For generations to come - Sanlam celebrates its centenary - Inside Sanlam
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JANUARY / FEBRUARY 2018
We’re on course for success in 2018, say CEOs p8
Making a difference in Blue Ladder schools p22
Santam – 100 years of insurance good and proper p26
Be Well in action – a success story p32
Magazine for WealthsmithsTM
For
generations
to come
Sanlam celebrates
its centenary
January/February 2018
top-line thinking
Ian says
contents
We’re on course for
another century of
success, says Group ‘We need to reflect on our
CEO Ian Kirk … p8 milestones through the years
and use them as motivation to
further strengthen our legacy
news JANUARY / FEBRUARY 2018
We’re on course for success in 2018, say CEOs p8
and continue to meet our
2 stakeholders’ expectations.’
Making a difference in Blue Ladder schools p22
Santam – 100 years of insurance good and proper p26
Be Well in action – a success story p32
Magazine for WealthsmithsTM
In short
What’s happening in the Group’s world and beyond
strategy For
8 generations
to come
I
Shaping the next 100 years Sanlam celebrates
its centenary
Looking forward to making a meaningful difference OFC JanFeb.indd 1 2018/01/30 4:02 PM
t’s all systems go as we’re already in the second month of
for another century This is the magazine 2018. This is our first issue of Inside Sanlam for the year and I’d
for Sanlam
staff members
like to share with you some of the Group’s priorities in 2018 –
12 Positioned for growth
everywhere. as well as some of the exciting initiatives under way to celebrate
our centenary.
SEM remains focused on organic growth If you have news for
us, send an email With a new year traditionally being the time to make resolutions,
to insidesanlam@ you may be wondering whether there’s a big reveal in the Group’s
14 Crafting integrated solutions for
sanlam.co.za. objectives for this year. It’s not necessary or appropriate in our case.
In Sanlam’s centenary year we’ll continue to implement our solid
corporates FOR SANLAM
Sanlam Corporate’s strategy is to provide holistic,
long-term solutions for large corporates thought leadership Communications
Consultant
strategy at an even higher level while striving to make a meaningful
difference in the business and societies in which we operate.
28
Inga Bosch-Cloete
Address: Sanlam Head We have sound leadership and the right people – this has stood
Domestic investments should benefit
15
Office, 2 Strand Road,
us in good stead on our journey thus far.
Stretching for even greater success South Africans Bellville, South Africa
We’re mindful that our operating environment remains
Sanlam Investments performance merits kudos Azola Zuma on why long-term domestic capital
allocation will boost the economy FOR NEW MEDIA challenging, but this won’t deter us in our continuous efforts
PUBLISHING to collaborate better with government, labour and business in
16
Editor-in-Chief
A ‘monumental year’ for Santam Trudie Myburgh identifying opportunities to influence the environment positively.
Focus on remaining the leading short-term insurer commentary Content Producer
Karin Burger
With new leadership in our country and a desire to make things
right, South Africa could begin to recover.
30
in Africa Editorial
Pieter Vermaak, Aviva
What staff look forward to in 2018 … Singer, Marga Scheffler, In celebrating our 100-year journey, we need to reflect on our
18 … professionally and personally Una Nieuwoudt, milestones through the years and use them as motivation to further
Letitia Watson
SPF prioritises further growth Design strengthen our legacy and continue to meet our stakeholders’
Taking advantage of new opportunities during Christopher Evans, expectations.
Sanlam’s centenary year people Nita Nagar
Group Account Director Next month will be an important time to reflect – we’ll be
32
Tinnette Fourie
announcing our annual results on 8 March, critically reviewing the
19
Head: Internal
Be Well programme Communications areas where we’ve excelled and those that require improvement, and
A ‘one-stop shop’ in Mauritius A strong example of best-practice employee Brendan Cooper
Sanlam expands its offering to the Mauritian market Director: hence greater focus. Please keep an eye out for the announcement
wellness in action Content Strategy as well as the release of our Integrated Report, which will also give
Andrew Nunneley
you insight into our business operations.
brand 34 Financial skills
Printer
Shumani Mills
I encourage you to approach both the challenges and
opportunities that 2018 may bring with a true Wealthsmith™ resolve
20 5 steps to saving for a year-end treat Communications
Building a legacy for generations to come Published for Sanlam by
that will allow us to build on our century of success and see Sanlam
35
The campaigns that’ll ensure a memorable centenary New Media Publishing, continue to go from strength to strength for generations to come.
19 Bree Street,
Personal skills Cape Town May our centenary year be inspiring and fruitful for all!
Images: Getty Images and supplied
22 Make an inspired start to 2018 Telephone 021 417 1111
Learning to make a difference
36
Wealthsmiths™ to be part of Blue Ladder Schools
initiative – Sanlam’s biggest centenary CSI project Out and about
See who was where and why
26 40
100 years of insurance good and proper
Santam acknowledges clients, staff, intermediaries The back page
and business partners in its centenary celebrations Thelma resolves to be inspired in 2018
Inside Sanlam | January/February 2018 1
news Shriram Life Insurance Company Innovation programme
Keeping insurance ‘For every one
dishonest
Transforming
fraud at bay claim, 99 product design
Shriram Life Insurance Company (SLIC) has initiated honest clients A brand-new, UCT-accredited leadership programme in
a rigorous process in a bid to curb fraud in the client innovation and design thinking is set to transform the
segment it serves.
suffer.’ way we think when creating solutions for Sanlam clients.
Although SLIC is strongly committed to settling claims, Manoj Jain The Advanced Leadership Certificate in Design
the company and clients in its target market – second- Thinking will be presented this year by Sanlam Personal
and third-tier Indian cities and rural areas – often fall prey Finance in conjunction with the University of Cape Town’s
to fraudsters. As a result, SLIC continuously faces false Graduate School of Business (UCT GSB). The programme
claims, which mostly involve ‘death before’ cases. aims to offer a learning experience that draws on the
To identify and eliminate fraudulent cases, SLIC has put latest trends, research and methodologies to help
two operational processes in place: Wealthsmiths™ devise fast, innovative and cost-effective
• ‘Selfie’ with the client: solutions our clients really want.
