Investor Analyst Presentation Margaret Dawes 2 nd October 2014 - - PowerPoint PPT Presentation

Insurance Financial Planning Retirement Investments Wealth

Investor Analyst Presentation

Margaret Dawes

2nd October 2014

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

Our geographic footprint

countries we are in indirect presence via associate companies

SEM’s Direct Africa Interests

Company Group % Holding

Botswana BIHL 60% Namibia SNH 54% Nigeria FBNI 35% Ghana EL 49% ET 40% Kenya PAIHL 56% Uganda SLU 100% Niko General 49% Tanzania Aflife TZ 64% Niko TZ 33% Zambia Aflife Z 70% Nico Z 49% Malawi Nico Holdings 25% Nico Life 49% Nico General 49% Rwanda Soras Group 63%

Product and geographic diversification

2007 2014

Country Life Assurance Short-term Insurance Asset Management Credit/Banking Other* Botswana

• Burundi
• Ghana
• Kenya
• Malawi
• Mozambique
• Namibia
• Nigeria
• Rwanda
• Tanzania
• The Gambia
• Uganda
• Zambia
• Country

Life Assurance Short-term Insurance Asset Management Other* Botswana

• Zambia
• Kenya
• Ghana
• Tanzania
• India
• Indirect presence via associate company

Other*= consists of medical, funeral services, employee, benefits etc.

Africa’s share of SEM’s contributions (June 2014)

30% 22% 10% 34% 4%

OPBTM

Botswana Namibia Rest of Africa India Malaysia 41% 23% 35% 1% 0%

VNB

Botswana Namibia Rest of Africa India Malaysia

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

⧁ Embrace local partnerships (management, board and shareholders) ⧁ Follow a holistic country approach ⧁ Flexible approach to shareholding and branding ⧁ Value-adding centre ⧁ Subscribes to strong governance, values and ethics ⧁ Client-centric ⧁ Passionate people who believe in what they do ⧁ Keep it simple and focus on implementation ⧁ Support skills development of local teams

Our business philosophy

Product offering - Life

Risk Savings PRODUCT/ Death Funeral Disability Dread Disease WOP Death WOP Disability Accident Hospital PHI Retrenchment Medical Retirement Education Annuity CreditLife Group COUNTRY Botswana X X X X X X X X X X X X X X Ghana X X X X X X X X X X X X X Kenya X X X X X X X X X X X X X X Malawi X X X X X X X X X X Namibia X X X X X X X X X X X X X X X Nigeria X X X X X X X X X Rwanda X X X X X X X X X X X X Tanzania X X X X X X X X X X X X Uganda X X X X X X X X X X Zambia X X X X X X X X X X X X X X

Ghana Nigeria Kenya Uganda

Tanzania

Zambia Malawi

Botswana

Namibia

Agents

        

Brokers

        

Banks

        

Funeral Homes

        

SACCOS/

Affinity Groups

        

Telcos

        

Distribution channels

Country Agents Ghana 930 Kenya 940 Tanzania 60 Zambia 680 Rwanda 60

Agency force - Life

Country Agents Uganda 280 Malawi 160 Nigeria 1,200 Namibia 500 Botswana 580

Banking partners

Telco partners

Mateete Rukiga Heart FM Nyakyera Kashongi Mshika mano Arusha Teachers Uwabi Singida Town Council Songea Town Mbinga Kurugenzi Mwauwasa Moro Kisacos Mlandege

Mshikamano

Jumuiya Kinole

Hai Rural Teachers

IUCO Mugumu Latcu

MUSSCO Microloan Foundation

Sukari Meru North Chunna Nahiho

SACCOS in East Africa

Product offering - General

General Insurance PRODUCT/ Motor Fire Legal Aviatoin COUNTRY Liability Personal Accident Marine Property Botswana X X X X X X X X Ghana X X X X X X X X Malawi X X X X X X X X Namibia X X X X X X X X Nigeria X X X X X X X X Rwanda X X X X X X X X Tanzania X X X X X X X X Uganda X X X X X X X X Zambia X X X X X X X X

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

Market position and market share

COUNTRY Company Market Position/ Rank Market Share % Botswana BLIL 1 82% Ghana Enterprise Life 2 23% Kenya Pan Africa Life 1* 13% Malawi NICO Life 1 48% Namibia Sanlam Life 2 17% Nigeria FBN Insurance 6 1.7% Rwanda Soras Vie 1 35% Tanzania African Life 1 48% Uganda Sanlam Life 4 13% Zambia African Life 1 33%

Life Insurance

* In pure life

Market position and market share

COUNTRY Company Market Position/ Rank Market Share % Malawi NICO General 1 38% Namibia Santam 1 28% Rwanda Soras AG 1 37% Tanzania NIKO 13 3.5% Uganda NIKO 13 2.3% Zambia NICO 4 12% Nigeria Oasis 21 0.4%

General Insurance

East Africa ⧁ ICEA ⧁ UAP ⧁ Jubilee ⧁ Britam ⧁ Alliance ⧁ State Insurance Companies ⧁ Prime Life ⧁ Ceral Life ⧁ Sonarwa Life ⧁ (Prudential) ⧁ CFC (Liberty) ⧁ Barclays ⧁ OM ⧁ Metropolitan

Competitors - Life

Southern Africa ⧁ Vanguard ⧁ Smile ⧁ ZISC ⧁ Madison ⧁ Professional ⧁ Bramer Life ⧁ Old Mutual ⧁ Hollard Life ⧁ Liberty Life ⧁ MMI ⧁ ABSA/Barclays ⧁ Regent

⧁ FBN ⧁ (Prudential) West Africa

⧁

State Insurance Company

⧁

Star Life

⧁

Glico

⧁

Leadway

⧁

AIICO

⧁

Mansard

⧁

Zenith

⧁

MMI

⧁

Provident (Old Mutual)

