Old Mutual Limited

everyone and welcome to Old Beach Hall Limited 2022 Annual Results. We are live from Senton in our offices in a warm Johannesburg. And I'd like to welcome those who are on the webcast, those who are in the room, together with those who have joined us on the conference call. And I'd like to say to those who are on the webcast to please continue to queue up their questions as the presentation is ongoing. For those who are on the conference line, you will be provided with instructions on how to queue up your questions for us to take once we are done with the presentation. Moving now on to our agenda, we have Ian Williamson, our Chief Executive Officer, who will take you through the strategic review. This will be followed by the financial review, which Kasper Trotsky, our Chief Financial Officer, will cover. Ian will return to provide you with his thoughts on what to look ahead to in 2023 and beyond. We will then conclude with Ian and Kasper responding to any questions which you may have. and they will be easily assisted by our executive committee, which is in the room. And with that, I'd like to hand over to you, Ian.

Thanks, Bunga, and Let me add a word of welcome to everyone who's joined us here this morning and online. It's a real pleasure and a privilege to be talking to you and summarising a really great set of results delivered in a very tough operating environment over 2022. Starting then with our financial highlights for the year. Last APE sales were up 10%. driven by strong sales momentum from our retail businesses. Gross return premiums on the short-term insurance side were up 12%, driven by strong growth from the Africa region's business and the steady performance from Old Mutual Insure. Our value of new business margin remains well within our target range at 2.2%, with the RAND value of new business up 16% to 1.5 billion RAND. Our business remains well capitalised, with our group solvency ratio coming in at 190%. Funds under management declined by 4%, driven by flat markets and by net client cash outflows, primarily from institutional counterparties seeking liquidity in their treasury operations, and that's obviously been in cash management mandates. Results from operations is up meaningfully, 99% up year-on-year, driven by strong performance from our core business and the easing of previously severe COVID-19 mortality experience. And this is assisted in driving our return on net asset value up to 11.1%, and that's up 240 basis points year-on-year on a consistent basis. We have declared a final dividend per share of 51 cents, taking the full dividend for the year to 76 cents, and that's up 13% on 2021 if you strip out the impact of the Nedbank stake that we distributed in November last year. CASPER will provide further details on these and other group KPIs later this morning. These robust results We're achieved on the back of our strategic framework or our North Star. You will remember that in 2019 we introduced our victory condition of becoming our customers' first choice to sustain, grow and protect their prosperity. And we use our value drivers to create a link between the strategic actions that we take and the value creation impact for shareholders. Over the past year, we've continued to shift our focus towards amplifying growth in the business while we deliver against this victory condition. We've made steady progress on both growing and protecting our core business as well as on unlocking new growth engines as we work towards responsibly building the most valuable businesses in our industry. In growing and protecting the core, we've provided our updates to investors in a consistent framework for the last few reporting periods, and I'm going to continue to use the same framework. In changing the trajectory of our customer experience, we continue to invest heavily into our servicing capability and into underlying infrastructure, underpinning the efficiency of our processes and operations. We've seen Net Promoter Score move up from 62% in 2020 to 68% in 2022, and we continue to focus on turnaround times at those key moments of truth for customers, with funeral claims paid in four hours or less moving up from 80% of the total in 2020 to 88% in 2022. We've been building an entirely new financial services business for a few years now. We introduced the Old Metro Protect product range in 2020, replacing our flagship Greenlight Risk product. And our Old Metro Rewards program has grown from 830,000 members in 2020 to 1.8 million members at the end of 2022. And importantly, the membership has higher needs met with us and better policy persistency than non-members. We promised you that we would deliver R750 million of cost efficiencies by the end of 2022, and we've exceeded this target, achieving savings of R942 million on a sustainable basis from our core South African insurance and savings businesses, including Old Mutual Insurer. In regaining our competitive advantage in our Mass and Foundation cluster, External surveys indicate that NFC has grown sales at 24%, above the market average of 5%, as per the latest NNG survey available to us. We've continued to re-energise both customer and advisor experience in personal finance and wealth. Our registered financial advisor distribution footprint has grown 60% from 2019 to 2022, And activity levels in our Tide Advisor channel in PFA have grown by 22% between 2019 and 2022. In the risk market, we've grown our market share from 9.2% at the end of Q3 2021 to 11.4% a year later at the end of Q3 2022. We continue to see sustainable improved investment performance in all mutual investments with funds above benchmark over a three-year measurement period up to 75% in 2022 from 31% in 2020. And finally, we continue on the journey of embedding digitalisation more firmly in our business operations. I'm pleased to announce that this last