OLD MUTUAL AT A GLANCE WHO WE ARE Old Mutual was established in Cape Town in 1845 as South Africa’s first mutual life insurance company, offering financial security in uncertain times. Today, the Group has grown into a premier pan-African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key market segments in 14 countries, with listings on five stock exchanges. We now employ about 30 000 people in our primary operations in South Africa and the Rest of Africa, and a niche business in China. • Africa (Botswana, eSwatini, Ghana, Kenya, Malawi, Namibia, Nigeria, Rwanda, South Africa, South Sudan, Tanzania, Uganda, Zimbabwe) • Asia (China) ON 17 MAY 2021 OLD MUTUAL TURNED 176. This is an incredible milestone that we can be really proud of. It means we have succeeded in staying relevant to our customers and responsive to their changing needs, year after year for 176 years. DO GREAT THINGS EVERY DAY 31 DECEMBER 2020 RESULTS FROM OPERATIONS (RFO) 1, 663 8, 972 81% FY 2019 FY 2020 14% RFO EXCLUDING DIRECT COVID-19 IMPACTS FY 2019 FY 2020 8, 972 7, 742 AHE per share (cents)* 209.3 54.3 74% 2, 484 9, 856 75% FY 2019 FY 2020 ADJUSTED HEADLINE EARNINGS Headline Earnings per share (cents)* 236.1 116.1 51% 5, 088 10, 641 52% FY 2019 FY 2020 HEADLINE EARNINGS (HE)* *These metrics include the results of Zimbabwe. All other key performance indicators excludes Zimbabwe. GROUP SOLVENCY RATIO 400 bps 189% FY 2019 FY 2020 185% DIVIDEND PER SHARE (CENTS) 75 53% FY 2019 FY 2020 35 OUR 2020 RESULTS AT A GLANCE: • Results from Operations (RFO) were resilient on a pre-Covid basis at R7.7 billion, 14% down on the prior year • Direct Covid-19 impacts for the full year amounted to R6.1 billion due to an increase in pandemic reserves, business interruption and rescue claims and negative mark-to-market losses in the Group’s credit and private equity portfolios • Adjusted Headline Earnings of R2.5 billion were down 75% on the prior year, impacted further by lower shareholder investment returns and Nedbank earnings • The Group’s solvency position ended the year strongly, with the benefits of key regulatory approvals and other capital management actions offsetting lower earnings and additional provisions raised for Covid-19 • Also reflecting the strength of the business in these trying times, return on embedded value remained positive despite absorbing large negative impacts relating to the pandemic • Old Mutual declared a dividend of 35 cents per share, in line with the dividend policy Results are in ZAR
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OLD MUTUAL AT A GLANCE
WHO WE AREOld Mutual was established in Cape Town in 1845 as South Africa’s first mutual life insurance company, offering financial security in uncertain times.
Today, the Group has grown into a premier pan-African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key market segments in 14 countries, with listings on five stock exchanges.
We now employ about 30 000 people in our primary operations in South Africa and the Rest of Africa, and a niche business in China.
• Africa (Botswana, eSwatini, Ghana, Kenya, Malawi, Namibia, Nigeria, Rwanda, South Africa, South Sudan, Tanzania, Uganda, Zimbabwe)
• Asia (China)
ON 17 MAY 2021 OLD MUTUAL TURNED 176.
This is an incredible milestone that we can be really
proud of. It means we have succeeded in staying relevant
*These metrics include the results of Zimbabwe. All other key performance indicators excludes Zimbabwe.
GROUP SOLVENCY
RATIO
400 bps 189%
FY 2019 FY 2020
185%
DIVIDENDPER SHARE
(CENTS)
75 53%FY 2019 FY 2020
35
OUR 2020 RESULTS AT A GLANCE:
• Results from Operations (RFO) were resilient on a pre-Covid basis at R7.7 billion, 14% down on the prior year
• Direct Covid-19 impacts for the full year amounted to R6.1 billion due to an increase in pandemic reserves, business interruption and rescue claims and negative mark-to-market losses in the Group’s credit and private equity portfolios
• Adjusted Headline Earnings of R2.5 billion were down 75% on the prior year, impacted further by lower shareholder investment returns and Nedbank earnings
• The Group’s solvency position ended the year strongly, with the benefits of key regulatory approvals and other capital management actions offsetting lower earnings and additional provisions raised for Covid-19
• Also reflecting the strength of the business in these trying times, return on embedded value remained positive despite absorbing large negative impacts relating to the pandemic
• Old Mutual declared a dividend of 35 cents per share, in line with the dividend policy
Results are in ZAR
OLD MUTUAL AT A GLANCE 31 December 2020
TOP LEADERSHIP
TREVOR MANUELCHAIRMAN
Trevor is the Chairperson of the Board. He currently serves as a non-executive Deputy Chairperson and a member of the International Advisory Board of the Rothschild Group. He is also a Non-Executive Director on the Board of Swiss Reinsurance Company Limited. He served in the South African Government for more than 20 years, including as Minister of Finance and as Minister in the Presidency, responsible for the National Planning Commission. He has held ex-officio positions at the United Nations Commission for Trade and Development, the World Bank, the International Monetary Fund, the G20, the African Development Bank Group and SADC.
