Our gold marathon now on the - global stage p20 - Inside Sanlam
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SEPTEMBER / OCTOBER 2017
Interim results show Group’s resilience p8
Internal partnerships for greater good p10
Sanlam Corporate offers a One Sanlam experience p12
Stepping up the fight for cybersecurity p24
Magazine for WealthsmithsTM
Our gold
marathon
now on the
global stage p20
September/October 2017
top-line thinking
Ian says
contents
The key to offering
Sanlam Corporate
clients more holistic ‘Ours is a business built
solutions ... p12 on trust and reputation,
and this in turn is what
we sell to clients.’
news
A
s a Group we can embrace a sense of positive optimism
when we look at some of our recent activities – again
3 In short
reporting solid interim results for the first half of 2017, as
well as celebrating our fourth successful Sanlam Cape
What’s happening in the Group’s world and beyond
Town Marathon. And this month we’re focusing on our commitment
to help make a difference in the lives of those affected by cancer
strategy This is the magazine
for Sanlam
through the annual Sanlam Cancer Challenge.
8 Interim results
staff members
everywhere.
These activities reflect our purpose, which is to support people
in living their best possible lives through financial resilience at an
Sanlam’s strong results for the first six months are individual, organisational and societal level.
proof of the resilience of our business If you have news for
us, send an email We’re in the last quarter of the financial year, so it’s all systems go
10 Partnering for bigger benefits
to insidesanlam@
sanlam.co.za.
to ensure that we continue to deliver on our strategic priorities. But
it’s also time for us to look forward to budgeting and planning for
Cross-cluster internal collaboration is key to
strengthening our competitive position 2018, including the celebration of our centenary.
FOR SANLAM
The recently launched commemorative 100-year calendar range now
12
Chief Executive:
Sanlam Brand
Creating a one Sanlam experience Yegs Ramiah
on offer also saw the launch of the special centenary design and logo,
Temba Mvusi shares plans for Sanlam Corporate to Communications and forms part of the exciting initiatives around this truly noteworthy
Consultant
offer long-term solutions to large corporates Inga Bosch-Cloete
milestone. The Sanlam Foundation is also making steady progress with
14 Sanlam Foundation
thought leadership
Address: Sanlam Head
Office, 2 Strand Road,
Bellville, South Africa
the Blue Ladder Schools (BLS) Programme, which will see 100 schools
being improved by next year, in celebration of our centenary.
The Sanlam Foundation is focused on It was pleasing to see that Wealthsmiths™ have so generously
empowerment
27 Jobs drought FOR NEW MEDIA contributed to the improvement of the lives of the learners at these
16 New-generation life insurance with Indie How do we grow the pie?
PUBLISHING
Editor-in-Chief
Trudie Myburgh
schools, through the Mandela Month stationery drive. The commitment
shown towards creating a world worth living in and building our
Convenience is at the core of the new online product Content Producer
offering to millennials communities through this campaign alone is testimony to our
comment
Karin Burger
Editorial collaborative approach in ensuring the success of the BLS Programme.
Pieter Vermaak, Aviva
28
Our financial services business is built on trust and reputation,
brand
Singer, Marga Scheffler,
What Wealthsmiths™ say Una Nieuwoudt,
Ami Kapilevich,
and this in turn is what we sell to clients and what cements our
17 … on taking a break without breaking the bank Letitia Watson, stakeholder relations. Recently we’ve seen global companies scramble
To be bold or cautious … Christine de Villiers
to contain the damage to their reputations because of integrity lapses
Design
SI’s new digital campaign aims to reinforce ‘Bold and
Cautious’ positioning in the market people Christopher Evans,
Nita Nagar
Group Account Director
in South Africa. We have a proud heritage, 99 years in the making,
and as we’ve seen, reputations can be destroyed in 99 minutes. We
18 I did it MiWay 30 Corporate Games
Tinnette Fourie
Group Creative Director
Brendan Cooper
must all guard against this.
For us to be sustainable as a business, as we envision the Group
How MiWay sailed through a media crisis Team Sanlam came out tops again with six trophies
Director:
even beyond 2018, we need to remain true to our value of acting
19 in the bag Content Strategy
with integrity and accountability. Doing it for good by creating lasting
32
Making a difference on Mandela Day Andrew Nunneley
Stationery drive exceeds targets Financial skills Printer
value reflects on our business practices and we should continually
20 You can bank on lower fees Shumani Mills be mindful of this promise as both an opportunity as well as our
Communications
33
Sanlam Cape Town Marathon responsibility as a corporate.
Images: Getty Images and supplied
An event to remember! Personal skills Published for Sanlam by As Wealthsmiths™ we understand our work is never done, but what
Get cellphone savvy New Media Publishing,
19 Bree Street, sets us apart despite the challenges we face is our care and diligence
technology 34 Out & about
Cape Town
Telephone 021 417 1111
to ensuring that we continue to realise our purpose, which will truly
define our long-term sustainability as a Group.
24 See who was where and why
Let’s therefore intensify our efforts during this last quarter to create
40
Stepping up the fight for cyber security
All the measures Sanlam’s Group Cyber Security The back page sustainable value for all our stakeholders and, in doing so, leave a
Centre has in place to respond to this rapidly Thelma on an alternative route for the Sanlam Cape lasting legacy.
changing landscape Town Marathon
Inside Sanlam | September/October 2017 1
KINGJAMES 41639
University spelling challenge a first
news
Namibia’s first spelling bee at tertiary level was
recently hosted by the University of Namibia’s
Language Department, in partnership with Sanlam,
In 25 years,
which sponsored N$20 000 towards the event.
N$20 000
we’ve raised
over R40m to
fight cancer.
Sanlam Portrait Award
As Wealthsmiths™, we believe it’s important to make the most of what we have.