weekend we concluded the final migration of our South African IT estate to the cloud and that that job is now 100% complete. We continue to change digital processes in the customer usage of our digital channels, has grown by around 30% year on year. So I hope you'll agree that we have delivered on our commitment to strengthen the foundations of our core business. Moving then to our new growth engines, we are well underway with allowing the foundations for these to add additive growth to the Group's financial outcomes. We told you in November that we received a Section 13 approval from the Prudential Authority to lodge an application for the registration of the bank. We are currently close to being ready to lodge our Section 16 application, which is the next step in the regulatory process towards securing a full banking licence. This is a natural progression in our core strategy of providing a holistic set of integrated financial services to sustain customers' prosperity. Whilst the SA banking environment is congested, that does not mean in our view that it is in the context of a new digital era. There are now opportunities to materially impact cost to income ratios, customer perceptions, customer experience and provide a more holistic value proposition to our customers. The build of the infrastructure to support the bank is on track to launch in the second half of 2024 as previously communicated. And the approximately billion rand spent to date is in budget in the context of the 1.75 billion we have budgeted to get to launch. Moving then to our geographies to the north of our part of South Africa. The pivot to corporate visits in East and West Africa has been well executed with progress on the corporate sales mix in both regions. Our control improvement program in East Africa is now substantially complete, resulting in greatly improved predictability of results from that region. And finally, our last APE sales in China continue to grow rapidly, and we're 84% up in 2022 on the prior year. We continue to invest for tomorrow's success through next 176th, And our innovation portfolio is showing strong traction with a few key lead indicators. In a digital world business, completed worlds grew tenfold year on year from 800 to 9,500. And in Oyster, which is our early childhood development center tool set, we've seen membership, in other words the actual centers themselves that sign up to use the tools, grow from 300 to 1,080. These are just a few of the areas we have started to unlock and that are already showing great promise. I'm confident we've laid strong foundations in this portfolio and that these initiatives will continue to enhance our position as our customers' first choice. Responsibly building the most valuable businesses in our industry is absolutely core to who Old Mutual is and who we are. We look forward to releasing our 2022 sustainability and climate reports during April. But for now, I'd just like to pick out a few highlights from our 2022 initiatives. As a responsible steward of customers' assets, Old Mutual Investment Group proactively engages company boards, market regulators and stakeholder organisations on material ESG issues. We have $146 billion of funds under management invested into the green economy, and we continue to model active stewardship, with our investment teams having voted on over 960,000 shareholder resolutions that supported positive ESG outcomes. Old Mutual promotes financial inclusion, and we do this through financial education and support to entrepreneurs. We empower individuals with knowledge and skills to make informed decisions about their finances. By financially including vulnerable groups, we aim to reduce poverty and inequality, and to produce services which support economic growth and stability. During last year, an absolute highlight in this area was our successfully completed bullet-heller transformation transaction, which completed in November. We are the first insurer to directly issue to the black South African public and the first company in South Africa to include lower income earners via our retail scheme. Over 250 new Old Mutual shares were issued and the retail offer was oversubscribed having received 38,000 applications. Boletiello was nominated for the BEE Deal of the Year at the 2022 Ixaro Dealmakers Awards. And that followed the earlier completion of the transaction to sell a minority stake in future growth asset management to the African Women Chartered Accountants Association. Diversity and inclusion are important to us and we have great representation of both women and black people in our senior management teams at Old Mutual. Now that we've gone through the strategy and our delivery against our commitment, I'd like to take you through the operating environment in which these results were delivered. I don't think anyone needs reminding that it has been extremely tough out there. We've seen a mild easing of economic pressure towards the end of last year, but with the advent of additional load shedding at the beginning of 2023, I think that this has been a temporary relief. Headline inflation peaked in the middle of 2022 and started to come back down. But food inflation remains elevated across markets and particularly in South Africa. Headline CPI across all the markets on the African continent has resulted in affordability being under pressure with higher living costs and higher unemployment. As a result, persistency in our book, continues to come under pressure. And while we've seen recent improvements in this area, it remains an area of concern which we are closely monitoring and managing. According to the Reserve Bank, South Africa's electricity crisis costs the economy as much as 900 million rand a day. And the intense nature of Higher-stage power outages were a major reason behind the economy's shrinking of worse-than-expected 1.3% in