‘BECOMING AN EAST AFRICAN FINANCIAL SERVICES CHAMPION’

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

1

2

Peter MwangiGroup CEO

3

1. STRATEGIC OVERVIEW – MANAGED SEPARATION

Material reduction in holding company debt and reshaping the balance sheet

Phased reduction of OMAM 66% stake

Ma

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om

ple

tio

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Targ

et

co

mp

letio

ne

nd

-20

18

Creation of two separate entities, both listed in both London

and Johannesburg

• Old Mutual Wealth operations

• Creation of a new South African holding company to hold

remaining plc assets (principally OMEM & Nedbank) EMERGING MARKETS

Distribution of significant proportion of current stake in Nedbank

• Appropriate strategic minority stake retained

plc

STRATEGIC PATH

TRANSACTIONS TO ACTUALISE MANAGED SEPARATION STRATEGY

STRATEGIC RATIONALE:

“Unlocking

Value”

AC

TIO

NS

1. Deliver enhanced business performance

2. Reduce cost of central activities

3. Manage down Group debt

OU

TCO

MES

4. Valuation re-rating of the businesses

5. Removal of conglomerate discount

4

1. STRATEGIC OVERVIEW – INTEGRATED FINANCIAL SERVICES PLAYIn 2015, The Old Mutual Group acquired a 60.7% interest in UAP Holdings Limited (“UAPHL”)

for a total consideration of KES 23.5bn.

5

1. STRATEGIC OVERVIEW – INTEGRATED FINANCIAL SERVICES PLAYThe merger expanded Old Mutual’s geographic footprint further in Eastern Africa

6

1. STRATEGIC OVERVIEW – INTEGRATED FINANCIAL SERVICES PLAYThe UAP OM Group offers customers a wide array of financial products and services

7

1. STRATEGIC OVERVIEW – INTEGRATED FINANCIAL SERVICES PLAYThe combined Group at a glance

3.5%

3.6%

4.2%

4.7%

5.5%

5.6%

7.1%

7.7%

8.3%

10.9%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

First Assurance

AAR

GA

Heritage

ICEA

Britam

CIC

APC

UAP OM

Jubilee

3.4%

4.8%

5.1%

5.7%

6.3%

6.5%

6.9%

13.7%

15.0%

23.2%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Madison

Kenindia

Pioneer Assurance

CIC

Liberty

UAP OM

Sanlam

ICEA

Jubilee

Britam

8

■ UAP OM has a top market position in Kenya, Uganda and South Sudan with a strong

position in the other countries.

■ The integration process continues well and will be finalised in the second half of this year

post regulatory approvals. This will result in us having scaled life and asset management

businesses in our core Kenyan market.

1. STRATEGIC OVERVIEW – INTEGRATED FINANCIAL SERVICES PLAY

Kenya: 3Q 2016 General Insurance Market Share

Source: IRA for market share statistics.

Kenya: 3Q 2016 Life Assurance Market Share

Our General Business has the #2 position in Kenya while our Life Business is a leading

contender for a top 3 position in the near future

■ UAP Old Mutual Brand Launch – thematic campaign dubbed “Keep

Good Company”, well received by the market

■ UAP Old Mutual Tower completion – staff have moved as of December

2016 with final relocation of remaining staff by March 2017

9

■ Good progress in the journey to build East Africa’s leading Integrated

Financial Services provider

■ Sisi Centre launch and merger of countrywide branches, branding also

complete

■ M-Tiba Launch – mass market health product launched in collaboration

with Safaricom and Carepay. Good uptake with ramp up in 2017

■ Faulu – expanded its product offering to include Visa branded debit

cards and countrywide ATMs

1. STRATEGIC OVERVIEW – KEY WINS IN 2016

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

10

11

2. MACROECONOMIC REVIEWGenerally stable Macros for the East African Region

3Q 2016 GDP Growth

6.2%

5.7%

5.2%

2.5%

1.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Tanzania Kenya Rwanda DRC Uganda

15.3%

11.0%

6.4%

5.7%

5.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

DRC Rwanda Kenya Uganda Tanzania

2016 December Inflation Rate 2016 Currency vs. USD

-31.6%

-8.6%

-7.0%

-3.0%

-0.2%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

DRC Rwanda Uganda Tanzania Kenya

12

2. MACROECONOMIC REVIEW CONT’D Macroeconomic highlights on Kenya, our largest market

■ Driven by stable food prices and low oil

prices, annual Inflation trended downwards

from 7.74% in January 2016 to 6.35% in

December 2016.