Cape Town artist wins
Since 1993, Sanlam, in partnership with CANSA, and with the support of 875 000 golfers,
has been turning money into meaning. Together we’ve funded care for 427 005
with emotional work
patients, educated 379 672 people about cancer, and given 26 927 golfers access Cape Town artist Kate Arthur has won Head of the Sanlam Private Wealth
the 2017 Sanlam Portrait Award for art advisory service and convenor of the
to early detection screening. Sign up to play in the annual Sanlam Cancer Challenge. her portrait Genna & Felix. The award, judging panel Stefan Hundt says ‘Genna
sponsored by Sanlam Private Wealth in & Felix is a seemingly simple portrait
Entry fees go to CANSA. Register at sanlamcancerchallenge.co.za. partnership with Rust-en-Vrede Art Gallery of two individuals but it is emotionally
in Durbanville, aims to celebrate and charged, with a tense ambiguity that
showcase the best original portrait confronts the viewer head-on, eliciting
artwork in South Africa. a feeling of some discomfort.’
Not only did Kate’s winning portrait Such an ability to engage the viewer
beat 1 437 entries to the top prize of intellectually and emotionally, he adds,
R100 000, but another entry by her also is what makes portraiture still relevant
made it into the top five portraits – her and exciting today.
work titled Kwena. The winning portrait Daniël Kriel, CEO of Sanlam Private
will join 39 other selected entries in an Wealth, says the outstanding quality of
Kate Arthur with her exhibition to be held at Rust-en-Vrede the entries is testament to the range and
winning portrait titled
Genna & Felix (79,5cm x Art Gallery until 18 October. depth of talent South Africa has to offer.
119,5cm, oil on canvas).
in proud association
Sanlam is a Licensed Financial Services Provider.
Inside Sanlam | September/October 2017 3
news
View ‘Mutara Wenguva’ or
‘Time Line’ at Head Office in Bellville
from 22 September to 29 October,
from 09:00 to 16:30 on weekdays.
Robert Roux
Santam Sanlam Investments
Municipalities Sanlam to acquire
to benefit from 30% of EasyEquities BIHL Trust
partnership Supporting education
Sanlam Investment Holdings (SIH) has entered into Tebogo Keepetsoe
agreements to acquire a 30% stake in First World (left), Public Relations,
Alice Lane exhibition Communications and
The Department of Cooperative Governance (DoCG) Trader Proprietary Limited, trading as EasyEquities. Marketing Manager BIHL Trust donated P200 000 (R259 000) to the Maru
Art at the office
officially commenced phase two of its public-private At the back (from left) The aim of the partnership is to grow clients’ wealth, at BIHL, presents a Pula (MaP) Orphans and Vulnerable Children (OVC)
are Justine Alston and BIHL Trust’s cheque
partnership with Santam at a ceremony in Sandton. make it easier for new clients to open an investment to Andrew Taylor,
Scholarship programme as part of its commitment
Gillian Hutchings of
The DoCG and Santam signed a memorandum of the National Business A retrospective by Zimbabwean-born painter Richard account and get access to the investment markets. Principal of the Maru a to support the national cause of upscaling education
understanding focusing on service delivery, capacity Initiative (NBI). In front Mudariki, titled ‘Mutara Wenguva’ or ‘Time Line’, is on The transaction is subject to the fulfilment or waiver Pula Secondary School. and skills in Botswana.
are Richard Mudariki;
building and institutional development in local government, view in the Sanlam Art Gallery at Head Office in Bellville of certain conditions precedent, including Competition The trust has been a proud partner of the scholarship
Keindira Moodley,
local economic development and public partnerships. Guest Relations from 22 September to 29 October. Viewing hours are Commission approval. programme since 2012 and makes an annual donation
Phase one of the partnership was implemented between Manager at Sanlam; and from 09:00 to 16:30 on weekdays. ‘We believe EasyEquities is a market-leading fintech towards the OVC fund.
2012 and 2014 in Thulamela, Mbombela, Eden, Ulundi and
Stefan Hundt, Curator:
Sanlam Art Collection. The exhibition initially ran from 8 August to 9 September company and an innovative business focused on servicing ‘BIHL Trust So far BIHL Trust has invested more than P1 million
Mahikeng municipalities, achieving the following: at the Sanlam Art Lounge at the Alice Lane office in the needs of its clients. It is typically the kind of business has invested towards the OVC scholarship programme, which provides
• Early-warnings fire equipment purchased and installed Sandton. Sanlam seeks to partner with,’ says Robert Roux, CEO full scholarships to the MaP Secondary School for
across all identified municipalities Richard is a full-time professional artist who lives and of Sanlam Investments.
more than students who display exceptional academic excellence.
• Firefighters trained to a standard level of response works in Cape Town. He studied under the mentorship EasyEquities has disrupted the investments sector by P1 million Catherine Lesetedi-Letegele, CEO of the BIHL Group,
through SA Fire Protection Services of renowned painter Helen Lieros as well as Greg Shaw making it simple to open an investment account through towards says BIHL understands that the youth of Botswana need
• Community Fire Awareness programmes put in place
at primary schools, old-age homes and high schools
at Gallery Delta in Harare.
He’s known for his original modernist paintings that
its low-cost platform. A primary objective is to provide
investment solutions to all South Africans by removing
the OVC proper support to hone the skills and knowledge to
become industry builders and shapers.
• Flood risk early-warning systems linked to the South reflect social commentary on issues affecting Africa, barriers such as high cost and product complexity. scholarship ‘Through our partnership with MaP, we’re able to make
African Weather Service implemented
‘It’s therefore and has participated in major exhibitions in South Africa, Along with SatrixNOW, EasyEquities was named Best programme.’ an active contribution towards bridging the education
• Santam teamed up with the Community Work important that Zimbabwe, Germany, the UK and the US. African FinTech company of 2016 at the African FinTech and skills development gap, empowering youth who may
Programme, making funds available to various NGOs we prioritise Awards, which forms part of the Finance Indaba Africa. have had a challenging upbringing with access to world-
to create jobs clearing alien vegetation.
Implementation of phase two of the partnership will
proactive risk EasyEquities and Sanlam Investments are no strangers
to partnering with the objective of improving access
class education,’ she says.