The sales officer is
required to send a visible Where it all started
selfie with the client About two years ago, SPF discussed the idea of creating
1 along with the proposal a co-working space where Wealthsmiths™ and people
Sanlam Private Wealth forms, which helps the from outside Sanlam could gather to brainstorm fresh
Stellenbosch at underwriting team to ideas. This led to the creation of the Sanlam Design
assess the risk better Studio in early 2017.
Summer Place • Live investigations: ‘Our staff needed to be equipped with different tools
Based on historic and abilities to change their approach
Johannesburg high society gathered for one of experience, SLIC arrived to problem statements and come up
the City of Gold’s premier lifestyle events when the at a set of analytical with optimal solutions a lot faster and
1 Summer Place was eighth Stellenbosch at Summer Place – presented parameters to help filter more cost-effectively than in the past,’
turned into a stylish by Sanlam Private Wealth (SPW) in partnership with a sample of all fresh says Ahmed Banderker, Chief Executive:
winelands rendezvous. Stellenbosch Wine Routes – transformed the plush proposals that might Strategic Business Development. ‘Our
2 SPW CEO Daniël
Kriel (left) and Portfolio Gauteng venue into a stylish winelands rendezvous. have fraudulent intent. clients have evolved over time, and now Ahmed Banderker
Manager André Vos. At this annual showcase of some of South Africa’s A SLIC team then visits need quick solutions that work.’
3 Ben Momberg of finest wines, food and art, select clients, celebrities these claimants to Late last year, SPF and UCT presented a series of
Middelvlei Wines
and Temba Mvusi, and guests had the opportunity to mingle with the confirm authenticity. introductory workshops in design thinking to its Exco
CE of Group Market country’s top winemakers and chefs. These initiatives have and senior management at the UCT School of Design
Development. 4 SPW
Johannesburg Branch
The 2017 event was themed Artists, Makers & resulted in a significant Thinking (d-school). While this was under way, the
Manager Puso Fisher Craftsmen. Alongside some of the country’s top culinary decrease in fraudulent cluster also completed the outline of the new leadership
and Portfolio Manager maestros, over 100 wines from 45 Stellenbosch wine cases reported by SLIC programme in conjunction with UCT GSB.
2 Greg Katzenellenbogen.
farms were featured, and the top 40 entries into the – although such cases The pilot programme, an NQF level 7-aligned
prestigious 2017 Sanlam Portrait Award were on display. are still troubling the new qualification, begins in February and will be presented
‘At SPW, we’re inspired by fellow masters of craft, business, underwriting and over 10 months to around 30 delegates from across
whether it involves delectable flavours, mesmerising claims teams. However, the Group.
sounds, alluring wines or beautiful art,’ says Daniël having been sensitised to the issue, one SLIC branch
Kriel, CEO of SPW. ‘We were delighted to again treat manager recently uncovered a family-run racket involved ‘Through the workshops and the
guests to a celebration of masterpieces created by in duping various life insurance companies with ‘death
chefs and winemakers from the Stellenbosch region, before’ policies. After a tough legal battle, the offenders
leadership programme we want to
paired with a visual feast of original artworks.’ were arrested. equip our staff to change
Wine being the golden thread, every aspect of the ‘For every one dishonest claim, 99 honest clients suffer,’ the way in which they
event was thematically integrated. The chefs were says Manoj Jain, MD of SLIC. ‘We’re proud of our branch think and find solutions
tasked with preparing small-plate tasting dishes team and the subsequent efforts of our legal team to
showcasing the grape varieties and wine styles for ensure justice for the millions of innocent clients who
that really work.’
3 4 which Stellenbosch has become world-renowned. potentially suffer as a result of fraud.’ Jack Kruger, Sanlam’s Head of Design
2 Inside Sanlam | January/February 2018 3
news
Sanlam Cape Mile Sanlam Kenya Sanlam Emerging Markets
Ready, steady, swim! Bancassurance Sompo International
deal clinched partnership is a
The Sanlam Cape Mile (SCM), which celebrates its fourth
anniversary in the same year that Sanlam turns 100, will
‘The sport of
return to the Eikenhof Dam at the Grabouw Country Sanlam Kenya recently signed an agreement with
pan‑African first
Signing the deal are ‘This memorandum of understanding is a first for
Club on Sunday 18 February. Entrants can choose either open-water Standard Chartered Bank Kenya whereby the bank will (from left) John Melville,
Executive Head: Risk
the Sanlam Group. We’re honoured and privileged to
a 1 mile (1,6km) or 500m swim. swimming distribute general insurance products to its existing and Sompo International Group (SI) has signed a far-reaching Services at Santam; enter into this cooperation with Sompo to offer financial
In 2015 the event attracted close to 1 000 swimmers,
while in 2017 more than 2 000 swimmers took the
requires potential clients. The products will be distributed through
the bank’s widespread distribution channels, as well as
partnership agreement with Sanlam Limited and Saham
Finances – a first for both the Sanlam Group and Saham.
Nadia Fettah, CEO
of Saham Finances;
services to multinationals across francophone West Africa
as well as anglophone and lusophone markets in Southern
plunge at the Eikenhof Dam. dedication, through subsidiaries Sanlam General Insurance and the Sompo Japan Nipponkoa Insurance Inc (SJNK) will
Atsushi Mizuguchi,
Managing Executive and East Africa,’ he adds.
