INTEGRATED REPORT 2018 - DO GREAT THINGS EVERY DAY
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Old Mutual Limited
INTEGRATED
REPORT
2018
DO GREAT THINGS EVERY DAY
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
ABOUT OUR INTEGRATED
INDEX REPORT
NAVIGATING OUR REPORT BOARD APPROVAL
Reporting scope and boundary
This is Old Mutual Limited’s first integrated report. It is the primary report
to our stakeholders covering the activities of the Group for the period 1
OVERVIEW OF OUR GROUP January 2018 to 31 December 2018. It focuses on our strategy and how The Board acknowledges its
our operating segments and key enabling functions, mainly in South Africa responsibility for ensuring the
and the Rest of Africa, create value over the short, medium and long term. integrity of this integrated report.
This report extends beyond financial reporting and includes non-financial The Board has considered the
performance, our approach to risk management, an overview of our material
Index hyperlink operating context, strategy and
matters and a summary of our governance and remuneration practices. This value creation model and this
report does not provide detailed information on investments in associates, report, in the Board’s opinion,
minority interests and operations held for sale. addresses all the issues that are
Forward looking statements material to, or could have a
This report may contain certain forward looking statements with respect to material effect on, the Group’s
certain of Old Mutual Limited’s plans and its current goals and expectations ability to create value. This report
VALUE CREATION AND STRATEGY Page reference
relating to its future financial condition, performance and results and, in fairly presents the integrated
Refers to pages particular, estimates of future cash flows and costs. By their nature, all performance of the Group. This
within this report forward looking statements involve risk and uncertainty because they relate report was approved by the
to future events and circumstances which are beyond Old Mutual Limited’s Board of Old Mutual Limited on
control including, among other things, South African domestic and global 27 March 2019.
economic and business conditions, market related risks such as fluctuations
in interest rates and exchange rates, the policies and actions of regulatory
authorities, the impact of competition, inflation, deflation, the timing and
Web reference impact of other uncertainties of future acquisitions or combinations within Trevor Manuel
Refer to web page relevant industries, as well as the impact of tax and other legislation and other Chairman of Old Mutual Limited
regulations in the jurisdictions in which Old Mutual Limited and its affiliates
PERFORMANCE (on behalf of the Board)
operate. As a result, Old Mutual Limited’s actual future financial condition,
performance and results may differ materially from the plans, goals and
expectations set forth in Old Mutual Limited’s forward looking statements.
Old Mutual Limited undertakes no obligation to update the forward-looking
statements contained in this presentation or any other forward-looking
DEFINING CONCEPTS
statements it may make. Nothing in this report shall constitute an offer to
sell or the solicitation of an offer to buy securities.
Materiality
Reporting frameworks We apply the principle of materiality
Our integrated report has been compiled in accordance with the principles in assessing what information is
of the International Integrated Reporting Framework and the King IV™ included in our integrated report. This
GOVERNANCE Governance code. As a South African company listed on the JSE, we also report focuses particularly on those
comply with the JSE Listings Requirements and the South African Companies issues, opportunities and challenges
Act, 71 of 2008 (as amended). Our annual financial statements, a summary that impact materially on Old Mutual
of which are included in this report, have been prepared in accordance with Limited and its ability to consistently
International Financial Reporting Standards (IFRS). deliver value to our stakeholders in a
sustainable manner.
Combined Assurance
Internal sources of information, together with interviews with senior
leadership, have been used to gather information for inclusion in this
report. We employ a combined assurance model to assess and assure
various aspects of the business operations, including elements of external Value
REMUNERATION reporting. An internal combined review by management and internal audit, Value creation is the consequence
was performed to ensure the accuracy of our reporting content. Whilst of how we apply and leverage our
this report is not audited, it contains certain information that has been resources and strategy in delivering
extracted from the audited consolidated annual financial statements, on financial performance and value for all
which an unmodified audit opinion has been expressed by the Group’s joint stakeholders. We focus on improving
independent external auditors, KPMG Inc. and Deloitte & Touche. both the quantum of value delivered
and the quality of experience for each
of our stakeholders.
OLDMUTUAL Integrated Report 2018 1
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
NAVIGATING OUR REPORT HOW OUR REPORT ADDRESSES
THE SIX CAPITALS
Our relevance as an organisation today and in the future, along with our ability to create long term value is
REPORTING SUITE
dependent on our ability to effectively manage and leverage the forms of capital available to us.
Our Integrated Report is supplemented by a suite of additional online publications. These can be accessed
on our corporate website. OUR CAPITALS
THE EXECUTIVE GROUP GOVERNANCE BOARD COMMITTEE
CHAIRMAN’S STATEMENT THE BOARD
COMMITTEE FRAMEWORK FEEDBACK
FINANCIAL CAPITAL INTELLECTUAL CAPITAL HUMAN CAPITAL
Our shareholder and debt funding Our trusted brand and franchise Refreshed purpose, vision and
ensures we have a strong capital value, strategic partnerships and values to drive a culture that
base that supports the innovative product solutions we increases competitiveness and
operations of our business and offer to our customers. Good investment in the development
funds growth. Financial capital progress made on intelligent of skills required by employees
includes the funds our automation which is a key driver to serve the digital customer of
Old Mutual Limited Old Mutual Limited Old Mutual Life Assurance Company (South Africa) Ltd Old Mutual Limited
customers invest with us. of delivering our digital strategy. the future. A mix of actuarial,
REMUNERATION GOVERNANCE ANNUAL FINANCIAL ANNUAL FINANCIAL
REPORT REPORT STATEMENTS STATEMENTS finance, investment, legal, risk
2018 2018
management and technology
For the year ended 31 December 2018 For the year ended 31 December 2018
DO GREAT THINGS EVERY DAY DO GREAT THINGS EVERY DAY DO GREAT THINGS EVERY DAY DO GREAT THINGS EVERY DAY skills that support our operations.
