Old Mutual Limited

Good morning and welcome to each of you. We are delighted to be hosting the financial results for the first time in person in two years. Welcome to everyone joining us online, as well as the webcast and the audio call. Thank you all for taking the time today. Shifting gears, accelerating growth. That's the theme of today's presentation. We really and truly are past the recovery phase of our journey. This is a journey forward. that many of you have been on with us and you have heard the many promises we've made and the ambitions that we've shared. As we shortly hear, the promises are being kept and the ambitions now becoming realities. Today's update will provide insights on how we progressed on the execution of our strategy in 2021 and how we've responded to the myriad challenging external factors, including the impact COVID-19 has had on our business. We'll also share some of the highlights from our segments so you can see how each part of the business is handling and responding to its own unique set of challenges and opportunities. We'll talk to you about our current performance, which has shifted gears and gained substantial momentum. And lastly, we're going to give you a good sense of what we believe lies ahead for Old Mutual, a future built on these strong strategic foundations. To answer all of your questions today, all of our MDs are in the room, so please feel free to ask any questions that you may have. If you could please communicate these questions via the webcast or conference call. And so starting off today will be our Chief Executive, Ian Williamson, followed by our Chief Financial Officer, Kasper Trosky. Over to you, Ian.

Thank you, Siswe, and welcome to all of you. I'd especially like to welcome Zoraida Ibrahim, our Chief Operating Officer, to our leadership team, and also to thank Heloise for diligently caretaking the COO function for over two years. Last year, the second year of this global pandemic, we held our ground and reaffirmed our commitment to our values and to our stakeholders, including, of course, to you, our investors. Our truly mutual strategy can be understood through three primary components. The first is our vision or victory condition of becoming our customers' first choice to sustain, grow and protect their prosperity. This means that we want to be top of mind with regards to our brand presence, our distribution reach and the breadth of solutions we offer to our customers. The second leg is our execution framework, the how of our strategy. Rectify, simplify, and amplify, which breaks down our long-term ambitions into shorter-term tactical steps that will allow us to reach our destination and deliver on the commitments we've made to you as investors. And the third leg is our value drivers, which focus on the what. the tangible outcomes we will deliver to shareholders, revenue growth, operating margins, capital efficiency, competitive strength, and execution and delivery. Our implementation of ESG principles across our dual roles of asset owner and asset manager continues at pace. We are now an official member of both the Net Zero Asset Owners Allowance as an asset owner entity and the Net Zero Asset Managers Alliance through the Old Mutual Investment Group. Apart from preserving the planet for future generations, we've got a fiduciary duty to ensure the sustainable continuity of our business and protect our stakeholders' interests. So please look out for our first climate report based on TCFD principles, which will be released next month. On a personal note, During 2021, my oldest daughter wrote her matric exams. And watching her work so incredibly hard and succeed amidst the challenges and pressures of writing matric, compounded by the challenges of separation from friends, online schooling, and a complete shift in school norms, I was made acutely aware of how much COVID-19 has impacted our young people. And how our children have responded to this pandemic has reminded us all of what's possible. and how resilient we can all be in the face of adversity. And at our mutual, we've similarly seen the response and ability to persevere in our results. But before I break the results down, let's start with headline performance indicators. 2021 was a really significant year for us, as we recovered from the enormous impacts that COVID had on our operational and financial performance in 2020. As you can see, we are green across our key metrics. We've honored our commitment to our customers and paid out over 21 billion rand in claims in our life business in South Africa, which is the primary driver of our net line cash flow outcome. We achieved a massive recovery in the front end of our business that was driven by much better productivity, reflected in the significant improvements in life AP sales, the value of new business, and in funds under management. In a moment, I'll go into some detail to highlight areas that have really been spectacular, not just against 2020, but also against 2019. And while we're here, I'm delighted to tell you that our board has approved a final dividend per share of 51 cents for 2021 at the top end of our policy range for the cover ratio. It's taken this decision given its confidence in the strength and resilience of our balance sheet, but also taking into account some lingering uncertainty around a possible breakout variant of COVID. This dividend declaration follows on from the bold step we took towards simplifying the group when we distributed 12.2% of our stake in Nedbank, allowing us to focus on our core business, while also providing a substantial return of capital to shareholders. These results are the outcome of focused execution on our rectify, simplify, and amplify framework, and the clarity that this brings for our people. To recap quickly, rectify means fixing areas within our value chain that are not working as well as they should, and reorientating towards new ways of thinking and operating. Simplify is