The SCM is an all-inclusive swim catering for the meticulous Standard Chartered Insurance Agency. partner with Sanlam Emerging Markets (SEM), Santam Officer of Sompo Japan
Nipponkoa Insurance
Junichi Tanaka, Managing Executive Officer of Sompo
whole family, featuring live music, food stalls and photo preparation Mugo Kibati, CEO of the Sanlam Kenya Group, Limited and Saham Finances to provide life and general Inc.; and Junior Ngulube, Holdings and SJNK, says his organisation is delighted
sessions with the swimmers. says this agreement shows commitment to the future insurance support to its corporate clients across Africa. about this partnership with two of the largest and best-
‘The sport of open-water swimming requires
and a high- enhancement of insurance distribution, which will SJNK is the second largest insurer in Japan. Having
CEO of SEM.
known financial groups in Africa.
dedication, meticulous preparation and a high- performance increase market penetration in the country. opened an office in Johannesburg in April 2014, it’s built ‘This alliance allows us to build Sompo’s reputation as
performance culture, which is not unlike the process we culture, Insurance penetration in Kenya stands at a relatively up a client support and insurance market research system a strong player in Africa by expanding our support to
go through in managing client investments,’ says Carl which is not low 2,73%, compared with the world average of 6,28%. throughout Africa. This new partnership will provide Japanese customers entering the continent. Through
Roothman, Chief Executive: Sanlam Investments Retail. ‘Despite the low intake, Kenya’s middle class is SJNK with access to new markets in Africa, leveraging the our new partners we’ll now have access to 27 African
‘We look forward to seeing this event go from strength
unlike the growing and the need for services such as the ones experience and existing footprint of Sanlam Limited, the countries in total – more than double the presence of our
to strength.’ process we we’re introducing is critical,’ Mugo says. ‘Our insurance largest financial services group in South Africa, and the peers across the continent – providing us with the largest
Sanlam’s Be Well programme encourages go through penetration is still low, but in the wider East African region, Saham Group, which boasts Saham Finances as the largest scope of coverage in Africa,’ he says.
Wealthsmiths™ to take part in the SCM. Be Well’s aim
is to raise overall awareness of key wellness issues and
in managing Kenya accounts for 70% of all insurance products bought.
Our life insurance markets will be significantly enhanced
pan-African insurance group, excluding South Africa.
‘With the key focus of SEM’s strategy being on organic
The size of the insurance market in Africa is
US$20 billion, with only 1% of the total global market.
foster healthier lifestyles among staff. client with this new distribution channel. We are ready for it.’ growth, it’s important for us to shape our footprint This means that despite a compound annual growth
investments.’ Lamin Manjang, CEO of Standard Chartered Bank across the 34 countries on the African continent with our rate of 3,2%, there remains considerable scope for
Carl Roothman Kenya, says the agreement will make the bank a one-stop partners, Santam and Saham Finances. One of our focus development of this small and young market. In addition,
financial service provider. areas is to become the go-to player for multinationals Japanese private/public investment into African countries
throughout Africa,’ says Junior Ngulube, CEO of SEM. is expected to be US$30 billion.
Mugo Kibati, CEO
of the Sanlam
Images: kenyancollective.com and supplied
Sanlam Employee Benefits
Kenya Group
(left), and Lamin
Manjang, CEO of
Standard Chartered Extending tertiary
education support
Sanlam Employee Benefits Bank Kenya.
New products Brokers were also introduced
to Sanlam’s Progressive Smooth The high cost of tertiary education is receiving national
presented Bonus Fund, the first smooth bonus attention, as both the private sector and government
product under black management. grapple with the issue of access to further education for
Sanlam Employee Benefits (SEB) This offering was developed for previously disadvantaged communities.
concluded a series of successful progressive clients who value the Since 2013, Sanlam has been proud to be part of the
client engagement sessions with key economic empowerment of black App of the month solution as a supporter of the JB Marks Education Trust
employee benefits consultants across asset management firms and seek Namola is a free app that helps you receive Fund. Through Sanlam Employee Benefits (SEB) and
the country. smoothing and guarantees in emergency assistance when you need it most. the Sanlam Foundation, the company has partnered
These sessions were hosted in investment products. When you request assistance through the with the fund to provide access to tertiary education From left are Danie van
Johannesburg, Pretoria, Durban and Sanlam Group Risk contributed app, the Namola team immediately sends for children of workers in the mining, energy and Zyl, Head: Guaranteed About the JB Marks Education Trust Fund
Investments at SEB;
Cape Town and included presentations R20 000 to The Pink Drive on behalf your request to local law enforcement and construction sectors. Lerato Botere Moraba, The fund, named after the late South African
to more than 160 consultants. of the clients who participated in the participating local safety initiatives so they During this time Sanlam has helped 31 bursars BA LLB graduate from activist John Beaver Marks, was established by the
the University of Free
While the overarching theme of the sessions. The donation, in support can come to your aid as quickly as possible. graduate with bachelor’s degrees and national diplomas. National Union of Mineworkers (NUM) in 1997. Marks
State; Sabelo Mgotywa,
2017 roadshow was risk management, of Breast Cancer Month, which took GPS technology allows Namola to pinpoint Bursaries cover the cost of tuition, accommodation, Secretary: NUM Youth believed the truest form of worker empowerment
the engagements also provided a place in October, will be invested in your location and help police reach you faster, meals and books. Structure; and Phumzile and emancipation was through education, and since
Langeni, Chairman:
forum for the launch of Sanlam Group powering South Africa’s first mobile with a dedicated command centre operator SEB recently agreed to extend its support to the Mineworkers Investment its inception, the fund has helped more than 1 000
Risk’s revitalised Severe Illness product. mammography and education unit. assigned to each incident. JB Marks Education Trust Fund for a further four years. Company. bursars to graduate.
4 Inside Sanlam | January/February 2018 5
news
Sanlam by numbers
you said
70 000
The minimum number of learners who’ll benefit
from Sanlam’s Blue Ladder Schools Programme.
