20
A MessAge froM the Ceo ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2014 Key indiCAtors ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Countries presenCe ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Core businesses .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
finAnCiAl indiCAtors ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
CONTENTS
SAHAM Finances has confirmed its financial strength as well as its position as a pan African leader by reaching a consolidated turnover of one billion dollars.
Encouraged by this success, SAHAM Finances aims to continue its regional expansion by optimising its close relationship with clients and by consolidating its market share in the various countries in which it is present.
Raymond FARHAT,CEO SAHAM Finances
UniFying vAlUesFive important values are at the heart of SAHAM Finances’ work. On a day-to-day level those working with SAHAM Finances embody these values in their jobs, responding to the basic needs of their clients.
• Entrepreneurship: recognise individual initiatives and celebrate collective success
• Ethics: value self-respect and respect for others, transparency and conformity to sector regulations
• Excellence: encourage excellence and performance while demanding professional rigour
• Innovation: promote creativity and continual research for optimised products and services, which respond to client expectations.
• Solidarity: value kindness, listen to others and provide mutual assistance.
solid sociAl cApiTAl The SAHAM Group has a 62.5% share in SAHAM Finances, while the SFI and ABRAAJ fund each hold 18.75% of the capital. They are both substantial strategic and financial partners.
As the main shareholder however, the SAHAM Group holds majority voting rights and provides for the supervision and management of SAHAM Finances. A sTRong inTeRnATionAl
bRAndIn order to strengthen its international position and to accompany the future changes to its activity portfolio in a purposeful, sustainable way, SAHAM Finances has brought together its insurance and assistance brands in Africa under two flagship brands: SAHAM Assurance and SAHAM Assistance.
sAHAM Finances, the insurance arm of the sAHAM group, mainly works in the insurance, Assistance and Third party Administrator (TpA) sectors.
benefiting from an extensive presence in Africa and the Middle east, sAHAM Finances offers a unique and complete service, responding to the expectations of private individuals, professionals and companies.
Finances
62,50%
18,75% 18,75%
6
Source SAHAM Group
8%
14%
5%
Life
Motor
Personal accidents
Fire
Workmen compensation
Marine
Other
5%
20%14%
34%
3%Assistance
83%Non-life
Life14%
disTRibUTion oF TURnoveR
49 SubSidiariES
1st grOupfor pan african insurance (excepting South africa)
Over 650 agENCiESin africa
a consolidated turnover in 2014 of over
1 billiON dollars
31 iNSuraNCE and reinsurance companies
26 COuNTriES
3 000 Employees
BY ACTIVITY SECTORBY BRANCH
2014 Key indicAToRs
TuRNOVER IN muSD 1011
sAhAM Assurance Morocco 455
sAhAM Assurance West and Central Africa 240
gA Angola seguros 165
liA insurance 95
others 56
7
coUnTRies pResence
NORTH AFRICA : MOROCCO - ALGERIA - TUNISIA
MIDDLE EAST : LEBANON - SAUDI ARABIA
EuROpE : FRANCE - LUXEMBOURG
High net worth clients in Africa
EAST AFRICA : KENYA - MADAGASCAR - MAURITIUS - RWANDA
WEST AFRICA : IvORY COAST - BENIN - BURKINA FASO - GHANA - GUINEA - MALI - NIGER - NIGERIA - SENEGAL - TOGO
CENTRAL ANDSOuTHERN AFRICA : ANGOLA - BOTSWANA - CAMEROON CONGO - GABON
INSuRANCE • SAHAM Assistance• SAHAM Assurance Benin • SAHAM Assurance Burkina Faso• SAHAM Assurance Cameroon• SAHAM Assurance Congo• SAHAM Assurance Gabon• SAHAM Assurance Ghana• SAHAM Assurance Guinea• SAHAM Assurance Ivory Coast
• SAHAM Assurance Kenya• SAHAM Assurance Madagascar• SAHAM Assurance Mali• SAHAM Assurance Morocco• SAHAM Assurance Niger• SAHAM Assurance Senegal• SAHAM Assurance Togo• SAHAM Assurance Life Benin• SAHAM Assurance Life Cameroon
• SAHAM Assurance Life Gabon• SAHAM Life Insurance Ghana• SAHAM Assurance Life Ivory Coast• SAHAM Assurance Life Mali• CORAR AG - Rwanda• CORAR VIE - Rwanda• Elite - Insurance Broker - KSA• GA Angola Seguros• LIA Insurance
REINSuRANCE • SAHAM Re Luxembourg• SAHAM Re Mauritius
sAHAM FinAnces’ insURAnce And ReinsURAnce sUbsidiARies
• Unitrust Insurance - Nigeria
8
COrE
buSiNESSES
sAHAM FinAnces’ insURAnce And ReinsURAnce sUbsidiARies
At the heart of the Group’s work, the insurance arm represents a historic pillar of its development in Morocco, as well as West and Central Africa.The insurance business in Africa has seen steady growth thanks to the success of an ambitious and deliberate acquisition strategy. This includes the acquisition of the Colina Group (1st insurer of the Interafrican Conference on Insurance Markets (CIMA) zone, with a presence in 13 countries in 2010), and of GAAS, the leading, private insurer in Angola and also present in Kenya, Rwanda and Nigeria. The momentum of this expansion was made possible by setting up subsidiaries in high growth potential countries, such as Niger and Congo in 2014.
