SANLAM PAN AFRICA GENERAL INSURANCE
November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth AGENDA
Tuesday 19th Nov
08:00 – 09:30 Sanlam GI Overview
9:30 – 11:00 Saham Assurance Maroc
11:30 – 12:30 Saham Medical Health Strategy
12:30 – 13:30 Lunch
13:30 – 14:30 Ivory Coast and West Africa
14:30 – 15:30 Saham Asset Management
15:30 – 17:00 Digital Factory visit
Wednesday 20th Nov
13:30 – 14:30 Saham Assistance SPA GI OVERVIEW
November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth AN UNMATCHED PAN-AFRICAN FOOTPRINT IN PLACE Focus is now on delivering the business case over the medium term
Luxembourg
United Kingdom Ireland France
USA Switzerland Tunisia Algeria Lebanon Morocco Mali Niger Senegal Saudi Arabia Burkina Faso Egypt India Guinea Cote D’Ivoire Ethiopia Philippines Ghana Kenya Togo Uganda Malaysia Benin Rwanda Nigeria Burundi Cameroon Gabon Tanzania Republic of the Congo Malawi Angola Zambia Zimbabwe Mauritius Future Expansion Botswana Madagascar Namibia Emerging Markets - Indirect presence Mozambique South Africa Swaziland Australia Emerging Markets - Direct presence Lesotho Developed Markets OUR MARKET SHARE & POSITIONS
Market share target: Top 3 in Africa, Top 10 in India & Malaysia
Life insurance Market share / Position Country & effective interest General insurance Market share / Position
69.0% / 1 Tanzania 50% 3.0% / 12 66.0% / 1 Botswana 60% 23.0% / 1 59.0% / 1 Rwanda 100% 20.0% / 1 42.0% / 2 Malawi 57% 36.0% / 1 29.0% / 1 Zambia 57% 11.0% / 1 27.0% / 1 South Africa 62% 22.0% / 1 25.0% / 2 Namibia 37% 37.0% / 1 24.0% / 1 Mozambique 0% 0.0% / 1 16.0% / 3 Cote d‘Ivoire 100% 25.0% / 1 15.0% / 4 Uganda 82% 14.0% / 1 8.0% / 4 Lebanon 38% 5.0% / 7 8.0% / 3 Nigeria 35% 1.0% / 19 5.0% / 7 Kenya 39% 2.0% / 18 6.0% / 4 Zimbabwe 40% 12.0% / 3 6.0% / 6 Morocco 58% 18.0% / 1 2.0% / 12 Malaysia 49% 2.0% / 18 0.7% / 17 India 43% - - Angola 60% 19.0% / 2 SAHAM FINANCES JOURNEY 2005-2016: A COMPLETE CHANGE OF GROUP PROFILE
2005 2018
USD 1.2 billion USD 120 million in Turnover in Turnover ACQUISITIONS: • CNIA Assurance 3 400 Employees 400 Employees • Assurances Es- Saada • Groupe Colina • Lia Insurance 880 sales point • Mercantile 110 Sales point • GAAS • Corar AG • Unitrust Insurance • SUN Insurance 26 Countries 1 Country 1st insurance 6th insurance Group in Africa company (excluding south africa) in Morocco Clients A GOOD PERFORMANCE SINCE 2016…
GWP Evolution 2016-2018 (MMAD) Net Result Evolution- By Area
14,7%
8.676 9.329 7.947
-14,1% 1.740 2.145 2.284 -10,0% 2,6% FY 2016 FY 2017 FY 2018
Life GI 19,6% 76,0%
GWP (MMAD) FY 2016 FY 2017 FY 2018 AAGR Maroc ACO LIA Insurance Saham Angola Seguros Others* Continental
Life 1.740 2.145 2.284 14,9% FY 2016 FY 2017 FY 2018 Motor 2.969 3.114 3.255 4,7% AAGR Health 1.571 1.775 1.966 11,9% Corporate 2.159 2.365 2.538 8,4% Assistance 470 500 555 8,7% • AAGR: Average Annual Growth Rate Acceptances 779 921 1.015 14,2% Total 9.687 10.821 11.612 9,5% ORGANISATION AND CONTEXT SANLAM PAN AFRICA GI
The holding team and regional managers
Acting CEO Internal Audit Deputy CEO Abdessamad Talbi Emmanuel Brulé Emmanuel Brulé
Business Development Communication & RP P&C Department Legal Department and Commercial Depart. Department Pierre-Edouard Fraigneau Florence Hyacinthe David Vigier Aicha Lebsir Bennani
Head of owned Finances Department HR Department distribution Health Department Integration Project Hajar Benamar Aline Chambaret Fayçal Bennani Ilham Lahlou Manager Rachid Akansous IT, Process & Portfolio Monitoring Motor Department Operations Department Regulatory Mustapha Ababri Alia Bennani Jean-Marc Bernard Rachid Akansous
Inspection Department Reinsurance Regional Management Assets Management Driss Chafik Department Kawtar Johrati Ilyes Hassib
Risk & Compliance WCA Non Life Department Southern Morocco Angola Youssef East Africa Indian Ocean Mohamed Ali Filali Ansari Africa Benabdallah Rachid Christophe Philippe Alliali Abdelatif Mouad Patrick Tumbo Akansous Buso Cédric Viallet Margaret Dawes RANKING GI
GWP 2018 (MZAR) & Ranking
1 275 MZAR 248 MZAR 264 MZAR Côte d’Ivoire Mali Rwanda
7 000 MZAR 182 MZAR 191 MZAR 191 MZAR Maroc Togo Botswana Zimbabwe
849 MZAR 220 MZAR 374 MZAR Angola Burkina Faso Gabon
58 MZAR 256 MZAR 69 MZAR 50 MZAR Bénin Cameroun Ghana Guinée
672 MZAR 117 MZAR 191 MZAR 46 MZAR Maurice Kenya Congo Tanzania Leader
Top 3 78 MZAR 85 MZAR 191 MZAR 947 MZAR Madagascar Niger Sénégal Nigeria < Top 3 339 MZAR 191 MZAR 334 MZAR Malawi Uganda Zambia BUSINESS MIX
GWP 2018
Acceptances ; 10,7%
Assistance; 4,5% Bonds & Guarantees; 0,2% Engineering; 1,8% Motor; 33,6% Liability; 2,4%
Marine; 4,3%
WCA; 3,4%
Miscellaneous; 5,5%
Fire; 13,1%
Health; 20,6% GENERAL CONTEXT POLITICAL
• Political stability throughout the area despite some concerns due to the upcoming presidential elections;
• Increasing in terrorist threats, particularly in the Sahel Region;
• Inter-ethnic conflicts in Mali GENERAL CONTEXT REGULATION
WCA:
• After the first capital increase operation to reach 3 Bn FCFA made end of may 2019, another step to reach the threshold of 5 Bn set by CIMA regulator before May 31, 2021 (cash injection of €20 million). • Legal cession in reinsurance of 5% of the first franc to CICA RE from 2020 for CIMA countries.
Morocco:
• Regulation now based on a new prudential framework called SBR (Risk-based Solvency). Inspired by the European Solvency 2 model, the prudential system introduced by regulator is similar to that adopted by Moroccan banks. The objective is to strengthen solvency standards (process is on going)
Angola:
• Change in tax codes early 2019 • Direct impacts on businesses: VAT law which entered into force in the 2nd half of 2019 applied to Non-Life activities with a rate of 14%. • Compulsory maritime insurance will come into operation in 2019. GENERAL CONTEXT ECONOMY
Morocco:
• Takaful insurance in Morocco approved by the Chamber of Deputies: The text of the law (law n° 87- 18) integrating Takaful insurance into the Moroccan insurance code was approved on 9 July 2019.
Angola:
• The still low level of oil prices continues to have an impact on the activity of our subsidiaries in Angola (Stagnation of GDP by -0.1% in 2018), • Depreciation of the Angolan currency compared to the Dollar and to the Euro. High level of inflation (~20%). • The move to a flexible exchange rate regime could eventually eliminate the gap between the official exchange rate and the parallel market rate.