Old Mutual Limited Old Mutual Limited OMLACSA Annual Old Mutual Limited
Remuneration Report Governance Report Financial Statements Annual Financial
2018 2018 2018 Statements 2018
MANUFACTURED CAPITAL SOCIAL AND NATURAL CAPITAL
RELATIONSHIP CAPITAL
Refer to oldmutual.com/investor-relations/reporting-centre/reports
Our physical and digital In our interactions with key The environmental resources
infrastructure through which we stakeholders we continuously used throughout the Group’s
conduct business activities. It strive to deliver a meaningful operations, with a Green
includes our branch network, value exchange. We value the building rating awarded to
OUR 8 BATTLEGROUNDS REPRESENT OUR MEDIUM TERM STRATEGIC PRIORITIES digital platforms and IT estate views of our stakeholders as Mutualpark and 1 Mutual Place.
which we are in the process of they play a significant role Solar panels and the water
enhancing and simplifying. in shaping our response to filtration plant at Mutualpark
business and societal issues. have helped reduce our carbon
footprint.
Defend and grow South Defend and grow in the Improve the Continued turnaround of
African market share South African Personal competitiveness of Wealth Old Mutual Insure
in Mass and Corporate Finance market and Investments
markets OUR REPORT ADDRESSES THESE CAPITALS
Turnaround East African Win the war for talent Refresh the technology Cost efficiency leadership
business and improve offering
returns across the Rest of
Africa
OUR STRATEGY BUSINESS MODEL VALUE CREATION PERFORMANCE GOVERNANCE
VALUE CREATION VALUE CREATION VALUE CREATION VALUE CREATION VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY AND STRATEGY AND STRATEGY AND STRATEGY AND STRATEGY
OUR STRATEGY OUR BUSINESS MODEL VALUE CREATED FOR OUR GROUP GOVERNANCE BOARD COMMITTEE FEEDBACK
STAKEHOLDERS IN 2018 GROUP FINANCIAL HIGHLIGHTS Adjusted Headline Earnings
FRAMEWORK
LINES OF BUSINESS
Rm 2018 2017 % change The Old Mutual Group Audit committee is pleased to present its report
CUSTOMERS for the 2018 financial year. This report has been prepared based
STRENGTHEN THE FOUNDATION AND Operating segments 10,388 10,873 (4%) The Board is responsible for ensuring that the governance arrangements across the Group on the requirements of the SA Companies Act, 71 of 2008, as
ACCELERATE GROWTH OUR CAPITAL INPUTS OUR UNIQUE OPERATING MODEL OUTCOMES
DRIVE GROWTH (425) enable it to discharge its oversight and fiduciary duties effectively, with clear accountability and
Despite tough economic conditions Central expenses (506) 16% amended (‘Companies Act’), the King Code of Governance for SA
R5.8 billion R4.9 billion R91.5 billion 34
devolution of responsibility. To achieve this, the Board, along with executive management, have (King IVTM), the JSE Listings Requirements and other applicable
in our key markets during 2018, we Results from Operations 9,963 10,367 (4%) designed and implemented a best practice, top down, Group Governance Framework (GGF). regulatory requirements.
MEDIUM TERM LONG TERM CUSTOMER LED ORGANISATION Ordinary dividends Special dividends Paid in claims and benefits Digital products available online
managed to deliver all but one of our Shareholder investment return 2,880 4,920 (41%) This framework takes into consideration all the complexities of governing a financial services
targets and continue to make good group with significant and geographically diverse operations in Africa and in selected other Nosipho Molope
Finance costs (601) (622) 3%
progress on our cost efficiency leadership
R601
Chairperson
STABLE CASH international markets. It also takes into account that the Group has equity listed on five different
Income from associates 2,593 2,305 13%
million target. We are making good progress in Expertise
Mass and Old Mutual voted 1st in the category Old Mutual call centre stock exchanges and debt issued on one stock exchange. The GGF provides the Board with
CONTINUED TURRNAROUND
FINANCIAL CAPITAL INTELLECTUAL CAPITAL Personal Wealth and GENERATION
Foundation
Finance Investments Interest costs
“Consumer: Long Term ranked simplifying the balance sheet to support Adjusted Headline Earnings before tax and non-controlling interests 14,835 16,970 (13%) assurance that the Group is operating as they direct, appropriately managing risk, complying AUDIT COMMITTEE REPORT 4 Life and Savings
#1
DEFEND AND GROW
Cluster
Becoming lifelong partners to our Insurance” in the 2018 Sunday our future capital plans. Shareholder tax (2,947) (3,535) 17% with applicable legislation and applying the principles of best practice governance as expressed
3
R38.8 billion
Asset Management
customers through meeting their in King IVTM and other applicable governance guidelines.
• Strong and trusted brand Times Top Brands Survey in the industry Non-controlling interests (376) (488) 23%
R81 170% 57%
core needs every day 3 Banking and Lending
Defend and Continued
• Leading market positions in the markets we Nedbank distribution I N VE S Adjusted Headline Earnings 11,512 12,947 (11%)
grow South turnaround of Old Ensuring that we stay close to our TOR Casper Troskie GROUP GOVERNANCE FRAMEWORK PRINCIPLES
13 87% 5
customers throughout their lifetime, billion Group % of AHE operate in Old Mutual Old Mutual S 4 Strategy
African market Mutual Insure Rest of Africa Chief Financial Officer
solvency ratio converted to Corporate Insure
share in Mass meeting their core financial needs Net assets • Strategic partnerships with Nedbank and
C Segment contributions Segment contribution to Results from Operations (%) Proportional Avoid Ensure Maximum Achieve 5 Risk Management
and Corporate and guiding them to achieve their Free Surplus Old Mutual Finance RETURNS TO and fit for duplication comprehensive devolution of alignment
5 Finance and Audit
U
markets financial ambitions.
INVESTORS COMMUNITIES Mass and Foundation Cluster Meetings Committee meeting Members
ST
(4%) purpose regulatory responsibility between
Attendance
OM
Mass and Foundation Cluster contributed 31% (FY 13% compliance Board and 4
Becoming a digital platform business EXPERIENCED AND AGILE MANAGEMENT TEAM Overview Management
Listed Company
ER
31% Mass and Foundation Cluster
We will simplify and digitalise journeys
2017: 29%) to the Group’s RFO. This was supported by
We delivered our 2018 financial results in tough 7% Personal Finance
governance
S
Staff payroll giving Taxes paid (R billion) an increase in Life APE sales due to higher average
R9,963
for the customer, intermediary and
A business with
Wealth and Investments
economic and market conditions in our key markets.