In the Middle East, SAHAM Finances established a presence through LIA Insurance, a major player in Lebanon. To optimise the reinsurance needs of its subsidiaries, SAHAM Finances created in 2013 SAHAM reassurance, a reinsurance company which aims to share the best underwriting practices.
Today as a truly pan African leader, SAHAM Assurance relies on a network of over 650 agencies and
distinguishes itself through its primarily client based strategy. According to the distribution of written premiums, Morocco is the first contributor to the insurance arm of SAHAM Finances with 48%, followed by Angola 17%, the Ivory Coast 11% and Lebanon 10%.
DISTRIBuTION OF 2014 TuRNOVER BY COuNTRY
11%Rest of Africa
48%Morocco
11%
Angola
Ivory Coast
10%Lebanon
Gabon
17%
3%
The insurance market in Africa is one of the most dynamic in the world and the private sector, in particular car insurance, represents one of the main avenues for growth.
SAHAM Insurance, in partnership with SAHAM Assistance, has already made the most of the opportunity the market offers and provides its clients with an assistance service, a first for Sub-Saharan Africa.
nadia FeTTAH AlAoUi,Deputy CEO for Finance and Operations
insURAnce And ReinsURAnce
10
SAHAM Assistance has the job of helping private individuals, professionals and companies by providing a range of services which focus on proximity. When disaster strikes, we are the first link in an emergency chain and our customers can count on the experience and professionalism of our teams and service providers to support them through those difficult moments.
Moulay M’Hamed elAlAMy, General manager SAHAM Assistance
AssisTAnce
Pan African leader in assistance, SAHAM assistance provides for its 6 million clients through a worldwide network of 400,000 service providers and 240 correspondents thanks to the Mondial assistance Group.
Boasting a 30% market share and over 1000 centers, SAHAM Assistance is the undisputed leader in assistance for sub-Saharan countries, with a presence in 12 countries: Angola, Benin, Burkina Faso, Cameroon, Congo Brazzaville, Ivory Coast, Gabon, Madagascar, Mali, Niger, Senegal and Togo.
To provide its individual and business customers with efficient and responsive assistance services, SAHAM Assistance offers a wide range of customized services in health, car, travel and death insurance.
1st paN afriCaNgroup for assistance
1 000service providers in Morocco
120 000files dealt with
34 MilliONSdollars consolidated turnover in 2014
400 000service providers across the world
3 000active sales points
285employees
6 MilliONSclients
11
The objective of the TPA subsidiaries of SAHAM Finances is to dematerialise the relationship insurer-insured by integrating contributors, doctors, pharmacists, insurers and patients into the framework of a third party administrator insurance solution for all guarantees. The TPA optimises and personalises patient care, making it more humane and pragmatic.
Raymond FARHAT,CEO SAHAM Finances
THiRd pARTy AdMinisTRATion
Based on SAHAM Finances strategic growth, the TPA intervenes as a genuine intermediary between insurers and those insured to optimise the management of health costs thanks to its extensive health network. TPA also ensures beneficiaries get an optimum quality of service.
The strength of the TPA from SAHAM Finances is found in its ability to adapt its approach and its management processes to the needs of its clients.
SAHAM Finances also offers innovative and tailored third part administrator services based on the country in question, training local teams on best practices.
The services offered also include high performant technological solutions which prevent and combat fraud (biometric identification). It also evaluates and
improves the conditions for accessing health care.
To best achieve its goals, SAHAM Finances relies on a network of approved health service providers chosen for their medical skills and for the transparency of their financial practices.
SAHAM Finances has also developed an IT solution, in line with the best international standards, through its partnership with CEGEDIM ACTIV.
Following its pioneering experience in the Ivory Coast over the past 15 years, with MCI SOGEM, SAHAM Finances has developed its TPA business in Africa and the Middle East. It has done this thanks to its subsiduries MCI Burkina, TCL in Lebanon, ISAAF health in Morocco, MEDGEST in Madagascar and SAHAM Healthcare Administration in Saudi Arabia.
