Momentum Group Limited (MTM) Earnings Call Transcript & Summary

All right. Good morning, everyone, and welcome to our Capital Markets Day. My name is Tokelo Mulaudzi, and I'm Head of Investor Relations. My co-host today will be Rowan Berger, who heads up Strategic Finance here at Momentum. Again, I will more come to all of you to the investors, analysts, our shareholders, who are -- our shareholders, our Board members who are watching online, media representatives and colleagues. Thank you again for braving the rain and making it out today. We need to really think about the dates we do these investor conferences because every year, we have rain and we're stressing about whether people will come, but thank you for making it out. And those of you who are joining us virtually, thank you. Today, promises to be full and insightful. It's going to be a packed session. The agenda and speakers are available -- the agenda and speaker presentations are all available on our website in the Investor Relations reporting center. And should you wish to follow online, you can find those presentations there or on [ Cobham, ] they are available there. We will have 15 minutes Q&A between every few speakers. So please do note to drop down your questions, and we'll take questions here in the room as well as online. So post those questions online. We've also made the space as comfortable as possible. So there's waters on either side of the room. But I see that side is almost out, we'll refresh that soon. And there's plugs running along the floor. So please -- if you need to plug in or charge your devices, do so. And yes, that's kind of everything all the housekeeping out of the way. Outside, there are ushers, they're wearing red jackets. So should you need any assistance finding anything, whether it's a bathroom or anything, just reach out to those people. I hear that most of you are wondering why are we doing this Capital Markets Day because traditionally, we've done it every other -- every 3 years, and now it's the first time that we do it in the first year. But you'll recall that last year when we launched the Impact strategy, we made a promise, and we said we're going to repeat back regularly, and we're going to keep an eye on things. And with Jeanette at the helm, we -- there was no way that we couldn't live up to that promise. So this, today is just us living up to the promise and saying, yes, we're going to deliver, and we're going to keep an eye on how the strategy is going and constantly give your feedback. And with that, it gives me great pleasure to welcome Jeanette to give us a welcome. Thank you.

Thank you, Tokelo, and welcome, everybody, in the room here with us and online. It really is fantastic for us to have you here today. And we do know that a whole day out of all of your busy schedules is quite a lot. So we do appreciate your time. We do appreciate your presence. And please also have some great questions ready for us for our Q&A sessions that we will have regularly throughout the day. This is also an opportunity for us as a team to actually share with you where we are with the progress on our Impact strategy. And as we promised, we will do this every year because I think it is also very important for you to know that we are making the progress that we promised to make when we launched our Impact strategy a year ago. So thank you very much for being here. So about a year ago, early July, I think, last year, we were here in this room when we launched our Impact strategy to the market and to all of you for the very first time. And I think it is just wonderful for us to be here less than a year later and to tell you that we have made a great start to deliver on our Impact strategy. I do know that many of you in the room a year ago looked at what we promised and thought that it was way too ambitious. Well, give us a chance today and let's see whether you still think the same when we're done at the end of the day. We really have made a good start with the delivery on our strategy at all levels and in all of our business units. And it is a great privilege for me to have my entire team here with me today. So use the opportunity to mingle during tea breaks and so forth, challenge us on where we are when you think our plans are still too ambitious, and I'll make sure that you ask all of your questions. So yes, you see, maybe I just need to actually start by changing some slides here. So this is just what I'll be talking about. And you will see an exact same pattern throughout the day where all of us will start to recap on what the strategy is that we promised a year ago. We will then move on to give you some feedback on how we're making progress on the strategy. And then, of course, there's lots of other detail that will follow in between. So when we think about our strategy, we continue to recognize the benefits of having a diversified and balanced corporate portfolio. But we are still absolutely committed to doing it through a federated structure and a federated operating model. And this really was at the forefront of developing our strategy a year ago. But at the same time, we also believe that our success will lie in the ability of our business units to each then go, keep this group strategy in mind but develop and deliver on their own business unit strategies, while they stay aligned to the group level strategic objectives that we've set. You saw this slide a year ago. In developing our Impact strategy, we considered external opportunities and threats, but at the same time, we also took cognizance of our own internal realities when we develop the strategy. And last year, we shared these 10 themes with you. I'm not going to go through them again. But what we have done throughout the year is to continuously test whether these are still the realities, whether they still hold true. And a year later, we really do believe that each and every single one of them are really still relevant. But you will see today how we've addressed them in our strategic plans and how they influence our execution progress that we have made and that we are making. Now you are already familiar with our Impact strategy. You see this all the time. And this is some people call it the wheel. Some call it a pizza. There are many, many different ways in which we internally refer to this. But whatever, whichever way you look at this, this is our Impact strategy on a page. The 6 group level strategic objectives are different, but they're also quite closely correlated. And it provides us with a clear direction for the group. Way back, you told us you don't really think that we operate as a group that we have a group strategy. Well, here it is now. But while we do that, it also allows our business units to formulate their own strategic plans to deliver on these objectives. What is important to me is that our purpose all around, our culture behaviors, the impact that we target and our strategic enablers at the bottom are all completely interconnected, and this is now becoming even more pronounced as we start to mature into delivery. Our approach to strategy is intentionally dynamic. I'm going to stop moving my hands. Maybe I'll have to do this. And it's designed to balance our long-term ambition with a short-term adaptability. In today's fast-changing world, we believe that strategy must be a living process, not a static plan. If we stick to it being static, that's also not going to work. And this means that we actively and regularly reassess our priorities, respond to market shifts and reallocate our resources to where they have the greatest impact. On all of our slides throughout the presentations, you will see that we've included some progress indicators, and I've added them here. These range from us being fully confident, highly or reasonably confident that we will reach our 2027 targets 2 years from now. So it's throughout the day. This is not where we are today. This is how confident we are that we will reach these targets in 3 years. And throughout all of the presentations, you will see that we will all use the same progress indicators. So now let me recap. I'm going to touch on, again, all 6 of the 3 of the strategic objectives. I'm going to talk about our Impact targets again. And then lastly, I will touch on our strategic enablers. To unlock the full potential of our businesses is our first strategic objective. And this means that we will continually assess whether we are still doing the right things in the right way. And it is true that as businesses go through their life cycles, not everything will always go well. And we will continuously make sure that we introduce turnaround plans where we need it when either a business unit is not reaching its targets or when it's not delivering on its strategic objectives. I think this has become something in our group in terms of our exco of how we assess our businesses all the time to make sure that we are on track to keep on to deliver. While we're doing this, we will also continue to invest capital to drive growth and performance in our performing business units. It's another promise we made you last year that we will not throw capital at businesses who are not performing. We will first allow them to put their turnaround plans in place before we will start to reinvest in those businesses. And maybe just as a side, I think our results of yesterday and specifically, our 6 months results have actually shown how amazing our results can be when all of our businesses show up and perform at the same time. And right now, we continue with that process. So let me share some highlights with you. And these are kind of really highlights across the group, but throughout the day, our business units will share their own highlights with you. The first 3 are really turnaround plans that we're busy with or that have already delivered. And I'm delighted, [ around ] this year, I am absolutely delighted to say that Momentum Insurer have actually completed their full turnaround plan and that they've now achieved sustainable profitability and long way that continue. The review of our Africa operating model is progressing quite well, and Lulama is yet to share more of that with us today. We've also stabilized Metropolitan through its 5-point plan. We've delivered on most of the objectives that we've had. We do know that there's a little bit of work that still needs to be done, but Metropolitan definitely on track and quite ready for growth now. Peter will share more about that. Then the next 3 is really to show you where some of our investments have started to pay off. And the first one, and we are very privileged to have Mayank here with us all the way from India. So it's a great wonderful for us to have you here. You and Sandeep. It's wonderful to have you to share also today with us. And I'm going to steal the thunder a little bit, although Mayank will talk about it some more. We are delighted to announce that our Aditya Birla Health Insurance business, our joint venture in India, has actually reached our breakeven point. For a long time, we've been talking about this and promising it and now it is. So that's really a wonderful place to be. We've also completed a massive system -- legacy system migration. This really will influence mostly our Africa and our Metropolitan traditional businesses. But through this project, we've removed significant cost, risk and kind of complexity from the business. And I think it set us up to now kind of move ahead with speed and with efficiency. And then lastly, our digitally self-enabled service for our clients and advisers have launched something that Johann will also talk about a little bit, but really a massive achievement for us. I think we've been talking about this since we were here for our first Investor Day, when was that before COVID, I know. We actually started to talk about this, our adviser and our Consult Connect platforms, which are self-service, digital straight-through platforms for clients and advisers. So very proud of this and highly confident that we're going to reach all of the objectives on this one. Then we are using opportunities in our federated operating model to unlock growth by collaborating across business units. This really is the objective that protect our federated model. But that says that there's maybe a federated 2.0, some things that we could change. And we really do this through hunting together to seize opportunities, especially where it can help us to shop stronger in the market and also a very, very strong focus on vertical integration that is already showing some measurable results. When I started talking about vertical integration 4, 5 years ago, I had to draw a picture. Not a lot of people even knew what it was in this group. So we've made significant progress on that. And some of the highlights here is firstly, the collaboration between Momentum Health and Momentum Corporate, and they've now launched or they're about to launch integrated employee benefits and health offerings into the market where we actually show up together with these integrated offerings that I believe is going to make us much stronger. And then just some detail on vertical integration to show you how that is paying off. In the first 6 months of the year, inflows from MFP, our agency force, have actually increased by 7.5% from 40% to 43%, and these are actually allocations and vertical integration with our investment platforms. So you can already see how that is starting to work for us. And then we've achieved ZAR 1.4 billion of in-house allocations to our newly launched manager CURATE and this just in the first 5 months since we've launched CURATE. Then flows from Momentum Consult to Equilibrium. And as you know, Equilibrium is DFM have actually more than tripled from ZAR 140 million a year ago to now ZAR 460 million in the latest -- in the last 6 months or in the 6 months until December. And then lastly, Momentum Securities, roughly doubled its brokerage volume traded on behalf of the group. And actually, what is great is that Momentum Securities have already reached their 2027 assets under management target in the first half of F '25 by simply working much, much closer to our different channels. And then our third objective, to optimize our cost base to grow earnings. Now when we launched this one, and I think this is probably the topic that Risto and I get asked to talk about or explain the most in any of our engagements with you. So again, today, we're going to spend quite a bit of time on it. And this really is to ensure that we run a lean business. We need to run a lean business so that we can have the extra capital to invest more in growth and optimization. And all of this really is simply to say, where do we have duplicated costs, where do we have unnecessary costs that we can actually route out and get rid of. We've done the group-wide project. That has actually identified about ZAR 1 billion of savings, and really, it does mean that it's a 3% cost saving that we need to do every single year for 3 years in order to reach the ZAR 1 billion. But we didn't just leave it to chance. What we've done is we've run through this, and we came up with a lot of business unit efficiencies. That's actually where the bulk of the savings will be but also some other key objectives around technology, procurement and duplication. So many different work streams that we run in order to be able to take these costs out. The diagnostic process is done. Implementation is actually progressing, and what's most important is how actively we are tracking this. In fact, Risto and his team have an hour at every single -- every month where they give us feedback across business units of how we are delivering on this. But more importantly, the tracking is important to make sure that we permanently remove these costs from our cost base. And that really is what we're focused on. But Risto will actually spend quite a bit of time on that this morning to give you a lot more feedback about it. Then face-to-face advice is here to stay. You know that we passionately believe that, and that is what this objective is really all about. We will continue to make sure that we invest in all forms of advice because we believe that, that is a key differentiator for us as a group. So yes, we believe in face-to-face advice, but there are many other forms of advice, and we are quite committed to make sure that we explore all of them. And this really is about expanding our advice capabilities. How are we going to do that across Momentum Consult and our agency force, Momentum MFP, to aggressively grow footprint. Consult, definitely right where it should be great business, MFP punching below our weight, and we are going to aggressively invest in these businesses. But we've also brought them together, Hannes [indiscernible] is here, if you have any questions for him today, he heads up our advice business for the group and really some quite aggressive plans and targets that we have there. And then lastly, it remains important to us that to use technology to empower our advisers, make them stronger and at the same time, improve the client experience and make sure that all of our clients across the board get a similar level of advice that is this where advice lead comes in for us. Some of the highlights, we needed to fix MFP first, our agency force. We've embedded a new operating model, completely new executive team, and that business is really now ready for strong growth. We've expanded our participation in advice through some acquisitions. And here, specifically FinGlobal, we've completed the acquisition of FinGlobal. And at the same time, we also made investments in minority stakes into advice businesses -- international advice businesses. Through vertical integration, what is great is that we already see that there's great inflows into our portfolios from these advice businesses, and they're already tracking ahead of target in terms of assets under management. Metropolitan completed a review of the agency force. We've spoken about that quite a lot over the last while. And really, what they've done is they've looked at performance management, management practices, we've taken out management layers and costs, and we're now really ready to grow from there. But what is most amazing about it is that in spite of all this change, it has resulted in significant productivity improvements, which really is what we were after. But again, Peter will talk a little bit more about that. And then marketing is in the room. As you can see, Momentum ad campaign. We launched a new Momentum ad campaign just more than a month ago, and it really puts advisers at the heart of our brand story. And it also promotes the value of advice to the end consumer, which we believe is part of us driving this really important strategic objective for us. Focused and selective approach to expansion, and we really need to be focused and selective in how we expand and where we expand and it's about the addresser market where we believe that we have a right to win. So not just doing anything, but making sure that we do it quite selectively. And this is really in 4 areas: channels, more channels, we can always look at more channels; segments where we don't currently pay; products that we don't offer and; then geographies where we believe that we have an exportable capability. And in this case, strategic partnerships will remain very important to us. We cannot see that we will go into a different geography specifically without having a strong partner, and our success that we've had with our partner Aditya Birla in India has really shown that this is something -- this is a way in which to enter these markets. Guardrisk has made good progress with their initiative to expand the cell captive market model into India. I'll leave it to Lourens. Lourens talk a little bit more about that. I'm sure you're all excited about that. And there, again, we are partnering and working very closely with our partner in India, Aditya Birla Capital. Momentum Corporate delivered strong SME client acquisition that's added 154 new SME employers, and that's really a new channel for us. And then lastly, we launched CURATE quite successfully in August last year, and they've done that by introducing key local and global fund managers. And just in the first 5 months since its launch, they've actually grew the assets by ZAR 2.7 billion. Design simplified and impactful client experiences. We need to focus on enhancing our client experience. And this really is key for us to deliver on our purpose, to build and protect our clients' financial dreams. And we do this through client insights and simplifying our offerings and thereby not only building trust with our clients, but reducing complexity, driving efficiency and innovation across our entire business. And our aim is to augment what humans do with and through technology. And again, today, you will hear some of these things that we've already done and accomplished. We've embedded and embraced our purpose. And that really for me is just one of the highlights for me is here is that how our employees have really embraced our purpose and all of the changes that we've brought, but what this has brought about is an increased focus on improving the client experience. You can stand up and say that you build and protect your clients' dreams and yet you fail at service encounter for them. So that's really something that we are so focused on. We've also aligned across the group, how we measure client satisfaction through the Net Promoter Score, and there's complete alignment. You will hear a lot of NPS scores today. And interesting, you'll see that different businesses are at different prices and maturity there. Momentum Health repositioned, multiplied to simplify the client experience. Hannes will probably talk about that a little bit. And then lastly, investment in digital capabilities in many business units. And again, I can't do a justice. But every CEO today will share with you the progress that they've made in terms of the improvement in digital to actually help our client and adviser journeys. And then to just touch on our strategic enablers. On people, we've embedded our purpose. I've said it, and I'm probably going to say it once or 2 more again today, embedded our purpose, but we've also started to align our culture behaviors to our purpose. And this is really important for us in order to enable us to deliver on our strategy because it really is all about people and how people deliver. We are very focused on building a strong leadership pipeline, talent for the future. The war on talent is incredible. So always something that we are focusing on. And I'm delighted to say that it feels like we're becoming a sought-after employer of choice again. If I see some of the CVs coming across my desk, then this is something that we're very proud of. In the transformation space, we are very proud that we are achieving most of the transformation targets that we set for ourselves. We've also made good progress with employment equity. I have to say that the new sector level transformation targets that have been set quite recently is quite a concern to us. But at the moment through the industry bodies, we are very actively lobbying and negotiating with the Department of Labor to try and figure this out. And then lastly, on transformation in order to make sure that we enhance financial inclusion in South Africa, we've aligned our enterprise and supply development initiatives across the group to transform the advice landscape in South Africa and of course, to support our strategic objective to aggressively build advice. And we need to build advice for the future, not just advice for today. I'm not going to touch anymore on digital. Ravi has a slot. He's going to share a lot of our digital initiatives with you. And then again, throughout the day, you're going to hear about that from all of our business units. Sustainability remained really important, but we are not [indiscernible]. So we do what we can do, but it remains very important, especially in the asset management space, in Dumo space, so really a focus area for us. And then lastly, I'm going to leave capital deployment to Risto. He is going to spend quite a bit more time on that with you. Now you know this by heart now. But just because it sounds like poetry to me, I'm going to say it again. [ 20 2-7 ] by 2027, 20% return on equity, 2% new business margin. My team keeps on reminding me that it's 1% to 2%, not 2%, but let's set our target on 2% and then ZAR 7 billion of normalized headline earnings. I think, again, if you've been on the call yesterday, and you've seen our half year results, we are making really, really solid progress on delivering on our normalized headline earnings and our return on equity target. So that really is well on track. But I think I need to spend a moment on VNB. Our value of new business remains a challenge. This is probably by far the biggest one for us as a group to focus on. We have plans across our businesses to us and deliver on this. But really, I think there are just so many moving parts. In our half year results, you will see that we've made a 40% increase or increased VNB by 40%. We managed to increase our margin to 0.7%. So we're kind of touching on that kind of bottom end of the range that we've set for ourselves. At the half year results, Myriad was the star of the show. And I'm sure Johann will refer back to that today. And really also in the call yesterday, we shared with you that we continue to progress well on this. We continue to grow. And for the year-to-date, our VNB is positive, but this is the area where we need to spend most of our effort. Some of you might ask whether you think that -- whether I think that these targets are now not ambitious enough anymore. Well, we remain focused on delivering on target, and we remain absolutely convinced that these are ambitious targets. They remain ambitious, but they are within our reach and that we will deliver on them. So to bring my session to a close. One of the highlights of last year was launching our purpose across our group, I've said it already. And that employees totally embraced it. It was just it brought a new energy into our group. So we exist to build and protect our clients' financial dreams. I think understanding this and aligning our culture behavior to our purpose have had a significant impact on how we think about and deal with our clients. And it will be a major driver of our success going forward. I'm really happy with the overwhelming support that we got from all of our employees for these changes. And we are now far more of a purpose-driven organization that has a why beyond everything we do. I'm satisfied with where we are and the great start that we've made to our Impact strategy. We remain very aware of the challenges we face in the South African economy and the geopolitical operating environment, and we very well aware of what we need to do to fix VNB. Lastly, this is a sound strategy. This is now about diligent execution. It's about monitoring of progress and it's about making sure that we keep on feeding back to you how we're making progress and communicating this back to you all the time. And then lastly, in response to all the challenges we face, I strongly believe in focusing on what you can control. And that is exactly what we are doing every single day. Thank you very much. I hand over to Risto.

