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

Investor Analyst Presentation Margaret Dawes 2 nd October 2014 Insurance Financial Planning Retirement Wealth Investments

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

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 2014 Life Short-term Asset Country Management Credit/Banking Other* Assurance Insurance ● ● ● ● ● Botswana ● ● Burundi 2007 ● ● Ghana Life Short-term Asset Country Other* Assurance Insurance Management ● ● Kenya ● ● ● Botswana ● ● ● ● Malawi ● ● ● ● Zambia Mozambique ● ● ● ● ● ● ● Kenya Namibia ● ● ● Nigeria Ghana ● ● ● ● Rwanda Tanzania ● ● ● Tanzania India ● ● Indirect presence via associate company The Gambia Other*= consists of medical, funeral services, employee, benefits etc. ● ● ● Uganda ● ● ● ● Zambia

Africa’s share of SEM’s contributions (June 2014) OPBTM VNB 1% 0% 4% Botswana Botswana 30% 35% 41% Namibia Namibia 34% Rest of Africa Rest of Africa India India Malaysia Malaysia 22% 10% 23%

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 ⧁ 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

Our business philosophy ⧁ 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

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

Distribution channels Ghana Nigeria Kenya Uganda Zambia Malawi Namibia Tanzania Botswana          Agents          Brokers          Banks Funeral          Homes          SACCOS/ Affinity Groups          Telcos

Agency force - Life Country Agents Country Agents Ghana 930 Uganda 280 Kenya 940 Malawi 160 Tanzania 60 Nigeria 1,200 Zambia 680 Namibia 500 Rwanda 60 Botswana 580

Banking partners

Telco partners

Kashongi Kisacos Mlandege Jumuiya Mwauwasa Moro Latcu Chunna Uwabi Mbinga Mateete Kurugenzi SACCOS in Mugumu East Africa Rukiga Singida Nahiho Town Council MUSSCO Heart Meru FM North Hai Rural Nyakyera Teachers Mshika IUCO mano Microloan Foundation Sukari Songea Arusha Mshikamano Town Kinole Teachers

Product offering - General General Insurance PRODUCT/ Personal Accident Property Aviatoin Liability Marine Motor Legal Fire COUNTRY X X X X X X X X 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

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

Market position and market share Life Insurance Market Position/ COUNTRY Company Market Share % Rank 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% * In pure life

Market position and market share General Insurance 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%

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

Competitors - Life Southern Africa West Africa ⧁ Vanguard ⧁ State Insurance Company ⧁ Smile ⧁ Star Life ⧁ ZISC ⧁ Glico ⧁ Madison ⧁ ⧁ Leadway Professional ⧁ ⧁ AIICO Bramer Life ⧁ Old Mutual ⧁ Mansard ⧁ Hollard Life ⧁ Zenith ⧁ Liberty Life ⧁ MMI ⧁ MMI ⧁ Provident (Old Mutual) ⧁ ABSA/Barclays ⧁ ⧁ Oceanic (Old Mutual) Regent ⧁ ⧁ FBN Metropolitan ⧁ (Prudential) ⧁ (Prudential)

Competitors - General Zambia Tanzania ⧁ Jubilee ⧁ PIC Zambia ⧁ Heritage ⧁ Madison ⧁ Alliance ⧁ ZSIC ⧁ Real Reliance Malawi Uganda ⧁ UGI ⧁ UGI ⧁ General Alliance ⧁ General Alliance ⧁ Real ⧁ Real Botswana ⧁ BIC Nigeria ⧁ Zurich ⧁ Leadway ⧁ Regent ⧁ AIICO ⧁ Old Mutual ⧁ ⧁ Mansard Hollard ⧁ Zenith Rwanda ⧁ Sonarwa Namibia ⧁ Cogear ⧁ Old Mutual ⧁ Corar ⧁ ⧁ Phoenix Hollard ⧁ UAP ⧁ Outsurance ⧁ Radiant ⧁ Britam

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

Regulatory environment 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

SEM structure and capacity to support growth Africa Markets India South East Asia (excl. South Africa) expats expats expats Southern Africa East & West Africa India Malaysia (Botswana – Gaffar) Country CEs (Margaret) (Mossie) (Robert) (Other – Tertius) HR/Act Mergers and Acquisitions (Robert) SEM Support Finance + Actuarial + Risk Mgt + Compliance Mgt (Gerrit) Marketing + Corporate Services (Thabied) / Ops + IT (Cornie) / HR (Niel) General Insurance (Lourens) / Asset Management (Andre) / Life Insurance + EB (Mossie) / Credit (Gerrit) Specialist role Product Management Distribution Profit optimisation SEM Group COE SCM SPF SIM SEB Santam Countries Office

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 ⧁ 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

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