Saham Finances SME Action Team Tech Hub
Underwriters Course ‘Part of the
team’s value
Group approach to IT problems solved
wins IFPASS Award SMEs pays off Need someone to attend to your IT-related problems
lies in our immediately? Visit the Tech Hub walk-in centre, enjoy
Saham Finances received the prize for the best project
in the category International Training at the IFPASS
ability to The Sanlam SME Action Team has made great strides in
creating synergies and optimising cross-selling among
a cup of coffee and see the latest IT innovations while
a technician solves your problems.
Awards held in Paris. capitalise participating businesses in the Sanlam Group. ‘The Tech Hub provides IT advice and services for
This international award was presented to the company on business ‘In 2017 multiple business opportunities were presented Sanlam colleagues with minor IT issues or those who
for its implementation of the Underwriters Course, opportunities to the SME Action Team business units for consideration,’ require assistance working internally or externally from
initiated in 2015 by its Human Resources department. says Jannie Rossouw, Head: Sanlam Business Market (SBM). the Head Office building,’ says Mpho Mbiza, Innovation
IFPASS, the reference organisation in France for
in the SME ‘One such opportunity was the creation of a BlueStar Plus Advocate: GTI-EUCS: Innovation & Engineering at Sanlam
insurance training, rewards the best training efforts of market.’ financial planning practice, providing dedicated financial Group Technology and Information.
international players in the insurance sector. Saham Jannie Rossouw planning services to accountants who are members of No appointment is necessary and you’ll be attended to
Finances’ award is testament to its ambitious skills the SA Institute of Business Accountants (SAIBA) and on a first come, first served basis. In the build-up to Sanlam’s
development strategy as well as the work of everyone
involved in the creation of content, organisation and
ultimately, the business-owner clients of these practices.
‘SPF and Santam are the immediate beneficiaries, with
‘The primary purpose is to reduce the number of calls
to our help desk and make ourselves more accessible
centenary, we asked
facilitation of training courses. Sanlam Employee Benefits, Sanlam Private Wealth and and visible to our clients,’ Mpho says. ‘We also want to staff members what
US Woordfees
Sanlam Multi Data to follow in due course,’ he says.
The Sanlam SME Action Team was created in 2011 to
showcase innovations in conjunction with our suppliers.’
makes them proud to
be Wealthsmiths™.
100% entertainment bring together all business units in the Sanlam Group Services offered
that market and sell products and services to the small- • Software drivers, patches and download
Stellenbosch University and Sanlam both celebrate their to medium-sized enterprise (SME) market. • Break-fix services It makes me proud to be part of
centenary in 2018. With the 19th US Woordfees taking With SBM as coordinator, the team consists of: • Email setup/configure on mobile devices (BYOD)
place from 2–11 March, the theme is fittingly ‘100%’ – and • Sanlam Personal Finance • Sanlam Private Wealth • First-line support
this well-known and trusted brand,
Sanlam is the proud sponsor of the festival. • Sanlam Healthcare • Santam • 3G/4G connectivity problems especially since we’re celebrating
The US Woordfees’ annual Long Table – the launch of Solutions and • Sanlam Alternative • Wi-Fi connectivity (mobility, trusted) 100 years of service to our clients.
the 2018 festival programme – took place in November Completemed Investments • Passwords reset
in Ryneveld Street accompanied by exuberant music, • Glacier by Sanlam • Sanlam Trust • Corrupt device drivers
I’m impressed with the word
food and wine. • Sanlam Employee Benefits • Sanlam Group • Email archive and restore. ‘Wealthsmith™’ – it reminds me that
‘At the US Woordfees, artists will have the opportunity • Sanlam Multidata Procurement. The Tech Hub is available Monday to Friday we’re creating and
to demonstrate what’s important to them,’ says Saartjie The team has created the Sanlam SME toolkit 08:00–16:00. Find it on the First Floor, South Atrium
Botha, Director: US Woordfees. ‘And by attending and (sanlamsmetoolkit.co.za) to support Sanlam staff Group- (roof reference K14).
Mpho Mbiza in the Tech
Hub at Head Office.
protecting wealth.
supporting this festival, you become a member of this wide in understanding the context of the Sanlam SME value Faheem Samsodien
community – someone who’s open to new experiences proposition. This helps anyone to identify which business Contribution Specialist:
and enjoys good entertainment.’ Riku Lätti and unit in the Sanlam Group can provide the appropriate Sanlam Employee Benefits
Jolyn Phillips on
The US Woordfees programme is available at stage at the launch support and service to a client with a particular need.
woordfees.co.za. Tickets at Computicket. of the US Woordfees.
Team roles The brand Sanlam and our products are
• Conduct research studies to understand the well known to the public. Everything we
competitor landscape in the SME market and to share
do and create here are for the benefit of
findings across the business units that inform strategic
and operational decision making our clients. When I explain what I do to
• Identify and create opportunities for businesses, for somebody outside the company, I feel
example, by engaging in projects with top Group suppliers
• Coordinate and inform marketing actions of business
proud because I know I’m
units in the Group that work with the SME market. making a difference.
‘Part of the SME Action Team’s value lies in our ability Zandile Zulu
to enhance communication efforts across business unit Test Analyst: Sanlam Personal
boundaries, influence business strategy and work as Finance
a team to capitalise on business opportunities in the
SME market,’ Jannie says.
6 Inside Sanlam | January/February 2018 7
100
strategy / Year ahead
On course
for the next
In Sanlam’s centenary year we look forward to making
a meaningful difference for the next 100 years.
Implementing our solid strategy will be crucial.
years
2017 highlights 2018 goals
The Group Our SEM SPF started SA entry- In the AfroCentric, in
A
gained transaction concluded new, exciting level market institutional which Sanlam
s we celebrate 100 years of doing and Absa Consultants and Actuaries market share with Saham significant businesses, represents market, has a 28,7%
A century
business this year, we’re entering will become part of Sanlam Employee in most last year transactions, sending significant SEB is close shareholding,
segments boosted our acquiring Go Cover, opportunity to second is now
2018 with a great business, a solid Benefits (SEB) in 2018. Sanlam Emerging and footprint Sanlam MyWayLife for life place, having second in
strategy and a clear focus – to
implement our strategy, says Group CEO of success Markets concluded significant transactions,
acquiring Sanlam Investments East Africa,
produced
credible
results.
across Africa. Investments
East Africa,
adding Lion
and Indie
into the
South African
insurance.