Okay. So I'm going to talk about 3 topics in my 30 minutes. I'll give you a bit more of a detail on the cost optimization project. I will then talk about cash generation, particularly what do we think the cash generation for the group will be over the 3-year period. So it's an update on the slide we showed you last year at the Investor Day. And then I'll give you also a feedback on a number of capital optimization initiatives. At the interims, I made quite a few promises about looking at the dividend policy, looking at the capital in Africa, looking at the solvency target ratios. We made work, some very complete, some early stages, but I'll give you feedback on a lot of those projects where we are. Okay. Cost optimization, not the most popular topic ever in the world, but it is critical. I mean, the reason why we're doing this project is we know that our VNB is one of the lowest ones, should I say lowest of the remaining listed life insurance companies. We also understand that our pricing is not out of line with the market. So it sort of tells you that ultimately, there must be some unit cost pressures that some of our competitors don't face. I don't think it's the only issue, but it must be one of the key issues in our low new business margin. So I think our desire to improve our VNB was maybe the first catalyst of saying, okay, let's do a proper group-wide initiative on cost optimization. We're under no illusion that this industry is going to grow at a rapid rate over the next 5 or 10 years. In fact, we can probably afford 3% to 4% cost growth per annum to keep margins at the current levels into the future. It's just a reality of book size being quite static and just competition in certain parts of the market. So I think cost containment will remain a critical part of our business model for the foreseeable future. And there are particular blocks of business where we're actually shrinking in terms of client numbers. And in those areas, we need to effectively modernize and change the way of work to keep the profits coming at a decent rate. How did we do this? Like most big corporates, we got global consultants, and we had come and do some benchmarking and help us a little bit. Not too surprisingly, they found significant savings. It was an interesting exercise. Before we actually got the consultants in, we thought that probably up to 10% of the cost base could be addressed and their number came to close to 10%. Also, what was quite pleasing is a lot of the ideas they had overlap with our existing ideas. So it was also a confirmation of a lot of things that we've been toying with. We hadn't implemented, but we thought this is something we could loot at. And that's basically they say, please go ahead and actually do this further. Also, a lot of the cost savings potential is around modernizing the business. So I think it also helps us with our strategic deliverables that deliver on the cost side. What have we done to date? And I keep turning there like because I can't see that screen. I'm going to have to put my glasses on because I can't see the screen at the back. Yes, there we go. Okay. Okay. That's much better. Okay. Yes. Okay. So we set up a project management office under the FD's office. [indiscernible] is actually the guy. He's here somewhere. He's learned a lot about corporate life. We need a guy who is the face of cost optimization. It's not the meeting. It's the easiest one to get in the group. People often tell him at the last moment, can we meet you next week, next week? Okay. But he's got a lot of resilience. This team also tracks strategic initiatives. You would have seen Jeanette's slides had a lot of like fully confident, highly confident, somewhat confident or whatever it was. That's all done by the same team. So business units don't just rock up here and saying everything is green. There's actually a process where this team captures all sorts of deliverables to date, then there's a bit of a decision to you on how we convert those metrics. But interest, fully confident basically, it's almost done, okay? And highly confidence sort of 80% plus. And what's the next one, somewhat confident, that's like 50% plus. Okay. So this team does both the OKR tracking and the cost optimization tracking. There are over 800 OKRs and over 200 cost optimization work streams. Okay? It's a lot of little things going on. Change fatigue is a real thing. I think this project will not be possible if it wasn't for unified support from the group Exco to do it. Particularly in the beginning of the project, people have a lot of reasons why this is not a good time to do it. I mean, Ravi, I'm going to use an example of IT. In IT, it's never a good time. There's always a project. There's always something being implemented. The reality is if we waited for the right time that will suit everybody, we'll never get to it. So some sort of change resistance is always going to be in play. And the only way to overcome it is to have unified Exco, making this the most critical project in the group at this time. Okay. We're targeting ZAR 1 billion of cost savings over the next 3 years. It sounds like a lot of money. But remember, our controllable costs are ZAR 12.5 billion a year roughly at the moment. Okay. So we need to take out about 3% of our cost base per year to get to the ZAR 1 billion of savings. So I don't think it's an unreasonable request. There are 4 primary work streams in the cost optimization. Business unit initiatives will account for about 40% of the ZAR 1 billion. A lot of these are about things like process optimization, using RPA, using large machine models. It is also just old-fashioned productivity enhancements. I find quite interesting the work the consultants did is they did things that we would love to do we had endless time. So they went to some areas of our business, and they said, okay, yes, 20 people that do very similar activities. Why is this person getting through 13 claims a week? Why is this guy 13, 12, 11, 12? And there's a few guys with 4 claims a week. Like what's going on here. It's interesting that we know inherently that not everybody has the same productivity. But we don't really run the statistics and data frequently to do it, but they highlighted areas where there's definitely 1 or 2 people too many based on the optimal productivity. Obviously, spans of control is a very common sort of a cost-cutting tool that we can be used. Technology is about 30% of the ZAR 1 billion. That is under Ravi's watch. Cloud usage is a good example. I wouldn't say we were earliest adopting cloud, but different business units went to cloud maybe at different times. I use an example that cloud companies like mobile operators, you need to be a bit careful when you sign that contract. The guys touched quite differently for cloud computing, cloud networking, cloud storage. And on the computing side, one simple example is you pay for like weekend usage. And when we did our own analysis, very few business units actually run anything on the cloud over the weekends. And if you don't specify non-cloud, you pay for that time. I mean that alone, say, a couple of million rands just by ticking a box saying, no, not on a weekend. So we have a lot more of a group level approach on cloud contracting. And we also procure cloud services centrally now. Now the usage of cloud, particularly the computing side, tends to spike at different times of different business units. So it makes it quite hard for individual business unit to buy cloud usage upfront. But at group level, it's actually quite predictable. So we buy a certain amount of cloud, let's call it, [indiscernible] at group level upfront. And if we need to top it up at retail rates, then we will do so rather than having 8 different business units buying at retail rates. Hardware policies. I think we've been a bit quick to replace hardware times. So we're trying to get roughly 6 to 12 months extra from a lot of our hardware on average. And then obvious one is like licensing. So we do track software usage like -- the example I always use that if you're going to do 1 PDF a year, please don't get Adobe Pro. So we need to sort of automate tracking of software usage and who gets it. Procurement. This is about 20% of the savings, this work stream is going very well. Maybe the one thing I also learned from this project is when it comes to putting pressure on other people's costs, it's easier than putting pressure on your own people's costs. So we have negotiated with a lot of our suppliers to get favorable terms in terms of cleaning, security, postage, something that we're quite busy with is like IT contractors. So we're trying to standardize rates and get better rates from a lot of things. One thing we did recently, which might be of interest to you is called telesourcing. So we have thousands of suppliers. We don't have time to negotiate with everyone. So some of the smaller suppliers, we just send them letters saying, we would like to negotiate rates. And I was amazed at how well it works. I told my procurement guys that if I was on the other side, providing flowers to us, I would just chuck the letter, but the response to the telesourcing was actually quite good. So on procurement, we're targeting just under ZAR 200 million of savings. I think we're going to get very close quite quickly there. And then duplication, this one affects people the most, so it's maybe the hardest part of the project. This is where we have overlapping activities, for example, learning and development. Now some of our business wins are very big. So they have their own deep pockets. So we end up with L&D activities in business units that almost replicate the central L&D capability. So we have had quite a careful look in terms of where can we centralize either the center or sometimes the business unit is actually better, and then we centralize it to a single business unit to do certain training as an example. Okay, timing. When we first started this project, I said the savings are quite linear. I would clarify now by saying the effort is quite linear, but there's a little bit of a lag in terms of the actual savings coming through. A good example is on -- let's take the cleaning contract. It took us like 3 months to actually negotiate the RFP and stuff. So even though we started on day 1, we're only going to get to new rates 6 months later, okay? So there's a bit of a natural weighting towards the latter part of the 3-year period. But luckily, it's not all at the end of the 3 years. In terms of impact on business, we try to make sure that client-facing people, sales, service agents will see minimal disruption. I think so far, that is the case. I haven't heard a single complaint from a client or a client-facing individual that this project has had interference on the day-to-day activity. So that's a good outcome. Demand generations are interesting one. It's a fancy word for policies. So another thing of my -- you should see the hotels we're staying in this week. So travel policies, catering policies, entertainment policies, the fancy word demand generation, okay? So -- okay, so a lot of policies. Yes. In fact, 5x more than Jeanette, but he complained that amount of food at the last M&A committee meeting. Yes. Anyway. So it is demand generation as well. Now the savings, we're a big life company, but not all these savings are life insurance related, okay? Some of them are head office type of savings. Also, what is kind of important for your modeling is more of the savings are administrative in nature, in other words, renewal costs rather than marketing and distribution related. So the impact will be a bit bigger on your value of in-force metrics than maybe on your new business metrics. So we started this project likely to get VNB into order. But more of the inefficiencies are coming on the admin side rather than distribution side. Okay. Let's put some numbers. So the bar on the left is the one I showed you at the interim results. So we have ZAR 1 billion target. And in December, we said you eat the elephant one bite at a time here. So the achieved savings in December was ZAR 42 million. And we had active plans and projects for ZAR 841 million. Now the first thing you'll note is that, that doesn't end up to ZAR 1 billion. The reality is we need to actually make up plans nonstop to get to the ZAR 1 billion. You will see that the stack bars are actually a bit higher now. So we have found some new savings. As an example, we have managed to get rid of a reduction in our banking fees since then. We have looked at changing the operating model in some of our fixed income trading activities. So we're continuously looking for a little bit of savings to get to the ZAR 1 billion. And I think there's enough ideas on the whiteboard level that we will get to the ZAR 1 billion. But we don't bank it until there's actually a project plan with the amount, times, resources before we put it in the red bar. What is quite pleasing in the 3 months since interims, we have at ZAR 74 million go from the red to real, okay, like actual delivered. What is in there is in Ravi's work stream, we have negotiated new core rates inbound, outbound, quite substantial savings. We have an MDS restructuring, so that's our broker consultancy and management area has been restructured a little bit. And then quite importantly, and I think Ferdi will actually talk about this in his presentation, we have brought together a number of our multi management operations and also asset management operations. So there's a better coordination between global and local, and that has reduced the cost of total asset management. Also, we are actively working on a number of things. The ZAR 812 million includes, like I said earlier, nearly 200 initiatives. I see one deal has chosen the 3 quite imminent ones. You don't want to put something here you can't deliver. So I think out of these 3 bullet points, a lot of them are April, May items, so we can talk about them confidently. So we have a number of policy admin systems across the group. And there is significant consolidation both in life and health all around. Johann will talk about the fact that we have gone through a major PaaS migration in the last 2 months. So that's already banked. It will be in the June numbers. Also, Johann will talk a lot about digital initiatives in this area. We often talk about the fact that we're so dominant in the IFA markets. And I think this investment in digital is important to maintain that lead, and there's good work going on there. And then closer to home, on the procurement side, yes, those things are almost banked as well in terms of stricter payment terms. Also on the L&D side, we're rationalizing quite a bit of suppliers. Okay. Where could that -- ZAR 74 million plus ZAR 42 million is ZAR 116 million, okay? I think we should see quite exponential growth into June, okay? And hopefully, the red bar also jumps up a little bit closer to ZAR 1 billion. We'll continue to give this level of feedback every 6 months. I think it's important that you guys get the tangible feel of just how many moving blocks there are to achieve this. I think also once we've done this project in 3 years from now, we will have to continue. I mean, the reality is in competitive markets like ours with limited growth. We'll have to continuously reengineer the way we do business. Okay. By business unit, I'm going to have to speed up a little bit. So Metropolitan to date has given the most. Metropolitan has various market access channels through trade union partners, labor partners, so on. So we have looked at reducing the fees of accessing those channels, additional use of robotics. I think is it surrender payments that you guys are doing here using RPA, Momentum investments, I mentioned the operating model. I think on group technology, I mentioned those and procurement, cleaning and courier sounds quite pedantic, ZAR 13 million saving. Now maybe I shouldn't get too specific here, but like our cleaning supplies to facilities, I need to thank them. It's one of those things that -- like you think somebody looks at it. I think the average increase in our cleaning costs for the previous 12 years was 12% per annum. Okay. So when we went to tender, it was actually quite a big saving, okay? Okay. What does it mean to valuation basis? I already mentioned that not everything goes to life insurance. Also, this is doing what we do today for cheaper. The problem is not a problem. The reality is we need to do more all the time. So a good example is in Dumo's business where there's been good cost containment, but now we had to spend, I don't know, an extra ZAR 20 million, maybe more on 2 [ part ] and compliance issues, okay? So quite often, you save ZAR 20 million, ZAR 30 million and all of a sudden, you need to spend another ZAR 20 million or ZAR 30 million, and there's no option not to do it. So I think the ranking of this ZAR 1 billion is we need to deliver on the ZAR 1 billion of savings just to keep our valuation basis static, okay? That's maybe the reality of -- in your models to go ahead. Cash generation, one of our favorite topics. You saw this slide last year, up to 2023. Those are calendar years. We added '24 here. And as per usual, the life company paid good dividends to the group, so ZAR 3 billion dividend flow into holdings. We were sort of Guardrisk made good contribution, Momentum Investments. A big change is, obviously, Momentum Insurer back to profitability and paying dividends again. So generally, we get ZAR 4 billion to ZAR 5 billion of dividends to holdco, that tends to be about 80%, 90% of earnings are paid in dividends to holdco. Then we have internal investments and a little bit of M&A, and we're left with ZAR 3.3 billion. Again, if you look at the last 3 years, I mean, if you go back through the last 5 years, the cash flow to holdings net of internal investment tends to be about 2/3 of earnings. And historically, we have taken of that 2/3, 1/3 as being dividends and 1/3 as being share buybacks. It's been quite predictable, okay? So if you think our earnings are going to be ZAR 6 billion, you're probably looking at ZAR 4 billion and we can then spend ZAR 2 billion dividends, ZAR 2 billion either M&A or buybacks depending on what's available. So cash generation has never been a problem for us. Also, what to me is quite pleasing is that over a 3-year period, basically, everything that's coming to the group in has gone up to the group. So we're trying to be quite diligent not to build up capital at holdco level, which is quite inefficient. And Mayank is here. So Mayank, you'll notice India is a big investment for us. Okay. Now here's an update for another slide from last year's Investor Day. That middle column, last year when I stood exactly on this podium, I said over the next 3 years, I think we'll generate ZAR 11 billion to ZAR 12 billion of cash. We don't think we need to support Momentum Insure anymore or Momentum Money. And I'll also say that I think the capital required to get our other initiatives to break even is quite modest. So I said there's maybe ZAR 10 billion to ZAR 11 billion of cash that will need to be deployed over the next 3 years. 12 months later, that estimates gone up a little bit. So at the interims, I mentioned that our business are doing better than expected. As an example, Momentum Insure recovered a lot quicker than we thought. The underwriting profits in EB have continued to be higher than I expected. Investments had a very good profitability in the annuity book. So generally, the group is probably ZAR 500 million ahead in terms of annual underlying earnings that I thought a year ago. So all of a sudden, the normal dividend inflow is about ZAR 1 billion higher over the 3 years. Also, instead of requiring support, insurers paying dividends, so that's over ZAR 500 million. And I have no reason to expect more capital required for the other business than I thought, okay? Now in that ZAR 1 billion, India is quite a big number in that ZAR 1 billion. It does mean we have about ZAR 1 billion to ZAR 1.5 billion more in cash over the 3 years than originally planned, okay? So that's a good problem to have. How did we spend the money over the last 3 years? You've seen this graph before, about half of the ZAR 12.6 billion went to dividends, a lot of buybacks, very little M&A. We have looked at a lot of things. It's very difficult to find something that's good and cheap, okay? It's a difficult combination. You think it's hard in the listed space. In the private space, I think it's equally hard. Funny enough, once you've got the small deals, so when Guardrisk talks about it, once you go into the deal where there's no investment bankers and there's like not much price competition, it's like 6 PEs, 4 PEs, I love those deals. Problem is they're quite small. They're like ZAR 100 million, ZAR 40 million. At the moment, you look at bigger assets, ZAR 2 billion, ZAR 3 billion. We see the PEs jumping to 14, 16. It becomes very difficult to make a business case to getting involved. Our latest view on how much dividends can be paid over the 3 years is ZAR 1 billion higher now than it was a year ago. It just links to the previous graph of cash generation about ZAR 1 billion more. Okay. Let's move on to feedback on the work we've done. So cash generation remains robust. Okay. So we have this regular cycle of work we do. I see [ Paul is ] here, for example. So there's a capital team that has a, let's call it, a work plan. And I tried to bring it into 5 quite high-level bullets here. The first thing is the money we have it wasn't wasted, okay? So the first thing is obvious, like just deploy your existing capital well. We need to regularly review our target solvency ratios, and it's shaded. I'll give you bit of feedback. We also need to review our dividend policy quite regularly. I'll give you feedback on that. Something I will not give feedback because we're still busy with the work. It's very early stages, is our debt-to-equity ratio. Now because of the growth of our business, and we haven't been issuing net debt, our debt-to-equity ratio has actually fallen quite a bit over the years. So it's something that we will look at going forward. And then the last point we actually do quite well on is we're quite quick at deploying excess capital to shareholders in terms of special dividends or buybacks. Okay. But I'll give you feedback on the 2 shaded items. I'll go through this quite slowly trying to land a couple of points, but these numbers should be familiar to you. So on the left-hand side, we've got the available capital on a regulatory basis, ZAR 37 billion and the required capital just for our Indian colleagues, SAM is basically Solvency II, to the African version on Solvency II. So we've got the ZAR 17 billion of required capital. So we're sitting at 2.1x the regulatory minimum. The one thing we did in the last 6 months is we reviewed, should we target 1.6 to 2x like past? Short answer is yes, okay? Now that answer is as much to do with competitive positioning as it is with actual solvency risk, but decision was made not to change our life company solvency target. It remains 1.6 to 2x. Now if you look at the ZAR 37 billion of available capital, it's not that straightforward. It's not like it's money in the bank. There is ZAR 18 billion of what we call high-quality liquid assets. These are assets that we can have available in a reasonably short period of time. I think the cash holdings, there's probably about ZAR 3 billion on average, okay? But then there's like a lot of government paper, short-dated bank paper. It's things we're going to count on being there all the time and with limited fair value adjustments in most periods. There's ZAR 5 billion of illiquid assets we can count for capital, but we can't count on using it short term. That will be things like investments in some of our unlisted subs. It will be our own head offices. It will be quite hard to sell this place for ZAR 300 million overnight, I think. And it also includes, I don't know, software capitalized expenditures. It's ZAR 5 billion of IFRS assets that are not really financial assets. And the last ZAR 13 billion, that's the interesting part, regulator allows us to use best estimates. So there's a ZAR 13 billion difference between our IFRS NAV and assortments and our regulatory NAV. It's effectively what I consider future profit, okay? Now again, you can't actually pay the bills with that. You need to -- I mean you could sell it to a reinsurer, maybe not a ZAR 13 billion, but something close. But that ZAR 13 billion again is regulatory capital that we -- I think internally, we often talk about being sort of tied up in the policyholder funds. It's capital, but it's not easily accessible. So we tend to focus on the ZAR 18 billion. We do a lot of stress testing to understand how much -- what is the minimum amount of liquid assets we need to hold to never breach the 1.6, the lower end of that solvency target. And the view at the moment is ZAR 11.4 billion, okay? So we need ZAR 11.4 billion of high-quality assets. We have ZAR 18 billion and the excess has been historically split into ZAR 2 billion discretionary. So we argued about 3 years ago that as a group our size, we need to hold ZAR 2 billion of discretionary capital through the cycle, just to be able to execute on opportunities as they arise and the other ZAR 4.4 billion is surplus, and that is what is used to fund your buybacks. This work has been largely completed now. Two key takeaways from this slide. Firstly, the balance sheet keeps evolving over time. We saw a lot more annuities in the last 3 years than we thought 3 years ago, okay? Also asset liability management policies change all the time. The latest view is we actually need a little bit less of these high-quality liquid assets, okay? So that number has been adjusted downward slightly. At the same time, now you would have noticed in the last few years, we have never dipped into the ZAR 2 billion, okay? So it tells you that at decision-making level, we didn't feel the ZAR 2 billion was enough. So we've taken a bit of our -- it's got a pragmatic approach to expand the ZAR 2 billion to ZAR 3 billion has been our discretionary capital we want to hold through the cycle. So we want to hold a little bit more capital. The trade-off, and I want to call [ Colin ] out here, he's the Chief Actuary, we'll increase that buffer, but then we'll actually take even more urgent action on the ZAR 3.8 billion, okay? So it's quite important is that it looks like we're holding a little bit more capital going forward, not much of a much, just to be honest. But I think we remain very committed to try to distribute the surplus capital as quickly as possible. Okay. Now these are quite small changes. Now it won't solve this picture. Somebody will say this picture is a problem. I would say it's a very pleasant problem. So over the last 3 years, if I ask Tracy describe Momentum, you'll probably say we pay, okay, dividends, we do both buybacks, and we're quite diligent on capital. With all that effort, we're still holding so much more surplus now for 3 years, okay? So we generated capital of ZAR 14 billion. Even with the buybacks, we only deployed ZAR 8 billion. And you see that small ZAR 100 million, green. As we change the business, we actually require less capital. So this accumulation of surplus capital just keeps taking place. It actually tells you the dividend policy is maybe at fault, okay? We're in a situation we're continuously having to think of ways of distributing the surplus. Now this slide, when you have time to look at it -- I actually think we're going to put this in our results from now on. I think you're going to get a lot of good feedback from investors. This is something we do very regularly, which is projected balance sheets. So we have to do this for the regulator, and we use quite a lot internally to think about the business. On the left-hand side, that's Momentum Metropolitan Life. Just projecting the balance sheet for the next 3 years, we get these scenarios. So in dark blue, that's in our current dividend policy. If we pay out 40% of our profit in dividends, in the life company, we end up accumulating more, more capital. We actually end up being further and further above the upper end of the range. On the other hand, at the bottom, if we go to a 67% payout ratio, our capital ratios stop going down, which is not going to be one. When we do our dividend policy analysis, we are trying to solve for stable capital ratios going forward, okay? Now this work still needs to be finalized, but it tells you immediately that the current dividend policy both at Holdco and Lifeco, we end up every couple of years with a surplus capital, which they need to be dealt with. Whereas if we go to, let's say, 1.5 cover, maybe ratios start pointing in the wrong direction. So the answer is going to be somewhere, I think, roughly 50%, okay? So that's where we are with this work. I think we are what 99% convinced that we'll get this completed by year-end. So we will then announce updated dividend policy at year-end. Okay. So I think this is maybe one of the bigger work streams within the capital management area. Okay. Next steps, things we're working on. So we will finalize the dividend policy for year-end. We have affirmed the MML solvency target of 1.6 to 2x. The group is changing, though. Guardrisk is growing faster than the life company. And Guardrisk can run on lower capital ratios than the life business because of the nature of operations. Remember, the risk is also shared with the clients in Guardrisk. So there's a reason, there's a rational economic reason why you can run at a lower capital ratio. So as the weighting of Guardrisk increases, we can maybe cut the group target ratio a little bit. It's not really a change in individual business unit level target. It's more about the changing mixture of the group. We started the buyback program in May. We're doing a structured buyback program. It took a little bit longer to put into place than we expected, but that's going on at the moment. We have also started working on the Africa capital optimization. There's 2 work streams to it. One thing is to make sure that the asset liability measurement in Africa is consistent with South Africa as much as possible. So there have been pockets in the African countries where our liability valuation has been maybe a little bit more conservative than in South Africa. So just by harmonizing that, we're creating NAV in some of the African countries. And the second part is viewing whether our policy at the moment of having the Africa subs capitalized at a stand-alone level makes perfect sense. We could rather maybe capitalize them lower with an informal backing of the parent. So in South Africa, we tend to run using the risk guys talk. We have a fat parent and thin children. In Africa, we have fat parent in South Africa and plumb kids in the country. So we might be able to run the Africa operations at a lower capital ratios. Okay. So that work is also going quite well. The other piece of work that is interesting, I see I just run out of time, but not far behind. Something we continue to refine is how we allocate capital across businesses and across product lines. Now it's important to get right because if you make decisions using return on capital and payback periods and IRRs, you need to make sure the measurements are right to make the right decisions. So there's internal refinement of how we measure returns on capital at ever smaller slices to help with decision-making. And the final point I'll make is, this will never end, okay, I think as we get through these cycles, we will then think about, is there anything else we can do? I mean, I haven't even touched on topics like reinsurance today. I haven't touched on topics like -- we have contractual rights to reprice to what degree can we use that in our capital modeling and stuff. I think this is an area where work continues. I think the one thing I would say, though, is every time we do this work, it's very rare we find areas where we think we're undercapitalized. So generally, as we expand on this work, we realize that the life companies can be run a little bit more efficiently. And it ties up with history as well. I had an interview recently where I said, we went through a global pandemic as a big life company and not one was I worried about anything, okay? Same time, we have market movements of 10% today. And we're like, okay, there's ZAR 800 million payment on derivatives, they're fine, okay, easy. I think we tend to be very well capitalized historically. So it ties up to the theoretical work of saying that every time we tweak things, we believe we can operate on less capital. Okay. That brings me to the end of my presentation. That would have been, by far, the most technical presentation today, I hope. So enjoy the rest of the day. And I think Lulama is up next.

Thanks, Risto. Okay. Good morning, everyone. I'm here to do an introduction. The first presentation in terms of businesses today will be Aditya Birla Health Insurance. We're fortunate to have Mayank here with us in person, so he'll be presenting on the business. It's an exciting business for us, having gone into India and started that business about 8 years ago. And now it is one of the fastest growing stand-alone health insurers in the country and sitting at a market share of about 12%. It's really a great achievement, and we're really excited about that business and its prospects going forward. It's now taking up a very meaningful space in the Momentum Group portfolio and represents a key area of geographic diversification in one of the world's most exciting markets and really sought after investment destinations as well. So I think having been there and having entranced ourselves in the business is really a great achievement, and we continue to grow that business going forward. As a group, we continue to invest. So we've continued to invest our own capabilities, our expertise in terms of health, in terms of wellness proposition to support the business in developing its health first strategy, which is a market-leading strategy in India at the moment. And our goal is to continue to entrench our position and to grow and achieve scale so that by the time competitors catch up with us, we've managed to achieve reasonable scale in a market that is a tough one to crack. As a shareholder, the things that we hold the business accountable for and that we continue monitoring and tracking is, one, maintaining our competitive advantage, continuing to extend new propositions and to keep, protect that competitive moat that we've developed for ourselves. Two, growth, which is critical for scale in that market, continuing to grow the business in terms of sales and volumes. And then lastly, profitability. So in recent periods you've heard us talk about the claims ratio, key focus has been on that. Key focus on expense of management regulatory requirements, and that's been in progress. So profitability has been a key one. But as Jeanette mentioned earlier, we have achieved breakeven this year, which has been a great achievement. Probably worth mentioning is the strategic partnership and the importance that has had for us in making the success that we had in that business. So Aditya Birla Group has been an amazing partner. We've been really fortunate to have a partner which is well respected in the industry, in the market, in the country, but also very much aligned in terms of strategy, in terms of values as well, which has meant that together, we have clear goals in terms of how we grow the business. We both brought our relative strength. We're also fortunate for Mayank to have the Aditya Birla Capital business there that they can partner with and leverage off for the growth of the business, and that's been excellent as well. And so they are the present parent who's actively supporting the business and driving growth there, which has been very useful for us as well. And we'll see later on when Lawrence presents that the partnership with Aditya Birla Group is now beyond just health. So we are looking at introducing Cell Captive Business, Guardrisk Business in that market. So exciting opportunity as well that we are continuing to see how we can leverage off and grow our partnership there as well. And lastly, I mean, the business is ably led by really strong executives that have a strong track record for delivery and execution, and they've done that really well and have had a really great vision for the business, which has brought us this far and the runway is really still very good and very strong. So with that, I will hand you over to Mayank Bathwal, the CEO of Aditya Birla Health Insurance.

