Our investment case


Continued growth in operating income and profit

Operating income from continued operations – five-year CAGR of 12% to March 2016
Operating profit before non-trading and capital items – five-year CAGR of 9%
Last 12 months trading 11% growth in operating income

Predictable and highly recurring operating income

Excellent client retention – in the high 90s


  • 62% fee and commission income from consulting and administration
  • 34% from investment activities
  • 4% only from insurance activities


  • 47% fee and commission income from consulting and administration
  • 43% from investment activities
  • 10% only from insurance activities

Market leader in core business

#1 employee benefits consultant and retirement fund administrator in sub-Saharan Africa

#1 umbrella fund and standalone provider in South Africa measured by assets

#1 multimanager in sub-Saharan Africa

PMR.africa Diamond Award for Top Retirement Fund Administrator for the ninth consecutive year

PMR.africa Diamond Award for Top Retirement Fund Consultant for the ninth consecutive year

Leading healthcare specialist consultant in South Africa – BHF Titanium Award for Best Healthcare Advisory Service


Highly cash generative

High cash conversion ratio

Collection of cash largely under our control – minimal working capital strain

Investment in retail and other growth strategies mainly through the income statement:

  • front-end capacity (people) and
  • IT systems (amortised over relatively short period)

Capital 'lite'

Group solvency capital requirement of just over R1bn
Normalised return on TNAV:
Normalised return on capital:

Operating income from insurance activities:

  • Retail 10%
  • Institutional 4%

Low insurance risk retention – AF Insurance Motor & Household

75% reinsured, Group Life in excess of 80% reinsured



Due to capital lite and highly cash generative nature of the business a dividend policy of 1.5x to 2x cover

Balancing transition to new SAM regulatory capital framework with balance sheet efficiency through dividend policy

Declared an interim dividend of R201m (15c per share)

Declared a final dividend of R295m (22c per share)

1.5x cover ratio on attributable PAT