The BIHL Trust announced a new strategic direction
benefit 22 municipalities across all nine provinces. management for investors. SatrixNOW, a white-label version of for 2017–2021, geared towards supporting community
The success of phase two is key to demonstrating the to empower EasyEquities, is a direct investment platform that projects that align with education, social upliftment,
objectives of strategic public-private partnerships, as the communities forms part of leading passive investment brand Satrix. economic empowerment, public health, recreation and
results will be visible and felt by people on the ground, environmental conservation.
says DoCG Acting Director-general Charles Nwaila.
to be aware
Temba Mvusi, CEO of Group Market Development and resilient Glacier
as well as App of the month
Investment
at Sanlam, says it’s crucial for Santam to enter into Shriram Life
to adapt
Partnering with micro
partnerships with government. ‘The insurance industry Is your wallet overflowing with loyalty cards? Stocard
Hub unveiled to
is known for receiving premiums and paying claims. is the perfect solution – a virtual card wallet that lets
to climate
finance bank
It’s therefore important that we prioritise proactive risk you save all your loyalty cards on your smartphone.
change.’
intermediaries
management to empower communities to be aware The Stocard app is a global one, but don’t worry:
and resilient as well as to adapt to climate change.’ Shriram Life Insurance recently appointed Utkarsh Small it has support for South Africa.
Finance Bank Ltd as a corporate agent. Glacier launched its new Investment Hub, a state-of- To sign up, go to the Cards tab and tap the ‘+’ button
The two parties signed the agreement at the bank’s the-art system providing better data management to start loading loyalty cards. All available cards are listed
headquarters in Varanasi. and streamlined processes that will ultimately result in alphabetically, and you can find supported
Utkarsh Small Finance Bank recently started its intermediaries having more time to service their clients. brands such as Clicks, Ackermans,
operations with 40 branches and has aggressive growth A key feature of the new system allows intermediaries Dis-Chem, Exclusive Books, eBucks,
plans for the future. It’s one of a new breed of micro to create their own model portfolios. They can even FlySAA, MySchool, Pick n Pay, Sorbet,
finance banks approved by the Reserve Bank of India, add a chosen benchmark and compare it against the Spar, Ster-Kinekor, The Body Shop and
the banking regulator. performance of their portfolio. Before, intermediaries Woolworths. Simply present your Stocard
‘Shriram Life Insurance’s client and product strategy used several different sources to accomplish this – now, app at the cash register and collect all
maps well with the potential clients of Utkarsh Bank,’ for the first time, the functionality is available in one points and discounts straight away.
says Manoj Jain, MD of Shriram Life Insurance. seamless process. Available free for Android and iOS.
4 Inside Sanlam | September/October 2017 5
news
‘An impressive 46 733 you said
people subscribed to
the WhatsApp drama’
Tendani Matshisevhe
Sanlam Sky Solutions Sanlam Private Wealth Botswana Life
WhatsApp campaign SPW Africa opens Shariah-compliant In the build-up to
Sanlam’s centenary,
a ‘huge success’ office in Mauritius product launched Botswana Life’s Exco
team display their new we asked staff
The response to South Africa’s first-ever WhatsApp Sanlam Private Wealth (SPW) has opened its first Botswana Life launched another first for its local products’ certificates of
drama, Uk’shona Kwelanga, has been very positive, office in Africa outside South Africa. SPW Mauritius is investment market with a series of Shariah-compliant Shariah compliance at
the launch. From left are
members what
with the campaign and publicity around it reaching
more than 4,4 million people.
a building block in the expansion of SPW Africa, which
provides private clients in Africa access to SPW’s global
investment products for Muslim clients.
At the unveiling of the new products, which took
Colleta Simbaengavi,
Anderson Samu, Bilkiss
makes them proud
The drama, launched by Sanlam Sky Solutions in June, investment and wealth management solutions. place at the Gaborone International Convention Centre Moorad, Thomas Masifhi
and Joseph Kuaho.
to be Wealthsmiths™.
managed an advertising value equivalency (AVE) of SPW Africa will follow the well-established Sanlam (GICC), Botswana Life CEO Bilkiss Moorad said the
over R2 million – AVE refers to the cost of buying the Group footprint across the continent, in partnership company realises the need for Shariah-compliant Various initiatives driven by
space taken up by a particular media article had it been with Sanlam’s existing partners in several African investments and the development of the Islamic the Sanlam Group make an
a paid advertisement. countries, including Kenya, Zimbabwe, Zambia, capital market.
immediate impact on the lives
‘An impressive 46 733 people subscribed to the Namibia and Botswana. ‘The Muslim community makes up a quarter of the
WhatsApp drama,’ says Tendani Matshisevhe, Marketing Mauritius will form the hub of SPW Africa’s expansion world’s population and this market is growing rapidly,’ ‘With this of thousands of individuals.
Manager: Sanlam Sky Solutions. ‘The actual reach is strategy – consisting of SPW Mauritius, focusing on Bilkiss said. ‘We at Botswana Life recognised the new product Sanlam is doing so much in
quite amazing, as over 4,4 million people came into wealth management, and Summit Trust Mauritius, importance of Shariah-compliant investment products
contact with the campaign with 121 000 clicks via offering multi-jurisdictional fiduciary and tax advice and are committed to introducing innovative products
range terms of education – both
various platforms.’ and services to private clients, and a range of company that meet market needs.’ Botswana tertiary and education within
Research shows the campaign reached 2 582 663 administration services to the corporate market. With this new product range Botswana Life also aims Life also aims communities, helping others
people from the age group 25–34 years, followed by Summit Trust Mauritius was established in 2012 to empower and give clients hope of being financially to empower to help themselves. I’m
1 535 440 from the age group 35–44 years and 303 339 and has since enjoyed significant success and growth. self-sufficient. Although Shariah-compliant investment
aged 45–54 years. At the opening of the SPW Mauritius offices in represents a relatively small part of the insurance and give proud to be a Wealthsmith™
‘The campaign was a huge success,’ Tendani says. Labourdonnais Village, SPW CEO Daniël Kriel said the industry, there’s a large untapped market which clients hope and grateful for the
‘It took a lot of courage to try something new, so Enjoying the opening company’s expansion formed part of a drive to extend presents a good opportunity for Islamic investments of being opportunities I have
we’re grateful to our advertising partner, King James
Group, for the groundbreaking concept and to
event are (from left)
SPW CEO Daniël Kriel,
its offering to clients at the top end of the market across
the continent. This is also consistent with the Sanlam
to grow in future.