WCA:
• The insurance penetration rate in the countries of the region remains low (1.1% compared to a world average of 6.3% in 2016) • Continuation of the various emergence plans by 2020-2021 BUSINESS OVERVIEW BUSINESS PILLARS
Profitable growth articulated around core segments:
Motor
Corporate and commercial insurance
Multinational and Pan African “one stop shop”
Reinsurance
Health MOTOR ROAD MAP
• Intensive opening of tied agents branches (close to 100) Distribution • Use the banc-insurance channel to sell motor products (CIMA and East Africa) • Alternative channels (oil distribution networks)
• Strong data monitoring for better offering and segmentation Client experience • New packaged product offers • Check auto service
• New pricing models and segmentation Profitability • New Fraud detection and management strategy • Reducing the average cost of body injuries claims • Reducing cost of external providers due to scale
• Underwriting : new application with new journey Systems • Myauto : new version of material claim management tool • Churn : new application for a new journey for the agents. MOTOR - DIAGNOSTIC JOURNEY
Growth related
Profitability related
1. 2. 3. 4. Offer Distribution Underwriting Production
5. Portfolio monitoring
8. 7. 6. Retention Claims Fraud
DATA COMMERCIAL AND CORPORATE BUSINESS LINES
To be the leading Corporate insurance provider in our markets, by providing customer valued differentiated and distinctive solutions while achieving superior sustainable results.
• Strong capacity and technical expertise • Risk survey capabilities, in house and via a Pan African Property Damage agreement with Bureau Veritas and Business Interruption • Ability to offer "A" rated security through EMERALD
• Strong capacity and technical expertise • Broad risk appetite Engineering • Africa’s leading construction insurer • Ability to offer "A" rated security through MIRABILIS
• Global network of specialized surveyors and loss adjusters skilled in the assessment of loss and the pursuit of recoveries against third parties, where required. Marine Cargo • Full compliance with compulsory marine cargo insurance for imports • Flexible programs, tailored to client needs MULTINATIONAL BUSINESS
The Customers’ Segments
1) “B for B” 2) “B to B for Employees” 3) “B to B for Customers”
Specialist Business (1) Fleet (1) EB, Health (2) International (Property, CAR, Marine)
Pan-African
Local
EB, Health (3) Affinity Groups Micro-insurance (3) MULTINATIONAL BUSINESS PRIORITIES
Dedicated resources to some stakeholders and distribution channels: Clients, Insurers Partners, International Brokers, Regional Brokers, Bancassurance, Telco,
Leveraging Group resources in Dubai, Paris and London to execute the one-stop-shop; REINSURANCE STRATEGY
Sanlam Pan Africa GI reinsures via its captives Saham Re Luxembourg and Saham Re Mauritius most insurance subsidiaries operating in Africa (excluding South Africa);
Their book is 99% Non Life Business;
Saham Re Mauritius also transacts as an admitted reinsurer in the CIMA zone through its subsidiary incorporated in Lomé, Togo;
Both captives combined reinsure over 200 treaties and are the lead reinsurer on 95% of them. REINSURANCE OPPORTUNITY
Retaining more profit internally;
Leveraging one balance sheet to increase capital fungibility;
Using the internal vehicle as a risk management tool to optimize risk appetite;
Reducing our retrocession costs;
Better managing risks aggregation and cat. protections; SAHAM ASSURANCE MAROC GENERAL PRESENTATION
November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth AGENDA
I. OVERVIEW OF SAHAM ASSURANCE’S ACTIVITY
1 KEY DATES & ACTIVITY
2 ORGANIZATION
3 DISTRIBUTION
4 MARKET POSITION
5 KEY FIGURES
II. SAHAM ASSURANCE’S STRATEGY AT A GLANCE
1 MAIN STRATEGIC ORIENTATIONS OF SAHAM ASSURANCE
2 FOCUS ON PROFITABLE GROWTH AND QUALITY OF SERVICE 1. SAHAM ASSURANCE IS A 70 YEAR OLD INSURANCE COMPANY…
1949 Dec 2010 Jan. 2018
IPO Foundation of CNIA Launch of the Digital Factory (Casablanca Stock Exchange)
Brand name change to Saham Acquisition by the Merger of CNIA & Es Saada Assurance Sanlam Group
2009 2014 0ct. 2018
Saham Assurance forged its DNA as a pioneering firm that is constantly seeking innovation. Through its acquisition by the Sanlam Group, Saham Assurance can benefit from Sanlam’s unique value proposition to boost its activities in Morocco • Strongest presence in the Africa, making Saham Assurance part of a one-stop-shop for multinationals insured in the continent • 100-year expertise in the Life segment that can be leveraged by Saham to better serve its customers • Proven innovative solutions and product offering that can be replicated in the Moroccan market (e.g., innovative distribution model ……) 2. …THAT OPERATES ACROSS ALL INSURANCE SEGMENTS
Evolution of premiums by segment [2015 – 2018, in MMAD]
CAGR: 11,4% 5 223 4 846 1 045 4 392 1 023 (20%) 3 773 774 (21%) 363 (18%) Life and Savings (10%) 2 295 2 100 2 040 (44%) 1 956 (43%) Motor (46%) (52%)
903 967 671 818 Health (19%) (19%) (18%) (19%) Corporate 783 760 819 916 risks (21%) (17%) (17%) (18%)
2015 2016 2017 2018
Leading player in the Moroccan insurance market . GWP 2018: ~ MAD 5.2 billion . Market share 2018: ~12.6% . Rank: 3rd player in the market . Sustained growth: ~11,4% CAGR since 2015 2. OUR ORGANIZATION, STRUCTURED AROUND BUSINESS UNITS, REFLECTS THE DIVERSITY OF OUR BUSINESS
Business Unit CEO Christophe BUSO Audit M. KABBAJ
Transformation Deputy CEO Deputy CEO Deputy CEO H. BADREDDINE M. AFIFI JM. BERNARD K. JOHRATI
Finance / Actuarial and Reinsurance Life / Bancassurance Motor Accounting M. ELOUALI K. JANATI IDRISSI JM. BERNARD M. BENAZZOU
Internal Control, Surveillance Health Exclusive Network and Anti-Fraud S. NACIRI I. KASMI T. ALOUAJAJI
Marketing and IT Corporate Communication A. HAMANE M. AFIFI (by intérim) A. JAMAI
Human Resources C. SAMIR
Legal and Compliance S. ZELMADE 3. SAHAM ASSURANCE RELIES ON 4 MAJOR DISTRIBUTION CHANNELS…
Premiums (2018, In %) 1 Widest distribution network in Morocco (5051 active agencies) with an extended 47% TIED AGENCIES territorial footprint and the largest presence in rural and semi-rural areas
2 SAHAM works with a large panel of brokers that provide a greater coverage of corporate risks 27% BROKERS • Saham’s brokers are diversified in all segments • Saham works with brokers varying in size : major brokers covering large corporations, and small / medium brokers covering SMEs
