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Resources and Relationships

Factors Shaping our Economic Context

  • Global GDP growth
  • Availability of capital and liquidity
  • Brexit
  • Elections and political stability
  • Good governance
  • Market performance
  • Country ratings
  • Infrastructure investment levels
  • Technological developments

Read more about our economic and regulatory environments.

Strategic Risks

Strategic risks relate to our stakeholders and environment, and impact our ability to continue our business operations and create sustained value

  • Poor economic growth
  • Disruptive threats/Fourth Industrial Revolution
  • Cyber-risk
  • Human resource scarcity and stretched resources
  • Simultaneous regulatory implementation
  • Diversified growth initiatives
  • Implementation of the Group’s Pan-African strategy
  • Transformation and diversity
  • Political and social instability
  • Severe weather/climate change

Read more about the ways we identify, manage and mitigate our key risks.

The Twin Peaks model is being implemented with the establishment of the new FSCA and PA. New subordinate legislation to follow will determine detail requirements.

The forces that shape our world reach us via our stakeholders, and are determined by the way they anticipate and respond to macro factors.

Resources, Relationships and Stakeholders

The material resources and relationships that we require as input into the business are derived from our stakeholder groups.

To source these, we ensure that our business model outcomes meet our stakeholder expectations. When stakeholders experience positive outcomes, they are willing to participate, invest in and engage with Sanlam as an employer, partner, capital provider, corporate citizen and financial solutions provider. Our RoGEV drivers encompass the majority of these stakeholder requirements and expectations, and therefore constitute the most appropriate way to measure whether we continue to create value.

Our business model relies on a well-functioning financial system and a set of key relationships and capabilities.

Our Sources of and Approach to Financial Capital

Financial capital allows us to operate our existing businesses and to acquire new businesses in pursuit of future growth. To maximise returns to shareholders, we optimise the level of capital taking due cognisance of solvency requirements to safeguard our clients, business partners and regulators. We have refined capital and risk management processes to achieve this and to deliver on our investment case of stable cash dividends combined with future growth prospects. We aim to increase cash generation from SEM operations over time. The availability of financial capital enables us to execute our strategic pillar related to responsible capital allocation and management.

Material stakeholders

Innovation, Systems and Governance

Our investments in research, development and technology enables us to upgrade and enhance business processes through artificial intelligence and robotics while ensuring an omnichannel experience for clients – giving them access through their preferred channel.

Feedback from clients and business partners, combined with client-centric thinking from our employees result in new solutions and efficiency. This enables us to execute on our strategic pillar to extract value through innovation and improved efficiencies.

Our trusted brand attracts and retains clients, employees and business partners. Read more about our awards and stakeholder feedback.

Mature and efficient operational, financial and risk management processes ensure that we can do large transactions, mitigate risks and maintain an ethical culture. Read more in the governance report.

Material stakeholders

People, Networks, Culture and Relationships

21 267 employees and 5 368 advisers act as Sanlam Wealthsmiths, who are characterised by:

  • never giving up
  • being solid and sensible
  • doing things very, very well
  • doing it for good
  • knowing the true definition of wealth

We rely on them to execute our pillar of profitable top-line growth through a culture of client-centricity. We ensure that they receive the appropriate leadership, skills development and remuneration in this regard.

We invested R344 million in training and development to upskill our employees to ensure that we maintain the level of specialist skills (financial, actuarial, investment and risk management) to remain competitive.

77% of employees received training this year of whom 73% in South Africa were black and 59% female.

We have relationships with brokers, banks and telecommunications companies throughout Africa through which we distribute to their client bases.

We achieved a level 1 BBBEE rating which compares well with our peers, most of whom have lower ratings.

Read more about the BBBEE transaction we are implementing as input and enabler for our business model.

We actively lead and participate in industry associations as platforms to collaborate and optimise the safety and efficiency of the financial system. This ensures that our employees and business partners are geared towards compliance.

Material stakeholders

Case Study: How do independent financial advisers rate Sanlam?

SBG Securities conducted a survey in September 2018 with 52 short-term and 72 long-term insurance independent financial advisors (IFAs) in South Africa.

Sanlam was identified as the top long-term insurer. This was inter alia based on Sanlam having the best overall persistency experience. The Sanlam Group was ranked highly on all service and marketing metrics, but the sales process was identified as an area for improvement of user experience. Initiatives, including digital innovation, that will address the shortcomings are in various stages of development.

The survey also asked the IFAs to rate insurers according to which company they would opt to join if they were to become tied agents. Sanlam was the chosen company, likely based on its recent rating on broker support and sales volume growth.

A further insight from the survey was that all insurers appeared to be selling less than in 2017, which is a sign that the sales environment has not improved materially.

The results substantiated that Sanlam has seen superior sales performance through good broker support and administration practices.

According to SBG Securities, the results also give credence to some of the recent strategic decisions made by management – particularly the acquisition of BrightRock, which expands Sanlam’s technology-enabled solutions.

In the short-term insurance survey, Santam ranked highest on nearly all fronts.

Sanlam Life Insurance is a licensed financial service provider.
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