Shariah is a set of Islamic religious laws that governs
financially to make a difference.
the Sanlam Sky Solutions management team for
Mauritius Deputy
Prime Minister Ivan Group’s international strategy, which focuses primarily not only religious rituals but also aspects of day-to-day self-
embracing this new way of engaging with clients.’ Collendavelloo, SA on emerging markets. life that include financial conduct. sufficient.’ Michelle Rawstron
High Commissioner
to Mauritius HRH
‘Through our Mauritian operations, private clients Sales Team Leader,
Princess Zenani in African countries will now have access to a range Broker Division,
Mandela-Dlamini, SPW of international investment and wealth management East London
Campaign achievements Mauritius Director Mark
IT department
Muller, and SPW Africa solutions,’ Daniël said. This includes access to Sanlam’s
Sanlam shines MD Shane Tremeer. global investment capabilities.
gives back A company that is 99 years
at Loerie Awards Images: Jéan du Plessis, Elske Kritzinger, Getty Images and supplied
Botswana Life’s IT department brought smiles to the old has stood the test of
Sanlam won 10 awards, including three coveted golds, at faces of 50 students of the St Bernard’s Primary School
time. You know what you’re
the prestigious annual Loerie Awards, which was hosted in Taung, a small village next to Ramotswa, with a
for the 39th consecutive year in August. donation of school uniforms and shoes. doing and you’re doing it
The Loerie Awards recognise exceptional work done by The donation was part of the company’s corporate right. I want to be part of
advertising and brand communication agencies. This year’s social responsibility initiative, Living the Values, which
event saw 800 brands being represented by 400 agencies aims to give back to and assist communities in a
that legacy.
from 18 countries across Africa and the Middle East. positive way.
Sanlam was the most awarded financial services At the handover event, Anderson Samu, Head of IT Minenhle Mavuso
brand and the second most awarded brand overall, at Botswana Life, said the company is fulfilling two of Deputy Company
Students from St
with KFC winning 11 awards. its four corporate values – to be caring and connected. Bernard’s Primary
Secretary, Santam
Sanlam won three gold awards for the following ‘Today’s occasion demonstrates our philosophy as School show off their Head Office,
campaigns: ‘Every 1 Counts’ (Financial Services); a company to stand for the weak and vulnerable. We new uniforms and shoes. Tyger Valley
At the back are staff
‘Uk’shona Kwelanga’ (My Choice Funeral Plan); and believe we must assist with easing students’ learning members from Botswana
‘Sanlam Conspicuous Savers’ (National Savings Month). process by providing all essential educational materials.’ Life’s IT department.
6 Inside Sanlam | September/October 2017 7
strategy / interim results ‘Our pleasing results can be attributed to the
contribution and continued commitment of
Sanlam could once again deliver
l
Wealthsmiths™ to Sanlam’s success.’
solid interim results. Here’s how Ian Kirk, Group CEO
resilience
we’ve performed so far in 2017.
Results Cluster performance
Sanlam Personal Finance achieved solid
growth for a largely mature business
show our
in a challenging South African business
environment. Its Individual Life business
grew its net result from financial services
by 2%, Sanlam Sky grew its net result
from financial services by 3% and Glacier
grew its net profit contribution by 8%.
Sanlam Emerging Markets’ net result
from financial services declined by 2%.
Sanlam Emerging Markets
T
However, excluding structural growth,
he Sanlam Group’s strong results for
the first six months of this year are R19 billion the impact of a stronger rand exchange
rate and demonetisation-related credit
2%
Net fund inflows, compared Decline in Sanlam Emerging
proof of the resilience of our business with R22 billion in 2016 provisioning in India, net result from
Markets’ net result from
given the demanding operating financial services financial services grew by 18%.
environment in which they were achieved, Operations in the rest of Africa,
18%
Growth in net result from financial
Group CEO Ian Kirk says. services, excluding structural growth, excluding Saham Finances, grew
One of the highlights for the period was the the impact of a stronger rand and their contribution by 37%, whereras
credit provisionaling in India
strong growth in value of new life (covered) Saham Finances’ contribution increased
27%
Increase in Saham Finances’
business written. The net value of new by 27% and remains in line with
contribution
covered business (VNB) increased by 11%,
11% 16,2% 1%
expectations.
37%
which exceeds the comparable 2016 margin. Growth in contribution of Sanlam Investments’ net result from
Increase in net value Return on Group Equity Operations in the rest of Africa,
‘We are particularly pleased with the of new covered Value (RoGEV), which financial services declined by 1%. The
Increase in excluding Saham Finances
Return on Group Equity Value (RoGEV) of business (VNB) exceeded the target of international businesses achieved strong
net result from
16,2%, which exceeded the target of 13,2% 13,2% for 2017 growth from a low base in the first half
financial services
for 2017 by a healthy margin. As a Group we of 2016, which included restructuring
consider RoGEV as the most appropriate Santam Sanlam Investments costs. Sanlam Capital Markets’
measure of long-term performance and value Sanlam Group
4% profitability declined by 11% net of
4%
creation, given the diversified nature of our tax. This is largely attributable to large
Decline in new
operations,’ Ian says. business volumes, one-off items in 2017 and 2016.
Other key features include: to R110 billion Santam’s overall underwriting Santam’s overall underwriting margin
• Net result from financial services margin in 2017, declined from declined from 6,4% in the first half
6,4% in the first half of 2016
increased by 1% of 2016 to 4% in 2017, a resilient
• New business volumes declined by performance given the difficult first
4% to R110 billion
• Net fund inflows of R19 billion, compared
with R22 billion in 2016.
Sanlam Personal Finance 1%
Decline in Sanlam
11%
Decline in Sanlam
six months in 2017 that saw a number
of large corporate claims and
catastrophic events.
Investments’ Capital Markets’
‘As we enter the last quarter of the year, Sanlam Corporate achieved exceptional
8%
net result from profitability net
we expect the economic and operating
2%
financial services of tax growth of 31% in its net result from
Growth in
environment to remain challenging across Individual financial services. Group risk profit
Life’s net result
our footprint,’ Ian says.
from financial Sanlam Corporate increased by 55%, supporting overall
‘However, as a Group we remain committed services growth of 26% in Sanlam Employee
Images: Getty Images and supplied
31% 55% 26% 49%
to our strategy and are confident that, Benefits’ net result from financial
together, we have the necessary skills and
passion for this business to execute our
identified strategic priorities effectively.