Q4. As a business firmly committed to helping South Africa and its citizens secure their financial futures, we are extremely concerned about the impact that low-jetting is having on lives and livelihoods. And we will continue to support all moves to find and build alternative energy solutions that ensure long-term energy sustainability. Addressing crime and corruption is essential to rebuilding government institutions such as ESCOM and, indeed, Transnet. As one of the largest green investors on the continent, we look forward to being key partners in more investable alternative projects that secure SH's future energy and logistics needs. and create mutually beneficial outcomes for all of our people. Markets during 2022 were both volatile and unpredictable. An equity market closed flat in South Africa following a period of volatility with bond markets being under pressure due to rising interest rates. I'm now going to move on to discuss highlights from the performance of each of our major business segments. In the Madison Foundation cluster, our distribution diversification strategy is paying handsome dividends. Our foundation market channels delivered growth in non-advanced risk sales of 124% year-on-year, and our ability to protect underwritten life APE sales grew by 92%. or for low base, remembering that in this business we have previously focused predominantly on non-underwritten sales. We have bought out our minority shareholder in Old Mutual Finance and now own 100% of that business. And we have also announced the acquisition of a strategic equity stake in the Two Mountains Group. This remains subject to regulatory approvals. but gives us access to a micro-insurance license and to alternative distribution through the funeral value chain. We've seen continued sales momentum in this cluster, with live APE sales up 21%, and now comfortably above 2019 levels. Our value of new business is up 48%, and our B&B margins of 7.6% are right in the middle of our target range. Neckarn's cash flow was up by 13% and having maintained a conservative lending approach in this macroeconomic environment, our loan book was up by a more modest 5%. Both our credit loss ratios and bet lending margins are starting to normalise towards our target ranges. Overall, I'm delighted with the performance of the Mason Foundation trusted business. I believe we have demonstrated outstanding resilience to regain our number one position. In personal finance and wealth, we have maintained competitiveness and market share in an extremely tough environment. We've had a focus on growing our registered financial advisor footprint and this is up 60% over the last three years. We've seen good progress in expanding our genuine high net worth business within the wealth segment and on building out further proposition enhancements for more holistic and integrated experience for both customers and intermediaries. We've seen a significant recovery in profitability on the back of resilient life sales, and particularly with improved volumes and mix in HQ, resulting in an improved value of new business for the year. The management team have delivered disciplined cost management in a constrained environment. I'm really proud of the team and how they've managed to deliver a strong turnaround in the face of extremely challenging market circumstances. Turning to the investment group, underpinning the strength of this business is the increasing diversity of our investment platform. And this has allowed us to grow revenue despite poor or volatile market conditions. We've repurposed what was historically our shareholder credit capability to enable us to compete more broadly in the institutional market. And the completion of the African Women's Chartered Accountant's Future Growth BEE transaction and the closing of Bolotella moves the ownership of both Old Mutual Investment Group and Future Growth closer towards 50%. And in fact, we heard earlier today from our verification agencies that Future Growth is now over 50%. So that's great news. This business has a has had strong core growth with annuity revenue up 7% in a flat market. But what was really outstanding was the excellent non-annuity revenue growth of R515 million, coupled with a record R17.4 billion of capital raised in the alternatives business in the form of client commitments to new closed-end funds. The commitment and catch-up fees from the capital raising far outweigh any loss of fees from our net client cash outflows, thus supporting the strong revenue growth in the business. As I said earlier, we're down 4% due to the lower market levels as well as the low margin outflows. Our investment business continues to deliver outstanding results in volatile global markets We continue to back our investment philosophy and believe that we have the systems and processes in place to continue to achieve sustained top-tier investment performance. In our digital corporate, we continue to have the privilege of having a set of market-leading propositions. Group assurance remains a leading proposition in the group risk Superbund has retained its number one position in the umbrella fund market in South Africa. And we have expanded out our holistic SME proposition through the SME Go digital platform and have added the SME funding proposition through the acquisition of a minority stake in Preference Capital in November. We've seen an excellent recovery in the core profits of this business. with strong growth in group assurance, new business sales and profitability. Pre-retirement sales and annuity sales have however been lower, driving lower life APE sales, with the value of new business benefiting from the favourable product mix. Our deal pipeline remains extremely strong and we have a secured yet to flow pipeline which is where clients have signed a mandate but the funds have not slowed for regulatory reasons, that