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Insurance Financial Planning Retirement Investments Wealth
Investor Analyst
Presentation
Margaret Dawes
2nd October 2014
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
Our geographic footprint
countries we are in
indirect presence via
associate companies
SEM’s Direct Africa Interests
Company Group % Holding
Botswana BIHL 60%
Namibia SNH 54%
Nigeria FBNI 35%
Ghana EL 49%
ET 40%
Kenya PAIHL 56%
Uganda SLU 100%
Niko General 49%
Tanzania Aflife TZ 64%
Niko TZ 33%
Zambia Aflife Z 70%
Nico Z 49%
Malawi Nico Holdings 25%
Nico Life 49%
Nico General 49%
Rwanda Soras Group 63%
Product and geographic diversification
2007
2014 Country
Life
Assurance
Short-term
Insurance
Asset
Management Credit/Banking Other*
Botswana ● ● ● ● ●
Burundi ● ●
Ghana ● ●
Kenya ● ●
Malawi ● ● ● ●
Mozambique ●
Namibia ● ● ● ● ●
Nigeria ● ●
Rwanda ● ● ●
Tanzania ● ●
The Gambia ●
Uganda ● ● ●
Zambia ● ● ● ●
Country Life
Assurance
Short-term
Insurance
Asset
Management Other*
Botswana ● ● ●
Zambia ● ● ●
Kenya ● ●
Ghana ●
Tanzania ●
India ●
● Indirect presence via associate company
Other*= consists of medical, funeral services, employee, benefits etc.
Africa’s share of SEM’s contributions (June 2014)
30%
22% 10%
34%
4%
OPBTM
Botswana
Namibia
Rest of Africa
India
Malaysia
41%
23%
35%
1% 0%
VNB
Botswana
Namibia
Rest of Africa
India
Malaysia
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
⧁ Embrace local partnerships (management, board and shareholders)
⧁ Follow a holistic country approach
⧁ Flexible approach to shareholding and branding
⧁ Value-adding centre
⧁ Subscribes to strong governance, values and ethics
⧁ Client-centric
⧁ Passionate people who believe in what they do
⧁ Keep it simple and focus on implementation
⧁ Support skills development of local teams
Our business philosophy
Product offering - Life
Risk Savings
PRODUCT/
Death
Fu
nera
l
Dis
ab
ilit
y
Dre
ad
Dis
ease
WO
P D
eath
WO
P D
isab
ilit
y
Accid
en
t
Ho
sp
ital
PH
I
Retr
en
ch
men
t
Med
ical
Reti
rem
en
t
Ed
ucati
on
An
nu
ity
Cre
dit
Lif
e
Gro
up
COUNTRY
Botswana X X X X X X X X X X X X X X
Ghana X X X X X X X X X X X X X
Kenya X X X X X X X X X X X X X X
Malawi X X X X X X X X X X
Namibia X X X X X X X X X X X X X X X
Nigeria X X X X X X X X X
Rwanda X X X X X X X X X X X X
Tanzania X X X X X X X X X X X X
Uganda X X X X X X X X X X
Zambia X X X X X X X X X X X X X X
Ghana Nigeria Kenya Uganda Tanzania Zambia Malawi Botswana Namibia
Agents
Brokers
Banks
Funeral
Homes
SACCOS/ Affinity Groups
Telcos
Distribution channels
Country Agents
Ghana 930
Kenya 940
Tanzania 60
Zambia 680
Rwanda 60
Agency force - Life
Country Agents
Uganda 280
Malawi 160
Nigeria 1,200
Namibia 500
Botswana 580
Banking partners
Telco partners
Mateete
Rukiga
Heart
FM Nyakyera
Kashongi
Mshika
mano
Arusha
Teachers
Uwabi
Singida
Town
Council
Songea
Town
Mbinga
Kurugenzi
Mwauwasa Moro
Kisacos Mlandege
Mshikamano
Jumuiya
Kinole
Hai Rural
Teachers IUCO
Mugumu
Latcu
MUSSCO
Microloan
Foundation
Sukari
Meru
North
Chunna
Nahiho