about leveraging our existing resources and further streamlining our processes, systems and products through the use of technology, allowing us to respond to the constantly evolving needs and expectations of our customers. And rectifying and simplifying allows us to then amplify. setting the foundation to enhance the breadth and scale of our capabilities through strategic partnerships, through investing in innovation, and through using our extensive resources to tackle societal challenges. By delivering through this framework, we keep our promises to you, our investors. You will remember that I made you a number of firm commitments at our interim results last year. I promised you that we were going to revolutionize our customers' experience of Altmutual and change the trajectory of that experience. I said we would build an entirely new insurance business end-to-end to deliver exactly what our customers expect and more. We promised you that our relentless drive to improve efficiency would translate into measurable, and sustainable cost savings of R750 million by the end of 2022. We undertook to harness the unrivaled force of Mason Foundation's distribution engine to regain our competitiveness. I said that we would completely re-energize the customer and advisor experience in personal finance and wealth management and so continue to earn our place in this highly contested space. I promised that we would improve investment performance in old mutual investments and that we would embed digitalization across all parts of our business. And as we take you through our results journey, I'm confident you'll agree that we've delivered against these commitments. So with that context, I'll move on to the external environment within which we delivered these results. In 2021, Global economic growth rebounded after the sharp declines of 2020. This was in large part supported by the rollout of vaccines and the relaxation of previously imposed COVID-19 restrictions, resulting in increased demand and increased economic activity. We also saw equity markets recover right across the continent, although once again, that growth was somewhat constrained by continuing outbreaks of new COVID-19 variants. While markets are improving, we are acutely aware of the pressures that consumers remain under, with rising global inflation putting continued pressure on interest rates and on GDP growth, as well as heightened volatility in the global geopolitical landscape. In the rest of Africa, markets remained largely on a growth trajectory. During 2021, South Africa experienced material excess mortality during the second and third waves of COVID. And notably, the third wave, the Delta wave, had a double hump or double peak, which impacted both our personal finance and corporate businesses severely. The fourth wave then saw the emergence of Omicron, which was highly transmissible, but very much milder in terms of severity. In 2021, the impact of COVID-19 on our segments resulted in materially higher claims than we had modeled for at the beginning of the year. In total in the year, we paid out more than 13 billion rand in COVID-related claims across the group. And in the second half of the year, we raised additional provisions of 2.2 billion rand, which Kasper will take you through in detail. We've responded by repricing our group life business and individual business on the expiry of guarantee terms, as well as repricing new business for unvaccinated lives. During the year, we implemented a mandatory vaccination policy for our employees in South Africa And today, well over 90% of our staff are vaccinated, and we've accommodated those who choose to not be vaccinated, requiring them to undergo weekly PCR testing. But what about the future? In our response to COVID, we've taken into account all views, research, and expert projections, including those of medical experts, such as Professor Salim Abdul Karim, who recently met with our EXCO leadership team. After what we experienced with the fourth wave, wider but less severe infections, we now believe that the world may finally be getting to grips with COVID, but that the threat of a new breakout virulent strain of the variant of the virus does remain. Whatever the outlook, vaccinations remain an essential part of our human defense against the virus. Given the backdrop that I've sketched out of market recovery, increasing consumer pressure, and the challenges brought by a shifting and unpredictable global pandemic, our segments have really performed exceptionally well. In the Masson Foundation cluster led by Clarence, result from operations excluding COVID increased by more than 50%. We strengthened our tied distribution channels, which enabled them to deliver a sharp increase in productivity levels with a focus on both advised and non-advised products. Our alternative and foundation market channels delivered strong sales growth, with a high proportion of risk sales helping us to improve margins. And thanks to the focus and investment we put into this sales force and the productivity recovery we experienced because of it, our sales have continued to grow consistently right across the business. And this has been boosted in no small part by Old Mutual Protect sales, most of which come from the Mason Foundation cluster. As Clarence mentioned at last year's Capital Markets Day, we are pursuing opportunities to expand into the full value chain of funeral services through strategic partnerships. And we will update you on these at our interims on the progress we are making. As a result of all our efforts in 2021, V&B recovered strongly from last year's low. with our VNB margin ending at the lower end of our target range of 6-9% for this segment. Risk sales are up 40% and savings are 20% higher than in 2020. This mix does dilute the reported margin. Old Mutual Finance had an exceptional year, delivering the lowest credit loss ratio in its history. But I must caution. but as we continue to