Good morning. Firstly, thank you, Jeanette, to give us an opportunity to come and present the story of the Indian business, which I am very thrilled to present on behalf of 7,000-plus large team that is working every day to build a very interesting franchise in a very interesting industry. And by the way, I'm sure by the end of this you'll realize that when Risto says he has the largest or a very large allocation to India he is doing the right thing, by doing that. So since I'm talking to you for the first time, I know I'll just take a few seconds to talk about the India story. As you know, India -- just about a month back, we became the fourth largest economy in the world. Quarter 4 or rather we -- our fiscal year runs from April to March. So quarter 4 Jan to March, we grew at 7.4%, which means 6.5% for the year, the fastest-growing large economy in the world today. And lots is happening in the country structurally. It's a busy slide. Let me pick up 1 or 2 of them. Firstly, a country of 1.4 billion people, a large business ecosystem, a lot of formalization is happening and also digitization. So for example, I don't know how many of you heard of unified payment interface, where about 17.9 billion transactions are happening in a month. And now we're kind of looking at exporting it globally, that whole capability to many other countries. One thing which is unique about India is unlike what you see in other parts of the world, the government helps in building what is called digital public infrastructure, which is available free of cost to individuals and businesses to leverage and build capabilities on top of that which actually really democratizes the access to digital capabilities for businesses, including businesses like us. Of course, all of you, I'm sure, you have heard enough about the dividend. India has 65% of its population less than 35 years of age. So we will remain young for a very long time to come. The other big shift that is happening in India is financialization of the economy. Till about 15 years back, for example, a lot of the savings will go into physical assets like gold, real estate. But in the last 15 years-or-so, a lot of that is moving into more financial part of the economy. For example, if you see in this slide, mutual fund is, over the last 25 years, has become 23x the AUM. Credit, access to credit, whether it's personal credit or it is about institutional credits, all of them have grown like in excess of 25x. And in insurance, the government of India has taken a clear task and the regulator have been tasked with Insurance for all by 2047. 2047 is when we complete 100 years of our independence. And so therefore, that is the big agenda on -- in play right now and in the country. As far as health insurance industry is concerned, today, it is by far the fastest-growing segment in the financial services industry in India. There is a whole mandate by the Government of India to again provide access to health care to 100% of our citizens. And they have -- India has the largest health care funding scheme in the world by the government -- by any government about 600 million people of their health care cost is funded by the government. But there are 800 million people who still have to find a way to finance and health insurance is going to be the primary way of funding that cost. And there are many categories of health insurance providers. Stand-alone health insurance, SAHI, as we say, it's monoline health insurance. We are one of them. Their whole focus is only on this category. So if you see on the -- to my right-hand side, where more and more kind of newer entrants are coming up, it's in the monoline health insurance category, which means that investors are finding this a very interesting category to invest. They are continuing to grow ahead of all other category of health insurance providers, which means that competitive intensity will increase, but we don't need to worry about competitive intensity in a market where today penetration is so low. Because to my mind, newer entrants mean some newer white spaces will be opened up and which is good for the entire industry. And what puts us in a very different position is what I'm going to cover about when I talk about our own model, which is very unique, which is very differentiated a lot through leverage of some of the capability that as Lulama said, brought by the Momentum business in South Africa, but we've heavily Indianized it, and I'll talk about that. Today, the health insurance business of ours is actually the 3 shareholders, the Aditya Birla Group, Momentum, and I'll talk about ADIA. ADIA actually came in -- as you saw, as you know, Abu Dhabi Investment Authority, one of the largest sovereign fund in the world. And I'm going to talk about that later and why that is very important for us. But what is important to note here is Aditya Birla Group as one of the key shareholders because if you talk about trust, in a brand with trust in India, this kind of figures right at the top and you talk to an Indian, we don't -- I mean, doors open up when we go and talk to individuals, institutions and so on and so forth. So that's a unique advantage to have for any business in India. When we started operations way back in end of 2016, well before that, we were very clear that we must have a reason to exist. And that is what was answered by this purpose of ours, which is empowering people to lead healthier lives. So it's not just about a fancy statement to make. But if you talk to any employee at Aditya Health Insurance, what is unique about this organization? They'll talk about this line. So we find ways to people live this every day. And so that when they go out and talk to consumers, they're talking this in true sense. This is what -- how we kind of interact with consumers. This is what we promise to our consumers, and I'll -- again, I'll talk about the reason to believe in subsequent slides. India, again, when we started the business way back, it's a unique market, large size. But traditionally, it has been what I call sickness funding model which is unique because it has mainly inpatient hospitalization expense coverage, not too much of outpatient coverage, even though outpatient is about 55% to 60% of the health care cost, which means that there is a very low level of consumer engagement, about 6% to 8% of consumers will claim in a year. And the -- culturally, India is not yet a big protection market. So the belief that I must protect is very low. And therefore, when we came into the country with the model, we were very clear that we will have a very differential model because there are 2 unique things about the regulatory regime in India. One, there's lifelong guaranteed renewability for a consumer, which means there's only one time underwriting opportunity. Two, you cannot reprice differently for a claiming customer than a nonclaiming customer. You have to price by the cohort to which customers will belong to. And which means that traditional model, which were very reactive, wait for a claim to happen, we'll start having problem as their in-force book grows. It creates an inherent antiselection bias. And so we were very clear that we have to kind of take that head-on because one thing is very clear. There's a complete alignment of consumers' interest of staying healthy, institutions interest of keeping the consumer healthy, because consumer is healthy, your business is healthy, straightforward. And we're wondering why has the industry not going to leverage that kind of clear possibility. And so we call ourselves India's first health first data-driven, digitally powered health insurance company. And I'll talk about that in more detail. Our language of communication with consumers is a language of good health. We don't use a language of fear. We have in test -- told all the time, insurance is about scaring consumers to buy that. We say, no. If that was the case, the penetration will not be what it is in India. And therefore, we have to talk about -- talk in the language which will actually make sense to consumers and especially the younger consumers. As I said, that's a large opportunity. So our whole model is built around, I'm sure you've heard about it, know your health, improve your health, get rewarded, but if something happens, stay protected. And so all our capabilities are built around this. So we say we sell 2 promises to consumers. We'll partner with you in your journey of good health. And if something happens a promise of insurance will, of course, stay. So now let's see what has been our journey so far. Multiple milestones that we have covered over the last many years, whether it's innovation and product bringing newer distribution categories into insurance. Of course, financial outcomes over the last 8 years, we continue to be the fastest-growing health insurance company in India over the last 8 years, more or less through and through with clearly demonstrated superior unit economics. But I think the big one for us was when we decided to -- both shareholders don't need fresh capital from our side. So when we looked at getting an external shareholder it was more to kind of validate are we on the right track? So when ADIA came in end of 2022, that transaction is still the highest valuation multiple that any health insurance company in India has ever got including recent transactions. So that was just a reflection of the quality of franchise that we have built and will continue to build in the future as well. Just this is a trajectory of our growth. We completed 8 full financial year in March of '25. Just look at the difference between us and the closest player at similar stages of operation, more than 2x time. So clearly, the pace of growth, but that's not the only thing which is important, of course, because you can grow, but what about profitability. It has a unique regulatory regime in terms of where accounting happens. The faster you grow, the more the new business strain, the way accounting works. And therefore, at our pace of growth, sometimes profitability might be difficult, not because the unit economics are bad, but because accounting profits don't tend to emerge as soon as you would typically like to see as a shareholder. But still, we are one of the fastest, I think, just a year more than any other health insurance company, even though we're growing at this pace. We are now close -- I think in next 2 years, we are likely to shift to IFRS when the whole profit kind of emergence will be very different as per our initial estimates than what we see in the current regime. So of course, consistently adding market share today amongst the monoline players, 12.6% share. I think India is a market of scale at 1.4 billion people, you cannot afford to be a niche player and be valuable in India. It is absolutely critical, high volume. And therefore, business where distribution is very important because you have to be where the consumer is, our strategy has been very clear that we will like to be where the consumer is, wherever they are. If they prefer access through agents, we have about 140,000 individual agents selling for us. We have about 20 banks working -- selling for us, including the largest private sector banks in India. We have Policy Bazaar, which is the largest web aggregator in the world in terms of selling insurance. And we are the #1 player on that platform. It is as open architecture as it can get to be. We ended last year as the #1 player on their platform. But what is unique is because digital is now where the consumers are. I'll just give you one example, Ola, which is a ride hailing, like Uber-equivalent in India. During COVID, we were selling 200,000 coverages a day of ride assurance to cover -- we innovated along with Ola. So all kind of offerings, but what is important is sell what the consumers need and where they need. That is our kind of mantra of how you can really scale up. Let me just quickly talk about last year's performance, FY '25, which is April '24 to March '25. We ended the year -- we crossed 2 very important milestones. I think Jeanette mentioned Risto mentioned, the biggest one for us was profitability, breakeven. And even though there were multiple regulatory changes on the accounting side, which actually made the emergence of profit even more difficult last year. Even in spite of that, the team really worked hard to make that milestone be achieved. And what gives us that comfort is that from now on, when we seek capital, we are seeking capital purely for growth, not to fund our losses. I think that's a very important shift in any business's history. But the other big one was that we crossed the INR 50 billion top line kind of milestone at about that INR 50 billion milestone, you are really in the big boys league. It's a very large-sized health insurance franchise in India at that scale and size and growing at more than 40% as per the old accounting regime, more than 2x the average industry growth rate. So well ahead of where the industry is. And I think the combined ratio is a metric of how well are you moving towards profitability. All of those metrics looking extremely positive in terms of the trending that we would like to see. As I spoke to you about the -- just the diversified distribution mix that we have is very critical because it removes concentration risk in a country where regulatory action is happening very fast. You never know at what point of time which part of your business might be impacted by regulation. We are the most diversified distribution franchise from an insurance perspective in the country today. And what is important is if you see the growth rate last year, the least growth rate was 30% for any channel. I think it just shows the way we have not only ensured that we have large mix of distribution, but how for each distribution model, what is our approach to make them successful. And I'll talk about some of them in subsequent slides. To make our performance sustainable as a team about a year back, we revisited, what we call our right to win pillars, what will give us a right to win in a highly competitive environment in future. We have 5 of them. I spoke to you about purpose, customer obsession, data digital, people first because it's a people business, and our model requires that focus even more than any other business. But what is the unique thing about the way we execute, which we'll call the ABHI way of execution. Our model. I spoke to you about that about 6% to 8% of people will get a claim. In our case, in addition to that, 9% of our eligible consumers get some benefit from good health. Of course, and I'm sure you've heard the word health returns because there's an Indian version of that in our business. It means that there's so many more consumers who are actually engaging with us than typically what any other health insurance company, which gives us access to data, and I'll talk about what we are doing with that. And therefore, it means that the stickiness of these consumers will be a lot more than traditionally what you see in the industry because these set of 9%, for example, consumers have much better persistency, but more importantly, significantly better claims ratio for obvious reason. And what this model actually does is it creates a selection bias in the favor of our business, because consumers who typically have good health situation would -- when traditional businesses talk to them, they say, why should I buy because I don't see myself in the hospital because that's when you pay me a claim. And it is just completely different in our kind of model because we say, you want to have good health, we'll work with you in that journey. And if something happens insurances in any case there. But by the way, we reward you for good health. We have the only product probably in the world where consumers can get their 100% of the premium back for good health. And people ask me, how will you make money? I say that much lower than what you pay for actually a claim event. So I'd rather pay the premium back than actually a claim back to a consumer. These are just some metrics, as I said, much lower loss ratios for consumers who are engaging with us on health and much better persistency. What -- because we have access to large volume of data, we've created an intellectual property around risk scoring our consumers. So there's a score called well-being score. So all our consumers that get health -- access to that health data. We give them a personal health risk score called wellbeing score. There's a whole team of health management specialists who are looking at that, they stratify consumers into high, medium, low. For high health risk consumers, they're constantly engaging with them and intervening to find ways through our own team and to a whole set of partners. Good news is that digital health has become very pervasive today. I mean consumers are willing to access and take -- kind of use of digital health, and we are leveraging that kind of trend very significantly. So there's a large part of set of partners in the area of health tech that we create and then we work with them. So even those consumers who have high health risk, the intervened people who are kind of willing to allow us to help them deal with that versus nonintervene much better outcomes. In fact, last year, we saved for example, 10,000 potential events of hospitalization just because of that set of interventions. Consumer obsession, there are some metrics that are important in the Indian landscape in terms of claims settlement ratios, consumer grievances, Net Promoter Score, et cetera. But what -- there's a lot behind this. In a country of 1.4 billion people, you can get lost as a business. So it's very important to know where you will focus on. I heard Jeanette talk about focus on where you can control or where you have the right to win. Similar for us. So we have kind of leveraged and used our existing data, but also behavior science and neuroscience, along with the firm because health is not a logical way. I mean everyone sitting in this room has a very different definition of health nothing unique -- different in India as well. So how do you leverage that emerging science of how consumers behave not logically always. And we have done segmentation of consumers, and we have decided which set of consumers to focus on and build all our capabilities and have what I call an unfair share of that market by fair means. And that's very important given the governance standards that we have as a group. Of course, product -- if you talk to anyone in the Indian ecosystem and they say product, which insurance company comes to mind, by far, they'll say, Aditya Birla Health Insurance. Because one of the things that we've always kind of attempted to put in place in the organization is experiment, find ways don't -- just because some things have happened in a certain way, try out different product offerings, try out -- experiment. And you can -- I mean, if something doesn't work, cut your losses fast, but a few things will really work just scale them up. So we have some unique offerings all facets for different consumer segments. Whilst we'll focus on some segments, but we are a player with national aspirations. So we need to have products for the entire spectrum, even though we kind of put our effort and energy in some of them, including both retail and corporate. Corporate market, for those of you who have looked at in the Indian market, it's traditionally loss-making in India. We are probably the only health insurance company in India, which actually makes profit in the corporate side because of our unique ability to design the right product, the benefit structure and of course, then execute with rigor and diligence including last year as well, right? And so all kind of offerings at the largest corporate insurance in the outpatient expenses space in India, for example. And we are now -- because we've got success in the retail part of the business and the whole health-first model, there's a clear shift in the corporate area also, and we are taking that model in the corporate landscape as well, which we feel will be another category creation effort that we'll do in the next 2, 3 years. Digital, our consumer app, I'm not sure you can use, but I think you can. If you download our consumer has active health, it's actually a product in itself. So now we have started acquiring consumers. It's a app. You can access some of the benefits without having access to our full-fledged health insurance products and that has become a customer acquisition engine for us. And it gives us access to data as well for those consumers. In fact, just on a couple of data points. An average consumer spends about 79 minutes per month on our app. You wouldn't connect this data for an insurance company app, right? And so which means that consumers are finding engagement with us very, very relevant to them in today's environment. And so our app has really become a health and wellness ecosystem. We're now building many unique capabilities constantly on them, 4.7 star rating as we speak. Nothing can be at scale if you have high scale engagement aspiration. Our health-first model has very, very high scale engagement kind of need, and therefore, digital becomes a very big imperative in the way you build a business. We've invested in this from the very beginning today. These are some of the metrics. I'll not go through each one of them, just 1 or 2, 90% of consumer transactions are self-served digitally, call center and coming to branches, et cetera, are just 10%. And that is also kind of reducing as we speak virtually every quarter. And the whole consumer lifecycle, we give -- we leave the choice for the consumer. I mean, of course, they can come and have face-to-face interaction with us, but we make that digital interaction so convenient that they rather prefer that than coming and interacting with us in-person or even a call. And of course, it does 2 things, it reduces cost dramatically, but also increases experience equally dramatically because the consumer is doing at their choice in the way they want to. Data and -- I'll use 2 or 3 examples to kind of just -- we have about 5,000-plus frontline salespeople. We know exactly what our frontline sales person is doing every day. How many clients did they meet, what was the quality of -- because we have -- we take feedback from clients on a sample basis. And what it does is that it helps us in personal intervention for each of our frontline salespeople. It's the issue of discipline, early action. It's the issue of training, very personal training intervention. This person needs training in how to recruit agents. This person needs training in how to sell this particular product and so on and so forth, now that certainly changes our ability to intervene and improve productivity of our salespeople at a very different scale because people do like personal intervention, don't put me in a segment, don't put me in a cohort, talk to me about what is relevant to me, right, as an individual. Claims. Unlike what you see in India -- sorry, in South Africa, where 5 chains of hospitals are probably covering a majority of your treatment; at 12,000 hospitals in our network, it's still small. It's a very fragmented environment. Documents are flowing through different portals, not necessarily the way data flows in your environment. And so we are today leveraging AI and kind of ML capabilities and now GenAI to kind of process claims in seconds versus hours that it used to take. And we're already processing about 40-odd percent of our claims kind of virtually auto adjudication and that process is going to be further scaled up as I speak. Health is a subject. So any engagement of ours is now going through an engine, which we call hyper-personalized engagement engine. So we've already put about 50% of our engagement framework in that. But in the next 6 months, we'll put 100%, which means the system will say at this point of time, what must to engage with this customer for what reason, through what medium, with what content, and the system will throw that, right? And all of that will make the consumer engagement process and framework extremely relevant for every consumer, again, with all other related benefits that you can think of. So -- and we are leveraging -- we have a Chief Data Officer, probably the only health insurance company to have that because of the way our business is structured, leveraging GenAI, conversational AI to even Agentic AI as we speak. For example, we are right now in the process of building Agentic AI capability to do complete sales process humanless. And so that's one project right now in way. And there are many others I can talk about separately if time permits. This is our team. I think what I take pride in is the diversity. People come from very varied background because our model is so unique. So right from consumer industry background to health tech entrepreneurs to banking, and so in fact, internally, they say that I have a bias, if anyone is from health insurance industry more likely than not, you'll not be recruited because I say you have an inherent bias which will not work in the model that we want to take to the business. I mean, I can't be -- we do have people who really smart and experts in that. But -- and the other thing is that because I said people first, from managers more than anything else are evaluated on this one metric of how are you making your people successful? Wherever there is concentration of performance those managers will find it difficult to grow in our organization, where there is a spread of performance, those managers will really grow very well because your job is to actually grow your people. If anyone has joined the Aditya Birla Health Insurance brand, it is your responsibility to make them successful. And I think that's the culture we constantly build. And we are lucky that we have the frameworks which come from the larger Aditya Birla Group in the Indian context because that's very, very unique. Execution I think agility speed is a very important part of that, but also the way we are structured. So while there is a formal structure for any key strategic initiative, we quickly regroup. So at any point of time, there will be at least 15 or 20 squads which are working on specific projects. People will just come together and they're empowered to kind of drive that agenda. Similarly, P&L kind of organization. I'll just take a minute more, I know that I've crossed. So everyone is kind of trained on economics of the business so that they can take much better quality decision because we believe that, that does help in the way they take decisions. I think I've covered most of them very -- growth rate much faster than industry. We cover about 22 million lives today in the country. But you see the kind of composition is constantly changing, where we feel there's more money to be made is where we'll continue to kind of invest and grow our franchise. And of course, profitability is an important criteria that we'll constantly work on. And from here on, I think the fact that we have broken even, the focus on that will only increase as I speak. I'll skip these numbers. I think they are there for you to look at it. And lastly, I think it's a very exciting market with lots of opportunities. The question is, do you have the right strategy and the ability to execute it kind of make sense of what your strategy can deliver. And I think -- so we'll continue to grow ahead of market. I have no -- I'm absolutely confident of that. But also our model -- and therefore, what comes with that model, which is superior unit economics will actually let us stay ahead of where competition is in time to come. Thank you so much.

That was a very insightful first session, I think going from just high level where we are with our strategy and how we performed against our strategy which Jeanette gave to us the focus on how we're unlocking our businesses and their potential, their focus on advisers and how we're optimizing the business, and then Risto went on to speak about cost optimization and capital management, always a topic of interest when we are on road shows. So I'm sure there'll be lots of questions on that. And then Mayank, Lulama congratulations on the first breakeven, a question that we've had to answer many a time when is breakeven? When is breakeven coming? And finally, today, we're here. So congratulations on that. And I think just that the capital allocation to India also quite topical. And thank you for reiterating that we are capitalizing for growth rather than a loss-making business. So well done on that. And with that, ladies and gentlemen, I'm going to start Q&A. We'll get started in the room and then move on to the website.

There's no question here in front.

Just a question. Risto, you made a point on the -- Matthew from Laurium Capital. Risto, you made a point around the cost-cutting is almost to kind of protect the in-force profits. You mentioned that you have shrinking policyholder count in certain books. Maybe if you could just discuss where exactly in the business is that happening? And why? Is it market reduction? Or is it market share reduction? So is it a question that comes back to VNB as a solving point?

Yes. So I think -- if I think of market share in Momentum Retail, we're definitely gaining a bit of market share, both protection and savings. I think in Metropolitan, we may be gaining market share in savings, but maybe losing a bit in funeral. I think in corporate, it's quite steady. And the investments, I think our market share annuities is very strong. Some of the areas where our market shares bit low like mutual funds that's not affected by book shrink accounting. I think we have some close books like a lot the big insurers have. I would say the biggest area is savings in Metropolitan and in the close booking Momentum. Those are the areas where our policy count is going backwards. We probably need to keep expenses at 0 at most in those areas. I sort of mentioned in our presentation that the actuarial team did a presentation to me recently where Momentum Metropolitan Life, which is the South African legal entity that houses most of these operations. We probably need to keep the cost growth to between 3% and 4% to keep to our current unit cost assumptions in our models. Now VNB obviously, a little bit of a savings relate to distribution, and that will drop straight into VNB metrics. So let's say out of 1 billion less taxes, 700 million, maybe 160 million, 170 million is VNB related. So it's a big help of VNB. It doesn't get our margin maybe to the top of the industry, but it certainly gets us closer to the 1%. Yes, I think the other thing I learned on this project is, the world is ever-changing. So I use Dumo as an example, but almost every business unit, because we're putting a lot of pressure on them, keep saying that something new has happened. There's a new technology, new regulations. At the same time, sometimes you need to cut fees in some products. So all of a sudden, like, you think in this business unit, 2% gross growth is great, and then you cut fees, all of a sudden it's minus 2. I think the message I wanted to get across was this helps us, it's ZAR 1 billion of real savings. It's ZAR 700 million times 10, it's a ZAR 7 billion project, but it's maybe ZAR 7 billion of value saved rather than added.

And so obviously, getting the VNB up to 1%, part of that is distribution cost. Maybe getting it into 1.5%, 2% is more probably unit growth in sales and that's more productivity. Does that not then solve this cost question, does the 3%, 4% in a required level then give you a bit of breathing?

But you must also remember we have -- on the retail side, we maybe have 2.5 million, 3 million policies. I don't see the unit growth being so that we can grow expenses at 6 or 7, that's impossible. I think maybe 3 to 4 becomes 4 to 5. Growth alone is not going to solve the problem. Jeanette said that we keep saying it's between 1% and 2%. I think at the moment, I think we'll be quite happy at the midpoint of the range. Business mix has an impact as well. So one thing especially in life insurance is the cost of distribution is set by regulation largely on the commission side. Now some products with good margins like annuities have low regulated commissions that makes them very attractive. Then you have some products like long-term savings, commissions are quite high, but the economics are quite weak. So the regulatory commissions almost compounds the difference in margins on products. So we have product margins ranging from 8% to minus 4%. So your mix is a massive impact on whether we get to 1 or 2. But I think on the current mix, 1.5 is a good outcome.

Thank you, Matthew. Marius, I see you've got a mic already.

Yes. Marius Strydom from ALG. My questions are for Mayank. My first question is, what is your market share fresh GWP? And my second question is, can you please explain the in a little bit more to us? And particularly why that would impact GWP as I understand it to be a reserving requirement?

Yes. So unfortunately, whilst the -- by the current reporting and disclosure guidelines, they don't report the fresh and renewal separately. But the fact that our market share is at 12.6% for the total business, and many of our competitors have actually been in business for much longer tenure than us, including the largest one having started about 10 years back. My sense is that our market share in fresh will be in excess of 25%, but we don't exactly have the business. I think it's somewhere in that range. But we can get back to you a bit more specific, and that's important to you separately. On your second -- on your second -- one by one I'm sorry, it's a complex subject. So it's the way the accounting -- the reserving happens in India. So what they did is for businesses which are multiyear. So we write single-year, we write 2 year, 3 year, we are allowed to write up to 3-year business. They said that earlier, the entire 3-year business will be accounted for in the first year itself. So let's say I do INR 300 premium for 3-year the entire INR 300 rupee will be accounted for in the first year itself. In the midterm, from first of October 2024, they said that you'll have to account only for that particular year, which means that if the tenure is 3 years, 1 by end, which means 1/3 of that INR 100 will be accounted for in the first year. So what you see, therefore, sales, while sales is at more than 52 billion, but the accounting of that is lower because of -- I can't account the balance to 100. And what it also does is that it actually not only reduces our top line but also has a negative impact on the profitability. So if you see, as per the earlier accounting regime, we would have made INR 750 million profit but it reduces to about 6.5 million -- sorry, INR 65 million because of the new regime. Now the unit economics have not changed. Is just that the difference between 750 and 65 will emerge will unwind in the next couple of years. So the profit still remains in the books. But the way you are allowed to account for it and recognize that profit kind of that changes.

All right. So that -- also that 33% GWP growth has been understated. It's a one-off impact after that you should revert to potentially a higher GWP growth again?

Yes. On a sales like-to-like basis, our growth was 42.5% last year.

Also, Marius, maybe just to add to that. The other important regulation on the multiyear was we can -- pay commission for all 3 years upfront. I think we're now pay commission equally across the 3 years -- so that -- we were worried that's going to have a sales impact as well because of lower effective upfront comp. But as far as I remember, you guys launched quite a few rider benefits to sort of make up for lack of upfront comp on the core product, so you could get the comp on the riders. I'm wondering that's because in because we thought probably not. I mean...

Yes. I mean when it happened, it happened so suddenly, and that we were expecting a much larger impact. But I think the team really rallied behind came up with different product options, et cetera, kind of negate to a very large extent, the impact of that at least on the sales side. Even on the profitability, we came up with products where we added some riders, option benefits, et cetera, to kind of still find a way to increase the profit margin on our products. But we are, as I said, in about 1st March -- 1st April '27. So '27-'28 is a year in which, as per the current expectation, we are likely to move to IFRS. There a very big shift will happen, which is deferred acquisition cost. So the whole cost today, the whole acquisition cost today is accounted in the year in which we pay, whereas in IFRS, it will be. So the whole emergence of profit will change in that regime. We are still in the process of closing that. So we'll come back as we do that.

Warwick Bam from RMB Morgan Stanley. Just continuing that conversation, Mayank. Just to give us a sense, the capital intensity of the business? I mean, can we assume that because it's a breakeven in some of the new business strain is rolling over like you're suggesting that the capital needs of the business from a shareholder point of view, will there need to be more capital calls down the line? Is it very dependent on growth? Is it also dependent on mix between corporate and retail. That's also been an important factor in the past, and then you can start there.

Yes. I mean, as I said that because we are now profitable, so we don't need capital to fund losses. So that part of the equation is out now. Therefore, what left is profit -- sorry, capital for growth. And as an operating team, I mean, our job is to make sure that we create an ability both at design and execution level to continue to be able to grow ahead of market. After that, it's a constant conversation with the shareholders on what would they want our growth aspiration to be in the context of where the market is giving us. For example, if we are continuing to grow so far ahead of the market, continuing to show superior unit economics, then the question that, as an operating team, will continue to ask the shareholders is can you tell us what your capital allocation appetite is and the kind of reorient our growth strategy in that context, both in retail and group. In fact, as I said, in corporate business, we are either only 1 or we are probably 1 of 2, which makes profit. And so I don't expect a very large capital requirement now, but we'll continue to put before the shareholders growth opportunities and then have conversations and then decide what that actual capital requirements should be going forward.

Warwick, in our capital budgeting, we align for about [ ZAR 500 million ] over the next 2 years. That's based on quite high growth. It's interesting one because I sort of jokingly say that it's a big capital commitment. But at the same time, one of the biggest frustrations me and Jeanette have is there's a shortage of capital projects. We could -- we committed to giving money back to shareholders if we can't deploy it, but we do believe that India is an attractive investment option. So I suppose we're glad in a way that there's 1 or 2 areas of the group that actually demands capital.

And then sorry, just one more just on -- are they committed long-term shareholders? Or do they have a specific time horizon?

I mean as a sovereign fund, they are definitely more long term than any private equity fund. But of course, they do have kind of a time frame in mind. They are happy at this stage to stay, continue as an investor. There's no specific time line they have mentioned. But I mean, my sense is that in next 3, 4 years, we'll expect some transaction for that.

Thanks for that, Warwick. While the mic moves to Tracy just going to ask an online question. It's from [ Cameron Naidu from Absa ] and he says, regarding the Africa optimization pillar, is there any consideration being given to potential market exits where the underlying performance is dragging returns rather than the capital deployment?

Can we maybe leave Lulama who's presenting on that to answer it and if there's another question after that, Lulama is actually here representing India at the moment. But post the Africa presentation, if you feel we haven't answered your question. Otherwise, we're going to give an answer now that we're actually presenting on lately. That's okay.

That's fine. Thank you. Tracy?

It's Tracy from Coronation. I just wanted to follow up on the Indian operations. It's obviously a very exciting opportunity. Could you give us an idea -- I mean, you give us a combined ratio, I think it was 105 or 102 depending which basis -- just the sort of split between claims ratio and your cost ratio. And then if I look, you've had very strong growth in corporate over the last couple of years, and a large part of that is being driven by trying to get your cost ratio down to meet the regulatory requirements. So kind of where are you now meeting it? And now that you -- if you are meeting it, what would be your strategy going forward? Because my understanding of retail is obviously a lot more profitable than the corporate book in time. So if you could give me a sense of that?

Yes. So if I can just rephrase just to clearly understand. You're saying what will be our strategy in terms of the mix...

I guess I'm just trying to understand the sort of dynamics of the various mix. So you've got a combined ratio of 105%. What does that sort of segment? And how do you see it going forward? And kind of where is your growth aspirations in terms of it carrying on in corporate or is it trying to expand more into retail trying to understand that dynamic?

Yes. Okay. So we have disclosed actually. Our combined ratio for our corporate business is 99%. So it's already less than 100%. And so unlike the common understanding in the Indian market that corporate business is actually less profitable than retail, we're actually to the surprise of most of the participants in the industry, demonstrating that, that's not necessarily the case. And there is also a trend that we are seeing in India where there is more and more health insurance to the corporate route because as the economy is becoming more formalized, corporates are including what we call the SME space, they are kind of offering some of these benefits. Having said that, we'll continue to grow ahead of market in retail. In retail, I think the -- from a profit emergence perspective, one thing which is very different from corporate is the relatively much higher acquisition cost. So even in a deferred acquisition cost regime in IFRS, it will still be much larger than what you've seen in group. And in a market which is highly competitive, where even portability, et cetera, is allowed. You need to continue to kind of not only do the right thing when you're acquiring the consumer, but also continuing to kind of leverage the kind of model that we have to retain those consumers. So in summary, what I'm saying is that at this point of time, the way we look at the market is that we will continue to grow our retail franchise. On the corporate side, as long as we can demonstrate much better profit signature, we will continue to grow that because it is less capital intensive as well than retail.

Okay. And sorry, so just have you met the 35% ratio requirement...

Yes. So this is the current year, '25-'26 is where we are supposed to, and we are well on track to meet that requirement of the regulation.

And then when I checked a lot of your peers in India, I mean one of the -- one area that they're most worried about is allowing life companies to sell health insurance, mainly because they've got very good distribution and agency, and they think it will be a good fit kind of within to help a natural extension. So what is your view on that? And how do you think it would affect your business, if it does go through?

Yes. See, actually, as I said earlier, very briefly, competition is going to come. It's going to come from life insurance, assuming that this law passes of composite licensing regime. I mean I don't know when they'll take it at the Parliament, but assuming it happens soon, it will come from other newer entrants. If you saw the -- so I think we have to be prepared for competition for sure. I mean we can't be complacent about what we've achieved so far. But having said that, and having spent 15 years in life insurance industry. And I can tell you that just by leveraging distribution, it's not going to work because health insurance is not another product line. it's another business line. And what most of my colleagues in the life insurance industry are missing this very subtle, but very important difference and I joke with my colleagues, including our life insurance company CEO that we'll welcome you to the health insurance industry. You want us to teach you how to health insurance industry we'll tell you that as well. But come and try and execute that. Then you'll realize how painful is it to kind of really operate the way you need to. But jokes aside, 55 million people are covered with retail lives in India, pure retail lives. So we don't need to worry about competition in such a highly underpenetrated segment. I think if they open up newer segments, good for everyone. We've opened up others can come and copy if they want, they can replicate if they want. But I don't think so that should be a reason to worry, at least we are not. But we're keeping a very close eye on what they can do, continue to build on our right-end pillars and just keep relooking at what we need to do to stay ahead.

Thank you for that. And with that, I think we've come to the end of our Q&A.

As Tokelo mentioned, our Capital Markets Day is a great opportunity for you to engage with our leadership. We certainly are very proud of our people, and I think this gives you a great opportunity as investors to see why we have confidence in them and their teams to deliver to our impact strategy. This next session, we're going to focus on the flag bearers for the Momentum brand and the covered business. I'm not going to hold you back any further in the interest of time. But I would remind you please to drop any questions you can in the Q&A block as we're going along, and then we'll address those after the session because we'll have 15 minutes to address those. We'll first start off with Johann Le Roux, who will talk to our Momentum Retail business, which includes the life operations as well as distribution. He will hand over to Ferdi van Heerden to cover the investments business. And last but not least, Dumo Mbethe to complete the session with Momentum Corporate. Over to you, Johann.

