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Young women empowered by Trustco – Junior Board appointed

Young women empowered by Trustco – Junior Board appointed

Trustco Group Holdings Limited in an initiative to acknowledge and develop skills of talented and potential local female leadership in business and State Owned Enterprises, appointed a Junior Board this week.

Trustco decided on a Junior Board mentorship programme after the overwhelming interest shown by young professionals in response to the Trustco board member recruitment campaign that was run over a very short period of time in March.

The newly appointed Junior Board will be tasked, trained and tested on a series of responsibilities and challenges which will require research capabilities, practical problem solving capacity and the encouragement of strategic thinking.

The training of young talent for the demanding board room environment already commenced and the intensive Trustco mentorship programme will continue at least until May 2019. Their induction and first lesson was conducted by Prof Lana Weldon and encompassed the principles of King IV and its importance to good corporate governance.

The Junior Board consists of 4 external young candidates and 5 internal (Trustco-employed) candidates.

The external junior board members consist of:

Loide Ndahafelao Angula (26) has a B.Juris and a LLB from the University of Namibia. She is busy with her final year at University of South Africa for a Master of Law in Corporate Law. She is employed as a senior legal officer at the Ministry of Justice and an admitted Legal practitioner of the High Court of Namibia.

Kristofina Shimpanda (35) has a Master of Business Administration, degree of Bachelor of Science in Civil Engineering (Honours), Degree of Bachelor of Education and is registered as engineer in training with the Engineering Council of Namibia. She currently works at Roads Contractor Company as a Civil Engineer.

Tulimekondjo Ruben Iishitle (37) has a Master of Philosophy in Future Studies (long term strategic planning) from the University of Stellenbosch and a Bachelor Degree in Economics from the University of Namibia. She is currently employed by the Khomas Regional Council as a Deputy Director: Rural Services and is responsible for the implementation and management of income generating and livelihood improvements projects.

Lydia Mbahepa (35) has Master of Business Administration from Bremen University and a Bachelors degree in Business Administration – Strategic marketing management. She is employed at the International University of Management as a lecturer.

The Internal Trustco junior board members are:

Hipa Murangi – (33) has a Diploma in Personal Computers Engineering (NQF:6) and a Bachelors degree of Business management (NQF7) first year. He is currently COO of ICT Learning and Distribution at Trustco and is a member of the Top 40 employees of Trustco.

Jaco Klynsmith (33) has a Diploma in Professional Acting for Camera and BTech Degree (Cum Laude) in Public Relations Management from Cape Peninsula University of Technology. He is appointed as Head of Media at Trustco and serves as a Top 40 member.

Elizabeth Lukas (31) has a National Diploma and Bachelors of Technology in Natural Resource obtained from the Polytechnic of Namibia (now NUST) and Nelson Mandela University (NMU) (previous NMMU), South Africa, respectively as well as a Certificate in ISO 14001: Environmental Management System from FIRI. She is currently completing her Masters of Science at Cape Peninsula University of Technology (CPUT). She currently holds the position of Environmental Officer at Trustco.

Marlida Jacobs (34) commenced employment at Trustco more than 12 years ago as a debtors clerk. The growth opportunities and challenges at Trustco has made her whole career an exciting and enriching journey. Marlida was appointed to the Trustco Top 40 and has now served 3 consecutive years. Marlida holds the position of acting Head: Treasury.

Katrina Basson (34) is currently enrolled for a Bachelor of Business Administration and holds the position of COO of the regional offices. She manages and oversees the operations of all the regional offices in Namibia, is a Top 40 member and has been in the employ of the group for more than 13 years.

Confirming the appointment of the Junior Board, Adv. Raymond Heathcote, chairman of the board of directors of Trustco Group Holdings, said that this initiative endeavours not only to empower young women, but to assist in fast tracking a female board presence in the boardrooms of the nation.