Although
we have a
climbed from
fourth a few
years ago.
the market.
But the gap
between
Ian Kirk. Ian reflects on Sanlam’s adding Lion Assurance Company to its Assurance market. large market However, second and
‘We’ve developed Sanlam successfully past and present: general insurance business in Uganda and Company to share, we there’s still first position
its general must remain a sizeable is significant,
over the past 100 years and I can proudly partnering with Sompo in Japan. Sanlam insurance determined gap between which
‘This year we’re looking back, giving
say that strategically and operationally the credit to all the Sanlam and Santam Personal Finance also started new, exciting business in to become Sanlam and presents a
Group is in a good space. We have good generations before us who reached businesses, sending Go Cover, MyWayLife Uganda and the leader in the market wealth of
a wealth of milestones to carry us partnering this space. leaders and opportunities
businesses and excellent people. Although and Indie into the South African market. with Sompo Sanlam and new
through the past 100 years.
circumstances in SA were tough last year due ‘These are all significant milestones that in Japan. Corporate is segments to
to the struggling economy, downgrades and ‘From a humble start as a small life illustrate the Group’s resilience and how we’re addressing explore in the
insurance business for middle-income this. SA market.
negative political situation, we stuck to our Afrikaans-speakers, we’ve grown into
prepared to be flexible enough to disrupt
strategy, which has worked for us. I have full a leading diversified financial services ourselves where necessary and appropriate,
confidence in Sanlam. We’ll continue to meet group operating across 40 countries. and to seize opportunities within the
This amazing achievement was made
our stakeholders’ expectations,’ Ian says. possible by the hard work of many boundaries of our strategy,’ Ian says.
people and having the insight to Sanlam’s success in 2017 is reflected in the
Highlights of 2017 choose the right strategy and do the higher share price and in how the market
right things.
‘Recognising the challenges in SA and the has viewed our performance. ‘The way in
impact they could have on our business, ‘We’ve seen enormous transformation which the analysts have reported about us
through the years. When comparing
we kept our heads down in 2017. Through Sanlam’s figures in the 1930s and ’40s
and how the buy-side analysts reviewed the
hard work and dedication we gained to today’s figures, the improvement
is mind-blowing. In 1998 Sanlam still
company says we did the right things. ‘We’ve developed Sanlam
market share in most segments and ‘South Africa’s downgrades and
produced credible results – on a relative
had no shareholders, whereas today
mismanagement of the economy and state- successfully over the past
we have a business with a market
basis, excellent results. And the market has capitalisation of almost R200 billion. owned enterprises in particular haven’t 100 years and I can proudly
rewarded us for that,’ he adds. been positive, but we’ve been resilient,
‘Our clients have increased from 10 000 say that strategically and
A number of meaningful transactions in the 1940s and ’50s to tens of millions we’ve been dealing with the challenges
and new initiatives added to the Group’s today. Although this has happened in in a positive way and we’ve shown good operationally the Group
other businesses as well, how many of
success. these have lasted for 100 years and are
progress – and for that I want to say a big is in a good space. We
‘Concluding the second phase of thank you to all our staff who’ve stayed
our transaction with Saham last year
well set up for the next 100?
committed to the company, our strategy
have good businesses and
boosted our footprint across Africa. We
‘In 2018 the ball is in our court to make
a meaningful difference for the next and to what needed to be done to achieve excellent people.’
also added BrightRock to the business 100 years.’ our goals,’ he says. Ian Kirk, Group CEO
8 Inside Sanlam | January/February 2018 9
strategy / Year ahead
Opportunities in SA for 2018 Key focus areas for 2018
‘We believe there are considerable
opportunities in SA. We don’t yet have our All our businesses have established their game plan and
fair share in some segments of the market this year it’s about implementing those plans, cluster by
and we’re still striving to be the leader in cluster, week by week, month by month.
the SA market. To achieve this leadership
position we need to lift our game in some Our strategy: In SA’s highly competitive market our
key segments.’ Ian says. He highlights these success will depend more on how we execute our
business opportunities: We want On the The growth strategy than on the strategy itself.
to see African prospects
• The SA entry-level market represents accelerated continent in India and
significant opportunity for life insurance organic we need to our business Our people: Executing our strategy depends on our
and although we have a large market growth achieve our in the UK people and making sure we retain the excellent talent
coming vision of position
share, we must remain determined to through becoming the us well to we’ve been attracting. We’ll keep doing this through
become the leader in this space. and to start pre-eminent ensure that training, development and new growth opportunities
making our insurance all business
• In the institutional market, SEB is close across the full spectrum of our business, and by
hurdle returns player for flows happen
to second place, having risen from fourth country by corporates at a higher keeping the door open for new talent.
position a few years ago. However, a country. operating level.
across the
significant gap remains between Sanlam continent Sound governance: We’ll continue to influence the
and the market leaders, and Sanlam and their environment in which we operate because we manage
Corporate is working to close this gap. employees. people’s money, which is a major responsibility.
• AfroCentric, in which Sanlam has a 28,7%
shareholding, is now second in the market. Developing new initiatives: We started a number of
But the gap between second and first
position is significant, presenting a wealth
of opportunities and new segments to
2018 goals new and exciting initiatives last year that we need
to develop further in 2018. Innovation is a core value
across all clusters.
explore in the SA market.