SACCOS in
East Africa
Product offering - General
General Insurance
PRODUCT/
Mo
tor
Fir
e
Leg
al
Av
iato
in
COUNTRY Lia
bilit
y
Pers
on
al
Accid
en
t
Mari
ne
Pro
pert
y
Botswana X X X X X X X X
Ghana X X X X X X X X
Malawi X X X X X X X X
Namibia X X X X X X X X
Nigeria X X X X X X X X
Rwanda X X X X X X X X
Tanzania X X X X X X X X
Uganda X X X X X X X X
Zambia X X X X X X X X
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
Market position and market share
COUNTRY Company Market Position/
Rank Market Share %
Botswana BLIL 1 82%
Ghana Enterprise Life 2 23%
Kenya Pan Africa Life 1* 13%
Malawi NICO Life 1 48%
Namibia Sanlam Life 2 17%
Nigeria FBN Insurance 6 1.7%
Rwanda Soras Vie 1 35%
Tanzania African Life 1 48%
Uganda Sanlam Life 4 13%
Zambia African Life 1 33%
Life Insurance
* In pure life
Market position and market share
COUNTRY Company Market Position/ Rank Market Share %
Malawi NICO General 1 38%
Namibia Santam 1 28%
Rwanda Soras AG 1 37%
Tanzania NIKO 13 3.5%
Uganda NIKO 13 2.3%
Zambia NICO 4 12%
Nigeria Oasis 21 0.4%
General Insurance
East Africa
⧁ ICEA
⧁ UAP
⧁ Jubilee
⧁ Britam
⧁ Alliance
⧁ State Insurance Companies
⧁ Prime Life
⧁ Ceral Life
⧁ Sonarwa Life
⧁ (Prudential)
⧁ CFC (Liberty)
⧁ Barclays
⧁ OM
⧁ Metropolitan
Competitors - Life
Southern Africa
⧁ Vanguard
⧁ Smile
⧁ ZISC
⧁ Madison
⧁ Professional
⧁ Bramer Life
⧁ Old Mutual
⧁ Hollard Life
⧁ Liberty Life
⧁ MMI
⧁ ABSA/Barclays
⧁ Regent
⧁ FBN
⧁ (Prudential)
West Africa
⧁ State Insurance Company
⧁ Star Life
⧁ Glico
⧁ Leadway
⧁ AIICO
⧁ Mansard
⧁ Zenith
⧁ MMI
⧁ Provident (Old Mutual)
⧁ Oceanic (Old Mutual)
⧁ Metropolitan
⧁ (Prudential)
Competitors - Life
Zambia
⧁ PIC Zambia
⧁ Madison
⧁ ZSIC
Uganda
⧁ UGI
⧁ General Alliance
⧁ Real
Nigeria
⧁ Leadway
⧁ AIICO
⧁ Mansard
⧁ Zenith
Namibia
⧁ Old Mutual
⧁ Hollard
⧁ Outsurance
Tanzania
⧁ Jubilee
⧁ Heritage
⧁ Alliance
⧁ Real Reliance
Malawi
⧁ UGI
⧁ General Alliance
⧁ Real
Botswana
⧁ BIC
⧁ Zurich
⧁ Regent
⧁ Old Mutual
⧁ Hollard
Rwanda
⧁ Sonarwa
⧁ Cogear
⧁ Corar
⧁ Phoenix
⧁ UAP
⧁ Radiant
⧁ Britam
Competitors - General
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
Current Status
⧁ Evolving (risk based assessments)
⧁ Inspections
⧁ More attention to capital
⧁ COP (not always)
⧁ Product approval
⧁ Annual returns
⧁ Pension liberalisation
⧁ New Micro Insurance legislation Zambia and Nigeria
Regulatory environment
Challenges
⧁ Lack of enforcement
⧁ Adoption of inappropriate norms
⧁ Requirements to increase capital
⧁ Lack of distinction between LT and ST business
⧁ Regulations not in line with legislation
⧁ Regulators have discretion to change rules
⧁ Statistics not up-to-date
⧁ Local cession requirements
⧁ Local shareholding requirements
⧁ Legislation out of date
⧁ No insurance practitioners in regulator
⧁ East Africa common oversight
Regulatory environment
SEM structure and capacity to support growth
Malaysia
(Robert)
East & West Africa
(Margaret)
HR/Act
Markets
India
(Mossie)
Southern Africa
(Botswana – Gaffar)
(Other – Tertius)
Finance + Actuarial + Risk Mgt + Compliance Mgt (Gerrit)