R2 million
Defend and grow Turnaround East HUMAN CAPITAL MANUFACTURED CAPITAL adviser headcount and improved productivity. requirements
OUR PURPOSE OUR VISION
Old Mutual Corporate
in the South African business
employee. This will enable us to meet Strong sales and excellent Net Client Cash Flow The segment’s positive growth in the loan book, million
million Areas of focus during the year
a conscience
Old Mutual Insure
COMMUNITIES
the financial needs of our customers 1.41.4 17%
African Personal and improve (NCCF) supported average FUM levels which rose Rest of Africa
due to improved productivity as a result of process • Reviewed and approved the financial disclosures, make these distributions, ahead of recommending
To be our customers’ Finance market returns across the in one place, via their platform of over 4.44.4 in the year. Closing FUM of R1,044 billion declined Central expenses The GGF establishes the minimum governance The GGF is designed to work within the ambit of the
that continues to enhancements in the customer take on process also
R9,963 R11,512
these distributions to the Board.
Championing
20%
including the historical financial information, in the
R167 billion
2.12.1
Rest of Africa choice, at a pace in line with their Responsible investments made Company tax tax by 3% from the end of 2017, largely reflecting lower requirements for the Group and subsidiary boards, and laws of the various countries in which we operate. All our
Customer
R100.5 billion
Company
R14.1 contributed positively to the Group’s RFO. 16%
most trusted lifetime RETURNS TO
1 R14.1 Old Mutual Limited Pre-Listing Statement, which was
•
create value for our
expectations and needs. PAYE
equity market levels in the fourth quarter. importantly, sets a framework for the minimum governance operations have to comply with local legislation and Evaluated the adequacy and effectiveness of the
1 million >11.3
PAYE
30,365 7,842 348
2
focused
mutually
DISTRIBUTION AND ADVICE DIVERSE PRODUCT OFFERING billion
billion VATVAT approved in April 2018.
CUSTOMERS Personal Finance requirements over various governance domains relevant corporate governance codes in addition to the requirements internal control environment.
partner, passionate of value created Other
culture million million
stakeholders in a
Know each customer personally and Other
in 2018
RoNAV of 18.6% was ahead of our Cost of Equity to Old Mutual. The GGF adheres to the requirements of described in the GGF. • The Audit committee oversaw the appointment of
•
money accounts million 2
Personal Finance contributed 20% (FY 2017: 30%) to Old Mutual Insure Ensured that the internal audit function, which is
positive futures
tailor our service to their unique Employees1 Tied advisers branches (COE) +4% target of 17.4%.
about helping • Full range of accessible • Product expertise Financial education spend King IVTM, as well as the Framework for Governance and Deloitte and Touche as joint auditor. Following this,
responsible way.
Customers Results from Operations Adjusted Headline Earnings the Group’s RFO. The decrease in contribution was outsourced to EY, is equipped to perform in accordance
R37
needs 6.26.2 Old Mutual Insure contributed 7% (FY 2017: 5%) to
Improve the opened to date distribution channels and innovation (RFO) (AHE) due to poor performance as a result of net positive
Operational Standards for Insurance Groups. How the GGF addresses the six the audit scope and approach for 2018 and the related
million RFO of R9,963 million decreased by 4% over the with appropriate professional standards and has the
every day them achieve their competitiveness Digitalisation will accelerate the use of
• • reserve releases in 2017 that were not repeated in
the Group’s RFO. This was driven by the improved
capitals
auditors’ fees were reviewed and approved.
appropriate authority and status within the Group.
S
Sound financial advice, Broad offering period reflecting net reserve movements, and underwriting margin due to improved claims process As such, the GGF is used as the foundational building
EE
of Wealth and analytics which will generate deeper
mortality and morbidity losses in Personal Finance 2018 and higher than expected death and disability block for all other Governance programmes in the Group. It • Reviewed and debated key judgements and analysed
financial goals partnering with customers efficiencies and procurement optimisation. This was •
18.6% 170%
Investments The governance domains align to the six capitals, Considered the appropriateness and effectiveness of
OY
and real time data driven insights to
to provide appropriate in the first half of 2018 and the change in functional claims in H1 2018. also supported by the general environment in a leverages, consolidates, streamlines and simplifies previous facilitating effective oversight. financial information included in the Group’s interim
cater to our customers’ specific needs. the Chief Financial Officer, Casper Troskie.
PL
currency in Zimbabwe. governance structures. and 2018 year end results announcement to ensure
solutions E benign claims environment with lower catastrophe
M
SOCIAL AND RELATIONSHIP CAPITAL NATURAL CAPITAL REWARDING Wealth and Investments the accuracy and integrity of financial data provided
Driving a culture of delivery Return on Net Asset Group Solvency ratio losses. The GGF explains how the Board executes its direction Governance domain Related capitals
REMUNERATION TO EMPLOYEES We delivered AHE of R11,512 million, a decrease of Value (RoNAV) Wealth and Investments contributed 16% (FY 2017: externally. Areas of focus for 2019
S and oversight responsibilities, and what it expects from
This will result in a change in behaviour OR 11% compared to the prior period. The primary cause 14%) to the Group’s RFO. This was driven by strong Rest of Africa Board specific and Intellectual capital •
EMPLOYEES LAT subsidiary boards in the Group. • Review and assessed the 2018 audited financial Overseeing the implementation of IFRS 16, effective
supported by greater empowerment, REGU of this was the lower RFO, lower investment income growth in the Alternatives business due to higher Rest of Africa contributed 13% (FY 2017: 10%) to the
Group Secretariat
statements and found the controls underpinning its 1 January 2019.
agility, accountability and risk-based Participate in working in South Africa as a result of weaker equity markets annuity revenue, higher asset origination levels in
84% 5 120 1.3
The GGF in no way absolves or places a restraint on the
100
Group’s RFO. This was driven by the growth in the Strategy and Financial capital
117
Salaries and benefits paid We have one of the most compilation to be appropriate and effective. •
decision making. Largest Level 2 committees that and the change in functional currency in the fourth Monitoring and evaluating the internal project
R11.5 billion
Specialised Finance and positive growth in annuity ability of the boards of subsidiary companies to execute their
input
Performance Manufactured capital
Win the war for talent Becoming a champion across the
alternative BBBEE Black star Green million megawatts
Human capital Finance Marketing Strategy
transformed quarter in Zimbabwe. This decrease was partially revenue.