pipeline is valued at over 6 billion rand. So overall, we've seen a strong recovery in underlying profitability as we've retained our market leading position while continuing to grow our core value proposition. Turning to old mutual insurer, we've seen strong top line growth, particularly from CGIC, which is the trade credit insurer IWAS and the Specialty Division. CGIC and IWAS delivered strong underwriting results but net underwriting margins overall were under pressure due mainly to the floods in KZN which had a gross impact of 1.4 billion rand and a net impact of 87 million rand on our underwriting result. We've seen increased weather related claims from elsewhere in the country and significant inflation pressure, particularly on motorcar parts. So the net underwriting margin, ultimately at 3.1%, remains below target, but we are still committed to our 4-6% long-term target through the cycle. We continue to make progress with consolidation, following earlier acquisitions of One Financial Services, VASMA and the Premac Group. We continue to grow our partnership in the insurtech space with Pineapple and we closed the acquisition of 100% of Genrec in early 2023. Looking forward, our focus will now be on integration and on realising synergies in this business and on managing the impact of the significantly hardening cycle in reinsurance renewals. Our short-term business has shown resilience delivering a profitable outcome in an incredibly tough environment. Despite the now reducing trajectory of inflation, input costs remain elevated and we expect short-term pressure to remain, particularly given the elevated costs of reinsurance. And finally, turning to Old Metro Africa regions. The team have delivered a significant turnaround in this business in 2022. The strategic pivot to corporate has paid off handsomely as life profits have improved in both East and West Africa. We've progressed the turnaround of our loss-making businesses and 80% of the businesses in this portfolio are now profitable. We've rebranded both our Kenyan and our Rwandan businesses to Old Mutual. to entrench our presence in those markets. And we've seen an improvement in net underwriting margins despite both motor and health plans remaining under some pressure. Top line growth has been strong across both the life and property and casualty businesses. With the value of new business stable year on year, gross flows up by 26% and this has contributed to a 5% increase in funds under management. Like in South Africa, we've taken a cautious approach to lending, resulting in an improved net lending margin, but in muted growth in the book. The excellent sales and profitability performance is evidence of the strong progress we've made across this portfolio. Particularly pleasing is the turnaround in profitability across all three of the regions, South Africa, East Africa and West Africa, delivering on the commitments we've made to investors. I'm now going to pause there and hand over to Kasper to take you through the details of the financial results and then I'll come back at the end to summarize. Kasper, over to you.

Thanks Ian and good morning all. It is pleasing to see that some of the key management actions that we have taken in the last few years are starting to bear fruit despite the very difficult economic backdrop. Post-unbundling of our strategic investment in NetBank, we have continued to see positive momentum in our core operations with key metrics relating to earning and capital improving while some value metrics were impacted by lower market returns and economic pressures. Overall, we were pleased with the recovering results from operations of $8.7 billion on the back of strong sales and core operational performance across the group. Adjusted headline earnings grew 34%, excreting the earnings from the distributed stake in Nedbank from last year's base. supported by growth from our core businesses. Cash generated was strong at 117% of adjusted headline earnings, underpinning the robust nature of this result. Despite weaker market returns, our return on net asset value improved to 11.1%. A final dividend of 51 cents per share was declared, bringing the total dividend for the year to 76 cents. Adjusting for the impact of Netbank in 2021, dividend growth was 13%. And I'll take you through a bit more detail later. The value of new business was up 16% and the value of new business bars increased to 2.2% well within our target range. Whilst group equity values decreased by 3%, we achieved the return on group equity value of 4%, adjusting for dividends paid as well as economic variances. Our results from operations almost doubled to $8.7 billion. Our life profits benefited from increased sales, lower mortality in the current year as the effects of COVID-19 eased, and the release of all remaining COVID provisions on the back of improved COVID experience. This was offset by the strengthening of our mortality basis to allow for endemic COVID-19 claims and increased provisions for worsening persistency. The release of excess discretionary margins and a refinement to HECI methodologies also resulted in a positive impact of $1.3 billion. Last profits in the Madison Foundation cluster were up 23%. Despite this, results from operations reduced 11% largely due to lower profits from the banking and lending business. As you remember from last year, 2021 included a large once-off provision released on the back of a declining loan book. Personal finance and wealth management recovered to $3.2 billion, with personal finance recording $2.7 billion in results from operations, up from a loss last year. Life profits benefited from lower mortality losses, as well as net positive economic basis changes. And wealth management decreased by 4% to $550 million, with the underlying core operational performance improving on 2021, offset by the reduction in the