3 SAHAM’s HQ agencies main mission is to catch potential business opportunities HQ AGENCIES on the go and serve a large panel of corporates without involvement of brokers • Consists of 2 agencies: Zerktouni, Bourgogne (in Casablanca) 10%
4 Exclusive partnership with Crédit du Maroc (Moroccan branch of the French bank Crédit Agricole) BANCASSURANCE • 10 year exclusive bancassurance partnership with Crédit du Maroc on both Life and Non-Life products Non exclusive partnership with CFG BANK 16%
1. As of the beginning of November 2019 3. SAHAM ASSURANCE HAS THE LARGEST EXCLUSIVE DISTRIBUTION NETWORK IN MOROCCO…
LARGEST EXCLUSIVE DISTRIBUTION NETWORK IN BREAKDOWN OF EXCLUSIVE AGENTS / HQ AGENCIES OF SAHAM THE COUNTRY… ASSURANCE BY REGION
Number of Saham Assurance point Gros Regional product of sales 2017 in BMAD Exclusive agents and HQ 5071 agencies Casablanca-Settat 127 (25%) 339,7 Rabat-Salé-Kénitra 65 (13%) 171,9
Tangier-Tétouan-Al Hoceima 57 (11%) 111,2 Cities covered 194 Fès-Meknès 57 (11%) 92,2 Marrakech-Safi 53 (10%) 90,1
In Morocco (both in rural and Souss-Massa 51 (10%) 70 #1 urban areas) Oriental 43 (8%) 52,2 Béni Mellal-Khénifra 26 (5%) 61,7
Daraa-Tafilalet 15 (3%) 26,9 … STEERED BY AN EXPERIENCED TEAM Laayoune-Sakia EL Hamra 6 (1%) 17,4
Dakhla-Oued Eddahab 4 (1%) 13,5
regional coordinators and Guelmim-OuedNoun 3 (1%) 15,1 sales managers >20 Total 507 (100%)
1. As of the beginning of November 2019 3. …WITH THE STRONGEST FOOTHOLD IN THE MAIN MOROCCAN CITIES…
NUMBER OF AGENTS/ HQ AGENCIES OVER THE MAIN CITIES OF MOROCCO COMPARISON OF SAHAM ASSURANCE VS. THE 2ND LARGEST NETWORK OF EXCLUSIVE AGENTS
+13 PoS1
+17 PoS1 1 86 +7 PoS +15 PoS1 73 +19 PoS1 +16 PoS1
40 34 28 27 25 23 24 13 6 8 Casablanca Rabat-Salé Marrakech Agadir Fès-Meknès Tangier
Saham Assurance 2nd largest network in the market
1. Points of Sale of the 2nd largest network in the market as of 31/12/2018 Source: Insurance company websites / public information 3. …AND THE #1 NETWORK IN RURAL AREAS
~74 RURAL COUNTIES WHERE SAHAM ASSURANCE HAS A STRONG FOOTHOLD
Jorf El Temsamane Melha Ain Aicha Oued Amlil Aïn Farkhana Aouda Issaguen Bab Agourai Taza Aknoul Dar Ahfir Gueddari Jerada #1 network of agents Sidi Kariat Ba Ismail Mohammed Bir Jdid Aklim
Boufakrane #1 in rural areas El Gara Ben Bouarfa Ahmed in network market share Lqliaa Had Bradia El Aioun #1 Ait Sidi Mellouk within suburban areas Chemaia Iazza Azemmour Missour Rich El Manzal Temsia M’rirt Aïn Demnate Cheggag Tata Arfoud Bab Boujdour Berred
Oued Ouled Zem Assa M’barek Saham Assurance being the ONLY Tinejdad Taznakht insurance operator present in area Alnif Oulad El Ksiba Saham Assurance being present next Ourika Berhil Tahannaout to only one other Insurance Company within the area 4. OVERALL, SAHAM ASSURANCE IS A LEADING PLAYER IN THE MOROCCAN INSURANCE MARKET
Market share in Market leader in Non Life Insurance 18,0% Non-Life in 2018
Market share in Market leader in Motor Insurance (with 5% extra nd 20,6% Motor in market share over the 2 player in 2018) 2018
People Market leader in Health Insurance (with a market share insured in 3 Mn+ hovering around 24% in 2018) health
Average Growth in Strong growth in the Life segment driven by a well 42,3% Life between established partnership with Crédit du Maroc Bank 2015 and 2018
Exclusive 500+ agents Largest Network of Agents (covering a total of 194 cities) Non-Life 4. IN NON-LIFE, SAHAM ASSURANCE HAS SHOWN A STEADY GROWTH AND HAS REMAINED THE FIRST PLAYER IN THE MARKET
Evolution of Saham Assurance’s revenue by Evolution of company market shares Non-Life business line within the Non-Life segment
[2015 – 2018, in MMAD] [2016 – S1 2019, in %]
18.0% 18% CAGR 17.4% 17.4% 17.1% CAGR: 7,0% 4 178 ’15 –‘18 17% Saham 3 823 Wafa 15.9% 16.7% 3 618 16% 15.7% 16.5% 3 410 15% 14.4% 2 295 +5,5% (55%) 14% 2 100 14.0% 13.8% 13.1% 2 040 (55%) 13% RMA 1 956 (56%) Motor 13.1% 12.2% Axa (57%) 12% 12.7% 11.9% 11%
967 +12,9% 10% 903 (23%) 671 818 Health (24%) 9% (20%) (23%) Atlanta 8% 8.5% 8.2% 8.4% 8.4% 916 Corporate 783 760 819 (22%) 7% risks (23%) (21%) (21%) +5,4% 7.0% 7.1% Sanad 6.7% 6% 6.7% 2015 2016 2017 2018 2016 2017 2018 S1 2019
Source: Situations Liminaires 2015 to S1 2019, Saham Assurance Analysis Life 4. IN LIFE, SAHAM ASSURANCE EXPERIENCED A SIGNIFICANT GROWTH MAINLY DUE TO THE SUCCESSFUL PARTNERSHIP WITH CREDIT DU MAROC BANK
Growth Saham Assurance vs Market growth in Life Business Premiums and market shares of the major players in Life [2014 – S1 2019, in %] [S1 2019, in MMAD]
113.4% 2.925
2.266 1.736 1.093 861 621 351 52.0% Taamine RMA 35.4% Mvie 32.2%
18,8% Market 12,4% 9.9% 7,1% +9,9%
2,1% Growth 18-19 19% -5,8% +7,6% +9,2% +15,6% +52,0% -9,6% -2.2% 2014 2015 2016 2017 S1 2018 2015 2016 2017 2018 S2 2019 MS S1 2019 28% 21,7% 16,6% 10,5% 8,2% 5,9% 3,4%
MS S1 2018 25,8% 25,3% 17% 10,5% 7,8% 4,3% 4,1% Market Saham Assurance Maroc
Source : Situation liminaire / 5. KEY FIGURES : COMBINED RATIO
Market Evolution of the combined ratio of Saham Assurance Saham Assurance vs Market
2016 2017 2018
Non-Life 100,7% 94,6% 101,2% 95,6% 104,5% 99,7%
Motor Insurance 102,1% 89,7% 105,3% 92,5% 108,3% 99,0%
Health 138,9% 95,3% 126,1% 97,9% 136,1% 97,1%
Work compensation 123,7% 113,7% 121,4% 119,2% 129,4% 116,4%
Combined ratio of the market : loss ratio as estimated in the Fidaroc Grant Thornton study on a panel of 6 companies constituing 2/3 of the market’s premiums (excl reinsurance, incl. the PFS provision and excl. Public Transport of Vehicles) + market’s commissions and expenses ratio calculated using the ACAP’s annual report for years 2014 to 2017 (2017 data is used for year 2018) 5. KEY FIGURES (2017 – 2018)
2017 2018 Evolution Non- Non- Non- Life Total Life Total Life Total Life Life Life
Premiums (in MMAD) 3 823 1 023 4 846 4 178 1 045 5 223 9,3% 2,2% 7,8%
Combined ratio1 (%) 95,7% - - 99,6% - -
Net Result (in MMAD) - 441 - - 403 -8,6%
In 2018 :
The decrease of the net result is mainly due to the decrease of the non-life technical result due to the deterioration of the profitability of the Motor Business
1 .Including PFS Provision AGENDA
I. OVERVIEW OF SAHAM ASSURANCE’S ACTIVITY
1 KEY DATES & ACTIVITY
2 ORGANIZATION
3 DISTRIBUTION 4 MARKET POSITION
5 KEY FIGURES
II. SAHAM ASSURANCE’S STRATEGY AT A GLANCE
1 MAIN STRATEGIC ORIENTATIONS OF SAHAM ASSURANCE
2 FOCUS ON PROFITABLE GROWTH AND QUALITY OF SERVICE 1. MAIN STRATEGIC ORIENTATIONS OS SAHAM ASSURANCE
Ensure a sustainable growth pattern by improving profitability on all 1 segments
Improve quality of service and customer experience in order to be identified as 2 a reference on the Moroccan market (especially for our more profitable clients)