Life and Savings, Asset Management and Banking
and Lending lines of businesses. Strong Life APE
fiduciary duties, but instead outlines the requirements of the Information Intellectual capital • Reviewed and recommended for approval the 2018 constituted to prepare the business for the
implementation of IFRS 17 – Insurance Contracts,
asset manager offset by higher income from associates, reflecting Group Board in discharging its duties across the Group. Integrated Report.
communities in which we operate rating employees3 building estimated litres saved annually leadership teams in the insurance industry cents per share cents per share Old Mutual Corporate
sales were driven by increased adviser productivity Technology Manufactured capital
effective 1 January 2022.
LONG TERM COMPETITIVE
in Africa to new legislation higher earnings from our stake in Nedbank.
Leveraging our role as a leading rating of water saved through solar
in Southern Africa, improved expense management
The GGF and King IVTM
Talent and Human capital • Oversaw the implementation of IFRS 9 – Financial
Staff training spend We have delivered R750 million of recurring cost Full year ordinary dividend Special Dividend Old Mutual Corporate contributed 17% (FY 2017: in East Africa and growth in loan books across the Reward Instruments and IFRS 15 – Revenue from Contracts with • Monitoring the economic situation in Zimbabwe and
financial services provider to serve as annually panels 15%) to the Group’s RFO. This was driven by good
CONTRIBUTIONS TO
R10,000 R92
The Board endorses the King IVTM Report on Corporate considering the appropriate accounting treatment
ADVANTAGE
Customer Information savings, putting us in a good position to meet our regions. Assurance Financial capital Customers, both standards effective 1 January 2018.
a catalyst for economic development Risk
Refresh the technology offering
Governance
servicing technology COMMUNITIES Key coordinator and sponsor of the annual
million flows, including increased standalone to umbrella Governance for South Africa and this code was a key input
•
in the Group financial statements and disclosure.
SA tomorrow
and contribute to broader social R1 billion cost efficiency target in 2019. Central expenses Actuarial Financial capital Reviewed the interim and special dividend proposals
conversions as well as better group risk underwriting into the GGF.
upliftment. We want to be known worth of Old Mutual shares experience, lower claims volumes and improved Central expenses were lower following a change in
Risk Financial capital to ensure that the Group had sufficient resources to • Monitoring of the developments of the independent
as leaders in transparent and ethical
The Group Solvency ratio increased to 170% (FY 2017: The design of the GGF ensured that each defined Manufactured capital review of KPMG SA led by SAICA, and assessing the
investor conference hosted in New York awarded to permanent group income protection pricing. the Group’s central cost allocation metholodolgy
161%), reflecting the robust capital position of the governance domain in the GGF adequately addressed the impact on Old Mutual and our auditors.
business practices. employees, as part of the broad which led to the allocation of project expenses Compliance Financial capital
ENABLING FUNCTIONS Group. principles laid out in King IVTM, and implementing the GGF
based employee share plan to segments, offset by higher costs to capacitate Societal and relationship
therefore facilitates the implementation of King IVTM across capital
Cost efficiency leadership reporting and management functions for Old Mutual Associated Stakeholders
the Group. This framework does not detract from King IVTM. The Audit committee is satisfied that it has fulfilled
1 Excludes employees from our businesses in Latin America and China. Includes employees of enabling functions 1 Includes ordinary and special dividends declared, the Nedbank distribution, taxes paid, amounts paid in claims and 2 Includes R23.9 billion invested in renewable energy, R60.5 billion invested in infrastructure and R16.1 billion invested in Limited as a standalone listed entity. Responsible Societal and relationship • Regulators
It seeks to bring, among other things, proportionality and its responsibilities in accordance with its terms of
2 Customer numbers across segments may not sum to total customer number due to overlaps between segments. Excludes customers in Latin America and China benefits and salaries paid to employees affordable housing Business capital • Investors
increased focus on specific areas in our oversight of the Natural capital reference for the reporting period.
3 Per the Department of Trade and Industry (DTI) definition and refers to employees in South Africa
different entities in the Group. Human capital
18 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 19 22 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 23 32 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 33 48 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 49 86 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 87
Pages 18-19 Pages 22-23 Pages 32-33 Pages 48-69 Pages 86
LIFE AND SAVINGS ASSET MANAGEMENT BANKING AND LENDING PROPERTY AND CASUALTY
2 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 3
06
OLD MUTUAL AT A GLANCE
08
GROUP FINANCIAL HIGHLIGHTS
10
OUR SEGMENTS
12
A MESSAGE FROM OUR CHAIRMAN
14
A MESSAGE FROM OUR CEO
OVERVIEW
OLDMUTUAL Integrated Report 2018 5
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
OLD MUTUAL AT A GLANCE EAST AFRICA
Customers
Old Mutual is a premium African financial services Group that offers a broad spectrum of WEST AFRICA 1.5 million
financial solutions to retail and corporate customers across key market segments in 17 countries. Customers Lines of business
Old Mutual’s primary operations are in South Africa and the Rest of Africa, and we have niche 1.5 million
businesses in Latin America and China. With over 173 years of heritage across Sub Saharan Africa,
Lines of business FUM
we play a crucial part in the communities we serve and broader society on the continent.
R29.3 billion
FUM
R1.2 billion SOUTH AFRICA
OUR PURPOSE OUR VISION Customers
To be our customers’ most
6.2 million SOUTHERN AFRICA
Championing mutually Lines of business Customers
trusted lifetime partner,
positive futures
passionate about helping them 2.1 million
everyday FUM
achieve their financial goals Lines of business
R946.1 billion 1
FUM
R67.1 billion
OUR VALUES EMPLOYEES VALUE OF CAPITAL RETURNS
30,365
2 at least
Always act with Respect for each Agile innovation R45.9 billion R5.6 billion
distributed in 2018 to be distributed in 2019
integrity other and the that makes a
communities we serve difference
TIED ADVISERS BBBEE STATUS
7,842 level 2
3
Trust and Champion the The power of
accountability customer diversity and CONTRIBUTOR
inclusion
Where our investors are from (%) Who invests in us (%)
2% 5% 6%
INVESTORS
5%
5% 3%
OLD MUTUAL IS A VIBRANT, AFRICAN BRAND THAT
3%
14%
COACHES AND MOTIVATES CUSTOMERS THROUGH
9%
3%
SIMPLE, ACTIONABLE STEPS TO BRIDGE THE GAP
60%
11% 74%
BETWEEN THEIR DREAMS AND REALITY
South Africa United Kingdom Institutions Individuals
Europe North America Hedge Funds Employees etc.