“I want to welcome the newly appointed members for both our main and junior boards to the hub of Trustco innovation, entrepreneurship and strategic transformation. This unique set of challenges and opportunities will surely produce individuals that will have the strength of will and sense of commitment to forge a successful nation and private sector with efficient governance on all levels. They will follow in a legacy of a long line of Trustconians who broke convention in propelling this group to where it is today, ‘’ Adv. Heathcote said.

“Being elected as the future custodians of a promising and vibrant Namibian economy will require that you must fly to where there is no limits, in order to reach the greater heights. You will ensure that more individuals share in the growing wealth and improvement of the Namibian House,” Adv. Heathcote added.


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Sanlam 2018 Annual Results

7 March 2019

 

Sanlam’s 2018 annual results provides testimony to its resilience amid challenging operating conditions and negative investment markets

Sanlam today announced its operational results for the 12 months ended 31 December 2018. The Group made significant progress in strategic execution during 2018. This included the acquisition of the remaining 53% stake in SAHAM Finances, the largest transaction concluded in the Group’s 100-year history, and the approval by Sanlam shareholders of a package of Broad-based Black Economic Empowerment (B-BBEE) transactions that will position the Group well for accelerated growth in its South African home market.

Operational results for 2018 included 14% growth in the value of new life insurance business (VNB) on a consistent economic basis and more than R2 billion in positive experience variances, testimony to Sanlam’s resilience in difficult times.

The Group relies on its federal operating model and diversified profile in dealing with the challenging operating environment, negative investment markets and volatile currencies. Management continues to focus on growing existing operations and extracting value from recent corporate transactions to drive enhanced future growth.

The negative investment market returns and higher interest rates in a number of markets where the Group operates had a negative impact on growth in operating earnings and some other key performance indicators. This was aggravated by weak economic growth in South Africa and Namibia and internal currency devaluations in Angola, Nigeria and Zimbabwe.

Substantial growth in Santam’s operating earnings (net result from financial services) and satisfactory growth by Sanlam Emerging Markets (SEM) and Sanlam Corporate offset softer contributions from Sanlam Personal Finance (SPF) and Sanlam Investment Group (SIG).

Key features of the 2018 annual results include:

Net result from financial services increased by 4% compared to the same period in 2017;

Net value of new covered business up 8% to R2 billion (up 14% on a consistent economic basis);

Net fund inflows of R42 billion compared to R37 billion in 2017;

Adjusted Return on Group Equity Value per share of 19.4% exceeded the target of 13.0%; and

Dividend per share of 312 cents, up 8%.

Sanlam Group Chief Executive Officer, Mr Ian Kirk said: “We are satisfied with our performance in a challenging operating environment. We will continue to focus on managing operations prudently and diligently executing on our strategy to deliver sustainable value to all our stakeholders. The integration of SAHAM Finances is progressing well. In addition, Sanlam shareholders approved the package of B-BBEE transactions, including an equity raising, at the extraordinary general meeting held on 12 December 2018. Our plan to implement these transactions this year remains on track.”

Sanlam Personal Finance (SPF) net result from financial services declined by 5%, largely due to the impact of new growth initiatives and dampened market conditions. Excluding the new initiatives, SPF’s contribution was 1% down on 2017 due to the major impact that the weak equity market performance in South Africa had on fund-based fee income.

SPF’s new business sales increased by 4%, an overall satisfactory result under challenging conditions. Sanlam Sky’s new business increased by an exceptional 71%. Strong growth of 13% in the traditional individual life channel was augmented by the Capitec Bank credit life new business recognised in the first half of 2018, and strong demand for the new Capitec Bank funeral product. The Recurring premium and Strategic Business Development business units also achieved strong growth of 20%, supported by the acquisition of BrightRock in 2017. Glacier new business grew marginally by 1%. Primary sales onto the Linked Investment Service Provider (LISP) platform improved by 5%, an acceptable result given the pressure on investor confidence in the mass affluent market. This was however, offset by lower sales of wrap funds and traditional life products.