Strenghten our leadership position in Non Life, particularly over our 3 strongholds i.e. Motor and Health
Be « Best-in-class » in terms of Corporate Risks Management to position 4 ourselves as the reference player in the industry
Leverage Sanlam’s know how (in terms of distribution, offering, process...) especially to develop the life activity based on the Sanlam model, and use the 5 Santam expertise in terms of pricing, claims management and other processes (portfolio monitoring, fight against fraud…) to develop the SME segment and to improve the profitability. 2. ENSURE A SUSTAINABLE GROWTH PATTERN BY IMPROVING PROFITABILITY ON ALL SEGMENTS - SIX MAIN DRIVERS TO SUPPORT OUR STRATEGIC SHIFT
1. Selective and selected growth 4. Alignment of our stakeholders Reinforcement of our development towards profitable segments by concentrating the Alignment of the distribution network towards commercial efforts on profitable risks and a profitability oriented approach: Incentives accounts (eg. Increase of the personal risk based on profitability and renewal instructions insurance’s share in Life Insurance) Shift of the employees variable compensation Hardening of the underwriting conditions, system towards profitability especially for Motor, Health and Corporate risks
2. Price segmentation and rationalization 5. Overhead Costs Reduction Implementation of a segmented pricing Rationalization of the operating costs in approach with price rationalization for risks order to lock the general expenses growth at with a low or degraded profitability (eg. as less than 50% of the revenue growth rate additional Motor Guarantees)
3. Fraud Management 6. Alignment of the & Portfolio Management Organization & Culture Securement and redesign of fraud related Rollout of a “Business Unit” organization that processes holds the BU’s accountable for their profitability besides their top line’s growth Use of AI to enhance fraud detection Launch of a strategic enterprise project On the Motor segment: Use of the “Federation” databases to tighten fraud oriented towards profitability, quality of service, innovation and employee detection development Creation of a global portfolio management process SANLAM PAN AFRICA GI HEALTHHealthOVERVIEW Overview
November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth Agenda
1 Market environment
• Global addressable market and competitors;
• Focus and priorities
2 Sanlam capabilities
3 Sanlam strategy • Strategy;
• Opportunities. 1/ MARKET ENVIRONMENT
Global addressable market and competitors Economic Indicators
Real GDP Growth in Africa
Indicator and 2015 2016 2017 2018 2019 2020 Country Group (Estimated) (Projected) (Projected) • East Africa remains the fastest-growing region in the continent and this will continue into 2019 and 2020. Central Africa 3.3 0.2 1.1 2.2 3.6 3.5
East Africa 6.5 5.1 5.9 5.7 5.9 6.1 • North Africa leads in terms of growth recovery North Africa 3.7 3.2 4.9 4.3 4.4 4.3 • Based on IMF growth predictions for 2019,10 fastest growing economies in Africa are Southern Africa 1.6 0.7 1.6 1.2 2.2 2.8 Libya, Ethiopia, Rwanda, Ghana, Ivory West Africa 3.2 0.5 2.7 3.3 3.6 3.6 Coast, Senegal, Tanzania, Benin, Uganda and Kenya Africa 3.5 2.1 3.6 3.5 4.0 4.1 Oil Exporting • Although there are 54 countries in Africa, 3.3 1.5 3.2 3.4 3.8 3.7 Countries 80% of Africa’s GDP is concentrated in just Oil Importing 11 markets. Among those 11 are some of 3.7 3.1 4.2 3.8 4.3 4.5 Countries the fastest growing, including Nigeria, Egypt and Kenya. When deciding where to focus investment and resources businesses will not only want to focus on those top 11 but also consider which markets from the next tier are growing the fastest. Those are likely to include Ethiopia, Uganda and Mozambique. 4
Market Environment Health Insurance in Africa
Insurance for companies and their employees in Africa is provided through:
Self-funded schemes Public schemes
Non-admitted health Locally admitted health insurance (Intl Private insurance Medical Insurance IPMI)
Market Environment Health Insurance in Africa
African Health Market Environment
External Factors Client behaviour
• Public schemes non existing • Outpatient is the main or under construction : risk is consumption borne essentially by private • Co-payment not widely insurers (even for serious accepted (except Morocco – conditions) and in French-speaking • High medical inflation heavily countries to a lesser extent) impacting premiums Medical inflation rate Competition 9.0% • Competition is price driven: 5.9% 5.7% prices are pulled down by competitors seeking market share at the expense of
2017 2018 2019 profitability
Market Environment Health Insurance in Africa
Adressable Market : 14 M employees in the major markets (25 M in the best-case scenario)
4,000,000
3,657,000 3,500,000 3,500,000
2,978,000 3,000,000
2,500,000
2,160,000
2,000,000
1,500,000
1,000,000 922,000 765,000
439,000 500,000 351,000 288,000 284,000 249,000 231,000 208,000 140,000 182,000 132,000 159,000 147,000 81,000 121,000 90,000 121,000 7,000 28,000 44,000 16,000 45,000 - Health Insurance in Africa
Potential opportunities in the CIMA region Health market-main competitors and opportunities
CIMA region Pan African East Africa Compititors
Market Environment Source: Company data; Mergermarket Health Insurance in Africa
Health market-main competitors in AfricaPotential opportunities in the CIMA region
IC “Thriving”
M
A
N Y
D “Changing” CIGNA
230,000
NT Lives E
“Surviving” Liberty NM
AETNA RO BUPA
I 103,00 insured lives NV ORACLEMED 150,000 210,000 E insured lives insured lives
60,000 AEB Lives
ED 50,000 X
I Lives F
LOW INNOVATION HIGH INNOVATION
Source: Company data; Mergermarket Market Environment 1/ MARKET ENVIRONMENT
Focus and Priorities Focus and priorities
1 2 • East Africa and Zambia: East Morocco : We are leader in this Africa is the fastest-growing market. Our focus is to keep the region in the continent, and lead in a profitable way: this will continue into 2019 and differentiation on the market in 2020. term of product and servicing, • We focus on it in term of close monitoring of the loss ratio development and growth. 3 4 Angola : A real potential of growth West Africa : our focus is to despite economic issues. We maintain a reasonable growth and focus also on this market to grow improve the management of the taking into consideration inflation loss ratio. problems. A special focus is also done to review processes.