Iain is the Chief Executive Officer of the Company. He joined the Group in 1993 and fulfilled various roles across employee benefits and personal finance before relocating to London and a Corporate Development role at Old Mutual plc. In 2003, Iain returned to South Africa, gaining more experience in roles across distribution, technology and finance before being promoted to CFO Retail Affluent and then Managing Director of the Retail Affluent segment. He was appointed as Old Mutual Emerging Markets Finance Director in 2015, as Chief Operating Officer in 2017 and CEO in July 2020.
CASPER TROSKIE CHIEF FINANCIAL OFFICER
Casper was appointed Chief Financial
Officer in March 2018. He was formerly
the Financial Director of Liberty
Group Limited and the Chief Financial
Officer of Standard Bank Group. He
has also served as Director on the
Board of Stanlib Limited and was a
member of the Standard Bank Global
Finance Executive Committee and
the Standard Bank Group Executive
Committee. He started his career at
Deloitte and later returned as partner
and was promoted to Group Leader:
Assurance and Business Unit leader of
the Deloitte Financial Services team.
IAIN WILLIAMSON CHIEF EXECUTIVE OFFICER
OUR BUSINESSESFrom financial planning to managing financial portfolios, Old Mutual provides a broad range of customers with the advice and solutions they need to strengthen their financial wellbeing.
Mass and Foundation Cluster offers a wide range of simple financial services products to customers in the low income and lower middle income markets. These products are divided into four categories: risk, including funeral cover, savings, lending and transactional products.
Personal Finance and Wealth Management offers a wide range of holistic financial advice and long term risk, savings, income and investment solutions, and targets the middle to high income market and high net worth individuals.
Old Mutual Investments targets clients in both the listed and unlisted market, providing solutions and funds across a broad investment spectrum.
Old Mutual Corporate provides group risk, investments, annuities and consulting services to employee-sponsored retirement and benefit funds.
Old Mutual Insure, our Property & Casualty business, provides short-term insurance services to personal, commercial and corporate customers.
Rest of Africa offers life and savings, property and casualty (including health insurance), asset management and banking services to retail and corporate customers. We have a leading market share in the Southern African Development Community (SADC) markets. In East and West Africa we are expanding our operations through strategic alliances and leveraging product capabilities into our key markets. Our UAP and Faulu acquisitions have given us a leading position in Kenya.
In China, we provide life insurance and investment solutions to retail customers through a joint venture with the China Energy Investment Corporation.
OLD MUTUAL AT A GLANCE 31 December 2020
Despite the challenges we faced in 2020, we stayed true to our purpose of championing mutually positive futures every day for all of our stakeholders, giving life to this Truly Mutual strategy:
• We fast-tracked the payment of mortality claims worth R13 billion to support customers and their families
• The expansion of our integrated digital platforms enabled us to continue servicing customers throughout the lockdown periods. This includes reimagined public websites, mobile applications, WhatsApp and USSD channels across the continent
• We committed R400 million towards customer relief initiatives with R290 million disbursed in 2020
• We provided interest-free loans and commercial settlements worth approximately R70 million to qualifying SMEs via Old Mutual Insure
• Committed approximately R70 million to Covid-19 community initiatives across education, health, nutrition and food security
The safety of our employees, customers and all stakeholders who interact with us remains our top priority. We have strict protocols in place to protect employees providing essential services at our various on-site locations, as well as the customers visiting these premises. We also encourage our customers to use our digital channels instead of visiting our branches.
INTRODUCING OUR TRULY MUTUAL STRATEGYIn 2020 our board approved a refreshed strategy for Old Mutual. This was a transition from a tactical plan which we referred to as the eight battlegrounds into our Truly Mutual strategy, supported by our five pillars. Truly Mutual is about connecting with our customers’ needs, their journeys and lives and showing that Old Mutual CARES.
