SAHAM Finances-Overview October 2016 1 Ten year evolution - - PowerPoint PPT Presentation

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SAHAM Finances-Overview October 2016 1 Ten year evolution - - PowerPoint PPT Presentation

Nov 06, 2022 213 likes •455 views

SAHAM Finances-Overview October 2016 1 Ten year evolution (2005-2015) 2005 2015 USD 1.04 billion USD 120 million in Turnover ACQUISITIONS : in Turnover 3 000 Employees 400 Employees CNIA Assurance Assurances Es- Saada 700 sales points

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SAHAM Finances-Overview

October 2016

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Ten year evolution (2005-2015)

Client ents

ACQUISITIONS:

  • CNIA Assurance
  • Assurances Es- Saada
  • Groupe Colina
  • Lia Insurance
  • Mercantile
  • GAAS
  • Corar AG
  • Unitrust Insurance

USD 120 million in Turnover 400 Employees 110 Sales points

1 Country

6th insurance company in Morocco

2005 2015

USD 1.04 billion in Turnover

3 000 Employees 700 sales points

26 Countries

1st insurance Group in Africa

(excluding south africa)

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Solid Shareholders

SAHAM Group increased its stake in the capital of SAHAM Finances up to 70%. In parallel, Sanlam, leader in financial services in Africa, through its subsidiaries Sanlam Emerging Market (SEM) and Santam acquired a minority stake of 30%.

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Our vision

  • Contributing to building a mature and resilient insurance industry in the continent.
  • True African company with a unique footprint.
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Strategic values

Become the key player and one of the market leaders Top 5 in each country where SAHAM Finances is located

Achieve profitable growth by applying underwriting guidelines. Offer a full range of product?(assistance, Check Auto, …) Innovative and integrated Corporate product, (health, marine, fire,…) Provide the best quality service at international standards level. Redesign of products and implementation of bancassurance agreements.

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Key figures 2015

Sales es Countries es

USD 1.04 billion turnover 3 000 staff

700 sales points 26 Countries 34 Companies

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  • Health Third party

Administration: presence in 8 countries

Structure of the division

Insu surance ce Asista stance ce TPA

INSURANCE DIVISIO ISION

  • Insurance: pan African insurance

leader with preference in 26 countries.

  • Assistance : SAHAM Assistance,

is developing its activity on the

  • continent. First Motor assistance

company in Africa.

Re Reins insurance ce

  • Reinsurance : optimizing the

reinsurance needs of its subsidiaries while deploying the best underwriting practices.

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SAHAM Finances and Sanlam’s presence in emerging markets

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Positioning

N°1 N°1 N°1 Top 3 < Top 3

Côte d’Ivoire Burkina Faso Togo Gabon Morocco Angola Ghana Senegal Cameroon Niger Lebanon Madagascar Rwanda Kenya Benin Côte d’Ivoire Lebanon Guinea Ghana Maroc Madagascar Kenya

Non Life Life N°1 Top 3 < Top 3

Cameroun Congo Mali Mali Benin Guinea Rwanda Nigeria

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Highlights

  • Leading motor insurer in Morocco and Côte d’Ivoire,
  • Over 1 million customers insured,
  • Complete product range.
  • More than 4 million people covered,
  • Diversified offering:
  • ground-up coverage
  • compulsory insurance scheme
  • ptional health insurance
  • Strong experience in affinity business.
  • Ability to support almost all industries with strong partners
  • Multinational programs

HEALTHCARE RE MOTOR CORPORATE

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Innovative services for a differentiated and competitive strategy

CAE (Check Auto Express)

  • Record number of compensation claims.

TPA

  • Secure and optimized management flow.

ASSISTANCE

  • 1st assistance network in Africa.

BPO

  • Industrialization of mass-market insurance processes achieved through outsourcing.
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Mission

To compensate insured motor in less than 90 minutes.

PRINCIPLE

  • The damaged vehicle is appraised in SAHAM

Assurance center « CAE ».

  • The amount of compensation is estimated

using a database (cost of parts, cost of labor, repair time) An estimated amount is suggested to the insured motorist.

  • If accepted, the check is printed on site and

handed over to the client.