12
fiNaNCial
iNdiCaTOrS
SahaM fiNaNCES / Consolidated accounts (in KuSd) 2014 2013aSSETS
Goodwill 309 940 339 400
Portfolio Value of contracts for acquired insurance companies 10 251 12 601
Other intangible assets 23 591 22 584
iNTaNgiblE aSSETS 343 781 374 584
Property investments 168 900 188 522
Financial investments 1 802 815 1 776 689
Investments 1 971 714 1 965 211
iNVESTMENT iN parTNErEd COMpaNiES Or JOiNT VENTurE (1 839) (694)
dEbTS Of fiNaNCE COMpaNiES 147 876 152 585
Share of reinsurers and retrocessionaires for liabilities related to insurance and financing contracts 363 223 281 394
Business Premises and other tangible assets 104 430 102 881
Deferred profit sharing on assets 7 776 8 369
TaxES dEfErrEd ON aSSETS 49 890 58 063
STOCKS 82 109 91 289
Debts generated by insurance and reinsurance operations 311 832 423 610
Debts on outstanding taxes 25 578 29 180
Other debts 291 777 260 250
Other assets 873 393 973 641
CaSh aNd CaSh EQuiValENT 165 272 174 776
TOTal aSSETS 3 863 422 3 921 496
liabiliTiES
CapiTal 92 186 92 186
Issue and merger premiums 194 196 194 196
Consolidated Reserves 147 578 88 534
Conversion rate adjustment (26 493) 13 089
Net result - Group's share 51 931 48 767
Equity - Group's share 459 399 436 774
uNSECurEd CONTrOllEd iNTErESTS 235 557 213 425
Equity 694 955 650 199
Provisions for risks and charges 20 985 28 167
Financing debts 189 635 230 802
lONg-TErM liabiliTiES 210 619 258 969
Technical liabilities relating to insurance contracts 2 106 076 2 146 544
Technical liabilities relating to investment contacts 3 715 3 482
Deferred profit sharing on liabilities 34 621 19 965
Technical liabilities of insurance companies 2 144 412 2 169 992
dEfErrEd liabiliTy TaxES 60 664 64 130
Debts generated by insurance or reinsurance operations 299 304 375 398
Debts on outstanding taxes and other tax debts 53 236 48 653
OThEr dEbTS 258 610 178 252
Other liabilities 671 813 666 434
Debts of financing companies 115 875 120 643
ShOrT TErM fiNaNCiNg dEbTS 25 747 55 259
TOTal liabiliTiES 3 863 422 3 921 496
14
SahaM fiNaNCES / Consolidated accounts (in KuSd) 2014 2013WriTTEN prEMiuMS 963 358 976 567
Change in unearned premiums (14 307) (25 624)
Earned premiums 949 051 950 943
Other products excluding insurance activity 47 448 30 694
iNVESTMENT prOfiTS 129 867 103 851
Investment returns 206 893 203 962
Investment charges (77 026) (100 110)
Variation of investment mark-downs (12 526) (3 485)
rECOVEry Of iNVESTMENT MarK-dOWNS 9 932 651
allOCaTiON Of iNVESTMENT MarK-dOWNS (22 458) (4 136)
Net profit on investment 117 341 100 367
Technical charges on insurance activities (626 916) (505 211)
Net profit of reinsurance cessions (44 720) (201 453)
Fees for contract acquisition (87 929) (83 651)
aMOrTiSaTiON ON pOrTfOliO ValuE (1 399) (1 405)
gENEral OpEraTiNg ChargES (222 019) (171 481)
Net operating charges (131 942) (98 878)
Salary expenses (76 461) (63 753)
Recovery of amortisation and mark-down 32 860 14 740
Allocation of amortisation and mark-down (46 476) (23 591)
OThEr rETurNS aNd OpEraTiNg ChargES 5 737 427
Operational profit 136 593 119 230
Net charge profit (5 658) 805
fiNaNCial ChargES (22 015) (20 027)
Share of the income from partnered companies and joint ventures (1 995) (1 755)
Taxes on profits (29 038) (27 296)
Net results of consolidated group 77 888 70 958
Minority interests (25 957) (22 190)
NET rESulT grOup SharE 51 931 48 767
15
Statement of net income and changes in assets and liabilities recorded directly as equity (en KuSd) 2014 2013
NET iNCOME ON CONSOlidaTEd grOup 77 888 70 958
Net profits directly recorded in equity and transferable results (53 117) 18 884
Changes in fair value of assets available for sale (net profit sharing) 12 244 189
Conversion rate adjustment (61 066) 18 663
TaxES ON OThEr TraNSfErablE ElEMENTS Of OVErall rESulT (4 295) 410
TOTal OVErall rESulT 24 771 89 842
Group share 17 640 63 296
MiNOriTy SharE 7 131 26 546
Table of equity changes (KuSd)
Capitalissue pre-
miums
Conso-lidated
reserves
Conso-lidated
reserves group share
Conversion reserves
