The Strategic review 2017 highlights the opportunities and contributions per cluster in terms of the four strategic pillars.
SPF is focused on achieving profitable growth in each of its market segments through innovation and expanded distribution capabilities that enhance new business and deliver superior client retention. Specific focus is placed on those segments where Sanlam does not have a fair market share, namely the entry-level market (all products), middle-income market risk products, higher middle-income market single premium savings and the Gauteng province from a geographic perspective. Innovation aims to harness digital and data analytics opportunities to produce simpler customer journeys. Refinement of distribution channel models and further capital optimisation will continue in response to regulatory developments. Delivering value for money in a wider and differentiated product set is key for client acquisition. This requires greater agility and speed of execution. Enhanced digital capability is also harnessed to drive client experience and retention, as well as back office cost efficiencies. Continued progress in transformation of employee and management demographics remains a high priority and critical competitive enabler.
SEM is placing increased emphasis on leveraging its expanded footprint through organic growth. Our unmatched Pan-African footprint provides us with a unique opportunity to service multinational corporate clients and intermediaries, augmented by an in-country retail and organisational focus. We provide our in-country business partners with expanded central support capabilities to execute on these initiatives. We remain committed to structural growth opportunities through increasing stakes in existing businesses, expanding product lines, and entering selected new markets. The primary criteria for entering new markets are market potential in terms of size and growth prospects, low financial services penetration, and relative political stability. In this regard, Egypt and Ethiopia will be considered at an appropriate time.
Sanlam Investments is defending its leading position in private wealth while building on the success in attracting retail fund flows. The cluster focuses on growing corporate and third-party fund flows, where it does not have its fair market share. Improved cost efficiency is a priority. Transforming the employee profile to reflect South African and client demographics is a particular focus area, and supports the corporate and third-party growth initiatives, with specific emphasis on portfolio management. Digital innovation in the areas of product development, client experience and value proposition and intermediary service levels are key drivers in support of these initiatives.
Santam is building a diversified business in emerging markets through its specialist risk and reinsurance offerings. In South Africa, efforts to transform from a largely intermediated distribution model to omni-channel capabilities continue. This includes protecting profitable growth through the enduring focus on the quality of risks in the pool as well as making use of data and analytics to improve underwriting capability. Santam will continue to build its ‘Insurance good and proper’ reputation by working with stakeholders to increase community resilience and through its sustainable business practices.
The cluster, comprising SEB and Sanlam Healthcare, focuses on cross-selling to existing corporate clients, bundling products to unlock value, and integrating with other Sanlam clusters through Sanlam Reality. It aims to target South Africa’s top companies and multinationals (South Africa-based and other) with corporate solutions that follow a needs-based approach, incorporating products and services from the other Sanlam clusters as necessary in building a holistic client solution. Transforming the employee profile to reflect South African and client demographics, capital management and balance sheet optimisation are priorities in the corporate cluster market space.