⧁

Oceanic (Old Mutual)

⧁

Metropolitan

⧁

(Prudential)

Competitors - Life

Zambia ⧁ PIC Zambia ⧁ Madison ⧁ ZSIC Uganda ⧁ UGI ⧁ General Alliance ⧁ Real Nigeria ⧁ Leadway ⧁ AIICO ⧁ Mansard ⧁ Zenith Namibia ⧁ Old Mutual ⧁ Hollard ⧁ Outsurance

Tanzania ⧁ Jubilee ⧁ Heritage ⧁ Alliance ⧁ Real Reliance Malawi ⧁ UGI ⧁ General Alliance ⧁ Real Botswana

⧁

BIC

⧁

Zurich

⧁

Regent

⧁

Old Mutual

⧁

Hollard Rwanda

⧁

Sonarwa

⧁

Cogear

⧁

Corar

⧁

Phoenix

⧁

UAP

⧁

Radiant

⧁

Britam

Competitors - General

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

Current Status ⧁ Evolving (risk based assessments) ⧁ Inspections ⧁ More attention to capital ⧁ COP (not always) ⧁ Product approval ⧁ Annual returns ⧁ Pension liberalisation ⧁ New Micro Insurance legislation Zambia and Nigeria

Regulatory environment

Challenges ⧁ Lack of enforcement ⧁ Adoption of inappropriate norms ⧁ Requirements to increase capital ⧁ Lack of distinction between LT and ST business ⧁ Regulations not in line with legislation ⧁ Regulators have discretion to change rules ⧁ Statistics not up-to-date ⧁ Local cession requirements ⧁ Local shareholding requirements ⧁ Legislation out of date ⧁ No insurance practitioners in regulator ⧁ East Africa common oversight

Regulatory environment

SEM structure and capacity to support growth

Malaysia (Robert) East & West Africa (Margaret) HR/Act

Markets

India (Mossie) Southern Africa (Botswana – Gaffar) (Other – Tertius)

Finance + Actuarial + Risk Mgt + Compliance Mgt (Gerrit) Marketing + Corporate Services (Thabied) / Ops + IT (Cornie) / HR (Niel)

SEM

SPF SIM Santam

COE

Product Management Distribution Profit optimisation Country CEs Support Specialist role

General Insurance (Lourens) / Asset Management (Andre) / Life Insurance + EB (Mossie) / Credit (Gerrit)

SCM SEB Group Office expats India Africa (excl. South Africa) South East Asia SEM Countries

Mergers and Acquisitions (Robert)

expats expats

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

Insurance penetration

COUNTRY Life (%) Non-Life (%) PA & Health (%) Total (%) Botswana 1.95 0.91 0.01 2.87 Ghana 0.46 0.58 0.03 1.06 Kenya 1.06 1.58 0.37 3.01 Malawi 0.34 1.06 0.06 2.06 Namibia 5.47 1.97 2.33 9.77 Nigeria 0.81 0.51 NA 0.68 Tanzania 0.09 0.63 0.14 0.86 Uganda 0.09 0.61 0.06 0.79 Zambia 0.40 0.89 0.11 1.38

Population pyramid, Kenya

Kenya 2015, Population 46.8m Kenya 2030, Population 66.3m

• Population growth from 47m to 66m
• Increased proportion in ages 25 – 50

GDP growth

Country Population 'm Population (projected 2025) GDP (USD) 'm GDP (USD) 'm 2025 GDP per capita GDP Growth 2014 Botswana 2 2 14,600 25,499 7,192 5% Ghana 26 33 40,008 68,427 1,565 5% Kenya 42 59 35,149 60,117 845 5% Malawi 15 23 4,689 8,994 305 6% Namibia 2 3 12,807 20,351 5,667 4% Nigeria 162 240 243,529 497,004 1,499 7% Rwanda 11 16 6,440 14,123 589 7% Tanzania 46 67 25,600 55,003 554 7% Uganda 36 55 19,597 41,248 550 7% Zambia 14 21 20,161 42,874 1,482 7% Total 356 519 422,580 833,639 1,188 6%

⧁ Footprint and interests ⧁ Background to our businesses

⧁ Products and partners ⧁ Market share and competitors ⧁ Regulation and central support

⧁ The future and its potential

⧁ Insurance penetration and growth ⧁ Products and new markets

Agenda

⧁ Middle and upper market products ⧁ Multinational products (for high income individuals who regularly move countries) ⧁ Pension opportunities following pension fund liberalisation ⧁ Immediate annuities on the back of pension liberalisation ⧁ SME market for life and general ⧁ Construction, liability & guarantees around infrastructure development ⧁ General insurance for small business markets ⧁ Specialist lines

Product opportunities

Growth opportunity (GDP growth / life insurance penetration)

insurance penetration GDP growth

HIGH LOW HIGH

Zimbabwe Morocco Angola Mozambique Ethiopia Senegal Cameroon Egypt Ivory Coast

Growth opportunity (GDP growth / general insurance penetration)

insurance penetration

LOW HIGH

GDP growth

HIGH

Zimbabwe Morocco Mozambique Angola Ethiopia Senegal Cameroon Ivory Coast Egypt

Historical growth

• 5

5 10 15 20 25 30 35

Ghana Life OP, GHC'm

• 2.00
• 1.00

0.00 1.00 2.00 3.00 4.00 5.00 2005 06 07 08 09 10 11 12 13

Tanzania Life OP, Tsh'bn

Strong, market leading businesses in rapidly growing markets Covering a large geographical footprint across countries with 350m people Embracing diverse partnerships Supported by an experienced central team with a strong track record

Summary

New markets Untapped market segments

quietly confident…

• ur purpose is clear…

questions