Thank you, for that. Good morning, everybody. It's my privilege to give you feedback on our progress in executing the impact game plan for the Momentum Retail business portfolio, perhaps better said the game plans, I think, of the different domains of businesses within this portfolio. Just a reminder again, why do we exist? Why does Momentum retail exist? It's really just to connect to connect the product and channel ecosystem across the Momentum Group, to help them to achieve their growth and digital business transformation objective. So the theme is connection. In retail, we use it with connection. Collaborate is a smart word in the group strategy, but -- and it really fruits of, I think, such connection that you should look forward to in my presentation. You might recall, I think it was '21 at a previous investor conference, we spoke about the importance of advice-led and digital-led distribution. And now we expected themes of advice and digital really to connect this world. And I think where we are now in June '25, I think we can really start showing you how we're actually doing this in the group. And are we turning this, I believe, in a real competitive reality. So my discussion first and fore most kind of going to stick with the cadence of the 4 blocks. Now you see on the slide or the 4 business domains in the Momentum Retail business portfolio, top left. So it's the Momentum Advice business or advice ecosystem. That's where we support the growth ambitions of consult our group-sponsored independent financial adviser network and momentum financial planning, our agency channel. Both of these businesses have got strong growth ambitions. It's also where we will invest most of our -- target most of our investment in growth currently in the group. We've also added recently to the Momentum advice ecosystem Fin Global. As you know, a business that really focuses on giving advice to clients who wants to immigrate. Last year, I spoke a lot about the radical changes we want to make in this ecosystem, not only at a portfolio level, but then in particular, in MHP. These are all now pretty much done. So we cannot really get onto the front foot. But a big highlight for us, Jeanette spoke to this also in March this year really delivered a massive, but a really impressive technology platform upgrade for advisers and clients and also with that advice management capabilities for this momentum advice business, but I have got a specific slide that I will touch on this later. Top right. our IFA distribution team internally referred to as MDS and Momentum distribution services. Now that really that in partnership with all the product businesses hunting for sales in the independent financial adviser space. India is not an advice business, obviously, but they're in the business of advice as they partner with other independent FHPs out there. They've got a strong advice-led ethos, I think, in their distribution approach, but we spoke about the specialization narrative that underpins their strategies. I think it was critical for us. And yes, we celebrate and shared with you the half year results, also market share gains that this team actually achieved. I do think MBS is the team to beat in this industry at the moment from an IFA distribution perspective. And yes, I will give you some feedback -- exciting feedback on their progress as well later on. Bottom right, not a team we often speak about, it's really an IT shop that digitally connects the, call it, the Momentum Group ecosystem platform for advisers and clients and contact centers they call themselves a Momentum Digital Connect team. I think you can say what's in your name, but Really, it's in partnership with every product and channel business in the group that they managed to land the big platform upgrade for us in March this year. And bottom left, finally, that's really the momentum retail numbers you see in the results. That's a 4 life product business. It's the biggest one, as you know, the protection business, but also in there, our savings business, the merged team that looks after all the traditional products and also momentum Trust. Now the digital ambitions of the product business is well articulated. They want to be the digital leaders, all of them in their respective space. But really 2 big ticket events in this space for us. I've got specific slides on that. Obviously, improvement, you saw the improvement in the life value business that we showed in the half year results. I'll talk a little bit to that. But secondly, Jeanette also mentioned it a massive highlight for us was the big system migration that the merged team really pulled off in partnership with the Metropolitan and Africa team also. Also another project that took us at least 5 years, switching off the final mainframe system in the group that was 50 years old actually. And I think Metropolitan really a great beneficiary or benefactor of that specific initiative, Peter. But it is definitely was the most difficult impressive life policy system migration, I believe in history or South Africa. So yes, our strategic focus at a portfolio level is that a connection. And if you look at those themes, growth transformation, expense rationalization, it all cuts across the value chain. So that's why you actually look at those. Those are the 3 key blocks or the key themes of conversations we have at this retail executive committee. From a cost optimization perspective, just a few thoughts on that. Prior to impact strategy, we actually removed more than ZAR 200 million from the cost base already. So rest if you guys struggle, you can come and ask the retail team, how to actually do that. But that was really 3 blocks. It was digital platforms. The change in reward strategy to life returns really in the myriad space and also a massive restructure in our agency channel, the MFP. Going forward, we target another ZAR 150 million part of [indiscernible] billion. And again, but a slightly different flavor, again, digital platform. But here, you now start seeing the way of work coming through the digital product process is changing, but then also the procurement and group support functions that live with that. So that is quite a key 1 for us. Risto spoke about renewal mix. We're showing a positive experience variance still on maintenance expenses for the 6 months that ended. But we do target 1.5%, 2% managed growth [indiscernible ] impact on that. What I can say, and back at the previous slide meaning those big ticket events you put in each box. The operating model changes in Momentum advice done. Specialization in MDS is done. The big system migration in the merged team without Metropolitan is also done and a massive digital platform launch done. So the business is really in a very different position today to really get onto the front foot and going forward. So examples of connection, just the value for new business, you're looking at the half year results, about ZAR 100 million improvement in the life value of new business. Now in the long run, yes, Risto is correct. Protection business and Myriad business really is the key driver of a VNB number. But the improvement, the ZAR 100 million improvement, actually kind of equal contribution from both the savings and the protection business in terms of that specific improvement. Now what caused that? Really looking back, the big MFP restructure we speak about lifting the game. Also product chain, the life returns message, the product pricing model in Myriad and Risto also spoke about the capital optimization project that we also benefit from and sales growth in Protection. Going forward, what's still to come is the cost optimization impact of the ZAR 50 million. And clearly, the footprint growth on as we're looking forward to in the Momentum advice ecosystem and we're planning some product pricing changes in the savings business space also. So that's really how things are coming together for us in a value of new business narrative. Important to note, for savings business, it's really about the cost of a value chain. Cost optimization is key for the savings business. You appreciate you've got low gross revenue margins. But for the protection business, it's really about the sales growth and the pricing engine now that you put behind it, and that really drives the value of new business. The Momentum Digital Connect launch, the March 2025 launch, big one for us. Looking back over my career, if I have to list the top 3, this will be 1 of them to be part of such a journey. It's almost the end game -- one of the end game, but in many ways, the end of a 5-year project for us, switching off a plethora of legacy advice and other channel systems and product engines of as we went into this journey. The nice thing is not just a cleanup. It's also setting up our advice business for the future and also new tech for our distribution channels also. This was so important to us that if we missed this deadline, I think we would have missed probably the delivery of the impact strategy in its totality because it vested a number of connection points that almost forces every product business across the group to play in a certain way. It's not just about platforms for advisers, also for clients, also contact center technologies. So we've added new digital analytics tools, client feedback tools, client action tools, single client view capabilities across the board, and we're still investing in more client service capabilities, as Jeanette mentioned, also a key theme. But this was really a great event for us, and it changed the whole narrative, I think, in the Momentum retail business portfolio, specifically from a product and a channel perspective. So let me move now into some individual feedback by business unit to give you a sense of how they're tracking their respective targets. Starting again with the Momentum Advice business. Really, the impact strategy ambition of this team is to set up an advice business with a rep count or an adviser count of 1,500 starting with a baseline of about 500 for Agency channel and 400 for consult, the IFA network, really turning our agency in a top 3 player. Our market share is relatively small relative to the other guys in the industry. But Consult is really a seeded player in the IFA space. The whole strategy is grounded along 5 key themes or blocks. First one is the culture, the advice culture. In many ways, that for me is the most exciting one because it also changes the way the Momentum Group thinks about its business models, sustainability, vertical integration, which is really how they support also the in-house product set of the group, adviser growth and then digital ways of work. I think, Jeanette, you might have mentioned both Momentum Financial Planning and Consult have got new CEOs, new executives leading the pack. So that's also very important for us. We're investing in those things also. And if you look at some of the results, where we are today, you can really see great movement on the vertical integration narrative, both in Consult and in our Agency channel but also from a digital adoption perspective, really fantastic. Now it is important because running an advice business today is not an easy thing, compliance costs and advice management costs and all those things. So you need to have proper systems in place to run a proper advice business. Very exciting for me is also part of the March 2025 launch. We referred to this as the Consult Connect part of the launch. For the first time that we, as a group, have given an advice business a bespoke client engagement platform that they can speak to their clients from an advice presence perspective versus just the product business conversation and really building on that. The acid test for me was the feedback from advisers and it's been phenomenal. It's really been phenomenal. So I think going forward, we're just getting stronger and stronger in this specific way. And you can see the confidence ooze out of this management teams heads at the moment in terms of there, but let's get it right, but it's not easy. The footprint growth targets is not easy, and you really need to work hard on that. The most important part is actually done, and that is adviser value proposition. That is now firmly in place for both Consult and Momentum financial planning. Turning to Momentum distribution services, the IFA distribution shop, really, the ambition for a number of years, but more focused, I think, in the last 2 years or so to really be the preferred business partner for IFA is providing them with specialist knowledge. I think that's key, that's anchor in our specialization strategy, technology capabilities, practice management support capabilities and also to make it easy to do business with the group. And that's why you also see many of the product business plans that ease of business theme coming to product business, parking with MDS, making it easy for advisers to do business with us. I mean that's the Momentum I joined many years ago. Maybe if you deal with IFA, we fundamentally IFA led in our sales. They keep you on your toes. They've got product provider choice. So if your products aren't up there, if you service aren't phenomenal, if your engagement strategies isn't first class, you're going to lose the business. I think that provides a natural competitive pressure in the Momentum Group ecosystem that you don't have to ask or it's just natural. And that's why the partnership of [indiscernible] by language between the product businesses and the channels are so important in our group. Big target for them is a number of supporting independent financial advisers, target of 2,500. We haven't been able to meet that target in the past decade. So we're running about 2,300 odd was the highest. So really chasing 2,500. One of the key investment areas currently is our retail business consultant footprint. So the MBS team is really split in 2 worlds. They've got an investment team and then a retail team that looks after most of the life savings and health business from that perspective. Now our DC footprint numbers is probably not is lower than most of the big players in South Africa. But if you look at our market share is often on the higher side. So that shows you that the productivity of this team is quite phenomenal. But you do forfeit some reach, you can't get to all the advisers out there. So we are investing in the retail BC footprint, growing them by about 30%. Channel costs always there, but I think the important thing is the 2,500 number. How do they play? And how do they show up in terms of their progression. A number of new games in place are starting to show traction. Obviously, yes, they're talking about growing our BC footprint numbers. Now this is not an easy thing to do. We're very selective, obviously, in who we bring in, but you can see already successes on the scoreboard. We've also got a very specific initiative around small independent financial advisers. We've got a significant market share from the small IFA or the 1- or 2-man business out there in South Africa. So we've got a very bespoke initiative referred to as adviser partnerships where we provide them with capabilities to stay independent if that's their wish. And we're also seeing some good growth traction in that initiative. On the other side of the fence also, we deal with big adviser network. We've realized we need to focus exclusively on them. We refer to that as a key account strategy. Consult by the way, is a key account of MDS also from that perspective because they play in the IFA space. And it's really how you take the management team, the product business, management teams to those big networks and really focus on the bespoke needs. Looking back, this specialization work for us. I can just say it would have been very difficult to land a life returns message without that specialization focus in the retail space. Jeanette spoke about the successes of Qurate as an example. Again, another example where specialization is working for us. You almost force the guys to focus on those product lines. And yes, I think also collaboration with product businesses. We've seen some very nice health sales also recently and again, just that [indiscernible] collaboration between the MDS team in the health business, best it's ever been. And you can see the fruits really coming through. Specialization is never done. But we're almost building the second floor, the third floor really of that specific initiative. It's just a simple matter of getting better at it. Then to Myriad. Simple condition. We want to be #1 in the underwritten life space, 20% market share IFAs. But from an impact strategy perspective, really be recognized as the partner with not just a great product value proposition with great onboarding solutions. That's really the ease of business theme coming through. Now life returns is not well entrenched for those in the room. It's not just cleaning tech, applying the technology. I have to read this photoplethysmography to screen clients. I see the doctor is laughing. I did pronounce it properly, right? But it is about risk selection, it is about making underwriting easier. In the long run, it's actually about client engagement and creating better experiences for both the product business and for clients. Fast Track and other machine learning initiative off the back of that initiative also starting to work for us. We've launched a brand-new digital fitness assessment, phenomenal results from that also again a world's first based using the same technology but bedding them into the engine. Even in the direct life business, we've got life cells, maybe Rowan, you spoke about that later. We use very specific AI machine learning capabilities to make the quality of business also better. So this team is really doing quite a lot for us in this space, leading the way in many ways for the group. Exciting outcome the direct-to-client sales. They target 15% of total. It is 9% currently. But obviously, as the adviser cells grow, they need to grow faster, but they are growing faster. You can see the results there. We reckon that this specific space is about 20%, 25% of the adviser market. And in the high sum assured space, it probably had just short of 10% at the moment. So it's becoming a meaningful player there. But the most exciting feedback that the team really received that really excites them. We do an annual adviser survey, quite a comprehensive one. And they really track 4 things there. expecting to have a podium position at least top 3 and at least in all 4 of them, actually, that is underwriting capability, technology leadership, product set and ease of business. For 3 of those 4, they've moved up a notch all 4 on the podium and the real exciting one is the gold medal they received for ease of business, which really very important for this part of the impact strategy journey shows you that the digital onboarding journeys they're putting together is really parking for us. Yes, and Jeanette, recovery in VNB also was important just to mention. You can see again a team that's highly confident. I've got a message on the confidence ratings right at the end because I am challenged about that, but it is a fair reflection of what's happening in the business. Our savings business, I spoke about the need to run a low-cost value chain also. My challenge to them was quite simple, go digital or go home. Because the revenue margins is low. The value chain needs to be good, and you can only do that if you've got a digital platform. You cannot depend on the classic traditional contact center led paper head office, where is my stuff kind of model that we are so used to in this industry. The ambition is simple, to be the client experience leader in this space, offering very simple and easy-to-understand products. That's not so easy to get right, by the way, but that is the ambition. They also had to navigate throughputs as they predominantly a retirement annuity business. That put a lot of pressure on service levels. So they are getting better at it again. For them, really, the digital adoption is key. They've got a big launch plan in first quarter of the new financial year. In other words, third quarter of the current calendar year that really will showcase the world their work around digital onboarding and also some product changes. It's quite a big step for them. Basically, a new savings message. So it will take to market. But it is an important part of the value of new business conversation, and they do support both the shareholder and the channels from that perspective. Then the merged team -- sorry, I moved to the merged team, which is a team that really looks after all the traditional life products in Momentum Metropolitan and Africa. And they also provide the Africa team with a new product capability and Lulama might speak to that also. So yes, we spoke about the big life system migration. It's a massive project. I mean the metropolitan team themselves developed a new product administration system for certain products. They change adviser remuneration systems, billing systems, it is basically replacing the old metropolitan light company in totality. That's almost what you should hear from me. That's the way I look at it. The merge team themselves developed new product capability for Africa team on new systems to get it right. So it's a migration of more than 1 system, 2 multiple destination systems, pulling that off in the first week in May. In fact, old system migration, the metropolitan system migration was started in 2017, We've migrated 2.5 million policies now effectively on the platform, collectively over that specific period. This is a celebration of collaboration. I think products launch that you should see in the group. It was really a big ticket event. And it's important for this team because the ambition really is just to unlock stakeholder value. They're really in the efficiency game. They really have -- because of the legacy book that shrinks a little bit, they really have to search for efficiencies all along. And the big beneficiary of that cost saving is Metropolitan. The first 70 now, maybe the next 20 or so in the next 2 years as we wind down some of the other functions. But it is important that this migration finished on time, which really allows the African and Metropolitan team to unlock the full potential of the growth narrative also. So we're very -- such a big event for us. I have to talk a bit about it. The momentum Trust -- sorry, I'm not doing the slides just is, but you get the message. Momentum Trust an interesting business. It's not the biggest earnings contributor to the ecosystem, but it's probably the most important business sitting at the nucleus of the advice strategy. You can appreciate that in the financial planning advice space if your will isn't in place, most of your financial plans aren't in place. So they play a key role supporting advisers and the Momentum advice business as well. In fact, we get the most new world from agency channel MFP actually. They've got a strong partnership with the investment team in terms of custodian of assets. They've also got a great partnership with the Myriad team in terms of low products that you bundle with the world's message. So this is a big 1 for us. We invested in systems for them, both state administration because that's really where they make their money. You can see on the outcome, some good revenue growth -- that's really in the state administration space for this. We expect this to be quite an important part of the advice story for us going forward. And yes, this business is also now ready to grow and go forward. And yes, so they don't need any more capital. Now getting to the finish line, I'm actually making a good time, I see. Now I think the energy in the Momentum Group for me, Jeanette really sits in the way we leverage the power of our operating model. What I mean with that is investing in the competitive muscle for our different product businesses as well as the channel businesses, really making them strong. And then the real magic sits in how they show up together for growth. That's really the Momentum DNA. So we drive a client narrative at a portfolio level but to execute our game plan through product and channel businesses. Okay? That is really an important thing to cross. We really see that connection between the product and channel business ecosystem as our competitive sweet spot, if that is right language to use. Now 5 years ago, we stood on the podium and we shared stories with you around resetting and reinventing that's just really giving muscle back to the product and the channel businesses. That was our narrative. Where we are now in impact is really about telling you the story of how they're showing up together, how health and Momentum Corporate is showing up together. How every channel is working together with the product business, How some product business are working together, how the Momentum advice business is also working together with some of the advice business, in Momentum Corporate as an example. The product business in Ferdi's team, equilibrium Ferdi, et cetera, partners with the Momentum advice business. That's a narrative you should hear and feel that's happening in the business portfolio. Now for me, there's really 3 important connectors that I just want to talk and I chose them for a specific reason. The first one is, I think, brand and culture. The second one is your technology, your architecture, your digital platform. And the third one I want to add which really talks to the importance of this specific block in the Momentum retail game plan is the advice narrative -- is the advice narrative. Now if you look at the brand and culture narrative, I think everybody in this room must agree with me is well sorted. And we're just going from strength to strength. It's a complement to the Momentum brand team. but also that's the people part of the business. And that's what you should hear and feel looking at many of these confidence ratings. The second one, the digital narrative, the connection narrative. That really is fundamentally sorted with Adviser Connect launch, I spoke about the March 2025. What's left therefore for us is really to invest more time and energy on what's next, which is really the advice narrative. And that's what you will see in the next 2 years. Most of our execution efforts will go towards bedding down the advice narrative from that perspective. If we run through the slide, if you ask me, give me 1 minute, why I believe this portfolio? Well, why just you don't look at it, IFA specialization, new BC footprint growth, key account focus, market share gains, adviser partnerships coming through. I mean my challenge to the team is you need to open the gap between yourselves and your competitors because it is a tough game. But it shows you the energy. I actually spoke to one of them. We had a leadership summit on Monday last week, about 180 people, some senior middle management and senior management, giving feedback on what's happened. And I asked one of the leading executives in the IFA distribution team, what describe me what do you feel? Forget about all the sales target, what's different? He said only 1 thing, the partnership with the product businesses, gives me goosebumps. He's never been in that great position. And that shows you how you've got 2 strong partners, a channel and a product business partner. I think together, they actually can actually change the world. But advice business, and Hannes will say adviser value proposition in place, we didn't have this capability before March 2025. Management team in place. You can see consult coming through is really now just getting the rep count moving. And with that, obviously boosting the sales of the group. In fact, what really excites me about the Momentum Advice model. We've never really enjoyed the tailwinds that come from big advice business, you understand within the Momentum Group. Just think about that. We never had the luxury of a big agency channel feeding the product businesses or anything like it. I think there's something new and fresh. It actually changes the DNA of the group ExCo narrative a little bit also from that perspective. The rest speaks for themselves, but just the growth story, our market share, direct life where we never played before and I think coupled with the tight agency channel initiatives also, I can just see these things really changing the world. The Momentum retail business portfolio today is fundamentally different from the place 2 years ago. The key area is how you connect everything and how they actually show up together. So for me, I think final words advice or the advice narrative or the impact of the advice narrative definitely is the glue. If you want to use that metaphor of the Momentum Retail business portfolio. I think everybody in the room will agree with me that good advice is one of the most important ways in which you can build and protect our clients' financial dreams. So that's why it's so important. And looking at our operational deliverables, even as our product business do service, I'm going to make sure that the impact of the advice narrative definitely touches the way they deliver and execute things in the portfolio. I've got 14 seconds left. I can just say thank you to my team also. It's not often that you said 9 months down the line, you've witnessed biggest platform launch ever, biggest migration ever, market share gains, operating model change, tough people conversations. It's not often you've got the privilege to give that feedback. The feedback I'm going to give you, final words is the feedback I got from my own team, very simple, said, well, guys, you've done well. It's 9 months odd down the line with the impact strategy. Looking at capabilities, you've basically removed all the excuses not to deliver the results in the next 2 years. And we're really looking forward to the hard numbers to now start moving also. That's the feedback from my side. Thank you.