3% Growth Sanlam
Corporate achieved
Increase in
Group risk profit
Overall growth in
Sanlam Employee
Growth achieved by
Sanlam Healthcare
services. Sanlam Healthcare
Management, which predominantly
includes the Group’s stake in
in its net result from Benefits’ net result Management
‘I’d like to thank our staff for their support financial services from financial Medscheme, also achieved sterling
– these pleasing results can be attributed to services growth of 49%, benefiting from new
Increase in Sanlam Growth in Glacier’s
the contribution and continued commitment Sky’s net result from net profit contribution schemes and an increase in the number
of Wealthsmiths™ to Sanlam’s success.’ financial services of members under administration.
8 Inside Sanlam | September/October 2017 9
internal partnerships / strategy
Internal collaboration across clusters is crucial to strengthen ‘Our ability to leverage the breadth and depth of information we
our competitive position. Anton Gildenhuys, Chief Actuary have on our clients to improve business performance, better
and Group Risk Officer, sheds light on two core initiatives: manage risk, and design solutions that meet client needs could
Business Intelligence and Central Credit Manager. become a key competitive advantage for the Group.’
2 Central Credit when it was, in fact, a bank. These are
Partnering for
bigger benefits
critical to the success of the CCM initiative.
Manager SSS is responsible for asset/liability
management and liquidity risk management.
Key functions In addition, SSS is responsible for product
In December 2015, the Sanlam Life and development within Sanlam Life. New
Limited boards approved the establishment products enable the CCM to grow and
of a Central Credit Manager (CCM) to provide Sanlam with a way to enhance its
manage the corporate credit exposures of competitiveness and shareholder returns.
Sanlam shareholders – a decision based on SPF and Sanlam Corporate provide
both the commercial merits of the initiative funding to the CCM. The liability profiles of
and the enhanced risk management that many of the products these two businesses
1
such an approach would achieve. sell are ideally suited to being matched by
Business
Due to the nature of its liabilities, Sanlam credit assets.
Our ability to leverage the breadth and has the innate ability to hold illiquid
intelligence depth of information we have on our clients
to improve business performance, better
investments, including credit assets, up to
a point. By leveraging this ability, Sanlam can
The end goal
The desired outcome of the CCM initiative is
The broader context manage risk, and design solutions that invest in credit assets that, if appropriately a highly profitable, well-managed corporate
The world we live in is changing fast. In the meet client needs could become a key managed, yield attractive risk-adjusted credit lending business that enhances
past two centuries, we’ve seen industrial competitive advantage for the Group. returns. Through this, Sanlam can enhance Sanlam’s competitiveness and RoGEV.
revolutions driven by rapid change in We define business intelligence as both the competitiveness of its products and Through this initiative, Sanlam has become
technology within specific industries. The the capability of converting data into risk-adjusted returns to shareholders. a significant funder of corporates, providing
fourth industrial revolution, which we’re now business-consumable information and The centralised approach improves risk them with funding to invest in their businesses
experiencing, is different. It’s characterised actionable insights that ultimately enable management in that we can take a Group- and infrastructure, for example, solar plants
by integration across various industries in business decisions. wide view on the assumption of corporate and wind farms. In this way we contribute
the physical, digital and biological spheres, credit risk. This holistic view allows us to directly to making South Africa Inc work.
through technology and the ubiquitous Recent development manage shareholder credit risk consistently
availability of data. We’ve acquired a business intelligence and coherently across the Group.
Individual Corporate
The way people live, work and relate to technology platform that takes advantage clients clients
one another is already changing fast, with of open-source developments and Who’s involved
these changes being brought to our doors innovation. This is largely related to The CCM initiative required a great deal
by our younger clients, who, as a result of massively increased processing power of collaboration across the Group, with
SPF SEB
their experience in the world at large, have and the commoditisation and consequent the principal role players being Sanlam
very different expectations of their financial drop in the cost of data storage, which has Capital Markets (SCM), Sanlam Structured Sanlam
BSM
services providers than their parents did. brought about a fundamental change in Solutions (SSS), Sanlam Personal Finance shareholders
how we source, process and provision data. (SPF), Sanlam Corporate and Balance
What are we doing? Our approach is premised on the Sheet Management (BSM). CCM
Sanlam Ltd Exco has adopted a strategy principles of complete access to all data BSM is a Group function established SSS SCM
to start laying the foundations for becoming contained in our source systems, which two years ago to optimise Sanlam’s balance
an insight-driven organisation, by making is then exploitable in an agile way for sheet and in so doing enhance Sanlam’s
ourselves fluent in data. discovery, analytical and development return on group equity value (RoGEV). Renewables like solar- and wind
Images: Getty Images and supplied
The Group Business Intelligence purposes – without losing the ability to The CCM initiative was one of the first
Programme’s task is to enable Sanlam to rise formalise for standard, repeatable and steps in the optimisation process as Sanlam Infrastructure
to the data challenge, laying an important highly trusted reporting. was relatively underweight in respect of
Empowerment
foundation for staying relevant in a changing Organisationally, we’re driving towards a corporate credit risk, and as an asset class,
environment. Our response focuses on hub-and-spoke model that leaves autonomy credit fits neatly into BSM’s optimisation plans. ‘Real SA economy’
the technology designed to harvest and to businesses to drive and develop their own SCM is a business that has become
manage data from inside and outside of the analytical and reporting use cases, while predominantly a lender in the corporate Funding rest of Africa
enterprise, as well as transforming the way a central, Group-managed function provides credit space. SCM retained the banking skills
we work with data in the Group. access to data in a governed and secure way. and processes it had prior to its formation Treasury/ALM and so forth
10 Inside Sanlam | September/October 2017 11
strategy / Sanlam Corporate One Sanlam / strategy
Creating a
Sanlam
experience
As Acting CEO of Sanlam Corporate, Temba Mvusi is
tasked with implementing the cluster’s new strategy of
providing holistic, long-term solutions for large corporates.
He reveals more about progress so far and the plans ahead.
T
he central theme of Sanlam ‘This will require a strong willingness on the insurance, investments, health insurance, involved in order to avoid compromising ‘The key is for all
Corporate’s strategy is to become part of the other clusters in the Group to join retirement, financial planning and advice.’ relationships. Furthermore, it will be
the partner of choice for targeted hands and propose a holistic solution that’s important to ensure that the commitments the clusters to focus
corporates by providing them attractive to the potential corporate client. Corporate Solutions we make to a client can be met by all the on the big picture.
with a One Sanlam experience and financial ‘The key is for all the clusters to focus on Within the Corporate cluster, Corporate role-players within the Group,’ Temba says.
