1. Financing the Risks of Natural Disasters World Bank Conference June 2003

2. AGENDA  The market – Why?  The market – How?  An emerging market – The informal sector  Risks and Rewards  Conclusion WORLD BANK CONFERENCE

3.  STRATEGY  Anticipation of future trends and their applications on society as well as on the company.  Understanding of the company’s strategic capabilities that can be leveraged into these trends.  TRENDS  Rapid urbanisation  Breakdown of the extended family THE MARKET – WHY?

4.  STRATEGIC CAPABILITIES  Low cost admin  Distribution management  OPPORTUNITY  Few players  Significant growth potential THE MARKET – WHY?

5.  About our markets

6. THE MARKET – HOW?  Product design  Product distribution  Premium collection  Benefit delivery  Costs/costs/costs

7. THE MARKET – HOW? Product design  CUSTOMER  Culturally relevant – wider family  Affordable – low minimum premiums  Understandable – pre-packaged  Re-enforce promise – more claims  COMPANY  Easy to administer – underwriting, claims processing  Manage the risk – wider family, waiting periods, steps sums assured

8. THE MARKET – HOW? Product distribution  Formula driven – doing the basics right  Mainly into paypoints - work site marketing  Group presentations - individual sales  Productivity – great expectations  Zoning

9. THE MARKET – HOW? Premium collection  Salary deduction – early is good  Paypoint relationships  Collection diversification  Commercial  Cash  VDDO  Technology – simpler, better, faster

10. THE MARKET – HOW? Benefit Delivery “Today's claims payment secures tomorrow’s new business ”  DELIVERY ALLIANCES  Speed – immediate payment  Convenience – near the customer  Seamless service – one call “money or the box”  SOME INTERESTING FACTS  Average payout $650  98% of claims paid by EFT  95% of claims paid within 24 hours

11. AN EMERGING MARKET – THE IMFORMAL SECTOR  Booklet based scheme through affinity group (usually Church)  Weekly paid premium collected through Church  Cover only continues if “book” stamped  ALA provides “Insurance Licence”

12. THE RISKS  Political  Economic  Social  Aids  Death Certificates  Financial  Currency Risk  Exchange Control

13. THE REWARDS  New Business -20% CAGR  Recurring Premium Income-35% CAGR  Total Assets -44% CAGR  Dividend -19% CAGR  Share Price-21% CAGR

14. CONCLUSION  The need exists  The need can be met …. and profitably THROUGH  Focus  Passion  Understanding

15. Thank You