Marketing + Corporate Services (Thabied) / Ops + IT (Cornie) / HR (Niel)
SEM
SPF SIM Santam COE
Product Management Distribution Profit optimisation
Country CEs
Support
Specialist
role
General Insurance (Lourens) / Asset Management (Andre) /
Life Insurance + EB (Mossie) / Credit (Gerrit)
SCM SEB Group
Office
expats
India Africa
(excl. South Africa) South East Asia
SEM
Countries
Mergers and Acquisitions (Robert)
expats expats
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
Insurance penetration
COUNTRY Life (%) Non-Life (%) PA & Health (%) Total (%)
Botswana 1.95 0.91 0.01 2.87
Ghana 0.46 0.58 0.03 1.06
Kenya 1.06 1.58 0.37 3.01
Malawi 0.34 1.06 0.06 2.06
Namibia 5.47 1.97 2.33 9.77
Nigeria 0.81 0.51 NA 0.68
Tanzania 0.09 0.63 0.14 0.86
Uganda 0.09 0.61 0.06 0.79
Zambia 0.40 0.89 0.11 1.38
Population pyramid, Kenya
Kenya 2015, Population 46.8m Kenya 2030, Population 66.3m
Population growth from 47m to 66m
Increased proportion in ages 25 – 50
GDP growth
Country Population 'm Population
(projected 2025) GDP (USD) 'm GDP (USD) 'm 2025 GDP per capita GDP Growth 2014
Botswana 2 2 14,600 25,499 7,192 5%
Ghana 26 33 40,008 68,427 1,565 5%
Kenya 42 59 35,149 60,117 845 5%
Malawi 15 23 4,689 8,994 305 6%
Namibia 2 3 12,807 20,351 5,667 4%
Nigeria 162 240 243,529 497,004 1,499 7%
Rwanda 11 16 6,440 14,123 589 7%
Tanzania 46 67 25,600 55,003 554 7%
Uganda 36 55 19,597 41,248 550 7%
Zambia 14 21 20,161 42,874 1,482 7%
Total 356 519 422,580 833,639 1,188 6%
⧁ Footprint and interests
⧁ Background to our businesses
⧁ Products and partners
⧁ Market share and competitors
⧁ Regulation and central support
⧁ The future and its potential
⧁ Insurance penetration and growth
⧁ Products and new markets
Agenda
⧁ Middle and upper market products
⧁ Multinational products (for high income individuals who
regularly move countries)
⧁ Pension opportunities following pension fund liberalisation
⧁ Immediate annuities on the back of pension liberalisation
⧁ SME market for life and general
⧁ Construction, liability & guarantees around infrastructure
development
⧁ General insurance for small business markets
⧁ Specialist lines
Product opportunities
Growth opportunity (GDP growth /
life insurance penetration)
insurance penetration
GDP
growth
HIGH
LOW HIGH
Zimbabwe
Morocco
Angola
Mozambique Ethiopia
Senegal
Cameroon
Egypt
Ivory Coast
Growth opportunity (GDP growth /
general insurance penetration)
insurance penetration LOW HIGH
GDP
growth
HIGH
Zimbabwe
Morocco
Mozambique Angola
Ethiopia
Senegal
Cameroon
Ivory Coast
Egypt
Historical growth
-5
0
5
10
15
20
25
30
35
Ghana Life OP, GHC'm
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
2005 06 07 08 09 10 11 12 13
Tanzania Life OP, Tsh'bn
Strong, market leading businesses in rapidly
growing markets
Covering a large geographical footprint across countries with
350m people
Embracing diverse partnerships
Supported by an experienced central team with a strong
track record
Summary
New markets Untapped market
segments
quietly confident…
our purpose is clear…
questions