Britam Holdings Plc FY20 Results Presentation 29 April 2021

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2 Content

Overview

○ Operating Environment Highlights Group Managing Director ○ Strategic Focus

The Numbers

○ Group Financial Performance Finance Director ○ Select BUs Financial Performance

Strategy, Outlook & Focus for 2021 Group Managing Director 3 Overview Britam Holdings Plc FY20 Results Presentation | April 2021 4 4 Britam at a Glance

Britam is a leading diversified group listed on the Securities Exchange with a presence in seven countries

Est Offices Staff

Kenya 1965 32 642

The group offers a wide range 2010 9 64 of financial solutions in:- o Life Assurance, 2012 3 41 o General Insurance, o Health Insurance, o Retirement Planning, S Sudan \ 2012 1 16 o Asset Management, and Property.

Tanzania 2014 8 64

Malawi 2014 2 68

Mozambique 2014 4 42

Leadership & Accolades o Maintained leadership in Life Assurance in o Won the Association of Kenya Insurers’ (AKI) Life Insurer of the year 13 years in a row o Fire (Financial Reporting) Awards 2020 1st Runners up in Insurance Category 5 Our Operations Remained Resilient in a Tough Year

Unprecedented Resilient Operating Strong Operating Disruption and Crisis Results Cashflow Generation

• Growth in Group Topline especially • Lives and livelihoods adversely impacted • Ahead of peers in operating supported by regional General Insurance • Volatility in local and global capital markets cash flows • Drop in operating expenses • Economic growth impacted by lockdowns • Operating Cash Flows with and restrictions a 4 year 11% CAGR

Support to Our Adaptive People Operations

• Premiums relief initiatives to our clients • Prioritized health and safety of our employees and advisers • Support to Covid-19 emergency fund and to vulnerable • Expansion of service to clients through’ digital platforms members of society • Enhanced service delivery through support to our FAs

6 Weak Macroeconomic Performance

Kenya and the Regional Markets GDP (%) Bond Yields(%) Supported by Flight from Equities

Weak Performance by Listed Equities Appreciation of the USD against KES / UGX

7 Source: World Bank, NSE, JSE, CBK Positive Impact of our Resilient Response to the Crisis

Navigation through the crisis Year 2021 +

Financial Operational Strategic Shift

Focus on Performance Operational Continuity Focus on Roll out of 2021-25 Customer Centric Strategy by 1H21 Investment Returns optimization Health and safety of our people 80+% Employees working safely Review of asset allocation in line with and remotely from home operating environment with interest Roll out of our New customer and dividend income growing by 22% Continued service to customers segment based Operating Model Continued to serve our customers 4% revenue growth achieved in a with increased focus on contactless Covid-19 year options Customer Centric Organization Structure Focus on Cost Containment Empowered our Financial Advisors 6% decline in underlying opex as we (FAs) through a portal with monthly dropped non-essential expenses digital applications up c10-fold from April to Dec 2020 8 Our Strategic Focus

Britam Holdings Plc FY20 Results Presentation | April 2021 9 Key Learnings from our 2016 – 2020 Strategy

Based on financial performance to date, we undertook an analysis of key areas of improvement going forward. The baseline analysis, yielded the following results:

Need to build on Ground in customer Deliver a truly successful stories centric vision transformational plan

• Launch of AMC Uganda • Customer at heart of what we do; be more • High risk of market disruption (telcos, banks, • Strong and growing topline and profitability purpose driven insurtechs) contribution from Regional GI units • Large underpenetrated insurance market • Turnaround of GI Kenya to profitability across geographies • Deployment of online portals for • Ambition to drive exponential growth through intermediaries and customers new models

Address challenges Need to still address Deepen customer insights in implementation critical performance issues to craft solutions

• Challenge has been in "how" - • Both end consumers and channel partners • Operating cost structure a key concern - executing these strategies • Leverage recent technology investments driven by centre • Need to be more agile and quick • While intermediated, look at solutions within • Yet to fully realise benefits of major recent IT to market programme agents & brokers • Concentrated investments yielding volatile performance 10 Critical Imperatives to Support our Transformative Strategy