Close monitoring of loss ratio 2/ Sanlam Capabilities
Organisational Capabilities Health at SEM in Brief
A Few Figures
USD 240 M 18 Countries Written Premiums
4 M Lives (Insurance) 4,500 Providers in Africa / 6 M Lives (Assistance) 450,000 600,000 Lives (TPA) Worldwide
Capabilities Capabilities on Health
SEM offers capabilities across the whole health insurance value chain
Insurance & Third Party Assistance Reinsurance Administration (TPA)
Network of Healthcare Providers
Saham Assurance MCI Care Saham Assistance Sanlam Insurance Saham Re
Capabilities Operational Model
Integration of the Health Business Line
Platform for the running of the health insurance business, Principle management of the TPA activity and coordination with health-related activities (Reinsurance and Assistance)
1 Health Strategy : Definition & follow-up of the health strategy
2 Technical expertise 3 Development . Monitoring of the health book profitability . Launch and monitoring of new markets (Health . Design and pricing of health products insurance and TPA) . Quotation on behalf of the subsidiaries (according to . Commercial Development (international business) the underwriting delegations ) . Control of the Partnerships structuring with other . Interface with Saham Re and Saham Assistance groups
4 Monitoring of TPA Business Line
. Creation, ownership and animation of a homogeneous and unified network of regional TPA platforms . TPA information system management (strategy, management of the relationship with the publisher, definition and conduct of the security policy) . Alignment of operational and medical processes of TPA
Strategy Reinsurance strategy/philosophy
Saham Re Accompanies the Development of Health Insurance
Mutualisation of the risk Enhance the local capacities, especially in terms of higher end products Facilitation on the design of the technical points regarding Pan African and international offers Saham Re may retrocede part of the risk to external reinsurers Current reinsurance model is quota share based
Capabilities Types of health business written
Annual contract duration – regulated as GI (except Uganda/Zambia)
20%
29%
71%
80%
Corporate Communities Base Complementary
Capabilities Benefits
Benefits Usually Follow the Same Pattern Across the Continent
Inpatient Hospitalisation Annual overall limit (eg. $100 k)
Delivery Dedicated Sublimit (or annual overall Maternity limit) Pre- / Neo- / Post natal cares
Sublimit per Consultation Subject consultation to Outpatient Meds Annual Sublimit Annual Sublimit Outpatient Exams (Lab, X-Ray) Annual Sublimit
Dental Annual Sublimit
Optical Annual Sublimit
Capabilities A large international network of healthcare providers that offer high quality treatments for the best price
. More than 4,500 healthcare providers over 26 countries in Africa: Hospitals, physicians, chemistries, radiology centres and laboratories with direct billing;
MCI . 1 500 health care providers in Europe/USA/Asia; network . Strategy regarding the constitution of its network is based on: Geographical scope Specialties covered Quality standards Pricing
Partner . For areas or specialties not covered by our current network, we may network count on our partners’ networks
Our current network may be rapidly expanded based on our clients’ and broker partners’ needs A network of more than 4,500 healthcare providers in Africa and the Middle East
Morocco 340 Angola 120 Rwanda 340
Ivory Coast 1,000 Togo 300
Senegal 500 Benin 140
Mali 120 Cameroon 140
Burkina 135 Gabon 300 Faso
Guinea 40 Kenya 450 Congo 60
120 Niger 25 Uganda Madagascar 190
Zambia 160 Lebanon 600
Number of healthcare providers by country Some partners
MCI Care s’appuie sur l’expertise de partenaires pour l’accès aux soins pour compléter son réseau à l’international
Un réseau d’excellence centré Plus de 40 hôpitaux partenaires sur la France en France Un accès à l’ensemble des Des réseaux partenaires en Asie hôpitaux publics français et en Afrique
Spécialiste international du Plus de 30 hôpitaux partenaires tourisme médical, avec un en Espagne, Portugal et France réseau mondial de prestataires Un réseau d’hôpitaux détenus en de santé partenaires propre en Afrique Commitment to continuously improve the quality of our network
Exclusion from the persons Continuous extension of Periodic audits receiving benefits the network swindlers
. A periodic audit of the . Our information . On-going extension providers is made system is to new geographical . In case of non- parameterised to zones compliance with our detect the potential . Extension in terms of requirements, cases of fraud at the covered specialities level from providers recommendations are . Quality of care at the issued and a second . In case of a detected best price is the main audit is performed to fraud, and in case of criterion of selection make sure of their unsatisfactory of providers implementation explanation from the . If non-compliance provider, the latter is remains, the provider immediately is excluded from the excluded from the network network 2/ Sanlam Capabilities Health figures
Unitrust 1% Uganda Congo 1% Niger 1% 1% Gross Premiums Administration Mali Burkina Cameroun 2% 2% Gabon 2% 3% Togo 3% Zambie 3% Sénégal 3% 12% Rwanda Saham 2% Rwanda Soras Maroc 3% 48%
Kenya Sanlam 3% 28% Kenya Saham 60% 4%
Angola 7%
Backoffice MCI Brokers Côte d'Ivoire 13%
70%
60%
50%
40%
30%
20%
10%
0%
% primes santé/primes non vie 2018 % primes santé/primes non vie 2017
Health represents 25% of the total premiums of GI 3/ Sanlam Strategy
Strategy Our Ambition
Develop Profitable Insurance Business using Reinsurance, TPA & Assistance (1/2)
Goal Become the leading profitable health insurer in Africa
. 20-25% market share on medical in each country and make profits on the medical book . It is assumed that the profits are generated by: Risk TPA Cross selling of ancillary business
Strategy Top 3 Initiatives
1 2 3 Increased Business Improved Profitablity Tighter Cost Development Monitoring Containment
. Closer portfolio . Develop new products & . Share best practices in monitoring offers terms of medical and Guidelines provided by Pan African product administrative cost Top-up products (for Central compulsory health Close follow up containment insurance funds) . Tighter monitoring of . Revise the current cost . Development of TPA & managing brokers model implemented by medical services Revise the management the Sanlam subsidiaries . Increase commercial agreements esp. in terms of on medical business (esp. data exchanges and in terms of overheads) effort controls
Strategy Main Opportunities Identified
1 Sanlam’s wide African footprint and integrated ecosystem on health (insurance, TPA & assistance) works as a magnet for multinational clients & potential business partners Brokers are interested in Sanlam’s capabilities to write medical business in 18+ countries while ensuring a “one-stop-shop” service International insurers which currently do not have a wide presence in Africa are considering partnering with Sanlam to capitalize on our presence
2 Some international (eg. Axa, Allianz) or regional players (eg. Liberty, AAR) are either reducing their presence in Africa or selling their medical book More business opportunities for Sanlam Opportunities to drive the market toward competition based on servicing instead of competing on prices only
Strategy SANLAM PAN AFRICA GI CIMA ZONEHealth OVERVIEW Overview
19 November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth AGENDA
CIMA market context: regulatory, economic and financial
Sanlam presence and performance in CIMA
Main strategic initiatives by LoB
Distribution strategy
Côte d’Ivoire focus CIMA INSURANCE MARKET MACROECONOMIC FACTORS
• Strong economic growth in the majority of areas where the group is Increase in the price of oil in 2018. present.
• Recovery has be slower than expected in oil exporting countries of the CEMAC union, who still face high debt levels and lower • Third terrorist attack in Burkina international reserves. Faso and relative stabilization of the economic and political situation in Gabon.
• Social and political tensions to be monitored in Benin and • Decrease of the BRVM financial persistence of tensions in market by 29% compared to English speaking regions of 2017 Cameroon. REGULATORY CONTEXT
Dynamic regulatory environment with Opportunities and constraints
• CIMA area : Entry into force of the new requirement on raising the minimum capital of insurance companies. This new rule aim to bring the minimum capital of insurance companies to 5 billion CFA francs with a relaxation for companies already in activity:.
New companies: the minimum capital of CFAF 5 billion is required as soon as the company is set up, with each shareholder releasing ¾ of capital, the balance to be released within a period not exceeding 3 years.
Operating companies : Companies with a capital of less than the required minimum must make capital increases. The first level set by the article imposes a minimum capital level of CFAF 3 billion with a period of 3 years from the publication of the decree. The second level sets a minimum capital of CFA 5 billion to be set up within 5 years. In addition, their equity must not be less than 80% of the minimum amount of the share capital. MAIN COMPETITION
Regional International
Aggressive competition from major regional actors about Growing appetite of international groups for Africa. the proposed tariffs and lobbying Structuring action and competition.