value of our offshore seed investments. Home material investments was up 12%, largely due to strong increase in non-annuity revenue of 48%, with annuity revenue going 7%. This was partially offset by higher expenses, the vacancies being filled, and continued investments into revenue-generating initiatives and technology. Our mutual corporate improved meaningfully to almost $2 billion, especially we couldn't quite get there. A strong recovery in underwriting results, which benefited from muted credit experience and the release of COVID provisions and discretionary margins. This was further supported by good asset-based income on the back of high average funds under management and prudent expense management. Over-transferred decreased by 9% to $495 million. The net underwriting result was down 25%, largely due to poor claims experienced as a result of weather-related events, particularly the quadrilateral floods, higher power surge claims, and the impact of inflation on the cost of claims. We've seen strong top-line growth in our Africa region, with improved profitability in the last week as we continue to pivot to corporate burdens. Profits were underpinned by much improved mortality experience, resulting in the release of COVID provisions, offset by the strengthening of the mortality basis in Namibia. Southern Africa profits rebounded to 984 million, with East Africa returning a profit of 86 million and West Africa reporting 52% lower losses. This resulted in a very pleasing turnaround and an increase in results from operations to 842 million. So well done to Clement and team. The net result from group activities increased to a loss of $1.5 billion. This was as a result of continued investments in growth and innovation initiatives, including Next 176 and our transactional capability, as well as an increase in IFRS 17 project costs. Adjusted headline earnings to 34%, excluding the earnings from the distributed stake in NetBank from the prior year, and the decrease in shareholder investment returns were driven largely by lower equity and bond returns across the group. Despite the volatile and challenging investment environment, the shareholder investment strategy continued to meet the main objectives of protecting and preserving shareholder capital. Income from associates includes our investment in China, and the prior year also included our investment in NetBank, which was unbundled in November 2021. Shareholder tax increased on the back of improved profits and without net banking our income from associates line, the effective tax rate will now be more in line with movements in profits. The main movements between adjusted headline earnings to headline earnings is from our operations in Zimbabwe. The results of Zimbabwe remain excluded from adjusted headline earnings due to us not being able to access the majority of our capital. Whilst investment returns on the Zimbabwe Stock Exchange remain positive, they have reduced substantially from the prior year and were more than offset by significant currency depreciation during 2022. Given the material reduction in rates of exchange, a large negative adjustment of just under $3.2 billion is reflected in our foreign currency translation reserve for the year. In the current year, the impact of restructuring includes implementation costs for bullet trailer, whilst the prior year included costs relating to the net bank unbundling. The residual PRC profits of $173 million were driven mainly by positive foreign exchange movements and lower staff costs with no remaining staff being employed by the end of the year. Overall, IFRS earnings increased 10% to $7.3 billion. We remain committed to responsibly managing our capital through a disciplined capital allocation and acquisition framework. This includes returning capital to shareholders where appropriate opportunities for growth are not evident. Since lifting in 2018, we have returned just under $60 billion to our shareholders in the form of special distributions as we reduced complexity, improved the focus on our core business and optimized our return on net asset value. The OML Solvency Coverage Ratio has improved to 190% at the upper end of the target range. The main driver for the improvement is the reduction in pre-scribed equity stresses set by the regulator. The group's discretionary capital balance was maintained at $3.5 billion. This is the result of strong cash generated at 117% of adjusted headline earnings for the full year, supported by releases from capital from residual PLC and all mutual investments, and allocations in the form of the buyout of the minority stake in Omnitral Finance and continued investment into our growth and innovation initiatives. $850 million of the discretionary capital balance is earmarked for the generic transactions concluded in January, the minority buyout of Omnitral Finance Namibia and the acquisition of an equity stake in the two mountains group as Ian mentioned. We have earmarked between $1 and $1.5 billion for a share buyback as we believe this is value-attributed given current market conditions. We have initiated the approval processes with the Board and the Prudential Authority and we will be making further announcements relating to this in due course. Return on net asset value of 11.1% increased by 240 basis points. supported by a significant improvement in adjusted deadline earnings, as well as capital structure optimisations. These optimisations included the issuance of supported bank debt at competitive rates to optimise the group's weighted average of cost of capital, in line with the optimal gearing ratio of 15% to 20%. Our dividend policy targets an already dividend cover range of 1.5 to 2 times adjusted deadline earnings. In 2021, we paid at the maximum of the range as we believed in the recovery of the business, the future cash flow generation and the strong