Reground business Transform for future Enable the journey Customer at the heart Led by new segment units Address performance challenges

Organise for the future Optimise approach to Turnaround key cost customer drivers

Embed customer- Forge strategic Shift investment strategy centricity partnerships

Leverage data & analytics Unlock next tier of customers

Expand regional footprint

11 The Numbers Britam Holdings Plc FY20 Results Presentation | April 2021 12 Strong Operating Results with Growing Revenue and Assets

GEP & Fund Management Fees – Shs bn Investment income – Shs bn CAGR CAGR 35.00 8% 9.00 11% 28.82 7.93 30.00 27.67 8.00 6.97 24.06 24.99 6.67 25.00 7.00 21.22 6.00 5.22 20.00 5.00 4.45 15.00 4.00 3.00 10.00 2.00 5.00 1.00

- - 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

AUM - Shs bn Total Assets - Shs bn CAGR 160 CAGR 13% 300 137 23% 140 250 125 250 227 120 99 104 200 100 84 147 80 150 130 109 60 100 40

50 20 13 0 - 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 GI Performance Contributing Profitably to the Group

Group Life GI Regions GI Kenya

Revenue (Gross Earned Premium) vs 2019

Shs 28.2 billion (+4.2%) Shs 12.4 billion (-10.6%) Shs 7.9 billion (+50%) Shs 8.0 billion (-1%)

Profit/(Loss) Before Tax – Shs billion

-312% -195% +20X +222%

4.6 3.7 0.80 0.4 0.04

(0.3) 2019 2020 2019 2020 2019 2020 2019 2020 (2.9)

(9.7)

Adverse Impact on PBT of : Fair value losses, HF and Property Impairments, Increase Favorable Impact of:- Favorable Impact of:- in HF share of loss and a provision Shs 5.2 billion to support Wealth Management •Higher retention and new business •Strong investment returns, and Fund LLP. driving revenue growth •Turnaround in health business 14 The Positive and the Negative Movements on the Results

Results Positively impacted by

1 Growth in revenue and investment income And by 6% drop in Underlying Opex.

Adverse impact from:

2 Fair value losses ○ Realized Shs 71m (2019 : 478m) ○ Unrealized Shs 1,864m (2019: 4,300m) 1 2 3 4 5 6 ○ HF Impairment of Shs 603m

3 Property Impairments of Shs 1,470m (2019:747m)

Increase due to relatively higher surrenders and 4 measures to cushion clients

A provision of Shs 5.2 billion to support Wealth 5 Management Fund LLP

6 Increase in HF share of loss to Shs 823m (2019: 53m)

15 Strong Operating Cashflow Generation Ahead of Peers

Strong operating cashflow generation

Britam and Listed Peers FY20 Cash generation / Use in 2020 – Shs bn 5 Yr Operating Cashflows - Shs bn Operating Cashflows – Shs bn CAGR 11% 8.98 7.94 7.67 7.67 7.67 (9.59) 5.02 4.58 7.50 1.81 2.31 7.58 1.49 1.49

FY19 Net cash Net cash Net cash FY20 2016 2017 2018 2019 2020 Britam Peer 1 Peer 2 Peer 3 Peer 4 from used in used in -0.55 operations investing financing activities

• CF generation supported by a • Strong growth with 4 year 11% CAGR • Ahead of listed peers… retail base of customers

16 Select BUs Financial Performance Britam Holdings Plc FY20 Results Presentation | April 2021 17 Life Embedded Value Remained Resilient Through Crisis

EV Recorded a marginal drop in annualized return at negative 0.6% in spite of the tough operating environment

Embedded Value 16.9 18.0 16.1 30.0% 16.0 13.8 25.0% 873 -789 14.0 13.0 20.0% 1,214 14 -1,516 12.0 11.1 16,923 10.0 15.0% -68 171 -693 16,129 8.0 10.0% 6.0 4 5.0% 1 2 3 4.0 2.0 0.0% - -5.0% Total EV Expected Value of Operating Operating Economic Economic Exceptional Dividends Total EV 2016 2017 2018 2019 2020 Dec-19 Return New Experience AssumptionExperience Assumption Items Paid Dec-20 EV in Shs bn VNB - Shs bn RoEV (%) Business Variance Change Variance Change

