Ian Kirk, Sanlam Group CEO. 28 August 2017

Transcription

1 Ian Kirk, Sanlam Group CEO 28 August 2017

2 Group strategic positioning Brief SEM overview The opportunity before us as an Industry Key priorities for SEM Expanding onto the African Continent and other Emerging Markets

3 To lead in client-centric wealth creation, management and protection in South Africa To be a leading Pan-African financial services group with a meaningful presence in India and Malaysia To play a niche role in wealth and investment management in specific developed markets. Our purpose to create a world worth living in and to enable people to live their best possible lives within it

4 100% 100% 100% 100% 62% Sanlam Personal Finance Sanlam Emerging Markets Sanlam Investments Sanlam Corporate Santam

5 Developed Asset & wealth management for SA & RoA clients South Africa Solid base & cash flows Rest of Africa Demographics, low insurance penetration, competitive environment, Pan- Africa opportunity India/SE Asia Lower income segments have similar dynamics than SA ELM and RoA

6 United Kingdom Ireland France Switzerland USA Sanlam and Saham presence Saham Finances presence Emerging Markets - Indirect presence Emerging Markets - Direct presence Developed Markets Luxembourg Niger Tunisia Algeria Morocco Niger Mali Senegal The Gambia Guinea Burkina Faso Cote D Ivoire Ghana Benin Togo Nigeria Cameroon Gabon Republic of the Congo Angola Namibia Botswana South Africa Lebanon Saudi Arabia Kenya India Uganda Rwanda Burundi Tanzania Malawi Zambia Mauritius Madagascar Mozambique Zimbabwe Swaziland Lesotho Philippines Malaysia Australia

7 African Life Shriram Life JV Aflife Shriram Life Shriram General Letshego Uganda 2012 Shriram Capital MCIS Soras Oasis MicroEnsur e EIC 2016 BIC Saham Pre Sanlam Namibia Shriram General JV FBN Life Nico Life Nico Holdings Namibia Medical P&O STFC CIH Nico General Santam Namibia Nico Vida Zimnat Gateway Saham II PineBridge

8 flexible and evolutionary approach simple strategy focus on execution passionate people partnerships (similar values and culture) entrust local boards and management to run operations support local job creation and skills development

9 9 SSA growth is underperforming world growth GDP, % y/y Source: IMF WEO April 2017, Standard Chartered Research

10 1 SSA s two largest economies saw weak Q1 GDP growth GDP growth, % y/y Source: NBS, STATS SA, Standard Chartered Research

11 1 Rank China 1341 India 1692 India India 1225 China 1296 China US 310 US 403 Nigeria Indonesia 240 Nigeria 390 US Brazil 195 Indonesia 294 Tanzania Pakistan 174 Pakistan 275 Indonesia Nigeria 159 Brazil 223 Pakistan Bangladesh 149 Bangladesh 195 DR Congo Russian Federation 143 Philippines 155 Brazil Japan 127 DR Congo 149 Philippines Mexico 113 Ethiopia 146 Bangladesh Philippines 93 Mexico 144 Uganda Viet Nam 88 Tanzania 138 Kenya Ethiopia 83 Russian Federation 126 Ethiopia Germany 82 Egypt 124 Mexico Egypt 81 Japan 109 Iraq Iran 74 Viet Nam 104 Egypt Turkey 73 Kenya 97 Zambia Thailand 69 Uganda 94 Sudan DR Congo 66 Turkey 92 Niger 188 Source: StanChart, UNPD 2010 and 2011 revisions, population in millions, high fertility case

12 SSA Rapid demographic growth, rapid urbanisation Africa s demographic dividend Strong consumption growth Less age dependency Higher returns Africa has the demographic advantage Working-age population (% of total) Source: UN population stats, Standard Chartered Research 12

13 Source: Swiss Re World Insurance in 2015

14 Ultimately, we want to be client centric as this is the best chance we have to ensure a sustainable industry. However, the journey to be client centric rests on a number of pillars.

15 The journey to Client Centricity Education (financial literacy & professional training) Distribution (Omni-channel) Regulatory (Prudential & Market conduct)

16 Education World Economic Forum says more kids are going to school, but quality of education is becoming an issue, due to: More kids in a class room Little expansion of school infrastructure Industry needs to support all efforts to drive bigger school enrolment with focus on quality education Focus is on improving maths & science enrollment levels and pass rates Consumer Financial Literacy Has to cover personal financial circumstances through to understanding insurance products (i.e. benefits & costs) Financially literate consumers is a strong antidote for high lapse rates True client centricity cannot happen when consumers are not financially literate A financially literate consumer is the cornerstone to our industry sustainability Industry Professional Training Systems and processes are core to our operational success Needs to be addressed over short to medium term Technical skills (i.e. actuarial) and expertise are relatively scarce and we have to build it over time Needs to be addressed over medium to longer term Assess for appropriate skills within insurers but also within regulator

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18 Product licensing Financial Control Market regulation Company licensing Role of the Regulator Consumer Protection

19 Benefits Assists with providing consumer confidence & trust + level playing field for insurers Ensures solvency to companies Fairness & financial benefits to consumers Issues Over regulation Appropriate or fit for purpose regulation No real cost benefit to either company or consumer Opportunities Continuously building trust through ethical business conduct Open and honest engagement with regulator Put client at center of all key decision making Impact Appropriate regulation will draw required investment Appropriate regulation will support insurers to provide real benefit to Appropriate low income consumers regulation will support sustainability of industry

20 Consumer Financial Education Client centric outcome Professional industry training Appropriate Regulation Distribution

21 Reputation Our products are intangible and integrity of the product is based on the promise we make to clients Issue of Trust is paramount in our industry This is amplified when industry players do not live up to promises they made Industry has to be seen as one which treats customers fairly

22 Key challenges in Africa Fragmented key markets (i.e. Kenya & Nigeria) General Insurance (GI) business opportunities greater than Life Require strong GI capability Continuous focus on basics and getting fundamentals right (i.e. systems, collections, renewals & persistency) Skills development opportunities for staff professional training & development Governance & ethics Risk management & compliance Regulation inconsistency

23 profitable growth and innovation by sweating our current footprint, entrenching strong governance principles and ensuring that there are sufficient capabilities to execute

24 local brokers

25 shift in focus from acquisitive to accelerated organic growth through specific focus on GI businesses explore new product offerings (health, PFA, reinsurance) increased visibility of Sanlam brand as partnership brand for markets and our employees deliver on corporate opportunities in Africa in support of retail and commercial business growth increased collaboration on human resource development across the cluster continued focus on governance, compliance and ethics industry consolidation/increasing shareholding/strategic partnerships where it makes sense

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