LIMITATIONS

  • Claims below 20,000 MAD.

Innovativ ative e servi vices es

CAE (CHECK AUTO EXPRESS-MAROC)

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  • Over 5 million
  • n beneficiaries

Prestigious references: Mohamed VI Foundation , SAMU El jadida, Ministry of Interior (5 bodies)

  • Over 1.1 million
  • n Po

Policyhol holder ers Distributed through insurance companies

  • 245,000 insured

ed client nts Distributed through intermediaries

  • r banking networks
  • 300,000 insured

ed client nts

  • Distributed via banking

networks

Medical Assistance Travel Assistance Car insurance Assista stance ce Diaspora Assistance

4 4 ranges es of produ ducts

  • Medical
  • Motor
  • r

25,0 ,000 Claims ims/yea ear

90,000 000 Claims/ye year

  • An internal structure that aims to assist our clients in

case of emergency.

  • 100 operators available 24 / 7.
  • Abroad, SAHAM Assistance is supported by the

Mondial Assistance Network with over 400,000 service providers worldwide.

SAHAM Assistance: Innovative guarantees

SAHAM M ASSIS ISTANCE NCE IN 2015 300

Employees

Over 6 million

Beneficiaries

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Insurance : A multi-channel distribution

BANC NCASSU ASSURANC RANCE

  • Selling expertise via the banking networks:

> Africa: sale of our insurance products (Motor, Retirement, Death) through the African Ecobank network in 8 countries. > Lebanon: first partner of the leading private bank (Audi Bank). Motor, retirement, multirisk household-insurance policy offerings.

TIED AGENT NTS

  • First network of general insurance brokers

with 700 sales point across Africa.

  • Ability to open franchised agencies:

Morocco: more than 50 agencies per year (training, planning, deployment ...).

  • Expertise in facilitating the agency network:

Regional / local organization, weekly monitoring.

BRO ROKE KERA RAGE

  • 80% of sales in Africa stemming from

Brokerage.

  • Privileged and historical relationships with the

biggest firms: Ascoma, Gras Savoye, AON...

MOBILE LE SERVIC RVICES

  • Sale of our life insurance products through

mobile apps in partnership with telecom companies.

  • Successful experience in Côte d’Ivoire.
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Distribution of turnover in 2015

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Net profit 2015

Amounts in MMAD* 2015 2014 Gross Written Premium** 9.716 8.141 Shareholders Equity 7.153 6.301 Return on Equity 12% 11% Average Investment yield 5,2% 5,8% Net Profit 795 658 Net Profit Group Share 483 439 Combined Ratio 94,5% 95% * SAHAM Finances Consolidated figures according to IFRS ** 433 MMAD of external growth and 14% of organic growth

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Net profit 2015

Net Profit in MMAD* 2015 2014 Saham Assurance Maroc 338 341 SAHAM Angola Seguros 77 57 LIA Insurance 140 112 SAHAM Assurance Central and West Africa 143 108 Other companies 322 159 Net Profit of insurance and reinsurance business 1 020 778 Net result of holding companies (225) (119) Consolidated Net Profit 795 658 Profit attributable to non controlling interest 312 219 Net Profit – Group Share 483 439

* SAHAM Finances Consolidated figures according to IFRS

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Future growth potential

New compulsory insurance, strengthening controls, legal framework evolving in all countries Effective partnerships with banks Development of specific low income products (micro insurance) Use of advanced technologies (mobile, web based customer interactions) to increase the potential, to reduce fraud and to improve risks mitigation

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Enterprise Risk Management Framework Organization & Governance

The group’s internal control and risk management system is largely inspired by the COSO 2 framework. As such, its main purpose is to provide a reasonable assurance to the top management and the board of directors regarding the achievement of our group’s objectives in the following categories:

  • the effectiveness and efficiency of operations, including performance and profitability goals and safeguarding of the group’s assets;
  • the reliability of the data, especially the financial statements and reporting;
  • the compliance with laws and regulations.