1 Positive EV earnings from expected releases in margins in the reserves 2 Positive value of new business mainly from profitable business written i.e., individual life and pensions Claims losses were experienced within the Group/Credit Life portfolio and measures to cushion customers from the 3 impact of COVID-19 led to an increase in reserves

4 Negative EV earnings from unfavorable investment experience as a result of market volatility within the Equities and Property portfolios 18 Regions GI Key Driver of General Insurance Revenue & Profits

Gross Earned Premium (GEP) – Shs million GI Profit Before Tax (PBT) – Shs million

+19.1% +548%

+2,075% -1% +50% +222%

Contribution to GEP Growth (%) Contribution to GI PBT Growth (%)

GEP up +19% PBT up +548%

Kenya +254% *Regions +19.7% *Regions +294% Kenya -0.6% (+46 Percent) (103 Percent) (- 3 Percent) (+54 Percent)

*, Uganda, Rwanda, , & 19 Regions GI GEP & PBT Contributions and Growth Rates

GEP Contribution PBT Contribution YoY Growth in: -

GEP PBT

Uganda 9% 58% Rwanda, 6% Rwanda Mozambique, Tanzania 4% 9% South Sudan, 14% Uganda Rwanda 21% 329% 28% 31%

Malawi , 15% Mozambique S Sudan \ 235% 1397% 15%

Tanzania 35% 386% South Sudan Tanzania, 20% Uganda, 23% Malawi 18% 18% Malawi 19% 509%

Mozambique 67% 386%

20 Underlying Key Performance Indicators

Key Metric Group Life GI Regions GI Kenya 2020 2019 2020 2019 2020 2019 2020 2019 Key Highlights

Opex Ratio 37% 39% 24% 26% 39% 61% 37% 41% Improved underlying Opex ratio across the business

Loss Ratio - - - - 42% 44% 65% 67% Improved Loss ratios for GI Regions and Kenya

Return on capital impacted by Fair Balance Sheet Ratios Value Losses, Property Impairments and HF

ROE -17% 12% -39% 26% 24% - 12% -7%

ROCE -19% 16% -56% 37% 28% 2% 12% -11%

Solvency 136% 149% - - 161% 160% 21 * The ratios are based on underlying results excluding the Shs 5.2 billion provision Focus for 2021 &

Britam Holdings Plc FY20 Results Presentation | April 2021 Strategy going forward 22 Outlook and Focus for 2021

In spite of the adverse operating environment in 2020 and the drop in financial performance, the business remains robust. We will continue to build momentum as activities increase in our markets. We expect a modest economic recovery across our footprint.

Investment Operational Customer Centric Strategic Shift Profiles and Efficiency Culture Returns

• Embed the • Capitalizing on our Review the investment • Optimizing our go- Customer Centric investments in profile by relooking at to-market organizational technology and the asset allocation and approach, model by focusing new organizational exits of particular developing on various structure to assets with a focus on targeted, customer achieve operational optimization of returns. customized segments. efficiencies and offerings and grow • Complete and roll cost management. our customer base. out Customer • Realize the target • Leverage strategic Centric 2021-2025 cost savings in partnerships to transformation FY20 from the drive scale and Strategy. ongoing unlock the next tier restructuring. of customers. 23 Going Forward 2021 – 2025 Strategy

We will transform Britam by putting Customer needs at the centre of everything we do

Our Customers will experience “One Britam”; We will deploy deep customer insights and data analytics to understand their needs and provide solutions they want.

We will leverage our People, Technology and Culture and enable our partners to deliver meaningful interactions, satisfying The 2021 – 2025 Strategy is about experiences, all the time Delighting the Customer #OneBritam 24 Thank You

Kenya | Uganda | Tanzania | Rwanda | South-Sudan | Mozambique | Malawi