Thank you, Johann. So thank you, everyone, for the opportunity to give you feedback on Momentum Investments. But firstly, yesterday, my feedback was, if I can bring a bit more passion to my presentation as Johann has so a bit of personality feedback. So thanks. So you can see you gave it right from marketing. So let's see, that was the passion that I showed so here we go. We recently did an update on Momentum Investments about 3 weeks ago to many of you in the room. That is a presentation is on the Investor Relations website. If you want to reference that today, that took me 47 minutes. Today I've got 25 minutes. So I can only cover so much that's a bit of a test for me. So I'll cover those as you've seen the agendas are the same. So this is our portfolio picture. Johann has a slightly kind of more clearer picture, yes, but this is positioned in this way because the top 3 blocks are really asset gathering platforms, if you want, for our business, product solutions, very close to the end consumer and end adviser and then the execution of the investment strategies. So the top structured products in annuities and I'll cover that specifically in the update. Our Wealth Management business, which is really the list platforms, domestic, the local and the global platform, institutional platforms really in partnership with corporate for institutional clients, and umbrella fund schemes and trustees. It actually sits within our multi-manager business. Multi-management is an investment solutions capability, right? So I guess this is the DNA historically of Momentum's investment approach. And there are 2 components in there that I'll cover briefly is the funds business, the multi-manager business, really institutionally, if I can call it that. Mobile portfolio in equilibrium, the retail focus for the default solutions that we create for adviser networks and partners. Johann in your business with Consult and the MFP networks. And on the right-hand side is the asset management capabilities that we have. I think since Jeanette came back, far bigger lens on this part of the business, which is the final execution, final part of the value chain from wealth management into solutions, into underlying investments, probably more product and alpha versus solutions and outcomes-based investing in the investment solutions space. And there are 3 components in the retail asset management, which is Qurate and I'll cover that a little bit later, where we are. I know Risto just touched on that. Institutional Asset Management, really fixed income and systematic strategies, but a stockbroking business, private client business in there. And then almost commercial interest, I can call it that really in specialists and boutique entities through IMG structure that we have, 6 affiliate managers that's underlying investments in there and our ERIS business. The one thing that's not on there, and it came up in Risto's slide and reminded me actually, it was Momentum money that would have been there a year ago. Maybe that's the biggest cost saving Risto we could contribute. It's not counted. But it also shows the importance of closing a business that actually is loss-making, comes at a high cost and so forth, and that was closed and after the system in the first half of F '25. So the winning aspiration, I think we spoke about last year also to you, and I think there's only 2 points I want to make on it clearly for investment businesses and wealth businesses. It is all about trust. And trust is all about delivering on the promises we made for clients, which is investment performance. What brings us to life in our business now is the purpose that we have as a group, and it's linking it to building and protecting clients financial dreams because that connects almost an academic exercise sometimes for investment manager of delivering alpha delivering an investment outcome, but it links very much to what the financial dreams of clients are and how we connect and how we can deliver for that through our platforms into our multi-management solutions and into our end capabilities. So briefly, also just to recap, we have grouped our kind of key strategic initiatives under 5 themes. This is Johann's 3. So which is growth on the one side, clearly, it is all about asset growth and the profitable asset growth for us in our business. I mean in the middle, probably very much interlinked components, right, which is client experience, an operating model that supports that and product propositions that's fit for purpose for clients, simple to understand, even though they might be complex behind the scenes. And then we deliver with people. I think people must connect with all of those, people must connect with client needs and deliver properly. So our EDP, the ability to attract the right staff, the right capabilities also as the world around has changed is critical. And I'll cover those in the 4 business areas of planning units that I'll give an update on just now. There are 3 underlying foundational elements to our strategy. The first one is, obviously, digital and AI, it's not a solution in its own right. It is an enabler of all of the above components. And unless we adopt it, I think maybe that's my mantra in the business, and I can see a lot of activity in this space in the U.K. market, in the global markets where we operate. If we think it's down the line and Ravi always say this is all around us. So unless we adopt the use of AI, the application of that appropriately in digital technologies, we will not win. So that is critical for us. And then the federated model, collaboration in the model, as Johann calls it connection, we connect all the components in Momentum Investments, but how we connect it with Momentum Corporate, with Momentum Retail. Risto, with your team and balance sheet management is absolutely key, that is the glass bowl in which we operate. I think we've done that well. And then on the right-hand side is the simplicity that I spoke of. We have to put the simplicity lens on everything we do, especially when we look from the outside into our business. So let me give an update on the different parts of our business. Maybe just 1 point on the previous slide. Risto mentioned the many OKRs that we track also through [indiscernible] team. There's about 120 OKRs that sit in Momentum investments backing those kind of 5 themes across the 4 planning units that we have. So detailed at a granular level that we check those. So nowhere to hide, I guess, if you're in the businesses. Our wealth business, the list business is probably the most open architecture platform in South Africa. Maybe that's also a little bit downfall. So we must make sure that it is an enabler of vertical integration. The future fit focus that we have on the technology came out last year and will come out in the feedback too. I think it is important to note that we have a fantastic existing platform, right? We've built it over the years. We've evolved it over years, but the realization is to continue to do that, takes the eye off the ball of the future and of the new capabilities that come along. And there are some core capabilities in the back end of the platform that's not necessarily a differentiator. It's what you do on the core capabilities, and that's why we decided on the replatforming. But we don't have to wait for the replatforming to do many other things that we do on the propositional side, and I'll touch a bit on that soon. So there were kind of 4 measures of success that we have identified. There are many more underneath sitting in those archives, but I think these are the ones that we showcase. So how have we done so far? I think we continue to get and Johann spoke about Advisory Connect. This business is key in connecting into that ecosystem or technology. Johann, I think specialization and distribution, really a big benefit. And we can see that both in the annuities business, but also in our wealth business is the market share that we get to continued growth. I think market share here varies depending on which quarter of the year we're in between 16% and 18%. And we continue to get good net flows into our platform, both domestic platform and the offshore. On the offshore platform, it's a little bit more competitive, and so we need to really focus our minds that we actually make sure it retains its competitiveness for offshore investing, which is a big part of the South African landscape at this point in time. Key focus on client experience and operating model, they're probably interlinked because the operating model delivers a good client experience. So we have done a lot with various technologies, and I'll speak maybe just about 2 or 3, the one is optical character recognition, which takes about human almost involvement when you get an e-mail or a piece of paper where it ends up in the queue and how it elevates in importance is automated far, far better than human interface and takes it to the right place very quickly. Talkdesk is a fantastic client engagement technology of the future. We've implemented it in our offshore platform. We'll do it in the domestic platform also. And Ravi is showcasing this in the bigger group, as a key technology because it is powerful in analytics that it has. The AI engagement that it gives a client service agent, for example, the omnichannel capability. So really kind of far more than a telephone and a tracking of that actually really. So powerful technology, which we're implementing and it will seamlessly sit across the FNZ platform when that's in place in our existing platform. On the operating platform with FNZ many of you would know that a year ago, key changes in the FNZ global management team. FNZ probably everyone would recognize has been 1 of the most successful fintechs in this space globally in the last few years in the way they've grown, but that was also the downfall in implementation. So the new senior executive team that was put in place in October, September last year are all implementation specialists, and they're really focusing well on that. We have engaged specifically with top management. We are 1 of the top 5 projects in FNZ globally to deliver. We are Momentum project is critical for their success in South Africa. So we know we are getting the resources we want and we have recently delivered with FNZ on a key milestone, which is the technical release of the platform that we will build on now in the next. So our partnership with them, I think, is in a good place. And as I said last year, where we implement early next year, end of next year, or even kind of the global platforms in '27 does not impact our cost base in the way that we've contracted with FNZ. So in a good place. We're very comfortable with the focus that we are getting. But clearly continues to be a challenging project. Spoken about many of the technologies. So where are we tracking, I think, just about ZAR 300 billion in assets on the platforms, which is the right place to be because above that with FNZ platform we're in the lowest scale of fees, which is where the benefit comes from an FNZ platform. Cost-to-asset ratio at 35. We target 33, it might end up slightly higher in the year, depends a bit on cyclicality, but I think we're heading in the right direction. NPS is 52 this quarter, I mean with the start of where we are in 2025. It varies a little bit also depending on the cycle and kind of whether it's tax season or any other season and so forth. The 1 thing that we've achieved with a focus on NPS is everyone thinks in client. And I think that's the best benefit that we can get. Will we get to 70? Well, our aspiration is 70. That is kind of leading in this kind of platform space. I'm sure we can get there. It will need diligence and so forth, but we have certainly focused the minds of people on the client both for the purpose, but also in a way that we track this, the way that we speak about the client in our business. Let me just make sure I keep to the time here. So Wealth Management, I think, relatively confident on NPS, maybe that's the 2 amber ones, reasonably confident, signing up, I guess partnerships with books of business. We're also reasonably confident because they're either a 1 or a 0, you either get the book or you don't get the book. In the retail business, Johann, we're doing well with MDS distribution, Consult distribution and so forth, very comfortable where we are. So confident we will achieve targets and I think we are in a far better place with regard to our confidence on the replatforming exercise with FNZ. Structured products and annuities. This is kind of a key capability for us as a group, one of the longest standing solutions we've had. I think from our early days in Momentum, early '90s, this is when annuity started as a business. And so it's well established. The technology is well better down and clearly, a key focus for us in the star business for the last 3 years, both from an NHE perspective and a VNB, not only for Momentum Investments, but for the group actually sustained, although I think we downplay this, it's coming down a little bit. So thank you very much, Johann, for listing VNB in other parts and Domain for listing VNB so that we can lift the burden a bit of this part of the business. 1% to 3% to 2% is what we target in terms of VNB margin. A few things on annuity. So where are we. I think market share is still doing well. Clearly, the interest rate cycle has changed, right? So less sales in guaranteed life annuities, but still at the top end of our market share. So gaining market share. So our reduction was slightly slower than competitors. And we can see the shift to living annuities. Remember, we, as Momentum has a wide range of retirement income solutions in living annuities and guaranteed annuities. And definitely the best hybrid annuity in the industry, right, where we combine a guaranteed component, GAP product, we call it onto living annuity. And it definitely has a place, I believe, in any living annuity solution for a client actually. So across those 3, we have fantastic market share, specifically with independent IFAs. Yes, the area we were focusing on is in the guaranteed product. I mean, we called it structured products and annuities and not annuities and structured products for the reason that we want to put the lens on other structured solutions. As a group, we've got great capabilities in this space. In balance sheet management, asset liability modeling, credit origination skills, in the product design skills and how we construct solutions between corporate, and Dumo business and investment in our securities business, fantastic skills and then on the back of a great balance sheet, right? So I would say this is a sweet spot for us as an insurance business and investment business in an insurance group. So we've recently launched another guaranteed endowment. It's capacity constrained because it's asset-dependent. We do good structured notes in our securities business on an individualized basis, we do index guarantee fund structures with Dumo in partnership with and BSM also great collaboration opportunities. But there's more that we can do in taking some of the structured notes and retailize them in a better way, and we are doing some work on that to bring out a broader range of certainty solutions for clients. So this business speaks about what they are for clients, it is about certainty for clients. 61 is the Net Promoter Score. We're probably getting to up end. I wouldn't be surprised if we can get to 65 shortly so our best business. But it is a very specific client set. It's retired group of individuals people who seek certainty I think once you take out and guaranteed endowment, we can deliver uncertainty. I like to speed up a bit. Quite confident here. NPS, I think, on the score, but I'm very confident that we will uplift the client experience in this business. Multi management, as I said, is our DNA as an investment business in Momentum in the group historically. We set out to do quite a few things actually predominantly to put together the global and the local businesses, make sure that we have enough focus on market growth. This is the glue that binds the platform in the front end and the asset management components at the back and key for vertical integration in our business. So let me move to where we are and what we've achieved in this business. Quite a few things actually. I think let me start with equilibrium as the DFM. It is the default investment provider for our in-house channels and consult in MFP for a number of third-party adviser networks also well positioned, well established and a fantastic team that understands clients and their needs and where we need to bespoke and where we need to have common solutions. Good growth as Risto and Jeanette actually showed in the slide from the -- from our own direct advice channels. In integrating the U.K. and the local businesses. I think we've aligned investment focus far better. We've unlocked probably up to ZAR 30 million expenses now by this time is, Risto you showed ZAR 25 million just in aligning those, making sure they're better positioned. What we have also done, Jeanette on the 2 kind of international networks that we've invested in, they're small investments really, GBP 1 million to GBP 2.5 million in investments that we make. We do that in partnership with Hannes in the consult business because that's also part of what you do and your business Hannes and how you acquire and advice businesses. We've done that successfully. So tick, Johann, there you go. Done those 2 good initial successes. It is a little bit of an exercise for us to see kind of how we can amplify this. If it works well, then it's a great opportunity for us to build distribution in a different way in global markets, export markets and in the U.K. market, where we don't have the luxury of an MDS and a consultant in MFP. Then also -- we've had an asset consulting business in the U.K., similar to MCA, I guess, in your business, Duma, but in the U.K. We don't have the luxury of an MCA. So we recruited a team for Mercer 10 years ago, a very successful kind of team acquisition, but they hit almost the top end just before COVID and then through COVID, all the schemes became self-funded and fully funded and went the insurance buyout route. So that business did this. And the big schemes are no longer really available just on an asset consulting basis. We've changed that team now to a fiduciary management capability, which is implemented consulting in South African sense, both asset consulting but also implementation of solutions. We've launched that in the market in March with great early kind of take-up and success, had a great team in place, and we will see how -- clearly, that needs to build up again now. But again, we've taken out the excuse Johann for this team to actually say we still need to launch it. We've launched it. We've got those relationships and networks where they can grow the networks, and we will help them to do so. Our partnership with corporate, fantastic. Dumo, I think the index Guarantee Fund that we promote together also again speaks to the skills that you have that we have, that BSM has, that will go from strength to strength. I think collaboration is connectedness. So thank you for that partnership. And then lastly, investment is key, right? So we target 70% in quartiles 1 and 2. We did 65%. I'm very confident we will more often than not be in the 70%-plus range if some historical performance moves out in 5 years. Confidence levels. Yes, I think we are confident we will achieve in the multi management business that we set out to do and hopefully a bit more. So 4 minutes. So let me speed up a little bit. In the asset management side, quite a few things. This is a broad portfolio. It includes Qurate. Our institutional business, which is fixed income and systematic strategies and in the investments we hold in ERIS and in IMG. So let me go there. I think great collaboration, Jeanette also mentioned the securities business, where more of our trades are now vertically integrated in May. I think we were very low at 18% from 9% up probably around about 20% should be appropriate for the business. So I think we've achieved that. But again, also the partnership with security is Johann with MDS and the top end and Consult also in targeting private clients and delivering private line solutions and at a record high actually in assets under management in the private client portfolios at the moment. Qurate launched in October, a great acceptance in the market, that's another tick. Again, now it is just the hard yards to make sure that this recognition of the proposition. And clearly, the biggest benefit in Qurate is the offshore investment managers that we have in there by our single-strategy managers that we've worked with for a long time. We have great arrangements with them in place, and we have a great proposition in Qurate. The benefit for us is this is an asset management business in heart and minds but we don't have to go and seek an employee resources to run these strategies. We partner on an exclusive basis on all of these strategies to bring it to market with our fantastic strategies. let me just quickly see. In the institutional fixed income business, we've combined the 2 businesses CAIM and MAM, some work to do to really make sure we set it up as an asset management business, the team that we acquired in Crown agents investment management is an asset manager at heart, right? So they speak the language. Jeanette you also know that we understand it's very different to multi-manager. And I think this will change this business, but combining them also gives us the opportunity to unlock the pipeline that we acquired with CAIM, which is really kind of official institutions in many emerging markets in the world. Investment performance is important. ING, key for us, ING, affiliate members just surpassed the ZAR 200 billion assets under management. Here in our business, we have ZAR 200 billion in assets under management of EUR 400 million in total. And ERIS is a multifaceted property manager with great opportunities so in the interest of time. Quite confident about this. I think clearly, in our institutional business, reasonably I'm confident we need to do some work to really unlock the opportunity and the pipeline is institutional by nature, right? It takes time to unlock. We recently had a great African bank in $140 million mandate. There are a few of those around, and we need to unlock that capability. So in 50 seconds to conclude, bringing it together, right? So this is, as I said, our key focus areas and at the bottom, the financial results that it must bring. Incidentally, we are probably just above $1 trillion in assets under management and administration, but the mix is more administration than management. And so we need to get that mix right. I am relatively confident that we will achieve the normalized headline earnings. Actually, you'll see, hopefully, by the end of this financial year, we track closer to that than we thought a year ago. So can we do more is the question. Yes, we should do more, right? So [indiscernible] because that's 15% of the ZAR 7 billion. So that's our commitment. Savings is part of that. I think we're tracking ZAR 30 million of the ZAR 150 million. The last ZAR 20 million, I think of that $150 million will be a challenge, but I think we can get to ZAR 120 million quite conveniently. Our right to win in a second is this, a great range of solutions in our Momentum Investments business. Some that's at scale, some that's mature, some that's developing, which is in a good place to be because we can mature these businesses and maintain the mature businesses. A strong group balance sheet. The next few lines are all about distribution, group distribution, strength, but also our partnership DNA that we have in our investment business that we have in corporate that we have in the broader retail business, Johann is all about that partnership model that we have right through the business in Momentum. The way that we focus on digital innovation, Ravi is a great catalyst also for enabling the thinking in our business. And I think we've created enough of a focus on that people expect that it's an enabler and not a threat, and it will help our business to a different level. I spoke about the targeted growth opportunities that we have in ESA and in Global Markets. And then at the bottom, I think at heart, we are an integrated sustainable business. We believe in the commercial factors, we believe in being sustainable. But we understand the balance between the 2, it's not either/or. And our investment teams lives that. Our business lives that. So I think we are in a good place, and I am more than reasonably confident that we will achieve on our targets. Thank you.

Good afternoon. It's really great to be in front of you this afternoon. A year ago, we were standing here making all manner of promises. And I'm happy to say that Momentum Corporate continues to be a business that is focused and driving profitable growth. It's a business that has continued to deliver on client experience. And doing that in an environment where we had to navigate the most significant change that the retirement funds industry has seen in South Africa. And as we've been doing that, we've been doing that through a team of about 1,100 colleagues spread across our key capabilities in the Funds at Work umbrella fund, our group insurance business, our structured investments in annuities, our consulting and material solutions, one of the leading stand-alone retirement fund administrators and our member solutions capability, which is essentially the B2C of our B2B business. And this is what drives us. This is the aspiration that is powering us to 2027. We are looking to build the leading digital lead employee benefits business in South Africa, underpinned by a foundation of sustainable and sustained profit growth. But quite critically, the reason why we want to do this is to ensure that those who are fortunate enough to have the gift of employment in our country can have access to employee benefits. So over these 3 years, we are essentially focusing on 4 critical areas. I just a quick request, if you can please make the slide bigger. Thank you. Yes. Yes, I've got post-COVID eyes. So growth and distribution being very critical for us through our omnichannel distribution capabilities. This is a very, very big focus area for us. We also want to tap into expanding addressable markets. I think the narrative has always been we have to take from the competitors, and I think that's the reality in South Africa. But they are still untapped at least levels with areas with low levels of penetration in the markets that we are looking to tap into. Operational and service efficiency and I think in an environment where margins are continuously shrinking, whether you're looking at your underwriting ecosystem or your asset-based charges, this will continue to be a key priority for us. Product excellence, both in terms of innovation and building new capabilities, but also looking at how we can simplify, streamline and optimize our capabilities. And then the ever critical focus on collaboration and partnerships internally as well as externally. So the commitments at our segment level that will deliver ZAR 800 million to a ZAR 1 billion by 2027. Value of new business of 0.5% cost-to-income ratio of 65 and a Net Promoter Score exceeding 65. So where are we? I'm happy that in the first half of the year, we have continued on the path of profitable growth and are delivering earnings actually beyond our own internal expectations. And I'll explain when I get to the group insurance part of the business, some of the drivers in that particular area. The omnichannel distribution capability and strategy is really gaining strong traction. So I'm quite happy with that. We've also seen good growth in the SME space, which I'll touch on later. But definitely, probably our previous frustration as a team is our value of new business, where we are performing below our weight. And 2 things at play here. The first one being our volume of business when it comes to our more profitable product categories. And then, of course, the mix of business overall towards lower margin products, some of which are actually very profitable, which I'll touch on when we get to structured investments and annuities. But without a doubt, the highlights here is that in an environment where we had to deliver on the two-part system, 259,000 claims paid by the end of April, ZAR 4.3 billion distributed. Just -- and for your models, ZAR 1.5 billion -- ZAR 1.4 billion of that is from funds at work. and that's where we generate asset-based fee. 84% of those through digital channels, which again is quite a big achievement, considering that in the first phase of throughput we've had quite a lot of clients who still insisted on using manual clean submission and processing methods. I'm happy to say that in Phase 2 of throughput, we've seen digital pickup now closer to the 100% mark in terms of adoption. So the change management journey is progressing very well. But more than that, our business has fundamentally changed. So historically, on a monthly basis, we would see 8,000 claims. Now we are processing about 45,000 claims per month as a business. When it comes to e-mails, typically, we would see about 45,000 e-mails a month. Now we are tracking at 70,000 e-mails per month. The call centers typically, on any given month, we are dealing with about 50,000 calls in our call centers. Now it's 111,000 calls per month. The time to illustrate to you that we have had to really navigate significant change and the fact that our rolling net promoter score -- 3-month rolling Net Promoter Score is sitting at 44% is really testament to the efforts of our teams on the front lines who have really held our client service up and deliver to our clients at this time. We have also been able to achieve this in a manner that has still managed to contain costs to a large extent leveraging digital capabilities. Then a few other things I'd like to touch on here. Our B2C digital distribution ecosystem, our Dragonfly product shop has continued to make strong progress. And in fact, in the month of October, we launched our first third-party product so a non-Momentum corporate product, which is the Momentum emergency savings product within the Dragonfly ecosystem. And that is now starting to teach us a few things just around how do we get third-party products moving within our ecosystem. And fortunately, in partnership with Momentum Investments, who provide the money market unit trust that actually powers that product. I'll talk about product rationalization later and of course, collaboration, we have seen some excellent outcomes there, which I will cover. So we are fully confident to a large extent, but also highly confident that we are going to achieve the objectives we set out for 2027. Now moving on to the Funds at Work business. This business this year was celebrating 25 years of Funds at Work in the market, a great milestone and the fact that we are moving well towards the ZAR 110 billion in assets target by 2027, sitting at ZAR 94 billion in assets as of the first half of the financial year. We continue to be in the top 4 within the umbrella fund space when it comes to assets, and we are the market leader when it comes to the number of members, that is if you include active and inactive members with over 0.5 million members within Funds at Work. We've also seen strong traction in our SME acquisition capability and objective, 154 employers that we have acquired in the first half of the year. Fortunately, I think the group is really blessed in that we've got the strong IFA footprint through MDS that has actually been a very big driver of that flywheel effect in our SME objectives. That would give you a sense of the 154 employers, about 3,000 employees in there. And from a segment perspective, 15% coming from the retail sector, another 15% from your professional service and administration sector and then 12% coming from the manufacturing sector. What I'm also happy about here is that, yes, we do have quite a long history of acquiring SME clients within the Momentum Group but we are doing that in a far more deliberate manner. And fortunately, that historical effort is also now showing progress, where we have seen 100 employers graduating from SME to your -- I'll probably call your more medium-sized businesses over the last 6 months. And that's really what we are about and it's about growing with our clients over time. I've spoken about Two-pot, but quite importantly here, we've seen digital engagements exceeding the 3 million mark. So again, it demonstrates the positive effect that Two-pot has had. I've never seen a scenario where we had so many phone numbers for our clients. So the level of phone numbers, accuracy of phone numbers, our ability to engage with our clients has really improved. And then we've also seen an uptick in self-service, which again will speak to our longer-term efficiency objectives. In the month of November, we went to the IFA market and communicated our integrated value proposition for FundsAtWork, which really was well received. And we've also seen strong traction of Momentum Grow, which is our SME digital-only solution but distributed via advisers. We've seen very good traction there. I think the last point I'll touch on here is really around the collaboration with the health business, where we are gaining significant traction, and Hannes will touch a bit more on that, but we are all now focused on the 1st of July, where we are about to do some wonders in this market. From a group insurance, yes, FundsAtWork team also fully and highly confident. From a group insurance perspective, -- the focus for us is really around how do we ensure we continue to build a business that demonstrates sustained profitability whilst at the same time, delivering on the growth objectives that we have as a group. So we've been able to maintain the margin above the 5% to 7% range. I'll probably say, I mean, for -- if you had to try and be more specific without being specific, it's over 10%. And I think the objective for us here is around a number of levers. The first one is that we have to continue to focus on client retention. And I must say we have done exceptionally well when it comes to retaining our clients. The second one has been around a disciplined management of our reinsurance program. where again, we have seen a positive stride in our ability to manage the levels of risk that we carry on the balance sheet versus risk that we pass on. And then some really exciting stuff that's happening in the underwriting space, especially in the disability management area, where we have, again, keeping the basic disciplines around early intervention, around rehabilitation and case management, but using digital and data analytics to enable us now to be a lot more razor sharp in terms of the interventions that we take. So now we are able to track the sort of claims cases we're seeing, the root causes we're seeing by industry. And even within those industries, we're able to track the effectiveness of the interventions that we are putting in place. So we are now able to actually replicate to some extent where we have seen successful interventions and also to monitor the cost of those disability management interventions. We've also made good progress on digital solutions. And here, for funds at work risk only, we have launched a digital smart benefit statement for group insurance. And I think for most of you here, I'm sure you will know, group insurance is very low touch, low contact. So the fact that we can now engage our clients digitally in the group insurance space will start to open a world of opportunity, especially when I think about our B2C digital product platforms. And then, of course, we have made very good progress in the collaboration with Momentum Health. There's some good stuff happening with Health4Me being embedded into our Momentum Grow product. The Momentum medical aid is visible in the Dragonfly platform. And on the 1st of July, we are launching a big initiative into the market on the 1st of July. Overall, still fully confident on quite a few of the aspects here and high level of confidence. And the key thing, which I'm sure you are all interested in is just around how do we sustain the profitability trajectory. I mean that is coming under pressure, and we've seen it in the last quarter. But we are taking the actions to at least ensure that we are able to deliver on the range of 5% to 7% through the cycle. Then when I look at the structured investments and annuities business, here, targeting ZAR 65 billion in assets by 2027 and a contribution to the corporate business of 25% in earnings by 2027. A great story here of collaboration. Collaboration internally with Momentum Investments and our balance sheet management colleagues, which has seen significant flows into the index guarantee solution, collaboration internally with funds at work as we are starting to see some good flows going into our smooth bonus solutions and funds at work. And then also in partnership, external partnerships, where we've seen great flows into the retirement Navigator, which is our smoothing only smooth bonus solution. So we've got a partnership there. And also our Golden Living annuity product, which is gaining very strong traction, again through partnerships. So -- to further highlight that 80% of the flows into the SIA business in the first half of the year were on the back of partnerships. So we are really building partnership management muscle in this particular space. Our contribution to earnings at 21% of the corporate earnings as at half year. And we want to gradually see, again, this particular part of the business growing as part of managing our longer-term earnings mix within the business. I think something else that's quite important to highlight here is that we did merge 2 of our annuity series in the first half of the year. A very complicated initiative. I think initially, we all thought it was going to be pretty straightforward. We get the approvals. I mean, this thing makes sense. But the governance is you have to go through, the treating customers fairly considerations that we had to navigate. And ultimately, we were able to achieve this, and this now helps us to give value back to pensioners. -- about 100 basis points in terms of the cost of managing these products that we have been able to pass back to pensioners, again, speaking to our purpose of making sure that we can build and protect our clients' financial dreams. So overall confidence quite high in this space as well. I think the one area where we still have to do a bit more homework is just around fleshing out the green assets objective in partnership with Momentum Investments and then starting to look at practical and tangible objectives that we would then want to drive towards 2027, whilst delivering on the investment return commitments that we make to our clients. Then here, we cover the direct client engagement part of the business, Momentum Retirement Administrators and Member Solutions. So firstly, when I look at our direct distribution capabilities, we are targeting 35% of sales by 2027. I think for us here, we believe there's still a bit more work that we need to do, tracking at 10% as of the first half of the year. What gives me hope? What gives me hope here is the fact that this channel in 2 of the last 3 years delivered 26% of our sales. I'm also hopeful because the pipeline in this particular channel is also quite strong. So it's really around the pipeline conversion and also understanding the lumpiness of the flows that we'll be dealing with in this business. We've also seen strong client retention. And I must reiterate in our environment now and where South Africa finds itself, a client retained is like a client won. So a very good outcome from a client retention perspective. And we've seen in the MRA business, we are tracking at over 380,000 members with a target of 500,000 by 2027. Two-pot executed excellently. Client service levels excellent. And really, I think without fear or favor, the leading delivery and execution of Two-pot in the stand-alone retirement ecosystem in South Africa. We've also been able to manage expense growth below inflation, which is quite key to the 2027 earnings objective for this particular business and for Momentum Corporate as a segment. From a retailization perspective, in partnership with MFP and the Momentum Advice business, we have started off on the retirement income solutions channel. So we are partnering there on distribution to individual members within funds at work, some great traction there and the pilot that has really performed well, and we want to keep building on that. And then our pension-backed home loans solution, which has actually seen quite a good take-up from members yet again, whether it was for solar panels, small upgrades, boreholes, et cetera, we are still seeing a strong demand for pension-backed lending in our client base. And then when it comes to preservation and annuity flow that the level of market share for the group at first half of the year sitting at 55% which is above our target of 45% by 2027. But when I stand, I think there are elements here where there are some once-off big retirements or preservation events, which skewed the numbers. And we are seeing a little bit of a normalization, at least as part of the quarter 3 reporting that we are looking at, but still over our long-term range. I think now the key for us is how do we stay there. So something like that, this retirement income solutions channel is critical. So overall, highly confident here. I think the key area for us now is to get our direct to corporate distribution capabilities firing on all cylinders and converting the pipeline of business that we have in place. So as we look forward towards the next 2 years of the impact strategy. I am quite excited that working with a team that is extremely capable and a group of individuals within the Momentum business who are highly committed, but also knowing that we've got our big brothers and our cousins in the rest of the Momentum Group in this power and spirit of collaboration that we can deliver on the objectives we've set for ourselves. We are a business with scale. We have a strong market position. We are making a credible contribution into the Momentum Group's earnings achievements. Our profitability over the last 5 years has been consistently positive and stable and growing, and we've delivered on our strategic objectives that we've set out. We will continue to build on the digital capabilities. I like what Johann said, go digital or go. I think it goes without saying that in this time and age, that this is a ticket to the game. And then it is around driving effective distribution using our omnichannel distribution strategy, sales, sales and more sales. But as my colleagues like to say, those sales need to be profit positive. Hence, the value of new business becomes a very nice business. And so through this, we do aim to deliver on the earnings objectives that have been set. And as we do that, to build and protect our clients' financial dreams. Thank you.

We're really thrilled to have 80 people online and very few of them are staff members, which is a great sign. But for those of you who are online and you'd like to sort of drop a question, please do so in the Q&A bank. Do we have any questions?

Thanks. Warwick Bam from RMB Morgan Stanley. Two to start, just Dumo, maybe just understanding the corporate business in terms of KPIs. You've got a variety of KPIs, AUM. VNB is still one of them. VNB over the years has been very low, currently negative, yet the business high ROE, good net profit after-tax margins. There's a variety of ways of looking at this business. Is VNB relevant? How should we think about that metric?

Yes. Warwick, thank you for that question. We do have these debates sometimes how relevant is VNB in a business where you are dealing with annual renewal cycles and where actually profit -- if you look at your underwriting performance, it's positive. Similarly, around the index guarantee solutions, the VNB modeling is on a market consistent basis. So you are recognizing, I'll say, theoretically, a margin of half or 0.5%, whereas your actual margin is 1%. So that market consistent element, I mean, is part of the reality. So for example, if you look at the growth in earnings in the SIA business, where we've seen great flows into index guarantee solutions, which are not as VNB accretive, but actually very earnings positive. So I think there is a bit of a dislocation around the VNB measure for an EB type business. But it goes without saying, though, that there is a -- currently, if you compare us to our competitors, we are lagging on our value of new business. And that is primarily a mix dynamic, which I think we've chatted about a few times. And then also now really making sure we can get volume, especially into our more profitable lines, your annuities, your bundled umbrella solutions and then managing our costs effectively. So the commitment that's been made by the rest of the group, we also have to show up and deliver.