The strong growth in new business volumes at Sanlam Sky had a major positive effect on SPF’s VNB growth, which increased by 7% (14% on a comparable basis).

Sanlam Emerging Markets (SEM) grew its net result from financial services by 14%. Excluding the impact of corporate activity, earnings were marginally up on 2017 (up 8% excluding the increased new business strain).

New business volumes at SEM increased by 20%. Namibia performed well, increasing new business volumes by 22% despite weak economic conditions. Both life and investment new business grew strongly. Botswana underperformed with the main detractor from new business growth being the investment line of business, which declined by 24%. This line of business is historically more volatile in nature.

The new business growth in the Rest of Africa portfolio was 68% largely due to corporate activity relating to SAHAM Finances, with the East Africa portfolio underperforming.

The Indian insurance businesses continued to perform well, achieving double-digit growth in both life and general insurance in local currency. The Malaysian businesses are finding some traction after a period of underperformance, increasing their overall new business contribution by 3%. New business production is not yet meeting expectations, but the mix of business improved at both businesses.

SEM’s VNB declined by 3% (up 6% on a consistent economic basis and excluding corporate activity). The relatively low growth on a comparable basis is largely attributable to the new business underperformance in East Africa.

Sanlam Investment Group’s (SIG) overall net result from financial services declined by 6%, attributable to lower performance fees at the third party asset manager in South Africa, administration costs incurred for system upgrades in the wealth management business and lower earnings from equity-backed financing transactions at Sanlam Specialised Finance. The other businesses did well to grow earnings, despite the pressure on funds under management due to lower investment markets.

New business volumes declined by 13% mainly due to market volatility and low investor confidence in South Africa. Institutional new inflows remained weak for the full year, while retail inflows also slowed down significantly after a more positive start to the year. The international businesses, UK, attracted strong new inflows (up 57%).

Sanlam Corporate’s net result from financial services increased by 4%, with the muted growth caused by a continuation of high group risk claims experience. Mortality and disability claims experience weakened further in the second half of the year, which is likely to require more rerating of premiums in 2019. The administration units turned profitable in 2018, a major achievement. The healthcare businesses reported satisfactory double-digit growth in earnings, while the Absa Consultants and Actuaries business made a pleasing contribution of R39 million.

New business volumes in life insurance more than doubled, reflecting an exceptional performance. Single premiums grew by 109%, while recurring premiums increased by a particularly satisfactory 56%.

The good growth in recurring and single premium business, combined with modelling improvements, supported a 64% (71% on a comparable economic basis) increase in the cluster’s VNB contribution.

Following a year of major catastrophe events in 2017, Santam experienced a relatively benign claims environment in 2018. Combined with acceptable growth in net earned premiums, it contributed to a 37% increase in gross result from financial services (41% after tax and non-controlling interest). The conventional insurance book achieved an underwriting margin of 9% in 2018 (6% in 2017).

As at 31 December 2018, discretionary capital amounted to a negative R3.7 billion before allowance for the planned B-BBEE share issuance. A number of capital management actions during 2018 affected the balance of available discretionary capital, including the US$1 billion (R13 billion) SAHAM Finances transaction. Cash proceeds from the B-BBEE share issuance will restore the discretionary capital portfolio to between R1 billion and R1.5 billion depending on the final issue price within the R74 to R86 price range approved by shareholders.

Looking forward, the Group said economic growth in South Africa would likely remain weak in the short to medium term future, and would continue to impact efforts to accelerate organic growth. The outlook for economic growth in other regions where the Group operates is more promising. Recent acquisitions such as the SAHAM transaction should also support operational performance going forward.

“We remain focused on executing our strategy. We are confident that we have the calibre of management and staff to prudently navigate the anticipated challenges going forward,” Mr Kirk concluded.

Details of the results for the 12 months ended 31 December 2018 are available at www.sanlam.com.