| Serving our customers |
- Engaging with customers to improve our service delivery
- Making products and services accessible to all
- providing financial education across the life cycle to empower society
- Developing fair pricing models to create value for our customers
- Marketing our products and services in a responsible and appropriate manner
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- Customer satisfaction
- Customer retention
- Customer complaints
- Growth in Old Mutual Finance business
- Financial education
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- Ask Afrika’s Orange Index 2010 of customer service excellence rates OMSA first, though scores have decreased significantly this year. Customer retention is stable
- Old Mutual Finance business: Accessible branches grown from 11 to 117 in two years, with accounts more than trebling this year to 81 000. Internet and mobile access points becoming increasingly popular
- Uptake of financial education decreased as a result of the Soccer World Cup, public sector strikes and economic factors. FSC consumer financial literacy training exceeded targets
- Termination values on retail savings products are higher than minimum values. Overall product range positively rated by financial advisers. All pricing models approved by international and local statutory actuaries. We publish pay-out rates for life assurance claims and perform best against those who do
- Full compliance with industry Code of Practice – representation of clear, up-to-date information to customers. Progress is being made writing in plain language to assist customers to better understand their products
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- Improve the customer’s experience
- Expand number of Old Mutual Finance branches to 265 by the end of 2013
- Grow uptake of My Money Plan and Easy Benefit Plan. Develop My Recovery Plan and My Insurance Plan
- Establish indicators for reporting on fair pricing models
- Further improve the accessibility of product and policy documentation
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| Financial Advisers |
- Increasing access to qualified and compliant financial advisers
- Raising the quality and professionalism of financial advice
- Supporting the sustainability of financial advisers' businesses
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- Number of qualified advisers
- Proportion of black and female advisers
- Uptake of non-core training
- Complaints against advisers
- Number of successful practice successions
- The Ambassador score for the health of broker practices
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- Tied agents increased, but the proportion of black tied agents has decreased since 2008. Independent brokers actively selling decreased 3% due to increasing regulation. Some migrated to other life assurers, and some became tied agents
- OMSA actively working to meet requirements of FAIS Conflict of Interest regulations
- Average age of financial advisers increasing. Retirement successions decreasing – a cause for concern
- Masthead initiative to assist independent financial advisers showing benefits for OMSA
- Practice management support benefited nearly 2 000 businesses
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- Work to identify and address causes for decrease in proportion of black brokers
- Measure and meet the Conflict of Interest regulations
- Apply new Ambassador Indicator of how well brokers look after customers in 2011. Change how we categorise and incentivise brokers
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| Investing Responsibly |
- Considering environmental, social and governance (ESG) issues in investment decisions
- Enriching lives through socially responsible investment funds
- Empowering transformation through financing*
*Reporting split between ‘Enriching lives through socially responsible investment funds’ and ‘Enterprise development’ |
- Value of Old Mutual’s SRI funds
- Percentage of SRI funds against all Old Mutual Investment Group South Africa (OMIGSA)’s assets under management
- Proportion of clients refusing to trade profit for responsibility
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- Proportion of SRI funds increased from 5.1% to 7.3% of total assets under management, now totalling R32.6 billion
- Responsible Investment Taskforce established in 2010
- Old Mutual played an active role in drafting the Code for Responsible Investing by Institutional Investors in South Africa (CRISA)
- Futuregrowth specialising in fixed interest and socially responsible investments. Futuregrowth celebrates tenth anniversary with R10 billion in assets under management
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- Further grow our SRI funds
- Develop and implement appropriate standards and approaches to SRI-based decision-making across our businesses
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| Our Workplace |
- Leadership capability and effectiveness: creating a leadership culture that inspires
- Strengthening our position as an employer of choice
- Growing and deploying talent to meet business needs across Emerging Markets
- Enabling true transformation: going beyond the numbers*
* Covered in ‘Building Equity’ |
- Employee turnover
- Employees at Old Mutual for 5 – 10 years
- Employee engagement
- Employee benefits
- Percentage of females and black people in top and senior management
- Spend on skills development
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- Office staff employee turnover reduced to 5.9%, well below the 15.2% for 2009
- Employees at Old Mutual for 5 – 10 years increased from 14.8% to 16.6% of total workforce