Greater geographical coverage and merger of subsidiaries Strengthening positions in Senegal, Corporate aggressive Life business Cameroon and Côte d'Ivoire strategy
Greater geographical coverage and merger of subsidiaries Consolidation of positions in Cameroon Acquisition of Allianz subsidiaries in 5 countries MARKETS SEGMENTATION
16,00% CAGR 15-17 Mali G2 Burkina 11,00%14% Sénégal
6,00% Ivory Togo 4% cost 1,00% Camerou n Loss ratio 15-17 26% 31% 36% 41% 46% 51% 0,0 1,0 2,0 3,0 4,0 5,0 6,0Bénin 7,0 -4,00%-6% Niger -9,00% G1 G3 -16% -14,00% Gabon
-19,00% -26% Congo -24,00%
-36% Benin Burkina Faso Cameroon Congo Côte d'Ivoire Gabon Mali Niger Senegal Togo GROUP MARKETS ANALISIS
Description Countries concerned Comments
Group 1 . Very good loss ratio . Congo . Market decline will not be markets . Market decline . Gabon lasting - conjonctural . Niger . Ivory cost . Excellent loss ratio for . Good loss ratio . Mali Group 2 Mali with very good . Good market increase . Burkina markets growth . Cameroun . Sénégal
. Bad loss ratio . Bénin . Medical loss ratio is Group 3 . Good market increase . Togo responsible of this bad markets loss ratio. Other lines of business are as good as other countries SANLAM PRESENCE AND PERFORMANCE IN CIMA GWP CIMA ZONE
GWP 2018 (MZAR) 1 275 MZAR 248 MZAR 374 MZAR 117 MZAR Côte d’Ivoire Mali Gabon Congo
182 MZAR 220 MZAR 85 MZAR 191 MZAR Togo Burkina Faso Niger Sénégal
58 MZAR 256 MZAR 50 MZAR
Bénin Cameroun Guinée
GWP by LoB
20% 25%
28% 26%
CIMA zone coverage
Motor Health STRATEGIC ASPIRATIONS STRATEGIC ASPIRATIONS MALI, BURKINA AND IVORY COAST – STRATEGIC ASPIRATIONS
Global Ambition ... This can be achieved through three development axes
1
Maintain the leading position on the Develop individual, SMEs and SMIs risks sub region
• A double digit top line growth • No. 1 market for Mali, Togo and 2 Ivory Coast • No. 2 for Burkina Faso Transformations of Motor Process and • Establish an incomparable quality of develop agent network service • Bring significant innovation
3 Innovation Assistance – Check Auto Affinity and community products Digitizing and quality of service MAIN STRATEGIC INITIATIVES
• A unique and integrated network which profitability must be accelerated • A strong retail strategy to fully impact each local market • Multinational approach – the “one stop shop strategy” Organic Growth • A double digit growth in General insurance in local currencies • Improved market position in 3 to 4 countries
• Create significant competitive advantages in main business lines : Auto, Transformation for Health and Corporate. a « best in class » • Transformation of major business processes through Digital initiatives and servicing process reengineering. • Shared platforms for assistance and TPA
• Monitor ROE and ROI • Reviewing actual business models Profitability • Driving efficiencies • Tax study • Optimizing cost ratios DISTRIBUTION NETWORKS TIED AGENTS STRATEGY
Deploy alternative distribution sale points
Adjust Deploy new distribution conventional strategy agencies
Monitor short term performance including churn REGIONAL BROKERS PARTNERSHIP
Ben BF Cam Con IC Gab Gha Gui Ken Mad Mal Mor Nig Nig'a Rwa Sen Tog
Ascoma
ASK
Olea
WTW COTE D’IVOIRE FOCUS MARKET SHARE
2017 2018 Competitors - NL Market (GWP) GWP MS GWP MS ECART SAHAM 52 486 29% 52 018 25% 4% ALLIANZ 18 982 11% 22 522 11% 0% SUNU 18 086 10% 21 497 10% 0% Others 95 186 50% 109 542 54% -4% All NL Companies 184 740 100% 205 579 100%
Number 1 far beyond number 2 LOB MIX
En MFCFA PEB Saham PEB Marché MS Saham Rang
Santé 15 250 67 033 23% Automobile 12 179 69 562 18% Risques d'entreprises 24 588 68 789 36%
Total 52 017 205 384 25% 1er
LoB Mix 2018 - Saham vs Market RE Autres 33 % 47 %
Automobile Automobile Santé 30 % Santé 34% 23 % 33 %
Market Mix Saham Mix
Still space to increase motor in Saham Cote d’Ivoire IMPROVE OPERATIONAL EFFICIENCY TO STRENGTHEN OUR LEADERSHIP
Affinity products and commercial lines Motor Medical
. Asso and school products . + 30 new sale points (mobile) . Improve retention Increase top . Travel . New products and line . Inland assistance services . Bancassurance . Marketing and . International partnership communication
. Enforce prevention visits . Service provider discounts . Health monitoring Increase and risk selection . Recourse intercompany committee bottom line . Risk selection . Broker’s delegation control SAHAM ASSET MANAGEMENT OVERVIEW
November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth AGENDA OUTLINE
I PRESENTATION OF SAHAM ASSET MANAGEMENT • ORGANIZATION & RESOURCES • GOVERNANCE • AREAS OF INTERVENTION • MAIN ACHIEVEMENTS IN SUB-SAHARAN MARKETS
II FINANCIAL MARKETS
• MOROCCAN MARKETS • CIMA MARKETS • ANGOLA
III FINANCIAL PORTFOLIO MANAGEMENT I. PRESENTATION OF SAHAM ASSET MANAGEMENT Saham Asset Management at glance
SAM CEO MRS. JOHRATI
Financial Portfolio RE Development Rental property Mgmt Operations Mgmt Financial dpt Mr. Bounouar Mr. Ouazzani Mrs. Mamouni Mr. Moubal Mrs. Samih
Financial Portfolio Management Real Estate development Rental property management Settlement & operations (5 EE) (7EE + 6EE) (6EE) (5EE for Finance and 5 For RE)
. Determining appropriate Project management of projects in . Facility & property . Control & operations strategies and an efficient Casablanca : management for the existing Settlement, asset allocation . the preliminary study, design, Assets (In morocco) . Reporting: Having a global . Drawing up construction records , . Defining the responsibilities of vision of the risks undertaken negotiating contracts with . Analyzing options for adding each actor in the Asset by the different companies companies, value within the couple Management process . updating and monitoring the works Risk/performance . Administrative & regulatory . Direct portfolio management , schedule management, . Administrative and financial . hold/sell analysis, . Treasury Management . Investment mandates follow-up, management of the works . Communication and transaction . implementing the real estate . Accounting of real estate SPV’s . Research & analysis, strategy . Advisory for Other subsidiaries . Cash management of SPV’s . Private equity. since 2018 AREAS OF INTERVENTION
MOROCCO SUB-SAHARAN AFRICA
• Investment committees preparation • Strategic asset allocation counseling • Investment committees preparation & INVESTMENT • Approval of a road map by the investment committee & its implementation at the AM level investment recommendations by SAM PROCESS • Implementation by local teams
• Macro-economic indicators review RESEARCH & • Macro-economic indicators review • Financial markets review • Financial markets review ANALYSIS • Bonds issuances • Bonds issuances • Valuation of listed stocks • Valuation of listed stocks • Non listed investment opportunities • Non listed investment opportunities
REPORTING & • Monthly reporting PORTFOLIOS • High frequency reporting • Regulatory & compliance management • Financial portfolio data collection FOLLOW-UP • Financial result forecasting & monitoring • Assistance for Financial result forecasting • Assistance for group’s projects, such as ALM studies & strategic plans
• Management of the company’s treasury TREASURY • No intervention MANAGEMENT Our main Achievements in Sub-Saharan Africa since SAHAM FINANCE expansion
DEGREE OF ACHIEVEMENT MAJOR ACHIEVEMENTS SO FAR
• Macro-economic indicators for UEMOA & CEMAC DATA-BASE CONSTRUCTION • Fixed income indicators for UEMOA, & CEMAC • Equity Indicators for UEMOA, & CEMAC
CONSTITUTION OF A • Recruitment of portfolio managers for the CIMA zone MULTI-DISCIPLINARY TEAM
CONSOLIDATION & RELIABILITY OF FINANCIAL • Higher frequency of portfolio data collection PORTFOLIOS DATA • Higher reliability of collected data