This means there
solutions underpinned by the products the big picture. This means there will need to Solutions, headed up by Racquel Hall as
from Sanlam Employee Benefits and be a lot of flexibility and innovation around Chief Executive, will analyse predetermined A promising future will need to be a
Sanlam Health. issues such as pricing models. In the end, the large corporates’ business, identify Sanlam Employee Benefits and Sanlam lot of flexibility
Temba is supporting the cluster with Group, rather than one cluster or department, potential needs and challenges within those Health have already shown great success
Sanlam Corporate implementation and execution of this will benefit from this team effort.’ companies and come up with appropriate, in their day-to-day business with respect
and innovation.
strategy. To ensure success, it’s vital comprehensive value propositions for them. to collaboration, and good progress is being In the end, the
that Sanlam Corporate maintains close Target market made with establishing Corporate Solutions. Group, rather than
relationships and collaboration with the Sanlam’s existing and potential corporate Collaboration While the focus is on large corporates,
Corporate
other business clusters in the Sanlam clients are mostly in South Africa, which ‘For us to present One Sanlam and one outside this objective it’s business as
one cluster or
Solutions
Group, he says. is also Sanlam Corporate’s target market. comprehensive solution to potential clients usual for both Sanlam Health and Sanlam department, will
Sanlam ‘Historically, since the unbundling of However, many of these clients are successfully, the relationships, cooperation Employee Benefits as they continue to benefit from this
Employee Sankorp, Sanlam hasn’t had good, solid expanding their businesses beyond and collaboration between Sanlam target the rest of the market. Their
Benefits Samlam corporate relationships – partly because of the country’s borders. Images: Nathaniel Tetteh and Shavan Rahim
Corporate and the rest of the Group’s collaboration with each other and the rest team effort.’
Health
our silo approach to the market as a result ‘As part of Sanlam’s pan-African strategy businesses will be vital,’ Temba says. of the Group is also paying off, particularly
of our federal business model. Our main and given our footprint across more than when looking at the partnerships formed
goal at the moment is to establish those 35 countries on the continent, we can Intermediation with Dis-Chem and Harmony Gold, to
relationships by: support those clients expanding into Our approach to targeted clients will name a few.
Target market
= • analysing them, with a view to Africa,’ Temba says. continue to include intermediaries where ‘We have a committed team at Sanlam
SA corporates understanding each corporate’s needs ‘In this regard, Sanlam Corporate will partner they are involved, which means collaboration Corporate and I’m looking forward to
• understanding their needs and the challenges they face with Sanlam Emerging Markets to explore with brokers remains important. working with the cluster to build its business
• proposing a solution • proposing a solution opportunities and offer a holistic corporate ‘This will require internal legwork to and make a meaningful contribution to the
• building relationships • building the relationship. solution that covers life insurance, general determine where intermediaries are Group,’ Temba says.
12 Inside Sanlam | September/October 2017 13
strategy / Sanlam Foundation
empowerment
Focused on Sanlam’s black economic
empowerment initiatives are
paying off, and together with
Sanlam Ubuntu-Botho, the
Sanlam Foundation Trust has
been making a significant
contribution. Here’s more.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
I
n the 2017 Intellidex ‘The Sanlam
Empowerment Endowment
Foundation aims
Report, Sanlam has been
ranked in the top three to help address
companies with black economic issues of poverty,
empowerment (BEE) deals
that include public-benefit
unemployment and
organisations as beneficiaries. 2010–2017:
inequality to support
According to the report’s Kay Motsepe Schools
Cup sponsored by The
us on the road to
research among the 100 largest
JSE companies, 35 companies
Motsepe Foundation 2012–2016: Nelson creating a world
and Sanlam Mandela University
concluded BEE transactions This national high school In 2010, the Black worth living in.’
soccer tournament run by Advisory Bursary was
that included public-benefit Francois Adriaan,
the Motsepe Foundation introduced at the Nelson
organisations as beneficiaries. Head: Sanlam Foundation
has been held at 4 200 Mandela University to
Sanlam ranks third out schools across South increase the number of
Africa, reaching more black certified financial
of these, with its two main than 100 000 learners. planners in the country. 2016–2019: 2017: SEB
beneficiaries being the Sanlam At least 15 bursary Sanlam Financial Trustee Training
Ubuntu-Botho Community students benefited. 2015–2017: Sanlam Literacy Programme From 2013, the Sanlam
Woorde Open Wêrelde/ In partnership with Ayoba Foundation funded
Development Trust and the Blue Ladder Words Open Worlds Training Organisation, a trustee training
Sanlam Foundation Trust. Schools Programme 2014–2016: Sanlam (WOW) spelling the Sanlam Foundation programme for unions
Money fo Sho competition sponsors financial to ensure that those
Moreover, Sanlam maintained This flagship programme aims training for key accounts, individuals who
Programme This annual project of the
a Level 2 Broad-based BEE to set up five-year partnerships In partnership with US Woordfees focuses on 2016: Shanduka communities and schools. have trusteeship are
status in February this year. with 100 schools across SA Avocado Vision, a Level 2015–2017: Sanlam language empowerment, Black Umbrellas About 37 143 participants empowered with the
2012–2016: 1 BEE Service Provider, Learner Brilliance promoting reading, In partnership with have been reached so far, requisite information
The Sanlam Foundation is that have been identified by Responsible Me Sanlam provided financial Programme creating opportunities for Shanduka Black with more than 6 000 being and skills to carry out
at the heart of Sanlam’s concern their respective Education HIV/Aids programme literacy training to In partnership with disadvantaged learners to Umbrellas NPC, 100% in key accounts this year. their duties. A total
for the socio-economic and Departments as having the We partnered with community members and PROTEC, the Sanlam enrol for tertiary studies, black-owned businesses of 25 trustees have 2017–2022: Thuthuka
Regency Foundation people at key accounts Foundation funded a and oral development. In were assisted to become benefited this year. Bursary Fund
environmental challenges that most needs. The outcome the Networx to equip across Gauteng, Limpopo, science, technology, 2016, 169 schools across more sustainable and The aim of the Thuthuka
threaten the sustainability of programme drives is to help educators to increase KZN, the Eastern Cape, 2014–2017: engineering and maths the country entered. supply-chain ready. 2017: Project Qaphela/ fund is to place 250–300
learners’ psycho-social the Western Cape and Sanlam Enterprise and (STEM) support programme More than 20 businesses Wage Wise (ASISA black bursary holders
the country and planet. develop young people who Foundation) per year in special
skills and knowledge North West. There were Supplier Development for Grade 10–12 learners in and business owners
Since its establishment, will become active and around HIV/Aids. About 44 458 beneficiaries. Programme KZN, North West, Limpopo benefited in Cape In collaboration with the undergraduate BComm
the Sanlam Foundation has productive citizens. 8 000 learners in KZN and The Sanlam Foundation’s and Mpumalanga. A total Town, Pretoria and ASISA Foundation and Accounting education
Limpopo were reached. flagship ESD Programme, of 200 learners, 33 teachers Johannesburg. managed by Grounded programmes at selected
undertaken numerous initiatives The focus is on improving in partnership with and 21 schools benefited. Media, this project offers universities accredited
to promote consumer financial the teaching and learning of 2012–2016: Sanlam the ASISA ESD Fund, training to mineworkers by The South African
Images: Getty Images and supplied
education, conserve the mathematics and to address Investments Vacation provides business 2015–2017: COSATU 2015–2017: WWF to increase their levels of Institute of Chartered
Programme development support to HIV/Aids programme Water Stewardship financial literacy. More Accountants (SAICA).