solvency position. Now that we have seen a strong recovery, we have declared a final dividend of 51 cents per share, taking the full dividend for the year to 76 cents. Excluding net banks, the dividend is up 13% on 2021. This takes the cover closer to the midpoint of the range, providing us with a platform to deliver on our growth aspirations. The group's value of new business margin increased to 2.2%, which remains within our target range of 2-3%, with the overall value of new business up 16%. Value of new business, as Ian mentioned, grew by 48% in the Mason Foundation cluster, with the margin improving to 7.6%. This was due to higher volumes and good cost management, partly offset by the strengthening of the persistency basis. In personal finance and wealth management, we have seen an improvement in the values in the business from the first half of the year, with a shifting mix to high-margin risk business and a review of persistency assumptions in our funeral products. we continue to drive management actions to bring the value of new business within our target range. The improved margin in our neutral corporates mainly benefited from a more favourable product mix within the investment offering, improved expense efficiencies and strong growth in group assurance new business sales. In Africa regions, improved recurring premium sales in Namibia coupled with a more profitable sales mix, contributed positively to the value of new business. This was either more than offset by high expense inflation and increased sales of lower margin business in other regions, leading to a 2% decline in the value of new business. Our return on growth equity value was 4% over the period, driven by positive operating performance and frontline growth in most segments. but pulled back by the persistency basis changes in South Africa. And the share price continues to trade at a significant discount to group equity value as well as regulatory-owned funds. We believe that the combination of defending and growing our core and the traction on our new growth engines will close the gap between our market capitalization and group equity value. In summary, We are through our recovery phase and have largely met our 2023 targets. Our results from operations for 2023 was to deliver a target of the 2019 results plus 5-10%. Our 2022 results on a comparable basis to 2019, including the cost of our new transactional capability in Next 176 costs delivers on this target a year early. This was on the back of decisive and focused management actions through this recovery phase, resulting in sales and gross flows recovering to pre-COVID-19 levels. As Ian mentions, we have also exceeded our cost-efficiency target, and our value of new business margin and group solvency remains within our target ranges. Our return on net asset value has strengthened and is trending towards our cost of equity. An eligible insurer's underwriting margins whilst below the target is mainly due to the case of inflows. Our next set of results will be prepared on an IFRS 17 basis and we will be providing you revised medium term targets in due course. Changing track, on the IFS 17 front we have made significant progress and are on track to report under IFS 17 for the first time for our 2023 interim results. We have completed work on our IFS 17 transition which includes detailed disclosure in our annual financial statements. This has not been without a lot of effort. We are well underway with our 2022 comparative reporting. Whilst we plan to go into significantly more detail on IFRS 17 at our next investing engagement, I would like to take you through some of the key impacts. It is important at the outset to emphasise that IFRS 17 does not impact the underlying fundamentals of our business. IFRS 17 will not impact our cash or capital generation. It will not impact our ability to invest in new growth engines. It will not impact our solvency position or our ability to pay dividends, noting that our current dividends policy is wide enough to cater for the impacts of IFRS 17. What it does do is change the timing of profit recognition and how we report on our life and savings and property and casualty businesses. All of our segments' comparative results are impacted, except for omission investments and the net results from group activities. IFRIC 17 also creates one generic transition adjustment to shareholders' equity. We estimate that the impact of the initial application of IFRE 17 and consequential changes to other standards will be between a $3.8 and $4.5 billion decrease to the group shareholders' equity at 1 January 2022. The decrease to shareholders' equity is net of deferred tax of between $1.9 and $2.2 billion. Transitional tax measures have been introduced in South Africa to defer and spread the tax impact of implementing IFRS 17 over a phase-in period of six years for life insurers and three years for short-term insurers. The net reduction in shareholders' equity is driven mainly by the setup of the contractual service margin, or as we call it the CSM, which exceeds the release of IFRS 4 proven margins. with the largest impact being seen in the mass and foundation cluster. What we're really seeing here is the impact of historic strong management of our insurance book, being the positive basis changes recognised under IFRS 4, which are now added back into the CSM under IFRS 17. IFRS 17 brings about a change in the timing of profit recognition, but not a change in the underlying value. The CSM represents future profits still to be earned on our insurance business and is expected to leap into profit over time in a stable and predictable manner. To reiterate, despite all the moving parts, the fundamental cash dynamics of our business are not affected and we don't expect IFRS 17 to materially impact how we think about future distributions. And with that, back to you Ian.