INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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INTRODUCTION TO OLD MUTUALRETAIL MASS MARKET
BROKER DISTRIBUTION

• February 2013

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HOW DID IT ALL START
1902
1845
1870
1939
Scotsman John Fairbairn founds The Mutual
Life Assurance Society of the Cape of Good Hope
with no initial capital other than the premiums
of its first 166 policyholders.
Old Mutual's emblem is designed by board chairman
Charles Bell. The interlocking anchors represent
mutual strength.
Group life assurance is introduced. The first
clients are the Cape Railways and the
Johannesburg post office.
Old Mutual's Art Deco head office in Cape Town
opens at 96.8 metres the tallest man-made
building in Africa at the time
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HOW DID IT ALL START
Old Mutual is demutualised
1954
1999
1987
2005
2012
Old Mutual Group Schemes starts operations as a
result of a merger between OM Voluntary Groups
and the Colonial Mutual (South Africa) of
Australia.
Old Mutual issues its millionth policy
Old Mutual is listed on the London, Johannesburg,
Zimbabwe, Malawi and Namibia stock exchanges.
Listing price is 120p (R11.25), giving the
company a market capital of 3.9bn (R36.8bn)
Black Economic Empowerment deal introduced at Old
Mutual South Africa, Nedbank and Mutual Federal
Ralph Mupita appointed new Chief Executive
Officer of Old Mutual Emerging Markets
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OLD MUTUAL EMERGING MARKETS

• Providing enhanced Financial Protection to
  policyholders

Regions
South Africa
Asia
Latin America
Rest of Africa
New Markets
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OLD MUTUAL EMERGING MARKETS -SOUTH AFRICA
MD South Africa Marshall Rapiya
Retail Affluent
Corporate
Mass Foundation Cluster
MD Crispin Sonn
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WHO IS OLD MUTUAL GROUP SCHEMES (RMM)?

• Leading life assurance provider (business unit)
  within the Low and emerging-middle income market
  segments, based on market share, new business
  income and on-book clients.
• Ready customer access to products through a
  salaried sales force, direct marketing, alliance
  partners, call-centre, agency franchise and
  broker distribution channels.
• Most extensive Branch and Client Service Centre
  network within both the rural and urban areas of
  South Africa.
• Highly regarded brand, based on integrity, value
  for money and financial soundness.
• Through our primary partnership arrangements
  (iWyze OM Finance) we offer a holistic client
  value proposition.

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WHO IS OLD MUTUAL GROUP SCHEMES (RMM)?

• Managing Director Crispin Sonn, reporting to
  Marshall Rapiya (MD OMSA)
• Staff In excess of 2 000 Administrative staff
  situated in MutualPark /MutualPlace and
  throughout the 300 Client-service and Sales
  branches.
• Joint ventures Partnership agreements with iWyze
  (short-term) and OM Finance
• Sales Annual New Business Premium income in
  excess of R2.0 billion.
• Each year, over 350 000 assurance benefits are
  sold to new and existing clients via the various
  RMM distribution channels.
• Profit Largest profit-contributor to OM South
  Africa

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DISTRIBUTION CHANNELS
Retail Mass Market
Alliance Partners
Sales Force
Direct Marketing
Foundation
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BROKER DISTRIBUTION
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PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH
AFRICANS

• Broker Distribution operations commenced in 2002
• OMGS Broker Distribution operates independently
  from the OM Broker Division (Retail Affluent)
  partly due to the separate business units and
  partly due to the separate market segment
  focuses, as such, brokers must contract
  independently with OMGS (even if a contract is
  held with OM BD)
• We are a Retail business offering individual,
  voluntary assurance benefits to brokers servicing
  / wishing to service clients within the broad
  Mass market ie personal incomes up to R20
  000pm.
• In excess of 4 000 broker codes on books
  (predominantly within the LTI Cat. B1/ B2 space)

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PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH
AFRICANS
Total employed population of South Africa
Old Mutual Retail Mass Market
Employees earning less than R20 000
Employees earning less than R12 000
falling into RMM above?
Employees earning less than R6 500
Statistics South Africa - Monthly Earnings of
South Africans 2010
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DISTRIBUTION SUPPORT - PROVIDING SUPPORT, ADVICE
AND SOLUTIONS

• In excess of forty Broker Consultants nationally
  to service brokers on a face-to-face basis
• Forty Distribution Support Administrators
  nationally, to ensure administrative support and
  business efficiencies
• Mutual Park-based, Contracts and Commissions
  Administrative support staff
• Regional Sales and Distribution Support
  Management, to ensure focus and quality of service

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INFORMATION AT YOUR FINGERTIPS - MAKING BUSINESS
EASY

• Average annual growth rate, since inception in
  2002, in excess of 40
• Average 12-month Persistency rate in excess of
  70 per annum across all broker codes
• Daily SMS/E-mail new business status reports
• Access to commission statements, New Business
  reports via the Internet (MyClient) or from
  Broker Consultant/Branch Admin Support personnel
• Persal Q-link system accessibility for brokers,
  for Affordability checks

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• On average 28 000 claims are processed every
  month in our branches. This is more than 1.6
  million clients per year.
• In association with Old Mutual Finance (OMF), we
  are rapidly expanding our Client Service
  capability and footprint, by offering full client
  service support through the OMF offices as well.
  This expansion currently gives Old Mutual clients
  access to over 300 service points.
• Our Provincial Broker Sales Managers have in
  excess of 80 years collective experience in Mass
  Market sales distribution.

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TO SUM UP

• OM Group Schemes has 35 years experience in
  providing integrity-based, industry competitive
  assurance products which offer low
  entry-premiums, comprehensive benefits and solid
  value for money.
• Non-restrictive client access to products, which
  the individual might otherwise, either
  financially or medically, not have access to.
• Simple new business application, client servicing
  and claim procedures.
• No extensive and time-consuming medical
  requirements (no automatic medical testing) for
  Risk assurance products.
• Independently managed Investment portfolio for
  savings business.

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TO SUM UP

• A full-house Broker support offering, from
  Commission Statements, New business reports,
  electronic notifications, business portfolio
  reports, Pending lapse reports to in-branch
  broker support facilities.
• Dedicated and passionate Broker Consultants,
  Distribution Support staff and Distribution
  management, nationally, who get involved
• A familiar, well-trusted brand with a history of
  financial soundness and integrity.
• A Distribution business with a culture of
  openness, honesty and a tell it like it is
  approach.

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PRODUCT RANGE
Education Plan
Investment Plan
Retirement plan
Value Funeral Plan Range
Funeral Plan
Standard funeral plan range
Accidental Death Disability plan
Pure Life plan
Life Plans
Life Disability plan
Sales by volume
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