prudently increase our lending volumes, we aim to maintain a sustainable loss ratio of 7% to 9%. Even as we expand our alternative channels, the face-to-face sales force will remain absolutely relevant as a core part of a multi-channel distribution strategy. It has been the secret sauce inside MFC for many a year. Exceeding considerable pandemic claims, the front end of the personal finance business had an absolutely outstanding year. As with MFC, our strong focus on advisor productivity and improving customer experience resulted in sales exceeding 2019 levels. We've also seen good traction in the take-up of new solutions, particularly of Old Mutual Protect, which has supported our recovery in the recurring premium business industry. and has replaced our previous flagship risk product, Greenlight. When customer appetite returned, Old Mutual Protect proved that it is exactly the product the market was looking for, offering customers modular, tailored benefits to suit any budget or need. We do acknowledge, though, that we still have work to do across the value chain to extract further benefit from Old Mutual Protect, work that will result in an uplift in margins. We are also on track to launch our savings and income proposition, which builds on the benefits of this platform. On the other hand, net client cash flow remained under significant pressure, driven primarily by the payment of claims during COVID wave two and three. Expense management has been nothing short of excellent, with growth in expenses coming in at below inflation for the second year in a row, despite investment in digital enablement and the rollout of new solutions. In wealth, Karen and the team have focused on both our distribution capability and investment performance. In the distribution arena, we are focusing on capabilities in areas we have previously been underrepresented in. And I'm confident that these ventures will bear fruit because of the tremendous success our team has experienced in seeding adjacent new businesses within particularly the wealth business. Just think, for instance, of our private client securities business, which we've taken from zero to $40 billion of assets under management in the last five years. On investment performance, the team has achieved an exceptional outcome in a highly competitive environment. Compared to the largest balanced funds, Old Mutual Multi-Managers now ranks first over the 1, 2, 5, and 10-year investment horizons. And Old Mutual Wealth Tailored Fund Portfolios is in the top 15% of Assisa peer groups over 1, 2, and 3 years. Across personal finance and wealth management, the team's efforts have resulted in improved sales, with growth sales gross flows increasing by 15%. Demand for offshore solutions remains strong, with Old Mutual International recording net client cash flow growth of 36%. And finally, we have concluded successfully the administration platform migration of Old Mutual Groups. unit trusts and made subsequent enhancements to this platform, which have created a truly exceptional performance for both advisors and customers. Moving on to old mutual investments, we've made tremendous progress in setting up our strategic foundation for success here. Over the last two years, Kai and his team have completely overhauled and simplified the boutique model to allow for a greater focus on specific competitive capabilities. We called this project Lego and the pieces have now all been put into place. The affiliate model is now embedded and the execution of our private market strategy is on track. This focus has allowed us to seed new product capabilities with increasing investor favor. In 2021, Alternatives and Specialized Finance invested more than R9 billion of existing capital into unlisted credit and equity assets, and we've had another successful fundraising in Alternatives of R9.9 billion that will be drawn down and invested in the future. Investment performance in our multi-asset and equity portfolios has delivered top quartile results against peers across one, three, five, and ten years. Our short-term investment performance has improved markedly and has further enhanced the competitiveness of our long-term investment performance. Gross flows and net client cash flow in this business are at their highest levels in four and five years, respectively. And this, together with improved market levels, has resulted in assets under management growing by 15%, and RFO exceeding 2019 levels by 10%, a really solid performance by Akaya and his team. One last but extremely important point on old mutual investments. I'm really proud that the team has concluded the sale of 21.2% of old mutual investment group share in future growth asset management. to African Women Chartered Accountants Investment Holdings, or AIH, a 100% black woman-owned investment company. This transaction was concluded at market prices. Although still subject to certain conditions precedent being met, it's the first step in a phased implementation of our strategy to achieve best-in-class empowerment credentials for the Old Mutual Investment Group. The next step of the transaction will be structured in terms of Statement 102 of the Financial Sector Charter and has the prospect of increasing black ownership of both Future Growth and Old Mutual Investments to 51%. Achieving this will be a real game changer for Future Growth, for CAIA's business and for Old Mutual Corporate. I really believe this provides a competitive edge for our businesses as they seek new markets and defend existing territory. We are delighted to be working with a partner of AIH's caliber and look forward to a mutually beneficial relationship. Corporate sales returned to a healthy position. as life APE sales rose nearly 40% in the second half of the year compared to the first half. Quote activity for group risk business remains high, the number of brokers testing the market for better deals for their clients. And very pleasingly, we've seen improved