Dumo, let me start with a question for you. Your SIA target is for 25% of NHE, correct? You're currently sitting at 21%. This may be more of a group risk question. So if group risk was, in fact, in the 5% to 7% range, wouldn't SIA be sitting well above 25% already?

Well, yes, it would, Marius.

So are you targeting to shrink that business?

Well, no, no, actually. I think...

That was a precious comment. It's more about the sustainability of the group risk.

Yes. Look, I mean, it is about the fact that when we look forward to our 2027 picture, we have made a commitment to retaining a, I would say, a high level of profitability within the group insurance business. So on the upper end of our 5% to 7% range. So that's going to be critical. We can't afford for group insurance to go backward materially. And then, of course, the SIA business growing into that particular space as well. But yes, we don't want to shrink it.

Okay. We -- and Ferdi, a question for you. What do you think would be more instrumental to your margin, your -- I'm not talking about new business margin, I'm talking about operating margin. The conclusion of FNZ or achieving those 30% internal flows consistently.

I think it's probably more the flows, Marius. So to be honest, I think FNZ is a future capability for us. I think we've got a great technology stack at the moment. But I think where we want to spend our time in the future and where we want to differentiate is in the front-end side. So FNZ is critical for that in the back end. But I think from an operating margin point of view, I guess, is making sure that the assets under management versus assets under administration is also the right mix and at the right margin and that we get the right flows into the business. So I think that's key. But clearly, being able to deliver the right value propositions for clients are also key. But I think on balance, for the F '27 targets, I would say that's it.

And then finally, for Johann. Even fully digitized, can you see positive VNB for Investor business?

Yes. That's the dream of the team that runs, but it is possible. It is possible. But what you should add to the mix is the value chain in totality also need to move. So if you think of expense buckets, and it's really an expense story. It's not a sales story, it's not a gross margin story, it's really an expense story. If you look at the 3 buckets of expenses, we've got, let's say, channel cost, product business cost and support functions. Now in the VNB, the portion of product business that goes to acquisition and the channel costs really inform the acquisition cost narrative. Now there within the product channel domain, the digitalization will make a big impact. The portion of product business that relates to servicing and of course, the support function, most of those goes into the renewal manage bucket or the maintenance expense bucket that you see. Now maintenance expense have got an impact on the VNB for savings. Unlike protection, it doesn't really move the protection of VNB. So the work the group is doing around the overall cost savings, it is important that we also extract efficiencies from the support. Once that happened, because the product channel side will be sorted, that digital will sort remember in the servicing model there. It's a latter part that we also need to optimize and then it will show positive value of new business for sure, I can see that actually. They've actually been managed. The team managed to shrunk the loss, if that's the language you used to almost no IFRS 17. Risto can talk more to that. It's outside of my actuarial domain now. I'm an ex actuary. But the IFRS 17 basically dropped the value of new business for savings by, I guess, was it ZAR 80 million, and now they're recovering that again. We already managed to close that by half, but that's a narrative. So I think it is important -- it's doable. It's really doable. And you will see -- whether you see that 2027 or 2028, I don't know, but it's definitely doable, yes. But to give you kind of the impact of maintenance expenses on savings is relevant with VNB.

Just finally on that, some of your peers are actively reducing savings sales because of profitability issues and onerous contracts really shine a light on the lack of profitability of certain business lines. Would you ever consider I think certain products.

We did the sum for a number -- we did it a number of times. The question you're asking, should we exit savings? -- life savings. So that's the question you're actually asking. We did this a number of times. If you remove but overhead from the conversation, you were off if you remove savings from the mix from a VNB perspective, but also from a channel sustainability perspective. So in our world, we do not -- it's not a -- we set up our savings product line as a savings business, not as a product line for a life ecosystem, if that makes sense. That allows you to track those metrics quite carefully. But the group is doing some work there at the moment. But I'm fairly relaxed around the sustainability of the savings in the Momentum Life space. Also looking at the client value proposition. That's important. Our client value proposition is very competitive out there. What is also important is the partnership and the growth in the Momentum Advice agency space, for example, in particular, we don't really have those tailwinds in the savings business currently that I think we will get going forward. So that answers my question. But you need to look at this across the group portfolio, I suppose, Risto.

Thanks, Marius. I just want to add very briefly. We're doing a lot of work on the savings products. I would say Investo has the best marginal profitability of the savings business. So if we do start to exit savings, the affluent market is probably the last place. I think there, the argument is the marginal profitability is quite decent. There are pockets where we're wondering whether the marginal profitability is there. Like I think we'll accept some fixed cost coverage from Investco. Some of the other ones are a bit tougher. The market consistent one is interesting because Johann referred to IFRS 17. It's actually MCEV. So we're now -- we're sort of building up the savings products using risk-free returns. So you can just imagine how the asset buildup versus expenses looks different versus using equity risk premium. So that was the ZAR 80 million lost overnight with the move to market consistent.

Thank you. That's why we need [indiscernible] CFO for this question.

My name is Sean Grants from Rechargeable Africa. I'm happy to say I'm a new corporate customer of Momentum Health4Me. Just a couple of questions. I'll shoot them at you. You can choose which you want to answer. First one, why have e-mails and calls not dropped if your mobile uptake is increasing. I would be tremendously concerned if my e-mails increased from 45,000 to what, 70,000 or 100,000 per month, if I get the figures right. Number two, I'm just curious to know, I gather I'm sitting in a room of mostly independent financial advisers, consultants, investors, shareholders, et cetera, not customers. How many of you in this room are actively using any of the apps such as Health4Me or Multiply. Just by a show of hands. Okay. So that's about half. So perhaps halfway there. And then I'm just curious to know who of you and which of your customers are actively doing user testing because I got an e-mail this morning from Momentum explaining to me how I should link my device. And I've spent about half an hour since trying to link my device only to find out that I can't do it through the app because it's not a Samsung or an Apple device. I have to go to my service provider's device, and I went through about 5 or 6 different pages to get to that point. So other customers who are not as tech savvy might be a bit frustrated. Apologies for the public criticism, but just an idea to use staff and customers for user experience testing. And then the last question, I noticed you have a multi-cloud strategy. I'm a Google Cloud partner for business at enterprise. And one of the slides that I prepared for one of my presentations this week shows that if you are not using a single cloud stack, then you're open to security vulnerabilities. And because you use Azure and AWS and Google Cloud, which is the multi-cloud strategy, as I understand it, are you aware that you are vulnerable, for example, Microsoft platforms are 98% more vulnerable to attacks than a single cloud. And as far as we know, Google are the only company that own a single cloud stack. So I'm very glad that you are open to Google Cloud, but why would you not want to be on a single cloud so that you own all of your data from top to bottom? Apologies for all the questions.

Sorry, I didn't get your name. Sean...

You can start.

Thanks very much, Sean. So those are great questions. Let me pick up the -- certainly, we understand that we need to be thinking about our channels quite holistically, which we probably haven't done as much over the past couple of years. But as we've started to improve our technology stacks, which I'm going to talk about a little bit later, we've started to be able to then put the analytics in place. So exactly the question you asked -- when we have, for example, self-service capabilities, are we actually seeing the shift in volumes appropriate to what we're looking at. And when we see a spike in a channel, particularly for activities that we believe are better suited for the client in a different channel, we need to ask ourselves why is that happening? What's standing in the way for the customer and how do we actually improve that? Certainly not something we've gotten perfectly right thus far, as I think our numbers show, but something that we're putting a lot of effort into. And we're hoping that certainly over the course of the next 12 months, we're going to see significant improvements in that. To your second point around our mobile applications, again, mobile applications is probably an area, as you would have seen in Johann's presentation, we've made great strides in terms of what we've been able to do in terms of Adviser Connect and our connect capabilities for our consultants. Our next phase now is to be able to strengthen and improve our direct-to-client capabilities, which is on our apps. One of the challenges from an app perspective, as you noted, is that if you're not on either the pure Android or Apple ecosystems, especially if you're on the Huawei ecosystems, it does pose a little bit of a challenge in terms of the different technologies that they apply and the different stores, something that we're working on with the providers themselves to be able to strengthen our capabilities. And again, I'm really hoping that when we stand in front of you in a year's time, we're going to have a far more seamless user experience -- and certainly, my boss is going to be holding us to that. Finally, on your question around multi-cloud, it's an interesting question. We don't necessarily feel that multi-cloud, especially when we work closely with the cloud providers, we've got very close relationships right now with AWS and with Microsoft on Azure. We are looking at adding in other cloud providers. But what we do is that we tend to actually create internal layers between ourselves and the cloud providers so that we're always in control from a security perspective and from a data perspective as well as giving us from a resilience perspective, some security in terms of what happens if one of them does go down. So -- but very happy to have a more detailed discussion with you afterwards in terms of discussions around how we think about the multi-cloud as well as GCP.

Yes. And then I think, Sean, just to touch on the first question that you asked, part of the fundamental change that Two-pot has brought into the retirement industry is that you now have a scenario where a member can initiate a transaction themselves. Historically, all claim type events were initiated, yes, by the member, but via the employer. So -- and it will be a retirement event, someone is changing jobs, someone has passed away. Now once every tax year, someone can get on to their phone and process a withdrawal transaction. So just by virtue of that, there's an uplift in levels of engagement that I think we should accept and expect that, that will continue. Then there's also the element of people just taking a keener interest in their retirement and their retirement outcomes. So a lot of what we see is people inquiring, how much can I withdraw, what are my options? I want to understand better. So there are elements of that. The last one is, I mean, the numbers I've taken you through are averages. So I think what we should see over time is a tapering to a new level of normal, but the historical normal will not be the normal going forward. And the way we have looked at that is to say, look, let's keep our headcount relatively stable and then let's pump as much capacity and capability from a technology perspective to better enable our colleagues on the front lines to service our clients and to manage the volumes. So stuff like optical character reading, we've actually embedded into our ecosystem to help with things like indexing and basically moving items across the ecosystem a lot quicker. So it's -- I think we're learning, and we'll all find the new altitude at which this industry needs to be flying going forward.

Thanks for your question, Sean. I'm sure you're going to enjoy Ravi's session a little later.

We're now heading into the second half of our Capital Markets Day, and we'll shift into Metropolitan Life, Africa and hear a bit more from our health businesses and business. And then a bit later, we'll hear from our short-term insurance businesses and digital. But for this half, I'd like to just call up Peter to get us started. Thank you.

Thank you, Tokelo, and a very good afternoon, everyone. So. earlier on, Risto was talking about whether he has to wear his glasses or he doesn't have to. I hear Duma talking about COVID-19 ice. I don't know that. That was the first for me. Mine are just old ice. And now when I try to look because these are multifocal, I have to find the right angle to be able to look so that I can see this. So to ensure that I can still be able to see you, I'll keep them on. So I'm going to share with you the journey for Metropolitan. Last year, we spent some time where we covered the focus areas as well as the strategic objectives, which were going to lead us to F' 2027 deliverables. Now today, we get an opportunity to also share with you the progress that we have made to date. And I will also touch on the confidence level as well as why we say we are going to achieve the F' 2027 deliverables. The first thing here is we would like to make sure that we can be able to sustainably deliver the normalized headline earnings at ZAR 750 million by 2027 as well as achieve the margin of 5%. That said, we had to make choices to say what are those areas that are going to help us to achieve this. The first one is around optimized value. And then we have got the client-led solution, the client experience and then the other 2 is around the business development as well as the diversified distribution. In my mind, there are 3 themes which are really attached to these focus areas. The first one is around cost. Now even when you look into the different focus areas, you would see that the operative word is optimized, through and through. And the other day, I was thinking, I don't know how many times this year, this financial year, have I said optimized or optimal optimization. I've said that so many times. And each time I get an e-mail, they will also be optimized. If we were to think about it, and I see each time I also -- when I see , it's also about optimization. Now if you were to think of the history of the organization, I'm sure in the 12 months, we have said optimization more than we did in the history of the organization. And that shows how important it is for us to ensure that we can be able to manage costs. Now the second theme is around putting the client at the center of everything that we do. Now here, we're talking about can we ensure that we come up with a solution, which really live up to the client's expectations -- but when we do that, we shouldn't forget to make sure that the shareholder doesn't lose out as well. When it comes to the client experience, this is the one area where as a business, we have really done very well. We used to have sexy where we used to be #1 on client experience. We moved on to us Africa, we still came up tops when it comes to the client experience. That said, it means we have to continue building on that to ensure that we can remain the people who live up to what their clients really expect from us. The third theme is around growth. Here, we're talking about can we ensure that we can be able to understand our current market access to ensure that we can be able to build from that. And also to optimize that, we look into the systems that we have and the processes that we have, which can ensure that how can we be able to grow our business. That said, we need to look into other opportunities outside of what we have as well as create new revenue streams for our business going forward. While we're doing all of that, it will also create an opportunity for the different channels that we have or the ones that we have to create to ensure that we can be able to attract different revenue streams with different channels because clients don't necessarily want to be serviced the same way. And in doing all of this, we need to really continuously build on our brand as well as build a culture of high performance. These are the objectives that we shared with you last year to say, if we can be able to achieve all of this, we will be able to deliver the ZAR 750 million as well as the 5% margin. Now on optimized value, key for us is to ensure that we can be able to deliver ZAR 150 million cost saving by 2027. And then when we look into the solutions, we said, while we are going to create value for our clients, can we also make sure that the shareholder can be able to get the 5% margin. And then on the client experience, we need to ensure that the client satisfaction can be at 84% by 2027. Business development point of view, yes, we would like to get to a point where 30% will be coming from both public sector as well as the private sector. And currently, we're sitting at about 1% in the private sector space. We say we need to make sure that we can intentionally go into the private sector for us to get the growth that we want. And then the different channels. Now when you look into alternative channels where we have got the brokers, we have call center. And now when we look into digital, which is very new, the direct as well, we're not where we want to be. And somehow, we need to look into our distribution channel and get into a space where 30% must be coming from alternative channel, some work to do in that particular space, and we would like to see improved productivity. And then about 9, 10 months later, how are we really doing there? From the cost point of view, as at the end of H1, we have already banked ZAR 40 million. Now when I look into this as how did this come about, you will see that there's a lot of work which was done in the ops space wherein we digitized so many things in that area to get to a point where we're servicing clients better. That's one. And also the number of people who are supposed to be part of the servicing team, and then we had to reduce that because we have got the digital way of engaging with the client. On the other hand, we have now just done the migration. Having done the migration, there's some savings that will be coming through, but there's a lot more that we're expecting in the future, and I will be able to chat to the migration at a later stage. Now when we look into the VNB, by the end of H1, we are sitting at minus 0.9%. This is where our biggest challenge is. We're sitting with a 5% margin by 2027. But when I look into where we are currently, yes, we have seen some improvement, significant improvement for that matter. But we are way off the 5% margin that we have set for ourselves. When I look into what are the contributor factors which got us to here, it is mainly the product commerciality, which played a huge role where we had to go and reengage with our own market access owners to see if we can be able to pay less. We had to reprice some of the solutions that we have. We had to relook into the benefits that we have. But all of that was not enough to get us where we should be. And then cost reduction will also be able to contribute towards that. We're speaking about the migration of which the 70 million to 100 million that we're talking about, the lion's share will be coming to our site. All of that should be able to help us to really improve the VNB margin that we're sitting with. And also, when I see the improvement that we are getting now, it is happening at the time where we have also seen a reduction in the annuity sales, which to me, it means there are some stuff that we are doing, which are in the right direction. Volumes are not where we want them to be. The mix wasn't necessarily where it should be. And all of this, we need to do something about going forward. The customer satisfaction, we're already sitting at 93%. I said the target is 84%, and this is one thing that we'll continue to really build on. And one key contributor to this is the digital self-servicing where clients are very much happy with that, which to me, we need to ensure that we can build from. From the business development point of view, yes, we have seen a bit of improvement when it comes to both the private as well as the public sector. Now there is a lot more that we still have to get from here. There is a lot more that we still have to do and be intentional so that we can see this growth that we're talking about. Now another element, we said we wanted to get new revenue stream. We have signed a partnership with the Nazareth Baptist Church, that is the [indiscernible] church. As much as we have entered into this relationship, there's a lot of work that we have to do. We're not going to be utilizing the current distribution channel to really penetrate this market. What really excites me about this is this is a different kind of a client. On the other hand, we also have to learn as much as possible from this particular grouping. One, -- given that this is a church group, I mean, I even went to the church about 2 weeks ago. It was very interesting and a very interesting experience. The [indiscernible] church people, for those of you who do not know, sometimes when you're driving along the road, you will see people wearing white on the side of the row can. That is the [indiscernible] group. So I went to [indiscernible] 2 weeks ago. And when you are in the temple, you have to walk bare foot. And then I got there, we walk the foot. And now the king as they referred to him, the [indiscernible] King and then he had to do the same one we were sitting down and then somewhere along the way, he was talking about this partnership that they have with us and how much you would like to support this for their benefit. And then he says, you will see amongst you, there are metropolitan people. It was myself and David [indiscernible] the leader in this. And he says, the only way you will be able to identify them. It's shiny heads. Why I say that the [indiscernible] people that don't cut hair. You bought and then you don't cut until you die. So they all have hair. And then the only 2 people who didn't have hair was myself and David. Now there's a lot to learn from this group. There's a lot that we have to also understand on how we can be able to say. It's very hierarchical and they respect authority in so many ways. Now we are not going to get someone who come from us how to go and sell there. We want the members themselves to be the one who can sell amongst themselves because that also talks to the trust. So there's a lot more that we have done to date, but we still have to see how we can be able to start getting the numbers from the [indiscernible] church which, in my view, it will be a total different revenue stream for us. When I look into the diversified distribution, first, we have now done the rationalization, which I will be able to chat to a little bit more, but productivity has also improved and the retention post this rationalization has also improved. And what I like about it is we are now keeping the right people, the people that we want to go forward with. And then from the strategy, from the confidence level to the strategy that we have set for ourselves. And yes, when it comes to cost, I'm 100% sure that we should be able to deliver the ZAR 150 million. And then at times, when I speak to [indiscernible], the CFO, he feels like, yes, we should do that and better. So ZAR 150 million, we will be able to deliver that. When we look into the client less solution, yes, this is where the challenge of not getting the VNB margin is sitting. We are still confident that we will be able to deliver the 5%. There are things that we have in place, which should be able to help us to get there. And then already, given the migration, the one thing that we have done, we had to build new solutions on the new system. And now they use all of the replacement solutions, they have got better margin compared to the ones that we had that side. So hopefully, we will be able to get additional contribution from there. The one other area where we are reasonably confident, it is on the alternative channels. I said earlier, currently, the brokers call center, there is some work that we need to do there so that we can be able to really generate more new revenue. And then the or the partnership that I referred to as well should be able to help us to get closer to the 30% that we said we want to achieve going forward. And then a little bit about why do we think we will be able to deliver on that. First, it is the migration that we have been talking about. Johann has also chatted about this. And in one of my discussions with Johann and Philip who's from the Match side on this, they said to me, you know what, this is the biggest migration, not only here in Momentum Group, said in South Africa as a whole. without any thought to it or not knowing exactly how big this is and any other migration that has happened, I said, if anything, I'm not going to repeat that, but I'm just happy to get the benefits of whatever we have done. I will keep it that way. Now here when we talk about the work that has been done, we have been on this journey for more than 7 years. And now today, we find ourselves here. There are so many other benefits that will be unlocked by this. Already, I know [indiscernible], our CRO, is not here. And each time we would go to him with something new to this says, no, no, migration. for 7 years. Now I said migration is gone. There's no longer an excuse of saying, no, I have got migration. We need to make sure that we can start to really move forward. Cost saving is a big thing. And yes, already, the ZAR 70 million to ZAR 100 million, which is said to be coming from switching off the mainframe and then the biggest part of that will be coming back to us, which is a positive thing. Now we're going to end up with the new and modernized platforms, which to me, it's a good thing. One, we should be agile enough now. When we have to make any changes into the business, we have got a system that will enable us to do that. Technology risk now is going to be reduced and which, on the other hand, it's a positive thing on its own, and it also makes sure that the people that operate in the business, they can do better. now we have got the straight-through processing that we introduced a couple of years ago. And now when I look into all the new solutions, they are also now on straight-through processing, which is a positive thing. You no longer need a lot of people to touch the new applications. That means you have got some savings that we'll be able to generate from there. And then again, our own servicing model as well as the sales model, they can be able to integrate to this new system that we have, which to me, it also strengthened our own employee value proposition and then they can be able to do well as well as allow the clients to be able to self-service themselves. So so many benefits which are really linked to us having done the migration successfully. And again, when I look into the second issue is the tied agency optimization. We did this in the last, I would say, 10 months. To find ourselves where we are, we had to go ahead and reduce the number of provinces. We used to have 5 provinces. We now have only 4. We used to have 30 regional managers. We are only going to be sitting with 18 regional managers now. The branch managers were just under 300. We're targeting to end up at 175 branch managers. And the advisers already, when we started the year, we were just above 3,000, we are now sitting at 1,800. And what I like about what we have done to date. One, we have seen productivity going up already. And secondly, the team that we left with is the right team. It's the right people that would like to have and ensure that we can really be able to build from here. And we are also making sure that we need to embed the workforce management so that whenever you bring an additional individual, they come into a space where they can be able to be successful as well. Now having done this, we have to build from here. We have no aspiration to go into the 4,000, 5,000 number of browsers. We want to ensure that we can be able to have a sales force that can be able to perform to expectations and we build from there. Digital ready business, so much has been done. I spoke about the service-related digital way that people can be serviced. When we look into the 2-part system, withdrawal system, -- last year, when this was implemented, day 1, we were ready to already pay. And that's how proud we are to have the team that we have who could be able to deliver like that. More so when it comes to the Two-port system, some of the rules were only finalized within a month from the date which was operated. So we were very proud to have done that. Again, even now the clients who are engaging with us as much as Two-port has become BAU and then they engage with us digitally, which is positive as well. The last but not the least is our people. When I look into how tough this couple of years have been and then the team that we have here are the one who made all of this really possible. And if I were to look into the migration we're referring to, it is really big up to the team. When I look into the rationalization, this was big work, which had so many other moving parts, but we have managed to pull this off without necessarily losing or creating commotion in the system. And then the last one is around the expense management discipline, which is why I'm comfortable to say the ZAR 150 million we are set as a target we should be able to really deliver on. And again, let me be the first one to acknowledge that for the last 3 to 4 years, the focus has been very internal. Now we are standing where we are. We are so happy and proud to say we can be able to lift up our heads and make sure that we can be able to go out there and fight and it is going to be a big one. Yes, there's a sub story that already outside I had to chat to some of you, and I'm sure we'll have more opportunity to really talk to that. Thank you.