Equity group share
Minority interests
Total equity
SiTuaTiON aT ThE bEgiNNiNg Of fiNaN-Cial yEar 2013.12
92 186 194 196 48 595 (39 804) 780 375 475 203 341 578 816
Appropriation of results in reserves at beginning of year
39 804 (39 804)
EarNiNgS fOr ThE pEriOd 48 767 48 767 22 190 70 958
Profit and charges taken directly to equity 2 193 12 310 14 503 4 381 18 884
Overall result for year 2 193 48 767 12 310 63 270 26 571 89 842
ChaNgES iN CapiTal fOr ThE CONSOlida-TiNg COMpaNy
Effect of changes to investigating area (4 945) (1) (4 946) (8 969) (13 915)
Effect of change in accounting methods (74) (74) (373) (447)
OThEr iMpaCTS 2 962 2 962 (7 146) (4 184)
Closure of financial year 2013.12 92 186 194 196 88 534 48 767 13 089 436 774 213 425 650 199
Appropriation of results in reserves at beginning of year
48 767 (48 767)
EarNiNgS fOr ThE pEriOd 51 931 51 931 25 957 77 888
Profit and charges taken directly to equity 3 854 (38 074) (34 220) (18 897) (53 117)
Overall result for year 3 854 51 931 (38 074) 17 711 7 060 24 771
EffECT Of ChaNgES TO iNVESTigaTiNg arEa 8 476 (1 508) 7 214 25 117 32 331
Effect of change in accounting methods (1 495) (1 495) (400) (1 895)
Other impacts (558) (471) (9 647) (10 118)
ClOSurE Of fiNaNCial yEar 2014.12 92 186 194 196 147 578 51 931 (26 493) 459 399 235 557 694 955
16
Table of Treasury flow (in KuSd) 2014 2013prOfiT bEfOrE Tax aNd ExTraOrdiNary iTEMS 106 926 98 253
AdjustmentsAllocation and recovery on amortisation and on reserves 22 816 20 937
NET ChaNgES iN TEChNiCal rESErVES 11 225 61 184
Share of income from equity-consolidated companies 1 995 1 755
Corrections on elements included in profit without an impact on cash flow 36 036 83 876
NET CapiTal gaiNS Or lOSSES ON SalES (32 068) (21 416)
Charges linked to financial debts 18 646 17 851
Reclassifying financial operations and investment (13 422) (3 565)OThEr ElEMENTS iN ThE CaSh ExpENdiTurE iNCludEd iN ThE OpE-raTiONal prOfiT (1 759) 713
Changes in debts from insurance and reinsurance operations 20 492 38 913
Changes in other assets and liabilities 58 278 (80 185)
Outstanding tax charge for financial year (27 786) (22 894)
Net treasury flow from operational activities 178 764 115 113
Net earnings on subsidiaries and joint ventures of acquired cash (6 216) (30 990)
CONSOlidaTEd NET SalE SECuriTiES frOM CaSh OuTflOW 10 570 0
Impact of other cash flow linked to investment operations (238) 1 963
Cash flow linked to changes in investigation area 4 116 (29 027)
Sale and repayment of bonds 2 950 3 656
Sale of shares and UCITIS 82 184 99 837
Sale of buildings 5 428 13 546
Total cash flow linked to the sale and repayment of financial assets 90 561 117 039
Acquisition of bonds (57 476) (14 268)
Acquisition of shares and UCITIS (96 489) (73 207)
Acquisition of buildings (5 359) (4 597)
Total cash flow linked to acquisition of financial assets (159 324) (92 073)
Sale of tangible and intangible assets 657 32
Acquisition of tangible and intangible assets (26 811) (13 259)
Total cash flow linked to the acquisition and sale of tangible and intangible assets (26 155) (13 227)
Net cash flow from investment activities (90 802) (17 287)
diVidENdS paid (11 773) (8 923)
Total cash flow linked to transactions with shareholders (11 773) (8 923)
Net change in fixed-term deposits, other loans and securities 10 268 (49 763)TOTal NET ChaNgE Of TiME dEpOSiTS, OThEr lOaNS aNd guaraNTEES 10 268 (49 763)
Cash generated by issuing financial debt 9 147 44 492
Cash affected by financial debt repayments (27 420) (74 271)
Interest paid on financial debts (18 646) (17 851)
Net change in currant accounts (19 748) (10 953)
Total cash flow linked to Group financing (56 668) (58 583)
Net cash flow from financing activities (58 172) (117 269)
Impact of changes in exchange rate (10 938) 3 360
Impact of change in accounting principles 1 158 (28 948)
Cash flow 20 009 (45 032)
Cash at opening of financial year 119 517 164 548
Cash at end of financial year 139 526 119 517
Cash flow 20 009 (45 032)
17
www.sahamassurance.com
Editi
on 2
015
