INTRODUCTION TO OLD MUTUALRETAIL MASS

MARKET BROKER DISTRIBUTION

February 2013

INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

HOW DID IT ALL START

1845

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.

IN UNCERTAIN TIMES

A CERTAIN FRIEND

1870

Old Mutual's emblem is designed by board chairman Charles Bell. The interlocking anchors represent mutual strength.

1902

Group life assurance is introduced. The first clients are the Cape Railways and the Johannesburg post office.

1939

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

1954

Old Mutual issues its millionth policy

1,000,000

Old Mutual Group Schemes starts operations as a result of a merger between OM Voluntary Groups and the Colonial Mutual (South Africa) of Australia.

1999

Old Mutual is demutualised

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)

1987 2005

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

2012

HOW DID IT ALL START

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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

Providing enhanced Financial Protection to policyholders

OLD MUTUAL EMERGING MARKETS

Regio

ns

South Africa AsiaLatin America

New Markets

Rest of Africa

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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

OLD MUTUAL EMERGING MARKETS -SOUTH AFRICA

Retail Mass Market

(Group Schemes)

Retail Mass Market

(Group Schemes)

MD:South Africa

Marshall Rapiya

MD:South Africa

Marshall RapiyaRetail

AffluentRetail

Affluent

Mass Foundation Cluster

Mass Foundation Cluster

CorporateCorporate

MD:Crispin Sonn

MD:Crispin Sonn

FoundationMarket

FoundationMarket

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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

DISTRIBUTION CHANNELS

Sales Force

Foundation

Direct Marketing

AlliancePartners

BrokerDistributio

n

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BROKER DISTRIBUTION

INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH AFRICANS

* Statistics South Africa - Monthly Earnings of South Africans 2010

Total employed population of South Africa

Old Mutual Retail Mass Market

Employees earning less than R20 000*

Employees earning less than R12 000*

Employees earning less than R6 500*

% falling into RMM

above…?

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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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

Broker

BCSupport

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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

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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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

PRODUCT RANGE

Education Plan

Investment Plan

Retirement plan

Funeral Plan

Accidental Death & Disability plan

Value+ Funeral Plan Range

Standard funeral plan range

Pure Life plan

Life & Disability plan

Sales by volume

Life Plans

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THANK YOU

Old Mutual is a Licensed Financial Service Provider