Asia Rest of world Brokers Other4
Other4
1 Includes our investment in China
2 Excludes our employees in Latin America and China
3 Verified score as at 29 March 2019
Life and Asset Banking and Property and
4 Other reflects the unallocated portion of the register Savings Management Lending Casualty
6 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 7
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
GROUP FINANCIAL HIGHLIGHTS
FUNDS UNDER RETURN ON NET
Funds Under Management (FUM) Return on Net Asset Value (RoNAV)
MANAGEMENT (FUM) (R billion) ASSET VALUE (RONAV) (%)
Down
The total market value of
funds managed by the 978.5 984.4
1,072.3 1,043.7
Adjusted Headline Earnings
divided by the average Adjusted 19.7 19.5
22.9
430 bps
18.6 from 2017
Group. IFRS Equity. Adjusted IFRS Equity
is calculated as the sum of IFRS
Down Ahead of our target of
equity attributable to operating
3% segments and the net asset value 17.4%
from 2017 of our retained interest in Nebank (COE + 4%)
and is before adjustments related
2015 2016 2017 2018 2015 2016 2017 2018
to consolidation of funds.
RESULTS FROM FREE SURPLUS
Results from operations (RFO) GENERATED FROM
OPERATIONS (RFO) (R million)
Free Surplus Generated from Operations
OPERATIONS (R million)
Down 61%
The primary measure of the
performance for operating 9,585
10,367 9,963
4% Free Surplus Generated from 63% 58% 7,842
57% % of AHE converted to
Free Surplus down by
9,211 from 2017
Operations represents the
segments. Calculated as
Adjusted Headline Earnings
Below target of
net cash generated from the 5,932 5,998
6,585
400 bps
before shareholder tax and non- operations that contribute to AHE
CAGR of Nominal GDP Expected to be
controlling interests, excluding after allowing for normal course
net investment return on +2% investment in the business and >60%
shareholder assets, finance costs the impact of any fungibility in future periods
2015 2016 2017 2018
and income from associates. constraints.
2015 2016 2017 2018
% of AHE converted to Free Surplus
ADJUSTED HEADLINE GROUP SOLVENCY
Adjusted Headline Earnings (AHE) Group solvency ratio
EARNINGS (AHE) (R million) RATIO (%)
12,947
The Group profit measure that 11,512 Group eligible own funds (OF)
adjusts headline earnings, as 10,307 divided by the solvency capital 170 Up
161
900 bps
9,490
defined by SAICA Circular 04/2018, requirement (SCR), calculated
for the impact of material based on the Prudential Standards. from 2017
Down
transactions, non-core operations
and any IFRS accounting 11% Within the Group’s
treatments that do not fairly reflect from 2017 target range
the economic performance of the
2015 2016 2017 2018 2017 2018
business.
8 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 9
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
OUR SEGMENTS
CUSTOMERS LINES OF BUSINESS HIGHLIGHTS
MASS AND •• EasiPlus Funeral plans are available online for as little as R22 per
Provides simple financial services products to customers in the month and the application takes no longer than 10 minutes
FOUNDATION low income and lower middle income markets. •• Customers can initiate claims for all funeral products on the
CLUSTER Money Account app
•• 22seven, our popular money management app, is now able to link and
A retail segment that operates primarily in Life and Savings. It track more than 1,800 cryptocurrencies in rands, a first in South Africa
PERSONAL FINANCE
provides holistic financial advice and long term savings, investment, •• More than 50,000 Personal Finance customers signed up for the Old
income and risk products, and primarily targets the middle income Mutual Rewards program during the year
market. •• Awarded Life Insurance Provider of the Year by the Financial
Intermediaries Association
•• Launched a range of Environment, Social and Governance (ESG) tilted
funds for customers
WEALTH AND One of South Africa’s largest asset managers, with a comprehensive
range of retail and institutional investment capabilities, providing •• Launched South Africa’s first ESG Index unit trusts, namely the Old
INVESTMENTS financial solutions to retail and corporate customers.
Mutual MSCI World ESG Feeder fund and the Old Mutual MSCI
Emerging Markets ESG Feeder fund, increasing options to retail
investors who want exposure to responsible investing
•• Winner of three categories at the Imbasa Yegolide Awards in 2018:
|| Investment/Asset/Solutions Consultant of the Year awarded to
OLD MUTUAL Operates in Life and Savings and primarily provides group risk,
Old Mutual Corporate Consultants
investments, annuities and consulting services to employer
CORPORATE sponsored retirement and benefit funds.
|| Technology Provider of the year
|| Old Mutual Multi-Managers won Manager of Managers for the
first consecutive year
•• MyOMinsure was launched for brokers and advisers to administer
Provides Property and Casualty insurance products through three
policies online and get quotes for customers in less than 5 minutes
operational businesses: (i) personal and commercial, (ii) iWYZE, and
OLD MUTUAL INSURE •• Rated No.1 in the industry for complaints handling and No.2 for
(iii) speciality. Trade credit insurance is provided through Credit
Guarantee Insurance Corporation (CGIC). customer satisfaction according to the South African Customer
Satisfaction Index (SACSI) survey
Offers Life and Savings, Property and Casualty (including health
•• Old Mutual in Malawi won the 2018 Most Visible Brand of the Year
Award at the Marketing Excellence Awards
insurance), Asset Management and Banking and Lending services to
REST OF AFRICA •• UAP Old Mutual won the category Product of the Year for SME health
retail and corporate customers. The segment operates in 12 countries
across three regions: Southern Africa, East Africa and West Africa. cover at the 2018 BIMA awards
Life and Asset Banking and Property and
Savings Management Lending Casualty
10 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 11
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
A MESSAGE FROM OUR
CHAIRMAN
Exciting opportunities lie ahead
for us as an independently listed
business and we look forward to
delivering sustainable profit growth
and returns for our shareholders, and
making positive contributions to the
R91.5 billion 9,791
PAID TO OUR CUSTOMERS JOBS CREATED
societies in which we operate. in claims and benefits1 through the Masisizane Fund
Trevor Manuel
since inception
Chairman
Anchoring in Africa A business with a conscience
The listing of Old Mutual Limited on 26 June 2018 was the elections in South Africa will be important for the The Board is very aware of the role that Old focused on the transformation of race and gender
a truly momentous occasion. It marked the physical growth of the economy, to create new opportunities Mutual plays in society and its leading role in balance on the Board and executive team and we are
homecoming of a company deeply rooted in Africa. for employment and reignite the conditions for the the communities in which it operates. The Board comfortable that we are moving in the right direction.