■ General downward trend in yields

supported by a stable inflation rate regime

and forex. Impact of Banking Amendment

Act 2016 realized towards the later part of

the year with a substantial shift by banks into

government paper.

■ KES strengthened in 1H 2106 due to low oil

prices, diaspora remittances and inflows

from the horticulture and tourism sectors.

■ In 2H 2016, Towards the end of the year, KES

weakened due to the 0.25% rate hike in the

Federal Funds Rate, markets' positive

reaction to the conclusion of the US election

and USD demand from local

importers/corporates.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

%

91-Day 182-Day 364-Day

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Ju

n-1

6

Ju

l-1

6

Au

g-1

6

Se

p-1

6

Oc

t-1

6

No

v-1

6

De

c-1

6

Inflation Y-o-Y Upper Limit Lower Limit

-5.1%

-1.2%-0.2%

-4.8%

-11.3%

-0.2%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2011 2012 2013 2014 2015 2016

Inflation Rates

T-Bill Yields

KES vs. USD Performance

13

2. MACROECONOMIC REVIEW CONT’D

South sudan is a key market accounting for 8.8% of group GWP

• Currency devaluation has increased the cost of living andconsequently the cost of doing business.

• Negative impact on businesses with some entities closing their operations.

• Food Inflation is at 420%.• The exchange rate in the black market at an all time high of97

SSP:1USD as the currency devaluation continues.

• Increase in the number of states to from 10 to 28. In January 2017 an addition of 4 more states.

• The implication to our businesses is that the Central Equatoria State Insurance Regulatory Authority has now been renamed as the Jubec State Authority.

• The insurance bill is yet to be signed into law and the supervisory arm of the BoSS that regulates insurance is still not functional.

Economic

Highlights

Regulatory

Highlights

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

14

15

■ The NSE 20 and NASI indices shed 21.1% and

8.5% respectively in 2016 as the equity market

was rattled by the introduction of the Interest

Rate Cap legislation in the second half of the

year and its impact on the future earnings

growth of the listed bank stocks that

comprise a significant weight of the equity

market.

■ All major asset classes finished positive in

2016. In Q4, U.S. stocks rallied after the

presidential election while other asset classes

declined.

■ The Fed hiked the FFR with expectations of

more hikes in 2017. This contributed to a

strengthened dollar which could have further

adverse impacts on the NSE.

3. CAPITAL MARKETS PERFORMANCEKenya’s poor capital markets performance is in stark contrast to a robust global

performance

-21.1%

-8.5%

8.6%

13.0%

-25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%

NSE 20

NASI

91 Day T-Bill

FTSE Bond Index

2016 Kenya Asset Class Returns

2.4%

4.9%

8.3%

8.6%

12.0%

18.6%

0.0% 5.0% 10.0% 15.0% 20.0%

US Bonds

Foreign Equities

Gold

Real Estate

US Equities

Commodities

2016 Global ETF Returns

Source: Bloomberg. Personal Capital: Capital Markets Reviews and Outlook 4Q 2016.

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

16

24.7

33.1

42.1

48.7

57.0

-

10.0

20.0

30.0

40.0

50.0

60.0

2012 2013 2014 2015 2016

9.1

12.7

14.8

16.9

19.4

-

5.0

10.0

15.0

20.0

25.0

2012 2013 2014 2015 2016

17

4. KEY FINANCIAL HIGHLIGHTSTrack record of consistent topline growth and returns to shareholders

GWP (KES Bn)

Total Equity (KES Bn)Total Assets (KES Bn)

PBT and Dividends (KES Bn)

11.6

14.8

17.217.8 17.7

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2012 2013 2014 2015 2016

1.7

2.2 2.3

0.7

1.2

0.4 0.4 0.4

-

0.4

-

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016

PBT Dividends

18

4. DIVIDEND2016 DIVIDEND PROPOSAL OF KES 1.70 PER SHARE (KES 359M)

9.8

7.87.0

3.1

5.4

1.5 1.7 1.7

0

1.7

2012 2013 2014 2015 2016

EPS DPS

15%

22%24%

0%

31%

2012 2013 2014 2015 2016

PAYOUT RATIO (DPS/EPS)

Board recommendation to pay-out KES 1.70

per share in dividend for the financial year

2016. This is subject to shareholders’ approval

at the Annual General Meeting.