• Sanlam Investments has done a sterling Leveraging our footprint: We have an impressive
job, repositioning our third-party asset footprint, especially on the African continent. Our
management businesses while meeting focus will be on accelerated organic growth in the
Sanlam’s requirements. This year we need ‘Let’s go beyond we need to achieve our vision of becoming and are ready to take advantage of the countries in which we operate, combined with bolt-on
to seize opportunities to increase our the pre-eminent insurance player for opportunities it presents. transactions where this makes sense.
market share in this area through more
doing what’s corporates operating across the continent ‘We’ll be required to stay open-minded
retail and institutional flows. We’re doing necessary and and their employees. and continue to operate dynamically. We’re Environment: We’re continuing to target zero waste
well as an asset manager linked to an grab every ‘I’m also very excited about the growth in an era where our clients are central to to landfill by recycling all waste from Head Office and
insurance group but we need to close the prospects in India and about our business our business and decide what they want eventually all our offices.
gap to the market leaders. opportunity the in the UK, which is well positioned to and need – and we should be there for
‘Every business at Sanlam has a plan. Group provides ensure that all business flows happen at our clients and continue to cater for their Water: Sanlam fully supports saving water and has
We know our strengths and where the a higher level.’ product and service needs. worked with the WWF for many years. We’re also
in order to
opportunities lie and we’re going after Ian believes Sanlam’s most significant funding new infrastructure to save this valuable and
them this year, supplementing this with our reach our full opportunities in the next five to 10 years Message to staff scarce resource.
strategy on the African continent, India/ potential.’ are likely to be across the African continent. ‘This year we must continue to keep our
Malaysia and the UK,’ he says. ‘This is the year for growth on the African heads down and implement our strategy. Education: We’re committed to supporting education
continent and therefore the big year for Let’s go beyond doing what’s necessary and and will continue to do so. Some initiatives we’re
Expectations for the year Sanlam. grab every opportunity the Group provides involved in are the Fundisa Fund and Ikusasa Student
‘We’re expecting stronger growth in SA in order to reach our full potential. We have Financial Aid Programme (ISFAP) for tertiary
this year as well as progress and more Technological game changers a great business with great people and a education, and the Blue Ladder Schools project for
favourable results in the segments in which ‘Technology will be a massive game solid strategy. basic education.
Sanlam isn’t the market leader yet. changer. In the front end of the business, ‘We also have to look ahead to the next
Images: Getty Images and supplied
‘We already positioned ourselves for the way in which we contact and service 100 years and ensure that we pass on Business transformation: Transforming our business
better growth in the emerging markets last our clients will change. At the back end, a business to the next generation that’s to reflect the markets in which we operate remains
year. In 2018 we want to see accelerated robotics will play an increasing role over fundamentally stronger than the one we’ve a strategic priority.
organic growth coming through and to time. Data analytics will create new taken on.
start making our hurdle returns country by opportunities and machine learning will ‘It’s our responsibility to the next Technology and digital transformation: We’ll
country so we can start to really build on change our future,’ he says. generation of Sanlam staff to continue continue to enable our businesses digitally through
the fundamentals of the business and take Ian Kirk, Sanlam is fortunate to have skilful people to develop and grow – not only in South a coordinated approach.
Group CEO
it to a higher level. On the African continent who understand this new technology Africa, but across our footprint.’
10 Inside Sanlam | January/February 2018 11
strategy / Year ahead: SEM
1,2 billion
such as in-country partners,
corporate insurance brokers,
Santam, Saham, as well as
Positioned
Sanlam Corporate.
Entrenching and building
our brand, aligning our culture
People in Africa
and ensuring strong values
and ethics. We’ll build brand
for growth +60%
awareness through expertise
offerings and product-marketing
campaigns, while leveraging
Group Marketing activities
and the 100-year anniversary
activities in Sanlam-branded
countries.
Younger than 25
A key component will be
After a tough year What are SEM’s targets Increasing the delivery the roll-out of the Blue Ladder
facing various and expectations this of our SEM footprint will School project. We’ll continue
2,4 billion
year? be a priority. We’ll pursue to conduct workshops to align
challenges across its Our strategic intent is to product growth through the Group culture and values
widespread footprint, drive profitable growth and innovation and offering new with our businesses’ values and
innovation in our target product lines. Our aim is to run identify behaviour that supports
Sanlam Emerging
Markets (SEM)
markets by ‘sweating’ our
current footprint – driving
a break-even health business
as part of a comprehensive
the values.
Estimated population
remains focused on
organic growth, with
organic growth or increasing
our shareholding where
opportunities arise.
multinational offering and to
launch a new health offering
in high-potential markets
Continuing our
governance, risk and
compliance journey in
by 2050
structural growth We’ll also be embedding such as Kenya and Nigeria. 2018. We’ll keep working
through strategic strong governance principles We’re also looking into towards maintaining strong
4,3%
and ensuring there are sufficient building a pan-African governance, ethics and values, joint response from our various Africa, francophone West
Sources: African Economic Outlook 2017 and Mo Ibrahim Foundation
acquisitions also capabilities to execute. reinsurance offering to maintaining practices to business teams has been to Africa, lusophone Africa and
on the cards, says We’re planning on achieving support our partners as ensure the sound and prudent press on and find ways to anglophone Africa.
these goals in the following well as third-party insurers. management of our business, achieve success. This is a unique position to be
Junior Ngulube,
Projected GDP
ways: We’ll explore corporate and and establishing a stronger in and my message and wish for
CEO: SEM. multinational opportunities compliance capability at What are you looking each SEM employee is to start
growth in 2018
Driving profitable growth in conjunction with Saham cluster level. forward to? reading up and learning about
in our existing businesses, and Sanlam Corporate. An exciting prospect is the roll- the various countries in which
focusing on high-potential Name the biggest out of our strategic initiatives we operate, and get to know
markets and ensuring we have Unlocking value through challenges you’ll have following a detailed strategy a bit about their cultures. We
sufficient capacity to execute increased shareholding, to overcome? review process last year. I’m also have colleagues in all of these
our plans. To achieve this, in-country consolidations, While the global economy looking forward to visiting some countries and over time we’ll
our focus will be on achieving cross-border collaboration is starting to recover, some of our markets to which I’ve not be able to interact with more
and maintaining a leadership with partners and strategic of our key markets are still yet had the opportunity to go. of them.
position in our life insurance alliances. We’ll continue to facing economic headwinds We have an exciting year
businesses. Growing our general increase shareholding where – especially our oil-exporting What message do you ahead with some challenges to
insurance portfolio will also be opportunities arise. countries, Angola and Nigeria. have for your staff? overcome and quite demanding
Images: Getty Images and supplied
a priority. Given our footprint, we’ll Namibia’s economy is facing Now that SEM has a presence targets to meet.