Good afternoon, everyone. Okay. So I've been here earlier, representing the India business. Now I'll be wrapping up the international portfolio by covering the Momentum Africa business. So I'll start off by just giving a recap of what we said our key focus areas for the impact strategy would be. And then I'll give an update on where we are so far. And then I will talk about the operating model. Maybe just to give context, I mean, Jeanette did mention earlier that we've made progress in terms of determining the new Africa operating model. So I will cover that later on in the presentation. But I think it's worth saying that we've done the work. We're comfortable with the decision and how we're going to take the business forward. It is not a change in the strategy of the business. So all the things that I'm saying today remain relevant. We still maintain our targets for F 2027. And in fact, what the operating model is going to do is going to be enabling us to better be able to deliver that strategy because of the teams being set up better, better operational alignment and probably the right reporting lines as well, which will enable the strategy. So we think we're setting ourselves up for success for the strategy. And then lastly, I'll close off with a few key focus areas for us for the next 12 to 18 months as well as what excites us about the road ahead. Okay. So our winning aspiration is to be the preferred financial services partner within our chosen markets, providing relevant solutions to enable the well-being of our clients through exceptional client experience. emphasis on chosen markets, emphasis on relevant solutions, emphasis on exceptional client experience. And I think you'll hear those coming through throughout the presentation. So how are we going to deliver on this? I think if I can summarize sort of this strategy for us, the word that I would use is anchoring. We're trying to build a steady, predictable, sustainable business that is set up for growth that we'll see already in this 3-year period, but also beyond. That's what we're aiming to do over the period. And we're looking forward, and there's been good progress already in the last year. And I think everything we're doing is tracking towards getting that and achieving that. So starting off with the 5 focus areas, distribution effectiveness. That is really about embedding the fundamental distribution disciplines across the team, making sure that each individual, each sales manager has clarity about what they need to do on a day-to-day basis so that the outcomes that they are -- the actions that they are doing on a day-to-day basis translate into the outcomes that we track on an overall level for the business and on a financial level as well. We also want to grow sales, grow existing channels, improve our market access, but also grow new channels in the business and use partnerships to support the growth of our sales as well. Growth is important because I think scale is critical for us. We are at a stage where we're investing a lot in the business in terms of systems, but the scale of the business needs to support that growth so that the sustainability and the earnings can come through as well. Second, enhanced client experience. For us, that means reducing the amount of friction that our clients experience when they interact with us. It relates to operations and systems, but also the ease of doing business. So the ease that our teams have in doing what they need to do on a daily basis and how that translates into perceived experience of our clients. So we'll be tracking and measuring all the activities that we're doing and ensuring that they translate into that better experience. Next, operational efficiencies. We have identified a few specific initiatives to improve operational efficiency across the business that cuts across automation, improving customer service channels and how we operate there. But what we're really saying is with the implementation of the new systems, we have to follow through for each process and say, have we made it easier? Have we eliminated friction in each part of the process so that it's easier for our teams to do what they need to do, but that it translates into, again, a better experience for clients as well. It includes the systems implementation that's in progress. It includes automation, improvements in our RPA processes and so forth. Okay. Then the next one is the growth in new markets and channels. Here, what we've said is there are key markets that we think are really sizable in the countries that we operate in, and they relate mainly to SMEs, to youth and to the informal sector. What we need to do is to create a clear plan regarding how we will access those markets on a sustainable basis and a commercial basis so that we actually have an impact in those markets. It's not markets that we can ignore given the size of them in the markets that we operate in. So we're making progress in terms of just understanding what the opportunity is and how we can sustainably tap into that opportunity. Lastly, product development. We have implemented some savings products in the last year. It's a key thing for us. I think for the last probably 7 to 10 years, there haven't been changes in terms of our product suite. So it's been a key focus to ensure that we have the right product mix set up in each of the businesses, each of the countries. Savings products have been implemented. We are on track to implement our risk products during the course of this calendar year, so around about August. And I think that will be concluding this current stage of product development that we're aiming for. Okay. So the key measures that we put for ourselves in order to track that we are progressing on all of these focus areas are adviser productivity, target of 1.2 policies per adviser per week. I'll talk a little bit about that later. New business risk to savings ratio. So having more risk business rather than savings business and shifting that ratio, increasing target to 50% by F 2027. NPS target of 65% across the Africa business by 2027, conclude the system implementation project, which is well on track as well as an NHE of ZAR 450 million by F 2027. So how are we progressing on those? So I'll first cover -- give you an overview by country, just to give you an update in terms of how things are progressing per country, and then I'll do a summary overall. So Namibia first, and Sakaria, the CEO of that business, is here today. So if you've got Namibia specific questions, he's here to answer them. So Namibia remains the largest part of the Africa portfolio, biggest contributor in terms of earnings, biggest contributor in terms of sales. We're really excited about opportunities in the Namibian market. The GDP growth has been strong at -- well, 3.7%, I guess, relative in Africa, that is strong. It's been good GDP growth. We've seen continued interest in the oil and gas exploration, sometimes tentative, but still really promising. We've seen a new government that's come in and really focused on stabilizing the country and growth in the country as well. So we're really excited about prospects for business growth in Namibia. And in terms of performance, sales have been really good, strong sales growth, strong increases in productivity. So Namibia has already surpassed the F '27 targets that we have for the business as a whole. They're currently carrying the rest of the business in terms of productivity. And in terms of sales growth, there been a 20.1% increase year-on-year in terms of APE as well. So really strong output. Namibia was also one of the first areas where the distribution fundamentals that we are implementing were properly embedded, and we can see the fruits of that and the impact of that. So definitely, things are going well there. Also strong pipeline in terms of corporate business going well as well. And we expect by the end of this financial year that the corporate business will be able to see the outcomes there as well. In terms of partnerships, we've recently concluded a partnership with the Luther Church, which has about 500,000 members across the country. So that's going to be a key focus on growing sales in that country as well. Then the short-term insurance business has done really well, increasing sales volumes and good claims ratio of ratios over the period as well. So really good outcomes there. VNB is probably the one thing that is a key focus. [ Sakarya ] has a self-confested fear of failure. So that VNB has made him very unhappy. So that -- and that's been driven by an increase in sales-related expenses over the period. We have a clear plan and a targeted plan to ensure that, that is fixed over the next financial year. And I think if we sort that out, the VNB will move in the right direction again. So yes, positive about -- really excited about opportunities that we have in Namibia. Then Botswana. Botswana, also interesting context. I mean, [indiscernible] is the only country where we've seen a contraction in GDP over the period. And new government also come in really positive, really excited about the plans, the long-term plans and prospects that they have for the country and the diversification of sources of income for the country. So still positive. You might all know that the GDP per capita in Botswana is actually about USD 7,000, so higher than South Africa. So there's opportunities there to land our business and to improve going forward as well. I think we're punching below our weight in terms of the size of our business there in that market relative to our competitors. In terms of sales, productivity has improved, but I think the level of sales are not yet at the level that we desire. I think the one thing that keeps [indiscernible], who's the CEO of that business awake at night is the mix of savings versus risk business. We're still very highly weighted towards savings business, which is not ideal. So a key focus has been, first of all, improving the type of product -- of savings business that we've launched. So in the last year, we launched new savings products, which have increased the minimum premium, focus on the right target market of clients, but also focused on improving the VNB and the client outcome for those products as well. Also, we are in the process of, as I said, we'll be launching the long-term risk savings product -- risk products in August this year. And I think that as well as repricing on the funeral business will give us opportunity to be able to increase the risk proportion of the business. So that's a key focus, I think, for Botswana. Also good partnerships there. We've actually formed nice partnerships with Orange Money and Mascom for arrear premium collection just to make sure that clients have different opportunities in different ways rather than going to branches to repay and to minimize lapses and to increase persistency. Okay. Then Lesotho, the savings, the implementation of the systems applied to Lesotho as well. So the systems we implemented for both Botswana and Lesotho, and that's gone well. For Lesotho, we are about -- we have a 69% market share. And in an environment which has been hampered by the change in American policy and the exit of U.S. aid with constraints in economic growth, that does mean that our competitors are looking to our business for growth. So that means we have to keep our foot on the accelerator. We have to continue to grow the business. I think exceptional client experience is going to be the one thing. If we look at ourselves and look at peers, we really have an opportunity to do well there. So it's going to be a key focus for us to continue to grow that business. We have launched unit trust products in the asset management business in partnership with Momentum Investment in this year. And that will give us opportunity to play even better in the institutional space in terms of asset management and yes, have a relatively better offering as well in the market. Then lastly, Mozambique. We've seen really strong sales growth in this period. Last year, we repriced some loss-making schemes, and therefore, we did see a drop in the book. We've overcome most of those losses and back on track now. So good growth in terms of sales. Good claims ratios as well. And we launched -- we recently launched a Portuguese-based mobile app in that country. So that will improve engagement as well with our clients. So yes, good progress there business-wise from a Mozambique business. Okay. Then overall, I think good progress on distribution effectiveness. A little bit of focus, a little bit of peer pressure will take us beyond the current levels of productivity that we're seeing. So the 1.08 is not where I think we should be right now, but tracking in line with our target for F 2027. But I think, yes, with the focus and with a little bit of pressure from the Namibia team, we'll be able to probably reach and probably exceed even our F '27 targets during the period. Risk to savings ratio is sitting at 42% that will improve over the next year or so once we've got the products in place and are able to sell them and enable our agents to have good product that they can offer to clients. NPS is currently sitting at 59. We think that -- so we've done a bit of work to change the way that we're measuring the NPS to align with the rest of the group, but also to have it to be more effective. We're also increasing the measurement and making sure we've got enough data that we're measuring it on. So I expect that the 59 will probably reduce before it goes to the levels that we're tracking it. But yes, currently sitting at 59. It will deteriorate over the period, but we still aim to get to the 65 by the end of the '27 impact strategy period. System implementation, as I mentioned, that's on track with the migration, as Johann mentioned earlier, with the migration of the OBI system we then implemented the new savings products on the [ XG ] platform. So that's been done. And the next stage is the last implementation, which is the risk product, which will be in -- at the end of August. And then we earned ZAR 254 million in normalized headline earnings at half year. I think my only concern there would be the proportion of investment variance linked to yield curve versus operating profit. So for me, it's increasing the proportion of operating profit in that number, and that will be our focus going forward. Okay. So yes, confident on all the items. I think the one thing is the new markets that the project is just a little bit behind, but even that, I think we will sort out and make good progress in terms of figuring out how we can tap into that. Okay. Then the operating model. So the operating -- so we've concluded on the operating model. We've done detailed analysis. What we've concluded is that the Africa business had remained on the old centers of excellence model even after the rest of the group transitioned to the new federated operating model in 2018. And what we found is that impacted on focus, on accountability, on clarity, teams working in different places are not enabling us to be more aligned and able to achieve the outcome. So what we have decided is that we will transition this business in line with the group operating model. And we will transition the health businesses -- health operations that are in the rest of Africa, which are already operating on the HIP platform for health and already received actuarial support from the Momentum Health business into the Momentum Health business unit. We will transition the Momentum short-term insurance business in Namibia, which is currently very closely aligned. And in fact, when we did the strategy -- the impact strategy plans, we connected with the Guardrisk business to sort of say we see opportunity in terms of the corporate and commercial business, especially with the gas exploration in Namibia with Guardrisk and in partnership with Guardrisk. So we see opportunities there. So that business will now form part of the Guardrisk business unit. And then we will formulate what we call the new Africa Life business unit, which will cover retail life, institutional life as well as asset management. The asset management businesses in most of these countries are also more closely aligned to the Life business. And normally, they start off with investing in life business assets. So that's -- and maybe just to be clear also, the alignment with the rest of the group will remain. So continued collaboration with Momentum Investments, continued collaboration with Momentum Corporate on, for example, reinsurance arrangements. So those will remain, continued collaboration with the Myriad product house. So that -- those will remain. It doesn't mean that the business is not working together. So the ongoing collaboration and efforts across the group will continue, but this will enable a business that is more end-to-end business focused, and it will enable all the 3 parts of the business to have focus, to have clarity of outcomes and to focus on growth going forward. So I think we think this new operating model will set us up for success going forward to achieve the growth and the opportunities that we see going forward in the market. Then what are our focus areas for the next 12 to 18 months? So first, we're landing the new operating model. It is more operational. It's more about teams and where they're sitting and where they're structured and reporting lines. As I said, it doesn't change strategically where the business is going and what the key focuses need to be, although we obviously will continue to dynamically review those. But I think the focus is on saying, let's have clarity, create that clarity as soon as possible, have a focus and move to implementation as soon as possible so that the business can actually extract the value that we think will be achieved when we close that out. Sales growth is going to be critical. We need good quality, sustainable sales in this business. Retail sales, it's critical. Institutional sales is also critical. We're focusing also on bancassurance partnerships and partnerships with affinity groups, and that's going to be important. We have to achieve sales growth so that we can get the right scale in the business. Lastly, everything culminates with VNB. We are not comfortable with the level of VNB at present. We think that continuing to grow our sales is going to be important. We think operational efficiency and the plans that we have in place that will help to improve the VNB outcomes. And the focus on the product mix is going to be critical as well. So good plans in place -- clear plans in place to support the improvement of VNB for all the 3 -- for all the 5 countries that we have. Then I didn't cover Ghana in the slide. I'm just remembering now. Okay. The right to win. Why are we here? And why do we think we have a right to win? We believe that as insurance companies and as financial services companies, we have a very important role to play in the lives of our customers and our consumers in the markets that we cover. It's important for us to enable our clients to use financial services as a tool to achieve their goals. And I think we have an important role to play in that regard. We think that, that requires us to then be more lean. Our clients require relevant products depending on where they're at. They require our products to be cheaper, to be cost effective. So we have to make sure that we are efficient. We are diligent in terms of how we use our resources and that we ruthlessly prioritize so that we use our resources in the right sequence to achieve the outcomes that we need for the business. And we have to have a lean and streamlined operation that focus on making it easy for our teams to do what they need to do, but also deliver an innovative client experience. So thank you.

I thought to just come on stage while Hannes gets his jacket on. It doesn't always happen. So we are quite fortunate today, ladies and gentlemen, Hannes Viljoen from the Health business.

Yes. Thank you so much. And the jacket is really not my big thing. Jeanette got me into it. And yesterday morning, my wife actually said you must remember that jacket of yours. So -- but I think, firstly, it's a huge privilege to be able to share a bit of time with you. Thank you so much for sacrificing your time, and it's 3:00 almost, a long day. So thank you for staying awake and being with us and listening to our stories. Also, thank you to my team. I think when I shared with you what's happening in the business, you will see but it was a huge effort from the team. So really proud of what the health business is achieving. And luckily, Norman is sitting there at the back. They brought the presentation together. And if there's difficult questions, they have to help us with those difficult questions. But thank you again for being here. We're really excited about the business. And I was thinking sitting here, and it's not a secret. I mean, if you look at the air, life is moving on. I've started in the group in 2002 when our group sold Discovery to RMB and then started the new Health business. And it's quite some time. And I think thinking back, it's probably the best place where our group is in since I started here 23 years ago. So it's a fantastic place to be in despite terribly difficult economic situations, interesting political situation. I don't think it's the easiest environment in which we're operating. But I think focus and energy and leadership is making a huge difference, and it's a privilege to be part of the group. Yes. So quickly framework, like everybody else did, a short recap on our strategy. We shared it a few months ago. I'm not going to bore you too much on that. And then update on where we are from a progress point of view. And then just closing 2 slides on some closing thoughts. I think in recapping again, and this is really, really important is that the thing that drives us, that winning aspiration for us is to create more health for more people, for less. And this is how we build and protect our clients' financial dreams. This is deeply seated as purpose. And I was very fortunate to be at a Global Health Conference last week where all the, let's call it, countries in the world that has a private health sector was actually together and discussing global issues around health. And if there's one takeout for me that was interesting in this whole pursuit of people in the world living longer, and 2 big questions that it posed is, firstly, how do we deal with funding retirement because as people get longer, they didn't provide for it. Another thing is how do we take care of people from a health point of view. And one kind of is contra the other one. So if people live longer because of health, you have a bigger retirement funding problem, et cetera, et cetera. The bottom line is that all the countries agree, you need to solve for the economy, and then you can solve for those things. Don't think that you can solve for health and that will solve the economy. First solve the economy. And then you'll be able to have economy in which you can actually sustain health and those other issues. So very deep in us, more health for more people, for less. Just recapping again, our ambition strategy to grow a streamlined Momentum branded value proposition in selected markets locally and outside our borders while leveraging existing capabilities to achieve public sector private partnerships with different government entities at scale so that we can really play a role in broader society. And the 5 key strategic focus areas, which we identified, first, OneHealth, why is that important for us? We were a very fragmented business, came together from acquisitions, et cetera, et cetera, and managing around 1.2 million families or just below 3 million beneficiaries, but in a very fragmented way, different systems, different brands, different approaches. And the decision there was we need to start to play in the market at scale with the presence of a single brand from a single system to be able to get that scale across the business. Second thing, our flagship, Momentum Health branded scheme, we need to grow that to a credible level. And a lot of effort must go into making sure that Momentum Health is a credible solution in the marketplace. Then as you know, our public sector sustainability, quite a big portion of our business. And typically in the public sector, the tender cycles go out on tender and you worry what's going to happen and margin is eroded. And how do we get there to a sustainable situation. And then given all of this, South African market mature, not growing. We're in a listed company, how do we create growth in earnings? And there's only 2 ways. The one is we want to diversify vertically into delivery system, not only for more earnings, but to be able to control the starting point of creating more health for more people from a primary care point of view. So we want to diversify into that. And the other thing we need to look outside the boundaries of South Africa. We will not be able to grow earnings into the long term only in the South African market. And all of that supported by our digital transformation using data and insights, 5 key points there. digital solutions, a key focus, managing clinical risk by understanding our clients better through AI digital provision, huge virtual doctors, and I'll share with you a little bit about that, to provide access to primary care through virtual doctors. And then servicing our clients, the digital service experience and supporting channel advisers with digital service abilities. So those underpin across the whole business. Just recapping then the specific objectives that we set ourselves in those focus areas, the 4 on the left OneHealth, common sense, I've actually already said it, single labor-aligned business on one platform. It is key for us to get scale at technology level with a single brand, play in the market as Momentum and align client value proposition. That value proposition that will give us and our clients more health for less and help them enable a quality life. And then optimize our corporate portfolio. Again, a lot of small little schemes and clients hugely subscale either consolidate, put them together and/or put them in an environment where we can actually manage them at a lower cost. Open market growth, key. That is what Momentum stands for. In that space, optimizing our channel space with a few things. Firstly, get closer into the [ Foxtel ]. Johann spoke about that, get close into that distribution Foxtel align relationships, incentives and system support, digital support, make it easy to do business, a lot of work happening there. And then group collaboration, and Dumo spoke about that. We know it's a huge opportunity in the market in the employer space where employers are looking for integrated solutions for their employees between health and employee benefits, big focus for us. Public sector sustainability, create a sustainable partnership model and try to get away from the tender cycles that's creating a lot of trust and also grow into other public sector markets. There are other markets that we know that we can get to. Alternative growth, already set our delivery system, including virtual delivery like the Hello Doctor model and then participate in health care outside South Africa, go and do what we do here well outside our country. Measures of success across these actions that we drive. Cost savings by 2027, we want to reduce our cost base with ZAR 230 million. That was our promise. New families from a growth point of view in a mature non-growing South African market, we want to add 350,000 members. We'll get to the detail now. Our take-up rate of multiply or incentivized wellness, we want to increase that to 37%. Public sector, we want to access other markets, municipal markets and some other markets that's definitely available. And then again, the thing we spoke about, grow our pharmacy primary care footprint, grow our virtual footprint and get into international markets. That's what we promised the market a few months ago. So progress update. Exactly the same picture. OneHealth progress so far. We've already migrated 3 schemes onto our single platform. And the next big one is our Momentum branded scheme. It is a huge thing to migrate Momentum Health. It's our branded solution. It touches own clients, Momentum clients, Myriad clients, investment clients, advice space. So to get that right is crucially important. And we are on target to migrate that in the first quarter of the next financial year. Then corporate optimization, that is taking the small things, put them together, create a bit of scale. We already amalgamated Lonmin & Sisonke, 2 mining schemes, and that amalgamation was effective the 1st of June this year, [indiscernible]. And then we're working on 2 other amalgamations into Momentum Health of one, the exposition we're waiting on the outcome and the other one, it's in process of submission. So positive development in that space as well. And then the smaller little schemes, small subscale costing a lot of money. We created a new co-environment that can operate at lower cost for 8 of those schemes, and that will be effective from the 1st of January '26, and we'll save a sensible a lot of money when we get that right. Open market growth, Johann spoke about it. Dumo spoke about it. And again, I've been around for 22, 23 years, and it's probably of the most positive energy that we experienced in the channel space for a long, long, long time. And although we're a little bit behind the numbers, the last 3 months, we've actually achieved better than target. I think 150% of target. So the work that we did to energize people, create aligned incentives and to empower the channel with the right technology took a little bit longer than we thought. But now that it's starting to get the traction, we're really excited that we see now on a monthly basis, hitting 150% of target, both for the steam business, both for Ale and even for the multiply takeup, which is really, really encouraging for us. And then the big thing, collaboration with Momentum Corporate in the employer space, and Dumo alluded it, and a lot of positive stuff happening there just in that integrated employer space, creating meaning for employees, not only for health or only for employee benefits, but for employee in totality. And we're very fortunate that we're executing our first big scheme, Dumo, on the 1st of July, as you said it, and a total of 22,000 new beneficiaries that will come into the combined space for us. We work long on this, Dumo, I would think 18 months. First is to land it and then to scope it and execute it on the 1st of July, our first big success, 22,000 families in the South African context, getting access to health and employee benefits from the Momentum Group as an integrated value proposition. And then the last one there on open market, it's a wonderful achievement. When you acknowledged from the outside by independent groups, you're really happy, I'm confident that you did the right thing and hope to work hard to achieve it well again. We've been awarded by News24 as the medical aid of the year. Now if you think of it, sometimes when I think of this, I get this chicken bumps, it's in a market where you are -- sorry, Lourens. We use 6% of the market and News24 do work because they want to see you with the best and you come out top There's other players that's 40% of the market and 25%, we're like at 6% of the market. And from all the consumers that they asked, the scale gave us that we are the best. We were the best for 2025. So a huge acknowledgment to the team and well done to the teams that did all the hard work. And then the Board of Healthcare Funders, that's an industry body, gave us an accolade as the most innovative health business for the year, including our multiply or incentivized wellness offering, which again is absolutely fantastic, all happening in 1 year. And hopefully, it's also adding to the growth that we see at this point in time. Then from a GEMS point of view, you all know that's one of our risk areas, the tender cycles, every 5-year tenders and that we've -- I really think we improved the relationship substantially to the extent that GEMS decided not to do their tender cycle this year. They literally retracted their tender, and they decided to focus on the key business challenges for GEMS, like their claims ratios and the sustainability and stability of the business in totality and rather work with partners like us to improve that. So that tender risk is a big thing that's a bit out of the system for us. Then alternative growth, we're very, very comfortable that the Africa profitability is on target as Lulama shared. And then from the rest of it, the diverse the delivery system and our pharmacies and primary care clinics. We are a little bit slower than we thought for all the right reasons, capital scarcity given the NHI uncertainty, et cetera, et cetera, and also the right opportunities. But we made progress a little bit slower than we wanted. But we're very, very, very happy with the progress that we made with Hello Doctor, which is our virtual primary care. And up to the end of March this year, Hello Doctor already for this year had 1 million virtual consults for 9 months. It's like 110,000 doctor consults, virtual consults per average month, which is making a huge difference in the cost of the solutions, in the access that people get in the digital access, and we're getting -- we've seen good adoption there. Now one of the interesting things in this global conference where I was last week was the question was how will consumers adopt digital in something like health because it's so personal and so special. And one of the articles that was shared was how human beings started to trust the technology of flying. Now think for yourself, if somebody -- if you get into a plane to fly somewhere far, one of those long break flights dreadful flights Cape Town to Atlanta 16 hours, 14 hours. And once they close the doors, they tell you today, this flight is manual. There's absolutely no technology, no radar, nothing, nothing. We're flying like flying was born, the way it is manual, the way we do claims and stuff like that. I think the majority of us will probably get out because we started to trust technology in something like flying from Cape Town to Atlanta. So it's just a question of time, and we'll start to trust technology with clinical understanding and interventions of ourselves as well. So we will see bigger adoption in that virtual space, and we're very excited about that. Digitization, remember, that's one of the key things for us, just a slide about that. And the big thing here is about adoption. Are we seeing the adoption that we want to see because we're spending money in that space in 3 big areas. First one on the left-hand side, Scheme, Health4Me and Multiply. That's just service experience, how people experience the product. And you will see year-on-year on the scheme side, 25% up. Health4Me is up 348% up and Multiply 95% up. How the people use the product by not using call centers, et cetera, et cetera. So we're really excited about this that we're seeing. On the digital provision side, Hello Doctor, 140% up year-on-year. And then we also have a chat capability where people can like the chatbot engage with the doctor and help themselves 83% up. In the adviser environment, really important to us, advisers using our technical -- digital technology, 23% more than the previous year. So we're excited that we're not just building apps and stuff and they're not getting used. Yes, we have challenges, and we try our best to solve them as fast as possible, but there's definitely positive progress about the usage of technology in our business. A little bit of progress on one page. The 5 factors on the left, we started in '24 and then on the right, what we then said we want to achieve and where we are in the middle. NHI, we know in '24, the uncertainty was big. We want a stable industry for the sake of society and our clients. And I think debate is sensible. A lot of things are happening, and we're comfortable that we will get to a stable industry in the next 2 to 3 or 4 years. Competitors. As a small player, we've seen a lot of irrational competitive behavior. And we would like to see an industry that's competitive and sustainable and people can play. And we've made good progress with that, especially with the growth of our Health4Me product as well. We're getting into employer groups and then getting up into the middle and higher income markets is really helping us a lot. Membership growth. In '24, we had 2.955 million beneficiaries and our target was for '27, 3.89 million beneficiaries, South Africa only. And the latest numbers that we have for F '25 is that we are 3.039 million. So we're seeing sensible growth. And if you've seen the rest of the market has actually been shrinking. So we're very comfortable with the growth that we're seeing, and we're also comfortable that we will get to the F '27 targets. Expense management is on track, actually a little bit ahead of what we wanted to achieve this year. These are numbers that we currently see. It may change a little bit, and we're also confident that we'll get to the F '27 numbers. Diluted headline earnings, why I'm saying diluted. Remember, our health business has a 30% external shareholding. So this represents 70% of the business. F '24, our earnings was ZAR 255 million. We set ourselves a target of ZAR 600 million by '27. And our current position, current view of where we stand for this time of the year is ZAR 208 million. So we're comfortable that we're on and a little bit ahead of target, and we will be able to achieve the ZAR 600 million. Now you can think perhaps that the gap looks big. But if you take ZAR 255 million or take the ZAR 208 million your own calculations, add the ZAR 230 million expense savings and then add the growth at the margin on that, you will see you get to the ZAR 600 million in 2027. So we're really comfortable that we will deliver on that promise as well. I think I've dealt with the majority of this, just high level, we're either fully confident or highly confident about the majority of the factors is one, and that's growth into other public sector markets where we say we're reasonably confident and why we say that? It's not because we doubt whether it will happen. It's more a when thing. bit of a timing thing. It takes longer, and it may not happen in the time frames that we thought it will happen, but we're comfortable still that it will happen. In closing, our focus, focus for the next 12 to 18 months to further invest in our value proposition to deliver on our purpose. There's a lot more work that's happening there across our business, not only Momentum Health, also the other schemes in our business. Investing growth. We've discussed that ease of doing business, unique collaboration with corporate, organized labor focus to get into the lower income market and then expense base reductions. Those 3 things. That's what keep us awake. That's what we're focused on, and that is what will deliver the promise that we made to the market. Why we think we'll get it, right? We are very comfortable that we can deliver better health outcomes at lower cost than majority of the market. We can win market share with sustainable and affordable solutions. Our collaboration with corporate is unique and the value proposition is really unique. So we're very confident that it will help us. And then our ability to execute client delight through service and whether it's digital service or normal service, we're comfortable that we can do that. So that's the snapshot. I'm dead on time for some seconds now already. But that's it. Thank you so much for listening to our progress update. Thank you.

I love how Hannes says, I'm dead on time for a few seconds, 5 minutes later. But I guess that's what you get for being in the group for 23 years. We get a bit of latitude. But a great session overall. I guess, one, we've got Peter with his old eyes and shiny head, but a good turnaround story there and a bit of work to do in terms of just your agency optimization. Lulama speaking about anchoring the Africa business, building a steady and predictable business, but also, again, a focus on the VNB challenge. And then Hannes, 23 years later in the group, very energized but focusing on building a good investing in the value proposition and the expense base. And with that, ladies and gentlemen, I'd like to open up for questions. Warwick?

Peter, 3 for you. Just the large system migration you spoke about. Momentum also Momentum Retail also doing large system migrations. Are you all on the same platform now? Are there synergies between the 2 businesses? Or is your instance of the system different? Just elaborate a little bit on that. And then just remind us the mix of profits between funeral annuity and other products, just how it stacks in Metropolitan. And then I mean, Johann spoke quite a lot about the next phase for him being the advice framework. What's the next phase for you? Is that advice framework one of the things that you've looked at and need to address?

Okay. I'll invite the panel to come and help. So the question on the migration, we used to have 7 different platforms in the mainframe. Now we left with 3 systems. That is on the metropolitan side, that's [ OePa ]. We have got MFP. And now the other one is for what's the PDS. Now these are the 3 systems that we have. When you look into Momentum Retail, PDS and then they will also have a play. But when it comes to MFP, they have got a difference in OePa, they are not on OePa, and that's how the system in our space. And then on the question of Etienne will come and help me on the different annuities as well as the policy profitability. Everyone. So I think is the question just clarifying the question, is it VNB or earnings? Earnings. So on the earnings side, the long-term savings book is probably marginally profitable overall at this point in time. The annuity book, I would say, is just doing the math about 20% of the profits and then the protection book is the bulk of the profits.

Warwick, there was a third question, if you don't mind reminding us. Next please.

Just on the next phase.

Next phase.

Okay. So we are also embarking on the advice-led solution for our tied agency space mainly. But advice in the lower end of the market and advice in the retail affluent space is totally different. Now we are still defining what advice in our space is going to be like. And more so given the market that we serve, it is our thinking that we have to own it and not necessarily allow an adviser to own it as a principle and more so given some of the dynamics we have seen in the website space, if someone were to move, how do we ensure that the advice that has been given to the client was relevant. And as to the tools that we are going to use, we would like to make sure that Metropolitan becomes the owner of the advice, which means we'll have to guide, but we are still very much in the building phase, but it is our intention to have advice in the lower end of the market as well.

Thank you for that, Peter. Any other questions in the room? There's one there. While we move to Sean -- while the mic goes to Sean, I'm just going to reiterate a question we got earlier, Lulama around the Africa optimization pillar. I think when Cameron Naidoo asked this question from [ Absa ], he was referring to the slide that Risto put up around capital and that we're going to start optimizing the capital in Africa. But the question, I think, took a bit of a different stance because he was asking about any considerations to exit potential markets and where there's underlying performance and a drag on returns. If you can, please address.

