INVESTMENT PROPOSITION


Growth

POSITIONED FOR

LONGER TERM SUSTAINABLE GROWTH

Funds

R1.2trn

in Funds under
Management (2017)

Cash flow

R14.5bn

in net client
cash flow* (2017)

Headline Earnings

R13.4bn

adjusted headline
earnings (2017)

Customers

12m

Approximate Customers
(2017) (Excluding Nedbank)

Return on Net Asset Value

Average Cost of Equity + 4%

Solvency and asset management cover

for Old Mutual of 155% − 175%
(assuming Nedbank unbundled to 19.9%)

Dividend cover

(based on adjusted
headline earnings)

of 1.75 times − 2.25 times

Results From Operations

of Nominal GDP + 2%

TOP THREE MARKET SHARE FOR:

South Africa

SOUTH AFRICA

Zimbabwe

ZIMBABWE

Namibia

NAMIBIA

South Africa

SOUTH AFRICA

Zimbabwe

ZIMBABWE

Namibia

NAMIBIA

Colombia

COLOMBIA
(Voluntary Pensions)

South Africa

SOUTH AFRICA

Zimbabwe

ZIMBABWE

Namibia

NAMIBIA

Kenya

kenya

Zimbabwe

ZIMBABWE

Kenya

kenya
(Microfinance)

A well-positioned African brand

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leading brand
and
market positions

more info
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A premium African
financial services
group

providing a broad spectrum of retail and corporate financial solutions across key markets in 13 countries

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An integral part
of the
financial fabric

of South Africa and the wider Africa

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The trust
and
integrity

associated with our historic brand positions us well in our key growth markets



Leading brand

Close

Recognised as the leading long-term insurance business-to-consumer brand in the Sunday Times Top Brand Awards and as one of the leading short-term insurance brands.

Market Rankings

SA South Africa

  • 1st on a gross premiums written basis in the life and savings market (2016 Annual Report of the Long-term Insurance industry, FSB)
  • 2nd on a gross premiums written basis in the property and casualty market (2016 Annual Report of the Long-term Insurance
    industry, FSB)
  • 3rd on an assets under management (AUM) basis in retail asset management (ASISA)

Rest of Africa

Zimbabwe Zimbabwe

  • 1st in: Life and savings, property and casualty markets(2016 Annual Report IPEC)
  • 1st in asset management (SECZ)
  • 2nd in banking and lending market

Namibia Namibia

  • 1st in life and savings market (Quarterly Statistical Bulletin, NAMFISA)
  • 1st in asset management market (Quarterly Report, Association of Unit Trusts Namibia)
  • 3rd in property and casualty market (Quarterly Statistical Bulletin, NAMFISA)

Latin America

Colombia Colombia

  • 2nd in voluntary pensions market (Superintendencia Financiera de Colombia)

A responsible corporate citizen

We recognise that our status as a corporate citizen status confers on us rights, obligations and responsibilities towards society and the natural environment. The five pillars underpinning our commitment to being a responsible corporate citizen in all our decisions and actions are:

Being responsible to our:
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customers

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employees

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communities

Responsible:
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Investment

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environmental management

Our social vision is to invest in countries’ economic success by contributing to the sustainability of communities.
View our Responsible Business.

Transformed and efficient

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Most transformed

financial services management team in South Africa

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Restructured leadership and reporting lines

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Delivering on
cost efficiency
opportunities

achieved savings of R100 million in non-commission expenses in 2017

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Cost savings
target

of R1 billion by year-end 2019 (R750 million in 2018 and R250 million in 2019)

Strong governance structures

  • Committed to exercising ethical, accountable and effective leadership through our resilient and appropriate governance structures; and interpreting and applying codes of corporate governance as is appropriate to the group in order to achieve:
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an ethical culture

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good performance

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effective control

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legitimacy

  • Extensive experience in insurance and banking governance practices and in the governance of a JSE-listed company

NOTES

  1. Figures do not include Nedbank
  2. “RoNAV” is defined as Adjusted Headline Earnings divided by average Adjusted IFRS equity. Adjusted IFRS Equity is calculated as total Group equity attributable to ordinary equity shareholders, before adjustments related to consolidation of funds. It excludes equity related to Residual plc and discontinued operations and is further adjusted to recognise the equity attributable to the retained 19.9% interest in Nedbank from the 2015 financial year onwards. From the time of the Nedbank Unbundling, the equity attributable to Nedbank will be adjusted to remove the one-off fair value adjustment required under IFRS and the same adjustment will be applied when calculating RoNAV on an ongoing basis. The average Adjusted IFRS equity will be calculated on a quarterly basis for each reporting year.
  3. The Group is targeting to grow Results from Operations at a CAGR of Nominal GDP + 2% over the three years to 2020. Nominal GDP growth is defined with reference to South Africa.
  4. The Standard Formula allows for, subject to Regulatory approval, certain methodology elections to be made. The estimated SAM Solvency positions are presented on the basis of the Group’s preferred methodology which will, once the SAM framework is implemented, be formally presented or Regulatory approval. Excludes any residual plc NAV surplus. Based on current Nedbank shareholding.
  5. Based on Adjusted Headline Earnings. Targeting an interim dividend of 40% of the current year interim Adjusted Headline Earnings. Any dividends will take into account: underlying local cash generation, fungibility of earnings, targeted liquidity and solvency levels, business strategy needs, and market conditions at the time.
  6. R1.0 billion of pre-tax run-rate cost savings by end 2019, net of costs to achieve this. This will be based off the 2017 IFRS administrative cost base (as defined), and adjusted for inflation and FX over 2018 and 2019.Targeting costs to be managed within inflation thereafter.