environment, develop small- some of the barriers in schools, This holistic programme suppliers and financial As part of the COSATU Programme 2017: Sanlam for than 7 000 workers have The Sanlam Foundation
to medium-sized enterprises, for example. poor sanitation, focused on developing 2014–2016: University planners with the aim of Lunchtime Education This partnership with 2016: TSiBA Ignition Professionals and benefited so far. The contribution supported
graduates while preparing of the Western creating jobs and growing Programme, this project the World Wide Fund for Centre Programme Graduates key accounts include 24 students over the past
help address socio-economic broken infrastructure, leadership This programme equips NEHAWU, COGTA, three-year period. These
them for the workplace Cape (UWC) the efficiency of black- offers workshops and Nature (WWF) South Africa This development
conditions and involve staff in development, nutrition and so and giving them exposure Sanlam assisted UWC owned businesses. More counselling on socio- focuses on awareness programme supported university graduates on SAPS and so forth. graduates are able to
its initiatives. forth. To date 75 schools have to the financial services with maths research than 100 suppliers have economic issues, focusing around water conservation enterprises to grow and a range of financial literacy The programme started access opportunities at
industry. To date at 20 high schools to benefited, with about on HIV/Aids. In total, and sustainable living, not thrive, and become ready topics. At least 1 500 with a partnership with Sanlam to complete their
Some of its recent been identified, with about 277 graduates have understand learning 350 jobs supported this 16 000 COSATU members just as a corporate but to join the corporate students are reached the National Union of qualification and gain
achievements include: 72 500 learners benefiting. taken part. and teaching challenges. year alone. have been reached. also as a country. supply chain. per year. Mineworkers (NUM). permanent employment.
14 Inside Sanlam | September/October 2017 15
strategy / innovation digital engagement / brand
New-generation
life insurance
with Indie
Convenience is at the core of
To be
bold
A new digital marketing campaign by Sanlam Investments
(SI) aims to reinforce its ‘Bold and Cautious’ positioning
in the market.
or cautious …
B
the new Indie online product
offering to millennials.
oxers George Foreman and Muhammad
Ali introduced SI’s investments capability
A follow-up
campaign
I
positioning line, ‘There’s a time to be bold
ndieFin – or just Indie for short – is a new and a time to be cautious; knowing when to
SPF business targeting millennials with a be which is what makes us Wealthsmiths™’, in 2015. seeks to
world-first offering that’s so convenient
it will appeal to everyone. It gives access
Now, two years on, a follow-up campaign seeks
to reinforce SI’s distinct value proposition in the reinforce
to innovative risk products within only six
minutes and rewards clients with an invested
investments landscape.
‘Research showed the 2015 ad resonated very
SI’s distinct
cash bonus.
‘We wanted to reach the millennial market
well with investors,’ says Ya’eesh Cader, Head of
Digital & Direct at SI.
value
with an exciting online service that would proposition
make life insurance intuitive and attractive More options to come Where To eat or not to eat
in the
to them,’ says Peter Castleden, Head of Indie is currently offering risk products only The new digital ad reflects the same positioning line
Alternative Millennial Solutions at SPF. but a wider spectrum of financial services to go in a scenario where the protagonist, Moe, is forced
investments
‘And that’s exactly what Indie is – it’s so will be added, Peter says. Go to indiefin.com to make a life-threatening decision – to eat or forgo
refreshing, it’ll be attractive to the entire
market, not just millennials.’
What’s more, Indie’s future aims include
combining the best of its current digital
on your mobile
or desktop and
a potentially lethal fish delicacy called ‘fugu’ and
risk offending a Japanese businessman with whom
landscape.
solution with an intermediated, advice- follow a few simple he’s hoping to close a deal. The audience recognises
The offering based offering. ‘We’re working with SPF steps – from your the ‘bold’ or ‘cautious’ approach and can make the
Indie offers life insurance, dread disease and Distribution to make selling life insurance introduction to Indie decision for Moe.
disability income protection through a short easier for intermediaries and help them and understanding The end result, however, shows the potentially The key message reinforces the value of acting
online process. Underwriting is streamlined, increase productivity.’ the products to positive outcome of either scenario, indicating that with skill, taking rational decisions and knowing
with only six questions to answer. underwriting, the skill is in knowing when to be bold and when to when to act boldly or with caution.