- Participation in employee engagement survey increased but concern about no feedback received from 42% of employees
- Proportion of black people in top and senior management increased to 34% from 26% in 2008. Females showed marginal increase
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- Develop balanced scorecard for performance management being developed
- Develop and implement new evaluation tool measuring leaders against ACT NOW! Leadership Actions
- Introduce Barrett Culture and Values tool to better measure employee satisfaction
- Continue to work on labour practices for our contingent workforce
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| Building Equity |
- Supporting the economic stability of our country
- Equity ownership: Distributing ownership fairly
- Management and control
- Employment equity: Ensuring a fair chance for all employees to fulfil their potential
- Skills development: Providing opportunities for career growth
- Preferential procurement: Influencing positive change through how we buy
- Enterprise development: Providing finance and support for black economic empowerment deals
- Socio-economic development: Supporting our communities to do great things
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The Value Added Statement (VAS) dti Codes of Good Practice Scores:
- Equity ownership
- Management and control
- Employment equity
- Skills development
- Preferential procurement
- Enterprise development
- Socio-economic development
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- BBBEE status improved from Level 4 in 2009 to Level 2 in 2010
- Total value added increased 8% to R77 billion, surpassing 2007 levels (before the financial crisis)
- Value distributed to customers increased 25% to R56.2 billion, and to suppliers by 6%
- Payments to shareholders decreased by a further 58%, now less than a quarter of pre-crisis levels
- dti score for equity ownership recovered to 17.81/20 in concert with the increase in share values
- Significant improvement in management and control, employment equity, skills development, preferential procurement and socio-economic development scores
- Full score for enterprise development maintained
- Refined our CSI strategy and implemented an electronic project management system for reporting and tracking contractual agreements and project progress
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- For business goals, see Annual Financial Report
- Ensure that transactions to improve black equity form part of Old Mutual Group’s strategy to increase its focus on its black client franchise
- The challenge remains to increase black people in general and black women in particular at top management level
- Continue with our holistic approach to improving employment equity and skills development
- Preferential procurement: Increase focus on dealing with black-owned (BO) and black women-owned (BWO) suppliers, especially in the Western Cape
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| Ensuring Ethical Behaviour |
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- Incidence of fraud
- Financial loss to clients and to Old Mutual
- Number of cases settled by Ombudsman
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- Fraud incidents increased in 2010, primarily due to a spike in fictitious policies
- Financial loss to Old Mutual decreased 46%
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- Comply with recently promulgated legislation
- Develop ethics policy at Old Mutual plc level
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| Our Environmental Impact |
- Conducting our business in a more environmentally-friendly manner
- Raising employee awareness to influence all Old Mutual stakeholders towards environmentally-aware decisions
- Contributing positively to the environment through the way we manage our properties
- Contributing positively to the environment through the properties we develop
- Influencing positive environmental change through investment decision-making*
* Covered in ‘Investing Responsibly’
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Indicators relating to the business:
- Carbon emissions for travel
- Paper usage
- Recycling
Indicators relating to Old Mutual’s property portfolio:
- Electricity usage
- Water usage
- Recycling
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- Fourth year of participation in the Carbon Disclosure Project (CDP), maintaining our place on the FTSE & JSE leadership index.
- Paper usage reduced by 18%
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- Establish an overall carbon metric in 2011 to track progress across the Group
- Improve emissions data
- Achieve a 20% reduction in emissions per employee by 2020, off 2010 base
- Achieve a 20% reduction in emissions per m2 for Old Mutual managed properties by 2020, off 2010 base
- Create initiatives that engage stakeholders
- Expand our e-filing initiative
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| Emerging Markets |
- New Markets operations
- African Operations
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- Scale of New Market country operations
- Scale of African country operations
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- Assets under management in New Market total £4.9 billion
- Assets under management increased by approximately 10% in South African country operations
- The Group Operating Manual (GOM) will be extended to all OMEM markets
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- Further embed the Group Operating Manual (GOM)
- Roll-out ACT NOW! Leadership Actions to all OMEM markets during 2011
- Focus on identifying and integrating material issues across all OMEM markets
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