We’re planning a number also be looking at partnering liquidity problems, while in 33 African countries, as However, SEM staff have
of initiatives and programmes with multinationals to provide the Kenyan economy is still well as in India and Malaysia, proven their worth and resilience,
to provide management and centralised, cross-border recovering from the disputed we’re very much on our way and I’m confident that with their
technical training as well as financial solutions to their elections. A number of our to building a truly pan-African continued commitment and
support through secondments. employees in multiple countries. other businesses are also still financial services company that hard work, together we’ll be able
Various new system projects To enable this, we’ll rely on the addressing challenges – each operates across all the language to face whatever challenges this
are also under way. collaboration of key role players of a different nature – but the regions of the continent: North year brings.
12 Inside Sanlam | January/February 2018 13
strategy / Year ahead: Sanlam Corporate Year ahead: Sanlam Investments / strategy
Building strength
By stretching ourselves and collaborating across the Group, Sanlam can
be the best financial services business in SA and Africa – with Sanlam
Investments a force to be proud of, says Robert Roux, CEO: SI.
through strategic
partnerships
Sanlam Corporate’s strategy of providing
holistic, long-term solutions for large Stretching
for even
corporates is well under way. Acting CEO
Temba Mvusi reveals more about what’s
greater success
been achieved so far and plans for 2018.
What lies ahead in 34 countries on the continent, intermediaries are involved in
2018? What will Sanlam we want to support those clients order to avoid compromising
Corporate’s focus areas be? expanding into Africa. relationships.
Sanlam Corporate will continue to In this regard, Sanlam Corporate We’ll also need to constantly
focus on our strategy of becoming is looking forward to partnering ensure that all the role players What will SI focus on in 2018? Name the biggest challenges you’ll have
the partner of choice for targeted even more with Sanlam Emerging within the Group can meet the Creating long-lasting value for our clients is key to to overcome?
corporates. Our focus areas remain: Markets (SEM) and exploring commitments we make to a client. our success as a business. Our clients expect a focus The South African economy remains under pressure
• To partner with large corporates, opportunities to offer a holistic on investment solutions that include index-trackers*, and the markets will reflect this, as will overall sentiment
providing them with holistic, corporate solution covering life What are you looking traditional asset classes and alternatives. Combined, towards the financial services industry. As a result, our
long-term financial solutions insurance, general insurance, forward to? these will ensure an optimal investment outcome. business performance will face challenges as it’s highly
and a One Sanlam experience investments, health insurance, We have a committed team We’ll keep focusing our efforts on delivering dependent on positive investment markets.
• To continue to increase our retirement, financial planning at Sanlam Corporate and I’m competitive investment outcomes for our clients and The industry also continues to face margin pressure
collaboration with the rest of and advice. looking forward to working with in the process continue to build our diverse range of and increased regulatory requirements, a challenge that
the Group’s clusters in order to the various operations within the capabilities. won’t abate in the near future.
find optimal solutions for these Name the biggest cluster to build our business and During 2017 we attracted significant third-party
corporates. challenges you’ll have make a meaningful contribution assets into the multi-asset space and our alternative What are you looking forward to?
to overcome? to the Group. offering, including credit, private equity, infrastructure We all want Sanlam to be the best financial services
Are there specific targets With Sanlam’s historic federal and unlisted properties – and we plan to accelerate our business in SA and on the continent. The capabilities are
and expectations for 2018? business model, which resulted What message do you asset growth during 2018. in place and if we stretch ourselves a bit more, we can
Through our newly established in a silo approach over the years, have for your staff? The UK management team has successfully ultimately maximise value for our clients and shareholders.
Group Risk team, the plan is to start we’ve been missing good, solid Sanlam Corporate’s individual restructured the Sanlam UK business over the past We’ve seen positive results every time we’ve
building strategic partnerships with corporate relationships. businesses achieved great success 18 months. This was critical because we expect more collaborated effectively in our cluster and across the
public enterprises. Collaboration across the Group’s last year and I want to thank the SA client money to find its way into global strategies Sanlam Group. I’m looking forward to much more
We also recently established businesses might present challenges cluster’s staff for their significant and we’d like to capture as much of these assets as success through collaboration.
Simeka Health in conjunction with at times, but will also create contribution. possible in our UK business. We’ll also reflect on the Sanlam success story over
Completemed, through which we opportunities for us to present one Our future success will depend the past 100 years and have fun celebrating it!
expect even further collaboration Sanlam and one comprehensive on the extent to which these Are there specific targets and
between our employee benefits and solution to potential clients. individual businesses collaborate expectations? What message do you have for your staff?