client and intermediary satisfaction scores, with both net promoter and net effort scores exceeding 70% by the end of the year. And these higher levels of customer satisfaction have made a positive contribution to retention risk, client terminations, and their client cash flow in H2. This was despite some challenges relating to claims processing, which we are prioritizing for resolution. Digital adoption by retirement fund members also continues to improve and was 40% higher than in 2020. We focused on improving the competitiveness of our super fund offering to support large enterprises and on integrating our risk propositions into the super fund. And management actions have seen a significant improvement in our group life assurance result. At the same time, we've invested in the SME space, which Prabhashni and her team have identified as a growth vector for the future. We're excited about Corporate's new innovative SME Go offering, which is gaining traction, giving us credibility in the small business space as we push to create value for an underserved but hungry new market. Also encouraging is Corporate's improved V&B performance in the second half of the year, as well as our existing deal pipeline, which supports positive momentum into 2022. Garth and the Old Mutual Insure team are beginning to see the results of their two-year journey to turn this business around. In that time, two of Old Mutual Insure's business units, being CGIC and Specialty, have undergone restructuring processes across technology and operations, and they've now returned very pleasing results. In fact, the overall increase in total gross premiums was led by CGIC, And we believe that a reasonable proportion of CJRC's wins are sustainable, given a dominant market share, lower risk profile, and better margins. In addition, IWAS did particularly well in 2021. All of this has contributed to an 8% growth in gross return premiums, plus an improved claims ratio. which led to a 69% rise in the result from operations and a substantial turnaround in the net underwriting result. Retail premium growth has been limited, however, despite strong sales from the new Premier product offering. The much-improved net underwriting result was achieved despite a few large risk events, such as the UCT fire, and weather-related claims in the latter part of 2021. We managed to achieve our target of our net underwriting margin being solidly within the range of 4% to 6%. The retail businesses had an excellent claims ratio, but there is a need to further improve the expense ratio and make this business more cost-effective. What we used to call our complex commercial business has now been rebranded Premier, and we've grouped it together with the specialty business, rather than with standardized commercial lines, given the differing nature of the business being written. This particular business is still in rectification mode. Old Mitchell & Schur will continue to focus on further product simplification simplifying processes and IT systems to unlock further sustainable cost efficiency across the business. The required investment in technology will delay the realization of some cost savings, perhaps by a year or two, but will not impact on our group savings targets. And finally, I'm really pleased with the acquisition by Old Mutual Insure on the 1st of January of 51% of one financial services This gives old mutual insurer access to new risk pools and to one's world-class technology for administering off-platform insurance risk. In the rest of Africa, I'm also pleased to say that the business is showing early evidence of improving. In 2021, we saw top-line growth with good margins and market share gains. However, the segment suffered considerably worse COVID impacts than in 2020, with Namibia in particular experiencing significant claims during the third wave. In addition, in most of our markets, as you would expect, higher economic activity post-lockdowns also translated into higher property and casualty claims. Despite this, The team achieved a 33% growth in RFO, excluding the direct impact of COVID. And as I have suggested, there were a number of standout positives. Value of new business more than doubled, with margins increasing from 1.3% to 2.9%. And these gains were driven by tight expense management in the southern regions and by a pivot towards corporate business in both East and West Africa. which positively impacted both sales and margins. We experienced lower credit losses and higher net lending margins on the back of stricter lending criteria and increased collections, and improving productivity levels will remain a priority as we continue to optimize our retail distribution and improve relationships with brokers across the various regions. In the context of our Rectify framework, we've worked hard to fix our control environment in Kenya, and we've recently achieved similar successes in West Africa. But as a general comment, we still have some way to go in putting in place a world-class control environment across all of our markets and lines of business in these territories. And Clement and his leadership team are alive to this need. And finally, a short comment on a business that we do expect much from, and which is also headed in the right direction, and that is our joint venture in China. The business delivered life APE sales growth of 58%, with V&B margins expanding by 50 basis points to 7.1%. Funds under management also grew by 20% to 6.6 billion rand. All in all, a pleasing performance. We are invigorated by the work done done and the progress that we've made during 2021. Our people at every level of our organization have bought into the vision and purpose of our business as much as the leadership team has, which speaks volumes to its relevance. Our competitive advantage is well and truly alive, and the end result is the greatest strength we can see across all the various indicators. And on that note, I'd like to hand over to Kasper.