Pay-out ratio is higher than previous years but

is appropriate given that no dividend was

paid for the 2015 financial year.

Dividend recommendation based on:

o Our goal to continue providing a cash

return to our shareholders

o The need to retain enough resources in

the business to fund expected growth in

order to maximize both present and

future returns to our shareholders.

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

19

20

Joe MutuguGroup CFO

2.4

2.9

4.6

3.3 3.1

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2012 2013 2014 2015 2016

3.9

5.8

8.1 8.0

9.8

-

2.0

4.0

6.0

8.0

10.0

12.0

2012 2013 2014 2015 2016

6.5

9.0

11.3 12.1

15.4

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2012 2013 2014 2015 2016

5. OVERVIEW OF FINANCIAL PERFORMANCEA uniform financial performance from underwriting and investment activities

NEP (KES Bn)

Investment Income (KES Bn)Net Claims Payable (KES Bn)

■ A decent financial performance

underpinned by

continued topline growth

better claims management

expense control and stable investment

income

21

■ A strong set of performance indicators

marked by a 76% recovery of PBT from

FY 2015.

■ For FY 2015, our PBT dipped due to:

single digit topline growth;

28.1% decline in investment income;

full year impact of finance costs.

■ In 2016, the recovery in PBT largely

driven by 15% topline growth and

expense management which has only

seen expenses increasing by an 8%

inflationary rate.

■ General Business Claims Loss Ratio

declined from 62% in 2015 to 59% in

2016.

22

5. OVERVIEW OF FINANCIAL PERFORMANCE – PBTWe have experienced a steady growth in PBT albeit with the dip in 2015 reflective of

business and investment conditions2016 PBT (KES Bn)

1.7

2.2 2.3

0.7

1.2

-

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016

8.1

11.3

12.7

15.0

17.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2012 2013 2014 2015 2016

■ The General Business grew 14.8% in

FY2016 as a result of a sustained drive to

grow the book and expand the

product suite.

■ We review our General Business

performance using a division between

“P&C” which mainly covers Non-Health

business and “Health” which focuses on

medical business.

■ The Health Division recorded

substantial growth contributing to our

growth in market share for General

Insurance in Kenya.

23

5. OVERVIEW OF FINANCIAL PERFORMANCE – BUSINESS SEGMENTThe General Business accounts for 89% of our GWP

Total General Business GWP (KES Bn)

Total General Business Split

39.3%49.6%

60.7%50.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2015 2016

Health P&C

24

5. OVERVIEW OF FINANCIAL PERFORMANCE – GENERAL BUSINESS PRODUCT LINES

Health

49.6%

Motor

23.2%

Fire

9.7%

Theft

3.6%

Others

3.1%Engineering

2.8%

Personal

Accident

2.6%

Workmen's

Compensation

2.2%

Liability

1.6%

Marine

1.5%

Health

39.3%

Motor

25.4%

Fire

10.8%

Engineering

9.0%

Theft

4.2%

Personal

Accident

2.7%

Others

2.4%

Workmen's

Compensatio…

Liability

2.0%

Marine

2.0%

2016 General Business GWP by Product Line2015 General Business GWP by Product Line

We are diversifying the portfolio mix in the General Business to reduce reliance on the

Motor Class

■ Reducing the contribution of the Motor business to GWP will enhance our underwriting

profits.

■ We are also driving growth in other product lines including Marine:

UAP OM has a very compelling Marine proposition for both retail and corporate

customers importing goods into Kenya.

■ Individual Life contribution to total life

gross written premium has increased

from 38% to 45%.

■ Current focus is on maintaining proper

business mix so as to increase group life

premiums which contribute to short

term profitability.

