credit from your customer Apply for a credit limit on your policy using the online customer portal SSI conducts assessment and approves or declines the limit Debtor defaults, and fails to respond to your final demand Submit your debtors ageing with your monthly declaration to SSI for premium purposes You advise your customer of the outcome and trade within the set limit Report overdue account to SSI using online portal Default is recorded against the debtor on the SSI platform SSI commences collection activities Salvage and costs are shared between SSI and yourselves Collection activities continue SSI settles claim

6 4 BENEFITS OF A CREDIT INSURANCE POLICY Strengthens the credit management processes Provides access to a dedicated team of credit professionals Facilitates credit sales expansion Enhances borrowing opportunities Enhances peace of mind Protects profitability and improves cash flow Reduces bad debt provisions

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8 6 CASE STUDIES CASE STUDY 1 We received a notification of non-payment of R4 million from one of our policyholders. Our team immediately made contact with the debtor and conducted a commercial assessment of the debtor s business. We established that the business was almost entirely reliant on government tenders, which while lucrative, resulted in delayed payments from government resulting in temporary cash flow difficulties. We determined that the best course of action would be to facilitate a structured repayment schedule. This was duly arranged and full payment was received in stages over two months. Due to our involvement in the matter at a very early stage; and working hand in hand with the debtor, we were able to save our policyholder extensive legal costs and a lengthy legal process that could have resulted in the liquidation of the business and loss of many jobs. CASE STUDY 2 We insure the debtor s book of an importer of branded clothing and handbags. This company, which holds the distribution licenses for major international clothing brands, was on the verge of obtaining its first order from a large and well known South African department store. After an in-depth analysis of this retailer s situation, we warned the company of the customer s nonpayment risk. The CEO was nevertheless prepared to proceed with this order, which would significantly increase the company s annual turnover. The CFO decided to request a meeting with our underwriter who convinced him of impending financial difficulties with the potential customer. In the end, the company passed up the deal and left it to a competitor. That competitor was never paid by the retailer, which filed for business rescue just a few weeks after the meeting with us. The competitor held no protection for the debt and ended up suffering major cash flow constraints it was unable to recover from; and was subsequently liquidated.

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10 8 CONTACT DETAILS HEAD OFFICE Santam Structured Insurance Limited 7th Floor, Alice Lane Building 3 Corner Alice Lane and 5th Street Sandton T: Santam Structured Insurance Limited (FSP 1027) NATIONWIDE SALES Chantelle Davies T: C: chantelle.davies@santam.co.za Lorraine Abbott T: C: lorraine.abbott@santam.co.za COMPLIANCE OFFICER Lisa Teixiera ssi.compliance@santam.co.za T:

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12 Santam Structured Insurance Limited (FSP 1027)