Thanks, Ian. I agree this is a great set of financial outcomes given the extremely challenging environment. were strong lead indicators of improved sales and productivity across the group. And on a personal note, it's been great to experience some of this recovery on the home front as well. I was really happy to be able to reunite with my family after two years. I was able to spend some time with my son who travelled from New Zealand, as well as my brother and his family who travelled from the Netherlands. Adversity builds strength and resilience, and I'm pleased to be able to show you how this is reflected in our results. We have seen a continued positive trajectory on key metrics relating to earnings, capital, and value. Overall, we were pleased with the strong recovery in results from operations to 9.1 billion on a pre-COVID basis. as a result of the sales and flow recovery in all our segments. Results from operations includes a number of wants of items which I will unpack later. Adjusted headline earnings more than doubled in 2021 benefiting from results from operations growth as well as substantial increase in shareholder investment portfolio returns across the group. Our return on net asset value improved from 3.8% to 9%, and excluding the direct impacts of COVID, was estimated to be 13.6%, which is within our target range and ahead of our cost of equity. As Ian mentioned, a final dividend of 51 cents was declared at 1.51 times cover relative to adjusted headline earnings. The dividend was supported by high levels of free surplus generation as well as a strong balance sheet with the life company's capital coverage ratios in the upper end of the target range. Value of new business was up substantially to just under $1.3 billion from $621 million in 2020 on the back of strong volume growth and acquisition cost efficiencies. The value of new business margin recovered from 1.1% to 1.9%, just below our target range of 2% to 3%. All of this has resulted in a 5.9% growth in group equity value, excluding the impacts of the net bank unbundling. We started 2021 with a pandemic provision of just under $4 billion. We raised further provisions for 4.2 billion and released 5.3 billion, resulting in a closing provision of 2.9 billion, after raising an additional 2.2 billion in the second half. The closing provisions were said taking into account the most recent experience and assumes that there will be no breakout variants that bypass immunity in future. In terms of stresses and sensitivities on these provisions, If the immunity benefit from vaccination and prior infection reduces by 25%, the provision would increase by 1.4 billion. And if vaccine take-up reduces by 10%, the provision increases by 327 million. COVID-19 resulted in additional deaths relative to our prior expectations and provisions. particularly in our personal finance, our mutual corporate, and rest of Africa businesses, whilst impacts on our mass and foundation cluster remain more muted. The net impact of the pandemic on results from operations in 2021 was just over 4.7 billion, and this was made up of 6.8 billion in excess deaths, which were partially mitigated through net provision releases and management actions. Building on what Ian mentioned earlier, let's look at the underlying performance of our businesses. In Mass and Foundation cluster, RFO, excluding the impacts of COVID-19, of $3 billion grew 50%, mainly due to higher life sales, good cost management, improved retention experience, and reduced credit losses. Personal finance was up 6%. Despite lower net positive basis changes and wants of items than 2020, benefiting from higher market levels, improved mobility experience and continued good cost management. Wealth management improved by 58% due to higher asset levels and fee income driven by positive net client cash flows as well as the market recovery. All mutual investments was up 3%. largely due to higher annuity revenue offset partially by higher expenses. All mutual corporate recovered by 13% due to higher asset-based revenue earned from improved market levels, together with releases of discretionary margins on investment guarantees. And all mutual insurer improved by 69% due to the positive claims experienced in CGIC, some provisioned releases, and good control over costs. Our rest of Africa business was up 33% with higher banking and lending profits due to lower credit losses, tight cost management, and prior year East Africa write-offs not repeating. The increase in central expenses is largely due to costs relating to our growth and innovation initiatives, which Ian touched on earlier, as well as IFRS 17 project costs share incentive costs, and property rental concessions. Personally, I was satisfied with how each of our segments have delivered in 2021 as we changed gears and positioned ourselves for growth. I'm also pleased to see the improvement in adjusted headline earnings of more than 100% as a result in our recovery in operating profits, supported by Sharehold investment returns improving substantially relative to 2020 with a 69% increase. This was driven largely by a rally in equity markets across the group. And income from associates was up with net bank earnings recovering on the back of lower credit impairments and strong revenue growth of 2020's low base, offset by a $37 million loss in our China operation. In order to simplify and understand