RESEARCH & INVESTMENT ANALYSIS • Analysis of UEMOA & CEMAC banks & black-listing of many banks in these areas • Valuation of several stocks in UEMOA & CEMAC • Proposal of target equity portfolios for UEMOA & CEMAC • Systematic credit analysis of all bonds issuances in UEMOA & CEMAC • Setting-up of investment policies for the subsidiaries in UEMOA & CEMAC Weak Achieved • Initiation & conclusion of non listed investments in UEMOA & CEMAC • Other specific requests : ALM, Taxation issues, shares disposal, dedicated funds, assistance in financial result budgeting II. FINANCIALS MARKETS Morocco review Morocco: Macro-economic context
ECONOMIC GROWTH INFLATION & CORE INFLATION
3.0% 4.6% 2.5% 3.0% 3.4% 2.0% 2.8% 2.7% 3.2% 3.1% 1.5% 1.5% 2.7% 1.0% 0.5% 0.8% 0.0% -0.5% -1.0% Morocco: Macro-economic context
-2.1%
Jul-17 Jul-18
Jan-17 Jan-18 Jan-19
Jun-17 Jun-18 Jun-19
Oct-17 Oct-18
Apr-17 Apr-18 Apr-19
Feb-17 Sep-17 Feb-18 Sep-18 Feb-19
Dec-19 Dec-17
Aug-17 Aug-18
Nov-17 Nov-18
Mar-17 Mar-18 Mar-19
May-18 May-19 2018 2019 2020 May-17 Non-agricultural output Agricultural output Inflation Core inflation Economic growth
• Economic growth would be + 2.7% in 2019 and + 3.4% in 2020 • YoY Inflation as of the end of August is of + 0.8% VS + 1.7% in august • Non-agricultural value-added would grow by + 3.2% in 2019 2018 and + 3.10% in 2020; • Central bank key rate in 2019 remained unchanged at 2.25% • Agricultural value-added would be -2.1% in 2019 and + 4.6% in 2020 VS + 2.7% in 2018 • In Q2 2019, GDP has posted + 2.6% VS + 2.8% a quarter Source: HCP – Ministère des Finances – BKAM before (non-agricultural VA @ 3.4% & agricultural VA -2.7%) Morocco: y market Performance Morocco: Equity market Performance y market Performance
Performance of the Moroccan All shares index 30.5%
6.4% 1.5%
-8.3% 2016 2017 2018 YTD
• As of November the 8th, the MASI had a positive performance of +1.5% • The annual volume on the stock market amounted to 23 billion MAD as of October 2019 VS 25.5 billion MAD as of October 2018 (-9.6%) Morocco: Aggregate earnings for 2018 in equity market
EVOLUTION OF THE REVENU (IN US$) . During H1 2019, listed companies turnover rose by 2.4%, driven by the 12,556 good performance of the financial sector (Banks and Insurance) with 12,265 +2,4 % growth of + 5.5%, of utilities sector with TQM growing by +8,9%, and good commercial performance of TOTAL with +5,9% . Among bad performers in terms of turnover, real estate, impacted by the non-recurrence of ADI's asset sales, recorded a decline of -22%. Mining sector’s turnover decreased by -8.8% due to lower international metal prices, and CENTRALE DANONE posted a 14.4% drop in sales in the REVENU H1 2018 REVENU H1 2019 wake of the boycott that began in April 2018 EVOLUTION OF THE EARNINGS (IN US$) . Aggregated earnings during H1 19 decreased by -4.5% compared to H1 2018 1,680 . The same sectors, having been affected by bad commercial activity, are -4,5% among the worst performers in terms of earnings: Agro sector earnings decreased by -41% ( Boycott campaign), Mining decreased by -101% , & 1,605 Real estate decreased by -22% . Gas & oil performed badly as well with earnings decreasing by -19,5%, being impacted by Total with earnings decrease of -38,8% EARNINGS H1 2018 EARNINGS H1 2019
In H1 2019, the turnover of listed companies rose by 2.4%, driven by the good performance of the financial sector (Banks and Insurance) with growth of + 5.5%, in the utilities sector with TAQA which posted + 8.9% following an improvement in the availability rate and good commercial performance for TOTAL MAROC (sales up 5.9%); Morocco : Evolution of bond Yields
• Since year start, rates have evolved as follows: 1Y -20 BPs; 5 Y -36 BPs; 10 Y -56 BPs; 15 Y -61 BPs; 20 Y -45 BPs; 30 Y -41 BPs.
• The Moroccan bond index had a performance of + 5.08% YTD
• Yields continue to treat at their historical lows II. FINANCIAL MARKETS
CIMA REVIEW CIMA Zone : Growth environment in Uemoa
GDP GROWTH (%)
7.7 7.4 7.5 7.3 7.1 6.8 7.0 7.0 6.7 6.6 6.7 6.7 6.7 6.8 6.3 6.5 6.3 6.0 6.0 6.0 6.1 6.0 5.7 5.6 5.3 5.4 4.9 4.9 5.1 4.4
Benin Burkina Faso Côte d'Ivoire Niger Senegal Togo
2017 2018 2019 2020 2021
Source : IMF
• Most of UEMOA countries are benefiting from a good growth momentum;
• Ivory Coast and Senegal are the economic drivers of the UEMOA Zone with high growth expectations higher than 6,5% CIMA Zone : Growth environment in Cemac
GDP GROWTH (%) 4.5 4.1 4.0 4.2 4.0 3.7 3.5 3.4 2.8 2.9 1.9 1.6 0.8 0.5
Cameroon Republic of Congo Gabon
-1.8
2017 2018 2019 2020 2021
Source : FMI
• Lower growth environment for CEMAC countries compared to UEMOA countries CIMA Zone : Uemoa Inflation
Inflation (%)
3.0
2.2 2.1 2.1 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.8 1.7 1.8 1.6 1.5 1.5 1.3 1.1 1.1 1.1 1.0 0.5 0.3 0.4
-0.1
-0.7 -0.7 Benin Burkina Faso Côte d'Ivoire Niger Senegal Togo
2017 2018 2019 2020 2021
• Low inflation characterizes the macro-economic environment of the UEMOA area
• Inflation is around 2% CIMA Zone : Cemac Inflation
Inflation (%)
6.3
3.0 3.0 3.0 2.5 2.7 2.3 2.2 2.0 2.0 1.8 1.9 1.1 0.8 0.9
Cameroon Republic of Congo Gabon
2017 2018 2019 2020 2021
• As for the UEMOA zone, inflation in CEMAC countries is still at low levels CIMA Zone : Public debt in UEMOA
Debt to Gdp Bénin Debt to Gdp Burkina Debt to Gdp Ivory Coast 39.6 41.0 40.9 39.7 53.2 53.1 38.1 36.7 42.9 42.9 52.7 35.9 35.4 34.1 42.6 42.3 42.0 41.7 51.5 51.5 41.5 51.0 51.1 49.8 39.2 48.4 38.4
2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt to Gdp Niger Debt to Gdp Senegal Debt to Gdp Togo 54.4 53.8 55.8 54.3 52.5 61.2 61.6 63.3 63.1 63.4 62.2 81.4 48.3 58.5 57.4 76.0 76.2 44.6 46.5 44.3 72.6 68.7 64.5 47.5 60.6 56.7 53.1
2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 CIMA Zone : Public debt in CEMAC
Debt to Gdp Cameroun Debt to Gdp Republic of congo
39.1 40.5 40.5 40.2 39.6 38.8 37.6 38.1 118.6 117.5 32.8 87.8 78.5 73.3 69.3 64.3 57.8 55.4
2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt to Gdp Gabon
64.2 62.6 60.7 56.4 54.0 50.2 46.9 42.8 39.7
2016 2017 2018 2019 2020 2021 2022 2023 2024 CIMA Zone : Yield Curves
1. Very high yields across the different countries with yields around 6%
2. Tax advantages regarding investments in govies, with lower effective tax rates compared to other financial instruments
3. High real yields given the low inflation rates in these countries
4. Corporate debt market is very small with very often low risk premiums
5. Add to that a taxation disadvantage that does not make corporate debt interesting CIMA Zone: Evolution of Net income in BRVM
Evolution of aggregate earnings in 2018 77%
25% 27% 3%
-14%
-58%
-128% INDUSTRIE SERVICES FINANCE TRANSPORT AGRICULTURE DISTRIBUTION AUTRES PUBLICS
• Net earnings grew by 7,7% in 2018 • All sectors knew growth , except Agriculture & transportation • The bad performance of agriculture is explained by the bad momentum of SAPH & SOGB (Rubber) & SUCRIVOIRE (Sugar) CIMA Zone: Performance of the Equity Benchmarks in BRVM
Brvm Performance
39.3% 33.9% 27.4% 20.5% 19.9% 16.1% 17.8% 11.2% 8.6% 8.5%
-3.9% -9.8% -12.7%-13.4% -12.3% -16.8%-16.1% -17.45% -29.1%-29.7%
Brvm Brvm 10
• Equity indices decreased for last 3 years, despite a favorable earnings momentum;
• The BRVM 10 return YTD is explained by the resilience of the big caps. CIMA Zone: Valuation and Yield of BRVM
PE BRVM DY BRVM 18.47 6.80% 6.66% 12.22 4.50% 7.60 6.50 3.20%
2016 2017 2018 2019 2016 2017 2018 2019
• Stock prices collapse & stabilization of earnings resulted in an important contraction of PE ratios; median PE decreased from 18X in 2016 to 7X as of year start
• Market price multiples represent a life time opportunity for equity investors
• The median Yield is of 6,66%, having strongly increased II. FINANCIALS MARKETS ANGOLA REVIEW Angola: Macro-economic indicators …Negative growth with astronomical inflation
GDP GROWTH ANGOLA INFLATION ANGOLA 8.5 30.7 29.8
5.0 4.8 19.6 2.9 17.2 15.0 0.9 1.2 10.3 9.2 9.8 8.8 7.3 -0.2 -0.3 -1.2 -2.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
CURRENT ACCOUNT BALANCE USD KWANZA EVOLUTION 450.00 ( % GDP) 400.00 350.00 300.00 6.1 250.00 200.00 0.9 150.00 100.00 50.00 -0.5 -0.7 -0.4 -