To reach this point, the new Board, appointed in expansion of the Old Mutual platform. acknowledges its responsibility to steer the Group
We have committed to R500 million being set aside
October 2017, had been thoroughly engaged in the and its strategy in a sustainable and responsible
Governance for the Enterprise Supplier Development Fund.
preparations for this moment. The eight months manner. In fact, we opted to focus attention on
The Fund’s intention is to generate additional jobs in
leading up to the listing offered the Board a rare I am proud to chair a Board that has the skills, building a Responsible Business. To this end, we
the Group’s ecosystem, to be evidenced by the end
and detailed glimpse of the inner workings of Old integrity and gravitas to lead Old Mutual in this new have created a board committee to evaluate the
of June 2021.
Mutual. It equipped the Board to take the mantle of chapter of its history. The Board played a pivotal performance of the Group’s efforts towards our
responsible leadership. The listing has brought the role in overseeing the listing process and provided sustainability goals. To comply with King IV™, we The completion of our water filtration plant at our
spotlight onto the operations of Old Mutual Limited insight and counsel to the newly formed executive have established a Social and Ethics function, but Mutualpark office will help us save an estimated
in Africa. team as they formulated the Group’s strategy and for us, Social and Ethics matters are embedded in a 10 million litres of municipal water per month. This
financial targets. During the year we also oversaw the company that also focuses on its environment and will help alleviate the water requirement pressures
Our deep, long standing commitment to make a
distribution of R38.8 billion worth of Nedbank shares future. Through the Responsible Business committee faced in Cape Town.
positive impact in the communities and countries
to our shareholders, bringing Managed Separation to we set the tone of the overall ethos of the business
where we operate remains a priority, together with We want to continually earn the respect of all
its conclusion. and drive management to deliver on specific and
our quest to champion financial inclusion, education the communities we serve through our responsible
measurable outcomes.
and responsible investment. By driving long term Ahead of its listing, Old Mutual Limited established a conduct.
economic growth in Africa, we can positively impact Group Governance Framework (GGF). This framework We are committed to improving our customers’ lives
the lives of all our customers and communities on outlines the minimum governance requirements every day and to help them reach their financial goals. Outlook for 2019
the continent. over the various defined governance domains for We regularly review the value our products provide The Board will continue to challenge the long term
the newly listed Group and its subsidiary entities. to customers and assess whether they adequately strategy pursued by the executive management team
Exciting opportunities lie ahead for us as an
The GGF adheres to the requirements of King IV™ provide for the identified need. and will ensure the Group remains relevant and
independently listed business and we look forward
and takes into consideration all the complexities of responsible in an always evolving global environment.
to delivering sustainable profit growth and returns for We remain committed to transforming our
governing a financial services Group with significant We remain exceedingly optimistic about the positive
our shareholders, and making positive contributions organisation to reflect the societies we operate in.
and geographically diverse operations in Africa and conditions that will improve the quality of life of all
to the societies in which we operate. The political and We have maintained our Level 2 BBBEE score for
in selected other international markets. It holds the continent’s people.
economic environment is challenging in most of the the 10th consecutive year. Ahead of our listing, we
management accountable for ensuring the Group
countries where we operate. In South Africa, our largest made commitments to the Minister of Economic
adheres to the highest standards of ethics and
market, the listing occurred during the excitement of Development (under the Framework Agreement)
integrity. This underpins an effective GGF and forms
the assumption of office by President Ramaphosa. to achieve an effective black ownership level of 25%
the foundation of a culture that supports employee,
Similarly, President Mnangagwa assumed office in within three years of listing and to be best in class,
customer and investor confidence.
Zimbabwe in November 2017. Notwithstanding these as measured at the time of listing, within five years.
changes, the economic environment in both of these I am very pleased with the team dynamic displayed We are formulating a plan to achieve these through
countries remains very difficult. We express the view so far and look forward to leading the Board and the internal and external mechanisms. We remain
that the anticipated return to political stability after Group in its first years of corporate life.
1 Includes insurance claims, annuity payouts and investment maturities
12 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 13
VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
A MESSAGE FROM OUR CEO
We have made good progress
on building a Group that is MASISIZANE FUND
future fit in a rapidly changing
world. I am pleased with the R700 million
progress we have made on
our strategic priorities despite
ALLOCATED
for loan funding to black 10,000
tough economic and market owned enterprises with EMPLOYEES
conditions. a mandate to eradicate engaged to drive
poverty and create jobs cultural change
Peter Moyo
Chief Executive Officer
A year of delivery and execution
2018 was a momentous year for the Group. The South African equity market declined, with the JSE Bank of Zimbabwe announced that the RTGS would be RFO of R9,963 million decreased by 4% over the
We completed Managed Separation with the listing SWIX down 14% in the year, and inflation continued to recognised as an official currency and that an inter-bank period which is below our target of nominal GDP+2%.
of Old Mutual Limited on five different exchanges on remain within the South African Reserve Bank (SARB) foreign exchange market would be established to The decrease reflects net reserve movements, and
26 June 2018 and the unbundling of 32% of Nedbank target range at a 12-month average of 4.6% for 2018. formalise trading in RTGS balances with other currencies. mortality and morbidity losses in Personal Finance in the
on 15 October 2018. Delivery and execution extended Macroeconomic indicators in Kenya remained broadly In line with industry consensus on this matter we have first half of 2018 and the change in functional currency
beyond Managed Separation, as we determined stable in 2018 with overall inflation within target and applied a reporting change to the functional currency in Zimbabwe.
our strategic battlegrounds and set medium term GDP growth and short term interest rates remaining for our businesses in Zimbabwe from 1 October 2018.