It consists of three lines of defense :

“Three lines of defense”

Risk management and central support functions provide and maintain a consistent risk & control framework and ensure critical risks are monitored :

  • 1. develop & implement Enterprise Risk Management tools and methodology
  • 2. assist subsidiaries and ensure they identify, measure and assess risks
  • 3. establish key controls and ensure critical risks are under control

Subsidiaries’ business functions own risks:

  • 1. They undertake controls as described in procedures and permanent control manuals
  • 2. They manage risks every day optimizing risk/return
  • 3. They mitigate risks where necessary

Internal audit provides independent oversight and assurance :

  • 1. assesses the effectiveness of the risk framework
  • 2. builds on risks identified by Risk Management for planning its activities
  • 3. independently monitors effectiveness of controls

1 2 3

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Minor Moderate Major Critical 4 5 1 6 7 10 3 14 12 9 8 11 2 15

Risks related to the external growth strategy (M&A) Inability to integrate the new acquisitions Risks related to the internal growth strategy Reputational risk Underwriting risk – Casualty & Property insurance: risk selection, pricing and reinsurance Inability to comply with regulatory, legal and fiscal requirements Risks related to the claims’ monitoring– Casualty & Property insurance Risks related to the claims’ monitoring – life & health insurance IT system failure & inappropriate IT strategy Operational risk: internal control activities Departure of the key executives and inappropriate back up planning Risks related to the evolution of the interest rate Inappropriate Business Continuity Plan

16

Liquidity risk

17

Counterpart risk Foreign exchange risk

18

Underwriting risk – life & health insurance: risk selection and pricing Risks related to the reinsurance policy Unreliability of the financial and accounting data

19 20 13

Risks related to the human capital

x x x Deterioration Stable Improvement x Evaluation Dec. 2014 For each risk, an action plan has been defined, and for each action, a deadline has been defined and a person in charge (within central support functions) has been allocated.

Strategy Insurance Operational & Accounting Business continuity Financial

Enterprise Risk Management Framework

SAHAM Finances’ risk mapping – December 2015 summary

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Synergies SAHAM Finances/Sanlam

Reinsurance Economic Capital Modelling Bancassurance Strategic Alliances

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www.sahamassurance.com

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Saham Finances

Saham Assistance Colina Part. Colina Holding Ltd Saham Assurance Maroc Saham Europe Saham Assurance CI Saham Assurance Togo

Saham Assurance Vie

CI

Saham Assurance Mali Saham Assurance Burkina Saham Assurance Gabon Saham Assurance Madagascar Saham Assurance Cameroun Saham Assurance Sénégal Saham Assurance Congo GA Angola Seguros MCI Angola MCI Cameroun MCI Sogem Saham Assurance Vie Cameroun Saham Assurance Vie Ghana Saham Assurance Vie Gabon Saham Assurance Vie Mali Saham Insurance Kenya Saham RE Maurice Tech Care Solutions Corar AG Rwanda Corar VIE Rwanda Unitrust Nigéria Saham Asset Mgt Isaaf Santé

Saham RE Lux

LIA Saham Assurance Niger Saham Assurance Vie Benin Saham Assurance Benin

100% 99,67% 49,90% 100% 51,14% 100% 80,96% 50% 66,67% 100% 66,99% 100% 40% 66% 55% 100% 99,97% 100% 100% 65% 93,63% 50% 94,90% 100% 100% 85,43% 100% 55% 100% 75,50% 40% 71,48% 89,73% 45% 9,90% 40% 39,90% 40% 80%

Tertia Saham IT

100%

Ryad Partners SAHAM Hotels Agdal Salé

100% 100% 60% 68,22%

Saham Corporate Saham Assurance Togo Saham Assurance Ghana Saham Assurance Guinée

MCI Sogem

Saham Assurance CI Saham Assurance Vie Gabon Saham Assurance Niger Tamaris Garden

100%

Total Care Lebanon Taslif

60% 0,33% 100% 25% 88,99% 20% 20% 20% 27,40% 48% 2%

Jadis BERDIM Dayam

100% 60% 100% Espace développement 100%

Elite C-RE Holding*

30% 100%

Continental RE

53,6% 0,2% 49,8% 40% 0,03% 66%

*Ongoing negotiation for the entry into the share capital of minority shareholders