how we get from adjusted headline earnings to headline earnings, there are two material adjustments. Firstly, the impact of restructuring largely comprises the recognition of tax of $1.2 billion on the full net bank stake that was held prior to unbundling. Secondly, the results for Sambabwe are excluded from adjusted headline earnings due to us not being able to access our capital. The increase in Zimbabwe's profits was mostly driven by an increase in investment returns, with the Zimbabwe Stock Exchange generating a 311% return in 2021. Despite high volumes on the exchange, we remain extremely cautious of valuation levels given the closed nature of that economy. Lastly, between headline earnings and IFRS earnings, The main adjustments include an impairment on our property at one mutual place to better reflect prevailing market conditions. Overall, IFRS earnings improved to $6.7 billion from a loss of $5.1 billion in the prior year, with the net bank impairment of $8.8 billion largely impacting the 2020 result. As previously mentioned, the impacts of COVID include both excess deaths over provision changes, as well as mitigating management actions largely related to the repricing of risk books. Results from operations excluding COVID items of $9.1 billion were higher than the results from operations of $8.7 billion we achieved in 2019. However, 2021 results benefited from other key ones of items, and in particular, in Omid will ensure $211 million represents CGIC's once-off release of reserves that are not likely to repeat in 2022. $653 million in our mutual finance related to once-off benefits and credit charges, given the rundown of the book. But as the business returns to normal lending levels, we expect longer-term sustainable credit loss ratios of 7% to 9%. and $844 million of benefits related to the continued optimization of our risk-producating strategies, following on the $1.8 billion uplift in 2020. Implementation of this strategy is now completed, and the uplift will not repeat. We have now completed our process with the regulator for the application of the accounting consolidation method which was approved in December 2021. Subsequent to this approval, we have revised the group target range from 170% to 200%, whilst the MLAXA target range remains 175% to 210%. The capital coverage for the group was 184%, and the life company was capitalized at 201%, after taking into account the final dividend declared. The reduction in coverage ratios from the prior year was driven by strong retail risk sales, a 9% increase in the prescribed equity stress, the increase of the value of Zimbabwe, which is included at a one-times coverage ratio given non-fungibility of capital, Since listing, the group has returned $75.4 billion to shareholders. This includes just under $50 billion of capital returns from the two stages of net bank unbundling. In addition, just under $10 billion of special distributions were made in the form of share buybacks and special dividends. Due to the strong cash generation from the business and our capital levels, We have also declared dividends using the full capacity of our dividend target range. We remain disciplined in our capital management and will continue to evaluate any growth opportunities in line with our strategy and return hurdle rates. We are pleased with the overall recovery in new business to just under $1.3 billion compared to $621 million in 2020. as well as the recovery of value of new business margin to 1.9%. This improved margin is proof of our sales recovery across the group, together with tightly controlled cost management. I was particularly pleased with the value of new business recovery in Massive Foundation and our rest of Africa business. The return on group equity value was 8.1%. and 10.3% if we exclude the impact of COVID. The share price continues to trade at a significant discount to IFRS NAV, eligible owned funds, and group equity value. By unbundling NetBank, we've delivered on our promise to reduce complexity and simplify, allowing for a clearer understanding of our core business. We believe that the execution and delivery on our strategy will is allowing us to strengthen our competitive position and further amplify our competitive advantage and ultimately close the gap between our market capitalization and group equity value. In summary, we have seen a strong recovery in results from operation and adjusted headline earnings before COVID impacts, an improvement in our return on net asset value to be closer to the cost of equity with the pre-COVID return already ahead of cost of equity, a recovery of our value of new business margin to be close to our target range of 2% to 3%, with our group solvency ratio remaining strong within the adjusted target range of 170% to 200%. And finally, as Ian mentioned earlier, we are delivering on our promise to meet the the $750 million of annual run rate cost reductions by 2022. This having already banked $450 million in savings from a combination of non-commissioned expenses in our life business and non-commissioned and claims administration expenses in our property and casualty business. This target excludes investments in our new growth businesses. Overall, we believe there is hard work on the road ahead but we are on track to deliver against our medium targets, which you will remember we revised upwards in June. With that, back to you, Ian.