RoNAV of 18.6% was ahead of our Cost of Equity
targets. In addition we have distributed and declared low. Equity markets remained volatile with a decline in This change has reduced both reported profits and net
(COE)+4% target of 17.4%. We have delivered R750 million
R10.7 billion in ordinary and special dividends. the levels over the period. In Nigeria, economic growth asset value in 2018.
of recurring cost savings, putting us in a good position to
accelerated in the third quarter of 2018, assisted by
We have embarked on our journey as a newly listed, Progress on our strategic priorities meet our R1 billion efficiency target by the end of 2019.
improved dynamics in both the oil and non oil economy.
independent entity with a refreshed brand and
and delivery against medium term The Group solvency ratio increased to 170%, reflecting
renewed dedication to become our customers’ lifetime Persistently high unemployment rates, a Value Added
financial partners. We are focused on driving the deep Tax (VAT) rate increase and fuel hikes contributed to
targets the robust capital position of the Group. We are at the
I am pleased with the progress we have made on upper end of our capital ratio target range and have
cultural change required to ensure that our Group is lower real disposable incomes for our retail customers
our medium term strategic priorities despite tough fully funded the development capital we need in the
future fit, improving the overall employee experience in South Africa. This adversely affected our customer
economic and market conditions. Highlights in our Group for the coming period. Our full year ordinary
and motivating our employees to be more purposeful. acquisition and persistency, especially in the middle
customer facing segments include growth in loans dividend of 117 cents per share is covered 2.04 times
We believe that it will lead to Old Mutual being more income market. The economic outlook has marginally
disbursed in the Mass and Foundation Cluster and by AHE, well within our target pay out ratio of 1.75 to
competitive in the market. improved relative to the previous year, resulting in
the continued recovery in profits at Old Mutual Insure 2.25 times coverage.
some increase in business and consumer confidence.
Across all segments we have made great strides to evidenced by the underwriting margin of 5.3% that was
improve customer experience. As part of our longer
However, investor confidence is still fragile with Outlook for 2019
concerns around government debt levels and policy well maintained at the top end of our medium term
term strategy to become a digital business we have Our RFO target of nominal GDP+2% will become
uncertainty particularly around the proposed policy on target range. Old Mutual Corporate’s continued success
launched a single self service portal called MyOldMutual increasingly challenging to achieve due to negative
land expropriation without compensation. in umbrella sales strongly contributed to our results.
with access to 34 digital products, including life RFO growth in 2018. Despite the weak growth outlook
Our East African business produced an operating profit
insurance and funeral products, available to our South Although a new government under President in South Africa, the macroeconomic risks and strong
for the first time since we acquired UAP and we remain
African customers. In East Africa, we have launched Mnangagwa came into power late in 2017, economic competitive pressures, we remain confident in
focused on driving profit growth in 2019 and beyond.
Dream Enabler, which is a mobile sales and servicing and political instability still persists in Zimbabwe. Equity delivering our medium term targets.
application with a single view of customer products. markets were volatile, with a 40% rise in the second The trading conditions remain very challenging for our
We have managed our capital well and continue to be
half of the year, resulting in substantial mark to market Personal Finance segment. Although we saw some
Delivery in a tough macro environment responsible to our shareholders in the way we deploy
gains. The continued dollar shortages in Zimbabwe led improvement in mortality experience in the second
capital. Following the consideration of our capital position
2018 was characterised by volatility in global equity, to the increased use of electronic money through the half of 2018, we will continue to monitor our claims
at the end of the year, we are pleased with the Board
currency and bond markets due to escalating global Real Time Gross Settlement or ‘RTGS’ System, giving experience carefully during 2019. The actions we are
approved share buyback programme of approximately
trade tensions. These global dynamics, in addition to rise to a parallel market where bond notes and RTGS taking in response to the mortality experience will only
R2 billion over the next 12 months.
weak local economic data, negatively affected the balances were traded at a discount to the official US have impacts on our financial results in the second half
South African economic landscape resulting in low dollar exchange rate. On 20 February 2019, the Reserve of 2019 and beyond. We will continue to run our businesses in an ethical and
GDP growth in 2018. responsible manner, and within our risk appetite.
14 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 15
18
OUR STRATEGY
20
MEDIUM TERM STRATEGIC PRIORITIES
22
OUR BUSINESS MODEL
24
RETAIL DISTRIBUTION MODELS IN
SOUTH AFRICA
26
OUR OPERATIONS IN REST OF
AFRICA
30
STAKEHOLDER ENGAGEMENT
32
VALUE CREATED FOR OUR
STAKEHOLDERS IN 2018
34
VALUE CREATION RISK MANAGEMENT
AND STRATEGY 39
MATERIAL MATTERS, RISKS
AND OPPORTUNITIES
OLDMUTUAL Integrated Report 2018 17VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
OUR STRATEGY
STRENGTHEN THE FOUNDATION AND
ACCELERATE GROWTH
DRIVE GROWTH
MEDIUM TERM LONG TERM
CONTINUED TURRNAROUND
DEFEND AND GROW
Becoming lifelong partners to our
customers through meeting their
core needs every day
Defend and Continued
grow South turnaround of Old Ensuring that we stay close to our
African market Mutual Insure customers throughout their lifetime,
share in Mass meeting their core financial needs
and Corporate and guiding them to achieve their
markets financial ambitions.
Becoming a digital platform business
We will simplify and digitalise journeys
for the customer, intermediary and
Defend and grow Turnaround East
OUR PURPOSE OUR VISION in the South
African Personal
African business
and improve
employee. This will enable us to meet
the financial needs of our customers
To be our customers’ Finance market returns across the in one place, via their platform of
Championing Rest of Africa choice, at a pace in line with their
most trusted lifetime expectations and needs.
mutually partner, passionate Know each customer personally and
positive futures
tailor our service to their unique
about helping Improve the
needs
every day them achieve their competitiveness
of Wealth and
Digitalisation will accelerate the use of
analytics which will generate deeper
financial goals Investments and real time data driven insights to
cater to our customers’ specific needs.
Driving a culture of delivery
This will result in a change in behaviour
supported by greater empowerment,
agility, accountability and risk-based
decision making.