A real investment account that generates quoting, purchasing be cautious, based on the application of considered
market-related growth from day one is and paying. There and strategic decision-making. Campaign execution
part of the parcel. Clients have the choice is no need to fill The video ad is currently being flighted across various
to unlock a portion of their ‘Bounty’ bonus in forms, and the Key message social media platforms, including YouTube, Facebook,
every few years. The full Bounty plus all its whole process can ‘The ad concept and execution are different than Twitter and Instagram, where the primary objectives
growth can be unlocked at age 70. be completed those of the George Foreman/Muhammad Ali ad are brand awareness and the reinforcement of SI’s
Peter says Indie is designed to be as in just six minutes. but are based on the same principle of displaying ‘Bold and Cautious’ positioning.
fluid and easy as possible. ‘It’s important “Bold and Cautious” strategic thinking and action,’ The second round of digital engagement will be
to help people understand what they Ya’eesh says. via a series of remarketing ads, promoting either
need before selling anything to them.’ ‘The protagonist must review the scenario at play, Ya’eesh Cader, Sanlam Investment Management (SIM) Inflation Plus
Head of Digital &
Bounty, the invested cash bonus, is a for example, the Ali vs Foreman “Rumble in the Direct at SI
Fund or SIM Balanced Fund – appropriate solutions
unique benefit at the core of the product, Jungle” where Ali strategically tires out Foreman for investors who want to protect their capital in
Images: supplied
Images: supplied
he says. ‘Insure with Indie and you won’t before attacking, or in the latest ad, Moe’s decision uncertain times but still seek bold long-term results.
have to die or lose a limb to get money. to eat or decline a potentially lethal dish, decide To find out ‘Clients can then choose either to be contacted
You invest in yourself while you’re covered on the best course of action, and make a strategic more, visit www. by a Sanlam adviser or invest directly in one of these
Peter Castleden boldorcautious.com.
at the same time.’ decision that could have a life-changing outcome.’ funds using our Smart Invest tool,’ Ya’eesh says.
16 Inside Sanlam | September/October 2017 17brand / MiWay Mandela Day campaign / brand
How MiWay 1 8
Act quickly. If you take long to respond, Avoid knee-jerk reactions.
you create room for speculation. Establish Consider all the facts in a calm,
the truth in a credible manner and reasoned way before deciding
came out tops
communicate it as quickly as possible. what action to take.
2 9
Be available to all Accept that you can’t please 1
in media crisis Boost for Blue
media. This will kill the everyone. Consider what’s best for
room for speculation. your brand, the employees implicated
(if applicable) and, because of the racist
Ladder schools
3
nature of the attack, the interests of society.
MiWay recently fell victim to fake emails Don’t use a spokesperson. This matter
10
portraying staff members as racist. was way too important to let someone talk Beware of the ‘big
on behalf of the company. The CEO needs corporate versus small
The company’s immediate and correct consumer’ syndrome.
to be seen to take accountability. With the help of Wealthsmiths™, we exceeded
reaction saved its brand and reputation.
4
Public sentiment typically
Be transparent, authentic tends to favour the ‘man in the street’. the target for the Mandela Month stationery drive.
M
and truthful, even if it
11 A
iWay took a (7,6% versus the industry average
proactive approach of 27%), which implies that our means admitting your own Demonstrate a human side. total of 2 030 stationery bags were filled for the Mandela
to a potential decisions to repudiate claims are people committed errors. Don’t lose sight of the fact that we deal Month stationery drive – way more than the target of
crisis by engaging the fairest.’ The public is quite forgiving, but detest with human beings. Even the perpetrator 1 500 bags to be allocated to learners at the Blue
the perpetrator in a firm but ‘spin’ and cover-ups. is human. Try to understand what motivated Ladder schools.
5
constructive way. Mondli Core values their action. It might influence your next step. The Mandela Month campaign honours Madiba’s legacy of service
Never blame employees.
12
Madlala (32) of Durban admitted MiWay’s culture is built around to others by showing commitment to help create a world worth
attacking the company for four core values:
The CEO needs to take Look for a win-win solution that living in and building our communities.
turning down his claim after a • Freedom accountability for staff errors. doesn’t rule out reconciliation. This year the Sanlam Foundation encouraged staff to mobilise
car accident because he hadn’t • Attitude This is the hardest part, but the most resources to provide learners attending the Blue Ladder schools
6
met the conditions of his policy. • Energy promising. With luck, you could end up with a stationery bag containing essential items.
While it’s impossible to • Accountability.
Stay calm. making more friends than enemies. The campaign also had the highest reach in terms of staff
Some reporters and
13
prevent a fake email attack on ‘When we were in crisis, our engagement. A further R18 000 was raised through payroll giving.
social media, it’s possible to staff responded with a positive
other entities with Spread the good news about your In addition, orders to the value of more than R32 000 were placed
limit the damage and to recover attitude to defend the brand.
their own agendas business. You have the rare opportunity online through
will try to provoke you. to talk to a captive audience, so, as they
quickly, says CEO René Otto, They put in long hours to OfficeBox, one of
Don’t fall into that trap. say in the classics, ‘don’t waste a crisis’.
who adds that with a bit of respond to every tweet and the businesses in
7
luck, you might even come Facebook message.’ the Sanlam/ASISA
Don’t become
out stronger on the other side. ESD Programme.
defensive. Although
‘Thank you to
this particular matter
The calm before the storm everyone who
was about a fake racist
Ensuring that you build a strong has responded
email, the focus soon moved
brand and corporate culture so generously,’
towards MiWay’s transformation
when the waters are calm will says Yegs Ramiah,
credentials.
come in handy when a storm hits. Chief Executive:
‘MiWay’s brand is built Sanlam Brand.
René’s
around awesome service and
fair and ethical claims decisions,’
René says. ‘For most of the nine
Images: Jéan du Plessis and Elske Kritzinger
years of our existence, we’ve Images: Getty Images and supplied
damage
occupied the top spot among all
short-term insurers on hellopeter.
2
com with a score of 9,3 out of 10.
1 Salama Melrose at Sanlam
control tips
‘We also have the lowest Osti
Investments, Tyger Valley, Cape
overturn rate [the percentage Town. 2 Sinoxalo Booi, Mashudu
of complaints overturned by Mutsharini and Tshepo Mngqinya
the Ombudsman for Short- in the cafeteria of the Alice Lane
Office in Sandton, Johannesburg.
term Insurance in favour of the 3 Ntombizandile Mawuzi at Head
consumer] of all large insurers Office in Bellville. 3
18 Inside Sanlam | September/October 2017 19You can also read