-4.8
mai-10 mai-12 mai-14 mai-16 mai-18
sept.-09 sept.-11 sept.-13 sept.-15 sept.-17 sept.-19
janv.-11 janv.-13 janv.-15 janv.-17 janv.-19 -8.8 janv.-09 2015 2016 2017 2018 2019 2020 2021 Angola: Bond Market
YIELD CURVE DEBT TO GDP 95.0 89.9 89.0 84.2 75.7 69.3 22.92% 23.00% 57.1 21.25% 20.00% 22.00% 39.8 33.1 26.7
1Y 1,5Y 2Y 3Y 4Y 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
A flat yield curve with high nominal rates A quasi non-existent corporate debt market No listed stocks yet Very tough investment environment III. PORTFOLIO REVIEW Global portfolio Review: as of end of June
Financial assets breakdown GLOBAL ASSET ALLOCATION ANGOLA KENYA 47% ( MOROCCO+ SUBSAHARAN AFRICA) 1.4% 1.0% OTHER 1.5% 27% 21% CIMA 20.7% 3% 1%
Bonds fixed Equities Direct Cash Offshore MOROCCO interest property assets 74.2%
• A total portfolio of 2,2 Billions USD with the bulk of the assets located in morocco, followed by the CIMA Area
• Except Morocco, much lower equity exposure with an exposure toward equity of 536 M USD for Morocco, and only 62 M USD for all other countries combined SAHAM Assistance Overview
November 2019
Insurance | Financial Planning | Retirement | Investments | Wealth AGENDA
Company snapshot 1 Company presentation, Main activities, main references
Saham Assistance in few numbers 2 Analysis of the main KPI
Company analysis 3 Environment changes, company strengths
Assumptions & Action Plan 4 Visions and Strategic priorities COMPANY SNAPSHOT Company snapshot
SAHAM Assistance is a leading Pan-African assistance company, subsidiary of SAHAM Finances, and an Allianz Global Assistance partner Our mission is to provide fast, caring, quality services wherever our customers are, whatever they need, and whenever they contact us
Main figures 18 countries covered Maghreb (2) - Morocco 38 57 OVER 40% YEARS OF MILLION USD MARKET SHARE IN - Algeria PRESENCE TURNOVER MOROCCO IN 2018 IN AFRICA IN 2018 West Africa (9) - Benin 19 1 400 - Burkina Faso LANGUAGES SERVICE - Ghana SPOKEN PROVIDERS - Guinea ON OUR MORE THAN 7,5 MILLION IN MOROCCO - Ivory Coast PLATFORM BENEFICIARIES 460 000 - Mali WORLDWIDE - Niger 200 - Senegal WORKING - Togo POSITIONS AVAILABLE 24/7 Central Africa (4) Austral Africa (3) 1,2 million INCOMING CALLS - Angola - Madagascar - Mauritius & OVER 300 000 - Cameroon 350 FILES HANDLED PER YEAR - Congo - Rwanda EMPLOYEES - Gabon
Potential expansion Assistance activities presentation
4 types of activities
Contact with local authorities in case of accident Medical information and advice Accident report facilitation (Motorboy) Medical home visits On-site repairs when possible Ambulance and medical support Vehicle towing Medical Evacuation abroad Trip continuation or return home Medical fees abroad Hotel in case of vehicle immobilization Transport and hotel costs for Replacement vehicle travel companions and close relatives Roadside Medical Assistance Assistance
Body Repatriation Body transportation to the place of burial Domestic emergencies : Paperwork intervention of a technician at home Funeral Home Funeral packages Urgent housing Assistance Assistance Accompaniment of remains Early Return to home Early return in home country in case of death Transportation of children to school of a close relative House surveillance Assistance in case of loss of means of payment
SAHAM Assistance offers tailor-made products adapted to the needs of its partners, and innovates continuously by offering new services and products Our main client references and partners
Corporates Insurance companies
Banks and microfinance
Public Administrations
Car dealerships and rentals Saham Assistance in few numbers SAHAM Assistance in few numbers
2016 2018 SAHAM Assistance’s evolution 448 MMAD of issued premiums 553 MMAD of issued premiums since 2016
23 countries, including 2 SANLAM 18 countries in Africa countries, and 3 European countries (including Morocco) (LPA partnership)
280 employees 350 employees
3 Platforms 1 Platform in Casablanca with (2 in Casablanca, 1 in Luanda) 120 working stations 200 working stations
Diversification of new businesses: Assistance « Pure player » Claims management, call center… Company analysis Main external factors - Environment changes
. Integration of a new assistance company in 2019 « RMA Assistance », and takeover of Finance.com portfolio . Potential creation by Allianz of an assistance Captive (reflection in progress) New comers in the Threat on our travel product achievements (production termination by agents excluding SAM, partnership market termination by Allianz Global Assistance), key accounts (commercial aggressiveness and premiums pressure), Africa (potential development of auto product)
. Competitors highly integrated in their respective groups like « RMA Assistance », generating important High integration business synergies in Morocco and Africa Insurance/Assistance . SAHAM Assurance partnership to be developed in order to maintain the position in Morocco
. Brand image in Morocco highly correlated by the perception of South African shareholding, and the state of SANLAM belonging the diplomatic relations with South Africa impact . Argument used by the competitors to discredit SAHAM Assistance
. Economic (Kwanza devaluation in Angola), geopolitical (political and security risks) and social contexts (coverage level and social maturity) different from a country to another and may impact SAHAM Assistance Different local context development in the African markets . Specific issues for Sanlam subsidiaries to take into consideration, portfolio profitability, commercial and strategic considerations Company main strengths
Organisation agility Diversified portfolio
• Agility is part of SAHAM assistance culture, it allows SAHAM Assistance has succeeded triple diversification the company to adapt quickly to reach new targets, to control the risks and conquer new markets: and to be flexible in its commercial and operational • Activities diversification (Medical, Auto, domestic,…) approach • Customer portfolio diversification • It’s an important asset to enter in a new phase of • Development model diversification (Inclusive / direct development sale)
Belonging to SANLAM group Business expertise and operational efficiency
• Belonging to SANLAM is a great asset to reach new • SAHAM Assistance has expertise to design offers, markets assess risks, structure networks and provide high quality of service thanks to a loyal and referenced • It also allows to access to financial resources, partners and to AGA partnership human resources and technologies in order to develop its offer Assumptions & Action plan 3 strategic challenges identified for the coming period
Our Vision: Continue the transformation to become the Challenges pan-African reference assistance company & strategic priorities Accelerate the pan-African Create value by an efficient development by capitalizing on financial management the Know how acquired in Morocco
2020-2022
Review the organisation to support the development A pan-African vision and multi-business development through 3 major axes
Accelerate the pan- Maintain and reinforce the existing business especially in the Moroccan market African The strategic plan target depends strongly on maintaining the existing positions in development by 1 Morocco and the development of the existing accounts capitalizing on the This comes in a context of a strong competition with new comers in the market know-how acquired in Morocco Accelerate the African development by adapting the Moroccan best practices SAHAM subsidiaries potential is still underused in terms of services 2 Integration into SANLAM group offers more significant opportunities for geographical expansion
Develop a new value added offers and activities Realize the ideas initiated during the previous period 3 Innovate in terms of new services and business models Customize the marketing and the communication around the offer thank you