Win the war for talent Becoming a champion across the
communities in which we operate
LONG TERM COMPETITIVE
Leveraging our role as a leading
financial services provider to serve as
ADVANTAGE
a catalyst for economic development
Refresh the technology offering and contribute to broader social
upliftment. We want to be known
as leaders in transparent and ethical
business practices.
Cost efficiency leadership
18 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 19VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
MEDIUM TERM STRATEGIC
PRIORITIES
Digital transformation Talent future fit for the new world of work
The digital enablement of our employee experience Enhancement of the employee value proposition to
will achieve efficiency and empower employees to self attract and retain talent that embraces agile ways of
service, collaborate and strengthen their capability working, design thinking and problem solving.
through tailored learning solutions.
Investment in the development of skills required by
STRATEGIC ACTIVITIES
The implementation of technology will enable data employees to serve the digital customer of the future.
WIN THE WAR driven decisions by leveraging existing talent insights
Fit-for-purpose reward
FOR TALENT
and contribute to the delivery of our business strategy.
Alignment of the reward philosophy and policies to
Transform the culture position Old Mutual as an employer of choice with an
Refresh our purpose, vision, values and brand promise inspiring employee value proposition.
to reenergise employees to deliver high performance
Enhancing our reward and benefit structures to
Defend and grow and enhance the attractiveness of Old Mutual as an
South African attract, retain and motivate key talent. To develop
employer of choice.
market share in an ownership orientation in our employees that will
Mass and Corporate To embed required culture shifts that will improve overall enable sustainable, long term stakeholder value
markets employee experience, and in turn motivate employees creation.
Defend and
to be more purposeful. We believe this will lead to Old
grow in the
South African Mutual being more competitive in the market.
Personal
Finance
market
IES Customer engagement in a digital era To create an environment which fosters a culture of
To deliver a digital engagement platform to drive sales innovation aimed at driving value for customers. We are
G PRIORIT
and service, meeting all our customers’ needs in one committed to contributing to skills development in the
MENT FOCUSED
Improve the place via their channel of choice. We believe this will technology sector, as well as the communities in which
Our strategic
competitive-
REFRESH OUR improve the overall experience, helping us to attract new we operate.
STRATEGIC ACTIVITIES
ness of
Wealth and customers and to retain our existing customers. With
Investments
priorities TECHNOLOGY a deliberate digital transformation focus, we partner
Simplified and secured technology estate
To simplify our technology estate while maintaining and
ABLIN
with our intermediaries to give the best service to our
embedding robust IT security. A simplified IT estate will
customers, anywhere and anytime.
enable speed, agility, consistency and efficiency for our
EN
SEG
Innovative culture and capability customers while ensuring our systems are available and
Continued To build a technology capability with the right skillset and always on.
turnaround
mindset to deliver outcomes to our customers at a pace
of Old Mutual
that meets their needs. We will achieve this through skills To create an environment in which our customers,
Insure
development in new technology, leveraging strategic employees and stakeholders feel safe, securely enabling
partnerships where required, and working in more innovative technology to support our business strategy
Turnaround East and customer demands.
collaborative ways as a capability.
African business
and improve
returns across the
Rest of Africa Cost efficiency target By the end of 2018, we had saved R939 million, of
The Group is targeting pre-tax run rate cost savings of which R750 million is recurring. Non-recurring costs
R1 billion by the end of 2019. The managed IFRS other amount to R189 million and we have incurred R110
operating and admin expenses for 2017, as disclosed million of costs to achieve the saving. With effect
STRATEGIC ACTIVITIES
in the pre-listing statement, forms the baseline against from the 2020 financial year, the Group is targeting to
COST EFFICIENCY which the cost saving will be measured. manage its cost base within inflation.
LEADERSHIP A robust process was established during the year
to drive and monitor cost savings throughout the
business. Cost targets were allocated to each segment,
and reported on each quarter as part of the Quarterly
Business Review. Savings were achieved in categories
such as consulting spend, procurement and IT costs,
marketing, people and operating model, property and
facility management.
20 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 21VALUE CREATION
OVERVIEW PERFORMANCE GOVERNANCE REMUNERATION
AND STRATEGY
OUR BUSINESS MODEL
OUR CAPITAL INPUTS OUR UNIQUE OPERATING MODEL OUTCOMES
CUSTOMER LED ORGANISATION
STABLE CASH
Mass and GENERATION
FINANCIAL CAPITAL INTELLECTUAL CAPITAL Foundation
Personal Wealth and
Finance Investments
Cluster
•• Strong and trusted brand
R81 170% 57% •• Leading market positions in the markets we
billion Group % of AHE operate in Old Mutual Old Mutual
Rest of Africa
solvency ratio converted to Corporate Insure
Net assets •• Strategic partnerships with Nedbank and
Free Surplus Old Mutual Finance RETURNS TO
INVESTORS
EXPERIENCED AND AGILE MANAGEMENT TEAM
HUMAN CAPITAL MANUFACTURED CAPITAL
Customer RETURNS TO
30,365 focused
7,842 348 1 million >11.3
DISTRIBUTION AND ADVICE DIVERSE PRODUCT OFFERING
CUSTOMERS
culture
Employees Tied advisers branches Money Accounts million
•• ••
1
Customers2 ull range of accessible
F Product expertise
opened to date distribution channels and innovation
•• Sound financial advice, •• Broad offering
partnering with customers
to provide appropriate
solutions
SOCIAL AND RELATIONSHIP CAPITAL NATURAL CAPITAL REWARDING
REMUNERATION TO
EMPLOYEES
Largest
alternative
Level 2
BBBEE
84% 5 120 1.3 Human capital Finance Marketing Strategy
asset manager
Black star Green million megawatts
rating employees3 building estimated litres saved annually
in Africa
rating of water saved through solar
annually panels
Customer Information CONTRIBUTIONS TO
Risk Governance
servicing technology COMMUNITIES
ENABLING FUNCTIONS
1 Excludes employees from our businesses in Latin America and China. Includes employees of enabling functions
2 Customer numbers across segments may not sum to total customer number due to overlaps between segments. Excludes customers in Latin America and China
3 Per the Department of Trade and Industry (DTI) definition and refers to employees in South Africa
22 OLDMUTUAL Integrated Report 2018 OLDMUTUAL Integrated Report 2018 23You can also read