OUTCOMEResponsibly build the MOST VALUABLE BUSINESS in our industry
OLD MUTUAL AT A GLANCE 31 December 2020
A RESPONSIBLE BUSINESSResponsible Business is at the heart of our purpose to champion mutually positive futures every day. Caring deeply for our customers, communities and employees is in our DNA and is what sets us apart. It is also what guides our strategy which is made up of five interconnected pillars that spell CARES.
OUR FOCUS AREASOur stakeholder focused approach ensures that we have a common understanding of the areas through which we can make a measurable impact. We are guided by the contribution our initiatives make to the SDGs*, the National Development Plan (NDP) of South Africa and the development frameworks of all the countries in Africa in which we operate.
RESPONSIBLE INVESTINGTo deliver
appropriate risk-adjusted returns to policyholders while supporting long-term ESG*
principles
ENTREPRENEURSHIPCreate sustainable jobs by supporting
SMMEs through preferential
procurement, supply chain management
targeting black businesses and
female-led businesses
DIVERSITY AND INCLUSION
Drive diversity, equity and
inclusion and employee wellbeing
ENVIRONMENTAL IMPACT
Focused targeted investments that
support ESG* principles and management of impact on environment
FINANCIAL WELLBEING
Encourage saving and investing, improve credit
behaviour, financial wellbeing and
retirement readiness
EDUCATIONImprove literacy and numeracy at Foundation
phase, focus on early childhood
development and improve
leadership skills at school and district
level
SKILLS DEVELOPMENT
Upskill employees for future roles
and skills training for communities,
focusing on unemployed
youth, women and people with
disabilities
R33.4 billion invested in
clean energy, R1.1 billion
in education, R5.6 billion in
affordable housing and R1.2 billion
in sustainable agriculture
The Masisizane Fund: R77.8 million
SMME funding approved in 2020.
Initiated the disbursement
of R500 million committed to the Enterprise and Supplier Development
Fund to support job creation
Level 1 B-BBEE contributor in South Africa.85% of our
employees in South Africa
are black, 56% of employees
across the countries where we operate are
women
Mutualpark: 27% decrease in electricity
consumption, 34% decrease in municipal water usage
and awarded a 6-star Green
rating by GBCSA*
Invested R31.4 million in
financial education and our initiatives reached over 20 million people
through various social media
platforms
R20.8 million towards remote
learning support, curriculum
recovery and psycho-social
support to matriculants.
Re-committed to the Old Mutual
Education Flagship
programme
R89 million invested in training our
employees and developing our intermediaries.
Over R21 million allocated to bursaries or workplace
experience for 345 studentsand trainees
Glossary
ESG Environmental, Social and GovernanceSDGs Sustainable Development GoalsGBCSA Green Building Council South Africa
Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.OM
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MEDIA ENQUIRIESTabby Tsengiwe: GM: Public Affairs and Communications I +27 11 217 1953 I +27 60 547 4947 I [email protected]
COMPANY INFORMATIONOld Mutual LimitedHead Office Registered Address No. 1 Mutual Place, 107 Rivonia Road, Sandton 2146 Mutualpark, Jan Smuts Drive, Pinelands 7405South Africa South Africa
OLD MUTUAL RECOGNISED FOR DOING GREAT THINGS EVERY DAY • We have 406 000 active digital customers, representing 50% growth
• 826 000 rewards programme members. 584 000 are customers
• 1.6 billion Rewards points have been earned since inception, driving improved customer persistency
• Forbes ranked 750 of the best companies to work for in the world and Old Mutual was among only five South African companies included
• Old Mutual Limited and Old Mutual Insure retained Level 1 B-BBEE accreditation for the 2020 verification period
• Old Mutual named the Most Empowered Business in South Africa at the 2020 TOPCO Empowerment Awards
• Old Mutual was ranked Africa’s most valuable insurer and a Top Five leading brand in the inaugural Brand Finance 150TM report
• Awarded BCX Corporate Innovation Award for Robotics and Cognitive Automation in 2019 and in 2020 OM Wealth won second runner-up in the Corporate Category
• Old Mutual is the top ranked company in the latest South African Customer Satisfaction Index (SAcsi) for Life Insurance
• Old Mutual Insure placed first in the Intermediated Insurance category in the 2020 SAcsi and joint second overall across financial services
• Old Mutual ranked 73rd in the 2020 Top 100 Global Insurance Brands and was the only African brand in the Top 100