25

5. OVERVIEW OF FINANCIAL PERFORMANCE – BUSINESS SEGMENT The Life Business is growing its share of topline

0.4

0.7

1.2

0.7

1.0

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2012 2013 2014 2015 2016

Total Life GWP (KES Bn)

0.5

0.7

0.9

1.2 1.2

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2012 2013 2014 2015 2016

0.9

1.4

2.1

1.9

2.2

-

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016

Ordinary Life (KES Bn)Group Life (KES Bn)

26

5. OVERVIEW OF FINANCIAL PERFORMANCE – INVESTMENT INCOMEProactive investment management has produced good yields that supplement our

underwriting

2016 Asset Allocation 2015 Asset Allocation

Investment

Property

52.7%

Government

Bonds

20.1%

Equity Investment

12.1%

Deposits with

Financial

Institutions

10.2%

Corporate Bonds

4.9%

Investment

Property

49.6%

Government

Bonds

27.1%

Deposits with

Financial

11.5%

Equity Investment

7.6%

Corporate Bonds

4.3%

■ Tactical asset allocation has enabled us to protect our investment returns, which in turn

shores up our total returns.

■ Our investment portfolio also includes iconic properties such as the UAP Old Mutual

Tower in Upper Hill, Nairobi, Kenya and UAP Equatoria Tower in Juba, South Sudan.

18.2

23.9

31.8

37.6

44.0

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2012 2013 2014 2015 2016

27

5. OVERVIEW OF FINANCIAL PERFORMANCE – BALANCE SHEETOur capital structure facilitates business growth and undergirds our returns

Total Investments (KES Bn)

24.7

33.1

42.1

48.7

57.0

-

10.0

20.0

30.0

40.0

50.0

60.0

2012 2013 2014 2015 2016

Total Equity (KES Bn)Total Assets (KES Bn)

11.6

14.8

17.217.8 17.7

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2012 2013 2014 2015 2016

■ We are adequately capitalized and in

compliance with regional regulatory

requirements.

■ Our balance sheet provides sufficient

funding that enables us to pursue

profitable growth.

■ Strong topline growth for 2016 with a

27.8% improvement in Net Earned

Premium for the core P&C and Health

businesses.

■ Steady investment income

combined with the above buoyed

operating results .

■ Profit after tax has declined by 8%

largely driven by significant tax credit

in 2015 not enjoyed in 2016, 2015 tax

credit was due to recognition of

higher deferred tax assets and due

to higher profit before tax

contribution from South Sudan.

28

5. OVERVIEW OF FINANCIAL PERFORMANCE – UAPHL OPERATING METRICSA decent financial performance underpinned by continued topline growth, better

claims management, expense control and stable investment income

(KES Bn)

UAPHL Financial Metrics 2016 2015 % Change

Gross written premium 19.39 16.87 15.0%

Gross earned premium 18.74 15.33 22.2%

Reinsurance ceded (3.31) (3.26) 1.4%

Net earned premium 15.43 12.07 27.8%

Investment income 3.11 3.31 (5.9%)

Commissions earned 0.69 1.03 (32.6%)

Other income 0.18 0.11 73.9%

Total Income 19.42 16.51 17.6%

Claims and policy owners' benefits payable (10.93) (9.20) 18.8%

Less: Amount recoverable from reinsurers 1.10 1.21 (9.5%)

Net claims payable (9.84) (7.99) 23.2%

Operating and other expenses (5.61) (5.20) 8.0%

Commissions payable (2.19) (2.05) 6.8%

Total expenses & commissions (7.81) (7.25) 7.7%

Finance costs (0.55) (0.58) (4.3%)

Profit before tax 1.22 0.69 76.1%

Income tax expense (0.39) 0.20 (294.1%)

Profit for the year 0.83 0.90 (7.9%)

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

29

30

7. 2017 OUTLOOK

MACRO-ECONOMIC

ENVIRONMENT

PRIORITY AREAS

• Regional growth strong (5 – 7%) compared to world GDP

growth expectations of ~2%.

• Headwinds expected due to upcoming Kenya elections

and the political situation in South Sudan.

• Insurance revenue growth will be boosted by enabling

legislation in respect of Marine Cover in our core Kenya

market.

• Integrated Financial Services: Enrichment of our value propositions and customer experience improvements

as we execute on our one-stop shop strategy for

financial services.

• Merger Completion: Finalisation of Mergers of our Life and Asset Management businesses in Kenya.

• Efficiency: Technology investments and prudent cost management to improve business cost-to-income

ratios.

• People: Talent is a key enabler of our business strategy.

CONTENTS

1. Strategic Overview

2. Macroeconomic Review

3. Capital Markets Performance

4. Key Financial Highlights

5. Overview of Financial Performance

6. 2017 Outlook

7. Q&A

31

32

Q & A

THANK YOUTHANK YOU

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