Images: Getty Images and supplied
Images: Getty Images and supplied
health businesses. Intermediation remains another with each other in positioning We’re undertaking quite a few critical projects in our I’m very proud of our achievements over the past couple
Although Sanlam Corporate’s challenge. Our approach to Sanlam Corporate going forward. business this year. We have to deliver on these projects of years, especially the positive investment flows we’ve
target market is mostly in South targeted clients will continue to I know our team is committed as this will make our business much more efficient and experienced into new products and even some of our
* An index fund is
Africa, many of these clients are include intermediaries, where to doing even more this year, and ultimately support the Sanlam distribution channels. traditional investment products.
a mutual fund or
expanding or planning to expand they’re involved, and collaboration I’m looking forward to working with As a management team, we’re also stretching The third-party business is well established and exchange-traded fund
Temba Mvusi, their businesses beyond SA’s with brokers remains important. each staff member to implement our budgeted targets for 2018, with the intention of competitive. We can now increase our efforts to become designed to follow preset
rules so the fund can
Acting CEO: borders. Given Sanlam’s pan-African It’ll be crucial for us to do internal our strategy and achieve the goals achieving solid financial results based on our strong an even stronger investment force that Sanlam can be track a specific basket of
Sanlam Corporate
strategy and our footprint across legwork and determine where we’ve set. investment product set and solutions capabilities. proud of. underlying investments.
14 Inside Sanlam | January/February 2018 15
strategy / Year ahead: Santam
Santam is looking forward to celebrating its 100th anniversary this year
while focusing strongly on remaining the leading short-term insurer in
Africa, says CEO Lizé Lambrechts.
A ‘monumental year’
for Santam How do you see the need to focus on delivering management actions on the To what do you most commitment to caring for our What message do you
business context in value to our stakeholders. commercial and corporate look forward in 2018? human capital and our status as have for your staff?
Santam’s centenary year? Our role is to offer our clients property classes of business, This year is going to be a responsible citizen. Santam’s We’re a resilient and
We expect the tough trading financial resilience in their time which have been a challenge in monumental for Santam. value proposition as a successful entrepreneurial organisation
environment of 2017 to of need and to contribute 2017. Additionally, we’ll continue We’ll be celebrating our 100th brand was also recognised with made up of competent,
continue into 2018. Economic to community resilience with the optimisation of our anniversary and recognising the Sunday Times 2017 Top experienced and supportive
contraction, an uncertain policy by supporting disaster non-motor claims channel. the contribution of our staff, Brands Award for best short- individuals. Thanks to our
environment and overall tough risk readiness. intermediaries, clients and term insurer. staff, we’ve ensured that we
macro-economic conditions We’ll continue implementing Name the biggest stakeholders throughout our We have strong relationships continue to focus on growing
will continue to impact on our Vision 2020 focus areas: challenges you’ll have centenary journey. with our brokers and clients, our business while maintaining
growth prospects. On the other • Deliver our brand promise of to overcome? For 100 years our company with financial intermediaries solid profitability levels.
‘It’s almost
hand, exchange-rate volatility, insurance good and proper We understand that in order has striven to provide insurance recently voting us Top Insurer Times are challenging, but we
which may be exacerbated by • Ensure we have the right people to remain sustainable, our good and proper, while being in the Personal and Corporate know that as an organisation,
unbelievable ratings downgrades, will put the
squeeze on our profitability.
to drive our business ambitions
and that we have solid HR
company will need to be
innovative across our business
a constant partner in the lives of
many South African families and
businesses. According to the
2017 South African Customer
we have unrivalled skills in
the industry. We’re in a strong
that in an We also expect intensifying
extreme weather conditions to
processes and practices that
support staff retention
portfolio and value chain. We’ll
need to balance profitability
businesses – especially in times
of tragedy.
Satisfaction Index, clients rated
Santam as the best insurer for
competitive position and we
continue to look for growth
industry as put pressure on our business. • Drive growth through with our continued efficiency Our resourcefulness has settling claims and handling opportunities. I’m therefore
volatile as Our reinsurers haven’t had a
great 2017, locally and globally,
innovation and diversification
in South Africa and across our
drive to optimise cost ratios.
Critically, we’ll continue
ensured that many of our clients
have been able to pick up the
complaints.
In the first half of 2017 we
confident we’ll succeed in our
vision to remain the leading
short-term and our costs may increase in
that regard, which will in turn
emerging markets businesses
• Continuously increase
to work with the rest of
the industry to promote
pieces and rebuild their lives
during trying times. For years to
settled claims worth R8,8 billion
and to date we’ve settled claims
short-term insurer on the
African continent.
insurance, affect individual and commercial
insurance premiums.
efficiency
• Relentlessly manage our
transformation. These and
other initiatives, such as our
come we’ll continue to fulfil this
pre-eminent role – in our home
in excess of R800 million for the
Knysna fires.
Santam has We are, however, confident risk pool. effort to improve the capacity country, South Africa, as well as Critically, we’ve proved a good
produced that with our expertise and
experience in risk management, Are there specific targets
of vulnerable municipalities
to reduce risk, ensure we
across our continent. partner to all our stakeholders
over the years.
underwriting together with the strong
partnerships we’ve built in the
and expectations?
As a business, our focus remains
all play our part in fostering
shared growth.
To what do you attribute
Santam’s achievements?
profits insurance value chain, we’ll on growing profitably and We also need to continue It’s important to pause
consistently
continue to be as resilient increasing our international with the development of a full and celebrate our many
Images: Getty Images and supplied
as we’ve been over the past diversification. We therefore multichannel capability, and achievements over the years.
for almost a 100 years and perform in line
with market expectations.
aim to grow positively, targeting
an above-inflation growth rate
start thinking how to change
that to an omni-channel
It’s almost unbelievable that in an
industry as volatile as short-term
century. What will Santam’s
in gross written premiums.
We’re also aiming to maintain
approach. Implementation
of the omni strategy will
insurance, Santam has produced
underwriting profits consistently
focus areas be? our underwriting margin be a collaborative effort for almost a century.
We’re living through volatile, within the 4%–8% range. from all businesses within We value our people and
uncertain, complex and We’ll keep focusing our the Sanlam Group that deal our 2018 Top Employer
ambiguous (VUCA) times and underwriting and risk with individual clients. certification confirms our
16 Inside Sanlam | January/February 2018 17You can also read