So maybe just the capital optimization that Risto was referring to. We have as, Risto mentioned, we did look at the capital base of each of the businesses that we have in the Africa portfolio as well as the ROE and what that looks like. So currently, overall, we're looking -- we're sitting at about 9% ROE, which we believe is below what it should be. Part of it is driven by the fact that the way we entered some of these markets was through acquisitions. So as a result, we've got quite a big capital base just historically over time to the businesses being bought and being put in. And therefore, we think we can optimize that. So we are looking at -- so currently, in each country, there's the way solvency capital is being measured is on the old regime in terms of solvency SAM methodology. So we are -- and in SA, we measure the SAM measurement on the rest of the business, but not in the Africa business. So currently, we're in the process of estimating what our capital would be under SAM and considering whether the level of capital is not too high, whether we can consider lower multiple, solvency multiples for the Africa business in the interim until the business moves to a SAM sort of measurement over time. And that is obviously dependent on country-specific regulations. So we do believe that the size of the capital is high and that optimization is about saying, is there a way that we can optimize in the interim before the transition to newer, more economic-based regulations come through. So that's on that. Then in terms of the portfolio I mean there isn't specific plans that we're looking at. So currently, everything we've said today is about stabilizing each of the businesses, improving, progressing them and moving them forward in the right direction, and we're comfortable with that. We're comfortable that we've got clarity about what's important for what the portfolio needs to look like and the plans going forward. If there's something that concerns us in the future, I think we'll act on that. We've been very clear to say that we're not going to lie to ourselves in terms of how great the prospects are in certain regions when things are not working. So we'll be very honest with ourselves and make the right calls at the right time and those need to happen. But at this stage, I think we're comfortable with the portfolio.

Sean, I think you had a question.

I had the privilege of using the Health4Me app for the first time this week as a new corporate customer. And I'd like to congratulate the team for what they've come up with. It was very easy to use. I requested a Hello Doctor at about 8:00 yesterday morning. I was sent SMS confirming that you were very busy at the time, understandably that I would receive a call within 4 hours. I received a call within 2 hours. The doctor was very polite, introduced herself. I asked a few questions, and then she referred me to see an actual GP, which I was able to do this morning. She offered to help me with how to do it on the app, but I actually didn't need that because it was so easy to use. I was able to find the doctor within 1 kilometer of where I live. And so yes, very, very positive experience as a first-time user, and I use hundreds of apps as a EdTech person, and most of them are not as good. So if I may just ask for a hands up, who has used the Hello Doctor service to date in the room? Okay. So we have some early adopters. As a customer, as your customer are there any other customers in the room?

No, actually. I most of us are customers by virtue of being Dumo's customers. It is, I guess, a conference where we were giving a strategy update. So not quite customer focused, but well done, Hannes, on Hello Doctor app and all the good work you're doing there.

Sorry, question -- last question, which I didn't get to is do you have any plans to localize the Hello Doctor app into other South African languages, number one. We have 11 or 12, as I'm told. And to Botswana, Ghana local languages there. Any plans to localize the app?

Thank you so much for the feedback. It's really appreciated the normal people really did the job. So thank you so much. At this stage, the focus is to keep it in the language that's mostly usable. And I understand it creates its own challenges. We just rolled it out in Lesotho and in Botswana as well. But I mean, if the scale is big enough and it makes sense to give it local languages, we will definitely consider. But it's not the main focus for us at this point.

All right. I saw Marius' hand, but we've got another online question from James Stock. It says business unit stocks at RMB Morgan Stanley. It's for you, Peter. A few of your competitors are following some variation of a bank-related strategy, which appears to support distribution and collection cost efficiencies. How do you plan to respond to threats posed by bank-related distribution strategies and in particular, in the funeral segment?

So I think this question has come up in so many other sittings. And the group's position is we are not going to build a bank. And if you were to ask me, I know there are a lot of advantages to have a bank more so in the market that we operate. Now what are some of the capabilities which the bank will give it will be -- you have the data, you know where they really spend the money. Now with open banking going into the future, it is something that I would like to explore and see how we can be able to have exactly the same benefit for us as compared to what the bankers can also do. And yes, if I were to be able to get a partner who can also be able to give me exactly that, it is something that we can really explore. But we're definitely not going the banking route.

That is clear. And a question we often get. So thank you for that. Marius, you had a question?

Hannes, this is for you. Your member target is very aggressive, and you seem very confident about it. Please explain. Do you have -- I mean do you have certain -- do you have a pipeline? Are there certain schemes that you think you're going to shift? Where is this going to come from?

Thank you, Marius, and it's valid. I actually thought I just need to share a little bit more while the slide was up. But quite a portion of that target that we have sits in this lower income market where employers are coming forward to fund their employee base. And the growth that we're seeing there is really very, very positive. And it aligns with the need that we have, I think, as a society have to give some kind of access to care for people, at least when they're employed in a certain way. So a good portion of that 350,000 is in that for lower income market, Marius. The balance in growth either retail growth where we're really seeing very, very positive growth coming through the channels. And then in the collaboration between the health business and the employee benefit business, there's huge opportunities there. And then without a doubt, some, let's call it, acquisitional growth, Marius, where there are opportunities in the market, and you're probably also aware about the strain in some areas in the market where we're bullish that we're actually ready to take on some of that stuff. And when you unpack that a little bit, you see if you get 1 or 2 bulk volumes in on top of a monthly growth in Health4Me of more than 3,000 members a month, then getting to 350,000 over 36 months is not that difficult. But we are very appreciative of the support that we're getting from the market. And our labor alignment also help us well. We sold shares in our health business into the union spaces. And then through the bargaining council support that we get to actually get good access to that market.

And with that, ladies and gentlemen, that concludes this Q&A session.

You'll recall in our reinvent and grow strategy, the target was that 20% of our income would come from non-life insurance. We dropped that with this strategy, but both the Guardrisk business and the insurer business have been doing exceptionally well of late. And I suppose it's just really the fact that the other businesses have also been steaming ahead that keeps that 20% target elusive. We have in Laurence representing the Guardrisk business, a serial outperformer and long may that last. But for a change, we have somebody who's weathered the bad luck and persevered and through a disciplined approach, now finds himself in a bit of a purple patch. But it's really the fact that he's turning this. Why is that funny? But Brand, I suppose it's with great relief that you come to the podium having had a [indiscernible] time at times. But true to form, Brand will just really talk about his team and what they've delivered rather than anything else. And then as we finish off, we've seen Ravi field a couple of questions, so I don't really need to introduce him. But our innovation and our digital application in the business has been a common thread through all of the sessions. And we thought it was quite important to have Ravi come and explain how critical it is in our strategy and how we manage that collectively, collaboratively and within the severe budget constraints that Risto has for the business units from the center. And I'll hand over to Brand.

Thanks, Rowan. I think the only patch that I'm aware of is the bold patch, definitely not a purple patch. So welcome to the last session. You have survived what feels like 47 PowerPoint presentations, 89 acronyms and buzzwords and 3 or 4 awkward coffee sessions. So watch one more session. I'm sure you will survive until the end. So as Rowan said, it is my privilege to talk to you about the Momentum Insure business and the way that we've progressed. Somebody once told me that the key to a successful presentation is to tell people what you are going to tell them, to then tell them and then to tell them what you've told them. So for a can't speaking guy, that's a mouthful. So Jeanette earlier this morning spoke to you or just mentioned in passing with a lot of conviction that Momentum Insure turnaround is complete. And my job, I suppose, is to back that up with our progress and just to talk you through where we are and where we find ourselves now. But we are certainly comfortable that we have a healthy business, that the improvements that we've seen in our business is sustainable and that we've made a great few strides towards sustainable profitability. Our long-term winning aspiration really deals with 3 sort of key ideas. The leading South African insurer component reflects our ambition to not be an also ran. It speaks to scale, it speaks to relevance. It speaks to the fact that over time, we certainly want to be a seeded player when competitors look at us, but also from the perspective of clients and advisers. The second component deals with this idea of feeling safety. Now I'm often asked why would a client choose you? Now this idea of safety is at the center of the reason why clients will choose us. So you will know that we do business in an extremely competitive environment with a seriously sort of proper world-class competitive. We have tested the idea of safety numerous times with consumers, most recently with [indiscernible] and the team at the end of last year to check the relevance, to check whether it is something that consumers resonate with. And the answer has been overwhelmingly positive. In a country such as ours, safety is a reality or perhaps, in many cases, unfortunately, the lack thereof on a daily basis. Just as a basic human need, safety is relevant. So functionally, safety is important in the context of short-term insurance. But if we think about it a little bit further, the idea of helping our client to feel safe is equally important. Then lastly, the idea of protecting what matters most just reflects our shift over time away from just being a claims payer to being a proactive risk management partner and for us to do this in a way that creates value beyond just the traditional short-term insurance product. So this is an ambition which the Momentum Insure team has united beyond, and we are looking forward over time to make this a reality. When we think about our strategy and the Momentum Insure focus for the impact strategy period, we said that the critical thing for us to get right is to ensure that we end at the end of the 3-year period with a healthy, sustainably profitable core business. That core business is a personal-lines direct business. Why did we choose that part of our business to really reflect the core? It is because it is our most profitable channel by a fair stretch. It is also the channel in our country. If you think about personal lines, where probably in excess of 70% of new business is going. So we would have to be, I suppose, a little bit -- we should be recognizing where our clients are going. So that's critical for us to achieve. So we identified 4 focus areas. The key thing for us to get right in the context of profitability. In our view and in my experience in close on 20 years in our industry, the engine that drives sustainable profitability for a short-term insurance business is the quality of its technical pricing and underwriting. And it's fair to say that we historically have underinvested in that part of our business. And we have over the last year and perhaps even if you wind the clock even further started to properly invest in that capability because it's so key to one success, and it is starting to reflect in our results. The second key decision we made was to scale the personal-lines direct business for reasons I've already explained. Then the third element relates to sort of cost. So we need to ensure that our broker channel, the IFA channel, which is on the other side of the spectrum, if we compare our channels, it's our least profitable channel that, that channel becomes profitable. You cannot be part of, I suppose, the face of face-to-face distribution in our country and not have a successful value proposition in the IFA space. So we said that that's a key thing for us to get right. And then lastly, to address the fact that our premium income is -- growth is slowing down, our policy count is reducing for reasons to clean up our book that we need to face the cost realities in our business and address the cost concerns that we have. And that's also in support of the group's strategy to do the performance and cost optimization. Our contribution to that is ZAR 50 million. Then we said operating model-wise, we need to ensure that the products and the distribution channels we have are appropriately aligned with the market segments we target. And historically, over the last year or 2, we've had some sort of channel drift in particular. So we started to run into ourselves as opposed to having channels and products that are complementary. There's also some optimization in doing that. Then in a highly competitive market, differentiation is key. So a key shift that we decided to make was to move our safety value proposition away from just focusing on profitability-related outcomes. So historically, we've proven to ourselves that if you engage with us in the context of safety, you claim less and you stay longer. We want to now evolve that even further to drive client attraction. And client attraction is absolutely key if one wants to scale a direct channel in your business. So that's why that for us felt like the most sensible thing to do. Then obviously, growth is critical. And over the last 6 months, you would have seen our growth compares not so favorably to some of our competitors. So it is something that we need to get right. But sequence-wise, we said, first get the fundamentals right and then one can start focusing on growth. So our growth sort of strategy will only kick in from '26 and '27 onwards, but it has a few key elements. The first outcome is we want to ensure that there is appropriate premium diversification in our business away from predominantly motor where we used to be. And we need to ensure that we maximize the collaboration opportunities in our group. And specifically with the Momentum Advice ecosystem in Johann's environment, there's a lot that we can do better there. And then obviously, again, in line with where clients are going, we need to find a way to expand our digital personal-lines offering. From a success measure perspective, most of these measures relate to our ability to translate what we do into ZAR 350 million in earnings and an ROE of close to 20%. That's the ultimate measure for us. Now in order for us to deliver that, it's critical that our business runs at a combined ratio of somewhere between 92% and 96%. Now why that range? It's just to cater for the cyclicality in our industry. But if we hit a combined ratio of close to 93%, then that translates into the appropriate ROE. If we grow our premium income by roughly inflation in the next 2 years, that will get us to ZAR 350 million in earnings, and then we meet the expectations that both Jeanette and Risto put on the business. In order for us to do so, scaling direct is important. So we want to -- we set ourselves a target for that to be more than 40% of the new business that we write. We want to ensure that from a safety point of view, we drive higher adoption. So 50% of our book, we want to engage with safety. NPS, a theme that you've heard from many of the colleagues today, 55 NPS and that, in our case, includes the full value chain, claims as well. And then also to drive this idea of just premium diversification, we needed to -- we want to move or improve our diversification by between 3 and 6 percentage points. So to give you an idea, before we started, we were running the business with a motor portion of north of 65%, and we wanted to get that to below 65% and ultimately closer to 60% so that we get a lot more non-motor in the business. So if we then look forward and we see what have we done. So this is now the part of the presentation where I'm telling you what we've done to get back to my initial analysis or analogy. Again, to reiterate that message, I think we can, with confidence, say that in all material respects, the turnaround of Momentum Insure is complete. Over the last 6 months, if we just take our results up and until 31 December, we recorded ZAR 230 million in earnings. If I had to stand here this time last year and tell you that, that's what we will do in 6 months, I think a few of you would have smiled and said to me, Brand, you're a little bit unrealistic with that expectation. So we're very obviously very pleased with the results that we have achieved, and we're very pleased with the fact that we are now also a dividend contributor on the Risto's scoreboard that he shows every year. There's obviously work to be done for us to, I suppose, wipe out in a sense the most recent capital injections, but we're very excited by the fact that we've contributed ZAR 300 million odd in dividends. From time to time, I'm also asked that whether our business is at scale or not. Obviously, and our industry size matters, but there are numerous examples of small insurers who run profitable books, and there are some examples of very large insurers who also are not profitable. So there is an idea of sort of bad scale. And we were on our way possibly there. So it was critical for us again to address the profitability component in the business. As I stand here today, we support 30% more gross written premium per employee than what was the case 3 years ago. Our headcount was reduced by more than 10%. So we are slowly changing the fundamentals. The claims ratio, I've got a specific slide that I'm going to speak to now to speak again to this idea of rising tide raises all boats, which is sometimes the feedback we've received that everybody is doing well, and that's the reason why your claims ratio has improved. New business. Direct is now more than 40% of our total personal lines sales and 33% of our total new business. So that's already a good step in the right direction. Safety adoption above 30%. Our NPS score, not yet where we wanted to be at 41, but maybe a little bit of additional good news, on an annual basis, the FIA, so the Intermediate Association runs intermediary experience survey and the report and Momentum Insure ranked #2 in the industry for the 2024 Survey, something which we are very proud of. And we were very, very, very marginally beaten by the insurer just up the road from here, which is a big step forward in our attempts to do better in the broker environment. From a premium diversification point of view, we've already progressed beyond 35% nonmotor. So again, we're making good progress. So if I then sort of just stand still for a minute or 2 on the claims ratio, when we started this financial year, our claims ratio was 66%. We did not expect the weather to improve to the extent that it has. So we targeted loss ratio for this year of in and around 62%. And the levers would have been strong renewal increases and targeting a slightly lower new business claims ratio. So new business typically runs at a higher loss ratio. And so we reduced where we used to run to an even lower level, and we thought that, that would get us to a claim ratio of in and around 62%. We achieved that but then achieved an even greater claims ratio improvement as a result of our renewal increases. That contributed another 2.5 percentage points to our improvement because we wrote slightly less new business than what we anticipated. That also had a beneficial impact on the claims ratio, which then gets us to 58%, and then the rest of the improvement to 52% is a result of external environment just being better. So although it was a very wet season from a weather point of view, we just did not have large severe weather aggregations like we did in -- specifically in the previous financial year. We tracked about 10 in the previous financial year and the past one we only tracked 2. So that made a big difference. When it rains slightly less in areas where one has exposure, there is lower motor accident claims frequency, we benefited from no load shedding, and we saw a reduction in theft frequencies of high-value vehicles, which is in line, I think, with what some of our competitors saw. So all of that contributed to a nice improvement in our claims ratio down to 52%. So even if we add all of the good experience back, we're at 58%, which for us is in the range that we were targeting. We think that we can still do a little bit better. But we're miles away from where we were in the 60s and previously in the 70s. If we speak about confidence, I'm just going to touch briefly on the 2 components where we've marked as reasonably confident for the rest. We are confident that we will deliver on our Impact strategy objectives. The first relates to our ability to and I get all our distribution channels and specifically the IFA channel to an appropriate combined ratio. The extent of work we must do in the broker channel around technology and operating model changes is significant, and we are slightly behind in terms of our plans to deliver that. So only reasonably confident but we are trying to accelerate that. Then the second one relates to safety adoption. Specifically there, we -- in the spirit or in support of our strategic objective to drive greater adoption, we will be launching a new version of our safety value proposition early on in the new year, again, that's slightly delayed in terms of implementation. So the benefit we will get in terms of client attraction may also be delayed and therefore, just reasonably confident. But for the rest, very confident that we will deliver on the promises and commitments that we've made. So to close, maybe just 2 or 3 ideas. So for us, what does winning look like? The key thing for us is to have or deliver predictable, acceptable financial results for our shareholders. That's the starting point. That's the ticket to the game. So if we get that right, and if I wanted to add a tick to the top sort of box there but the graphic design teams see them now, you can't do that out of touch with the rest. So I listen. So -- but -- my voice over is there's a big red tick there. So we think that, that bit is done. There are other things that we still have to do, and obviously, that will require our attention but the ingredients we believe that will lead to a right to win is a proper pricing and underwriting capability. It is a differentiation that's driven by safety but focused specifically on client attraction, it's critical that we must deliver on our cost savings initiatives and specifically the digitalization component thereof. It's key to our longer-term success. Competitive premiums, if the risk price is right, you can only influence unless you manage your claims cost even better by reducing the cost of operating in the business. And we have some work to do. We don't compare well with all of our peers when it comes to that. So -- we acknowledge that, and we know what we have to do. And then lastly, it's critical for us to ensure that we collaborate better. We're very excited about the growth that the group will see in adviser support out of the advice ecosystem, both consult and MFP. Our business, I think, historically, has been reasonably insular. So there's a nice opportunity for us to collaborate better. So what will we focus on in the last -- in the next 12 to 18 months to get us to the completion of the Impact strategy. That's too early for applause, Peter, but you can't keep it at a little bit light. So obviously, I said earlier, the engine that drives our profitability is technical pricing and underwriting. We're investing in tools and technology and additional data. We're doing a lot to improve our GIS and weather data. We can now at a rooftop level geocode about 80% of our book, at a suburb level, we can do 99.7%, I think, was the last feedback that I received. So we're making good strides there. We are speaking to partners, some that Ravi has introduced to help us complement our current data with third-party data sources, which may, if it works, lead to underwriting advantage. So that's a key thing. And obviously, we've got our work cut out from a growth point of view. So there is scaling the direct business. And there, it's important for us to highlight new lead strategic partnerships that we are pursuing. It's interesting now that the business is doing better, how many external businesses are now all of a sudden knocking on our doors, saying, guys we want to do business with you. So that's a much better position in what to be in than what was the case previously. It's critical to get the collaboration right, as I said. And then our new head of distribution sitting over there, joined my team in May. Part of his job is to really build a new, more exciting value proposition in the IFA space. And that obviously will take a little bit of time but we're excited about the opportunity that, that presents. And then expense focus, all our digitalization initiatives to ultimately drive our cost ratio down. In this year, F '25, we are investing in people and technology. So you will see our cost ratio go up and then come down in the next 2 years. So that is by design. So we're excited about where we are. There's a nice energy in the business. Like many of my colleagues, it would be remiss of me not to congratulate thank and recognize the Momentum Insure team who's really worked tirelessly under sometimes quite trying circumstances over the last 2 years to deliver a great result. So I'm extremely grateful for the work that they've done. And we believe that we have shown that we are a valuable contributor to the Momentum Group portfolio of businesses, and we hope to become an even more meaningful one in the months to come. Thank you very much.

Lourens, I have been called many things over the years but never did it include the word cereal but never mind. And then Sean, I don't know whether you're still here. I'll clarify today that Guardrisk doesn't have an app on the system. But Brand, as your cousin in the nonlife space in Momentum, I think congratulations to you and the team, being successful on your turnaround strategy. I know the hard work. I almost want to say the blood, tears and sweat that went into that. Yes, I always believe don't tell us but show us, you guys have shown us. So please, do you and your whole ExCo team, tell them, congratulations and well done on turning around. Ladies and gentlemen, I'm going to share with you the progress, the Guardrisk progress with our Impact strategy. Strategy that we initially thought was a straight strategy until Risto came last year with his visualization of what a strategy should look like, some mythical animal or something that he called it. But yes, Rowan, Risto, nothing like a challenge to focus the mind and that's where the Guardrisk is. We are really focused on the strategy. Our winning aspiration is to remain the leading cell captive and alternative risk transfer provider in South Africa. And then together with that, to have a well-established corporate, commercial specialist line general insurance business that can compete with the best in the market. And I think we're well on our way in setting that up. I think just before we go into the strategy, maybe just a recap on what the Guardrisk business is because it's a different business but nevertheless, a very interesting business within the Momentum Group. We have 4 very distinct business units in Guardrisk. The first one is Guardrisk Life, which is predominantly a cell captive business, fee-based business. Then we have the Guardrisk micro insurance business, which is a composite license again, fee-based business. And then we have the non-life business, which is split between the non-life cell captive business and the general insurance business. Why is this important? It's important because a lot of our sustainability comes from the fact that 65% of our revenue is still based on fee income, stable, solid fee income that we earn from our clients. And only 35% of our revenue is really exposed to underwriting volatility, underwriting results. And we anticipated and we accepted the fact that it will be a little bit more volatile than what we are used to in terms of the normal revenue earnings that we have. For this reason, our strategy is really based on 2 pillars. The first one is to build on the solid base that we have in our cell captive business. And the second one is to really scale and enable our general insurance business to scale up and compete with the best in market. If we just look at our Impact strategy, which we believe will take us to our winning aspiration. It's focused on 6 specific areas, and I won't deal with all of them. But one of the successes of the Guardrisk business in the past has always been the diversification that we have in our revenue stream. Diversification, not only in clients but also the industries that those clients are operating in. So it has helped us to weather the storm in many occasions. That's why you would have seen in the COVID period, Guardrisk were not so significantly impacted by the COVID in 2020 as some of the other insurance companies. So if we look at that, we need to build on our cell captive business. We need to reinvent our cell captive business. We realize if we want to bring new entrants into the market, we need to offer them more, to provide a platform, provide an insurance license and not to answer anymore. We have to build up and we have to scale up. We have to gear ourselves to also provide administration services key to the success of the cell captive business going forward, especially in the micro insurance, where you often have distribution channels but you do not have a system. You don't have an administration system. And that system, most of the time, needs to be a low-cost digital type solution that you provide. Also, we have the skills in the office. We need to take those skills, actuarial, pricing, product building skills, data analytics. We need to take that out to our clients, and we need to offer our clients those specialties and no specialist skills that we have so that they can build their businesses. The business has always been built on partnerships and it will continue to be built on partnerships. Then also, I think we've talked about geographical expansion, and let me first mention the one. You've heard Lulama talking about the Africa operating model changing, the Namibia business coming into the Guardrisk space. I think between the 2 management teams, we are confident that we will be able to, by finding synergies, by providing additional services into that space, be able to grow that business at an accelerated rate faster than what we've seen currently. And I think there's good alignment between the Guardrisk management team and the Namibia short-term insurance management team to do that. Then also reinsurance opportunities for Guardrisk. We always talk about reinsurance. And most people were thinking an insurance company about reinsurance on the expense side of the income statement. For us in Guardrisk, we also think about the income side, the revenue side of reinsurance, which is critical. We have the opportunity to spot those areas where there's good underwriting profit, where we can share in the risk with our clients or we can participate on a reinsurance structure were some of the professional reinsurers against one of the cells. So there's a good opportunity for us on the revenue side of reinsurance. Capital efficiency. Those of you that have worked with the cell captive model in the past, you will know that capital is critical to bring someone into a cell capture space. So there's a couple of items that we need to do. Our actuarial team over the last couple of years has really refined and optimize the calculation of capital for the individual sales. But that's not enough. We need to come up with an alternative solution, which is significantly less capital incentive to bring new players into our space because we're not competing against insurance companies anymore. So we need to do that as well. And we need to find better ways in terms of capital. And then it changing the business into digital for insurance company is critical for us as well to move into that digital space but more about that a little bit later. It's significant revenue targets that was put on the Guardrisk business. And we know that normal organic growth, normal new business growth is not going to take us to the target that we have for 2027. So acquisitions are definitely on the table for us. It's on the menu. We are actively seeking to acquire businesses where it makes sense. And it's like Risto said earlier, it's not big transactions. It's small transactions. But if you can buy an earnings stream of ZAR 20 million to ZAR 30 million at a 3, maybe lower multiple PE, multiple then 3, it makes sense. We could that add 2% to 4% to the Guardrisk bottom line in the income statement. So it makes sense for us to look at the smaller opportunities as well and not ignore those smaller opportunities. The market is not ideal, where most insurance companies, most people in the insurance industry are currently making profit. It's not an ideal place to look for acquisitions, and that's why we're expanding our net a little bit. And we're also thinking to expand that to maybe potentially acquire some administration services into the business. Then I -- yes, India, geographical expansion. I have to say something about India. We had a session on Thursday also with many of you, where we got a lot of questions about India. It's a pity Mayank is not here. But Guardrisk is in a very privileged position that momentum already have a very well-established relationship with one of the biggest business groups in the India market, one of the most successful business groups in the India market. And if we can manage a partnership through this with them, it will significantly change the business. So what have we done so far? We've made some good progress on the India project, in the sense that the Aditya Birla Capital, they contracted with an external consultant to search the market, research the market for us to look at the Guardrisk business model and really analyze the Guardrisk business model and see to what extent it stack-up and compete with the existing business models that exist in the Indian market, specifically with regard to distribution, fee sharing and profit sharing. And I think we've ticked the box. We actively and we very well compete with those existing business models. I think it's now important for us to build a business case. The business case where the quantitative numbers will also convince Aditya Birla Capital that this project is not only in a return, but in size, big enough to think about it and for it to get preference about some of the other projects that they have in their business. I mean they look at scale, they look at size. You've heard Mayank talking this morning, it's all about being the top of industry. So we need to put something through that really interest them, and that make the qualitatively, I think we tick the boxes. We've checked the boxes. It will be a first in that market. It will be a market disruptor. It will increase the size of the insurance market in India with other players coming into that space. It ticked the box on the regulatory side. We've checked it with the legal firm in India. So there's nothing that's stopping us from going into that space and make it work but it's for us to build really build that business case and convinced the team in India that it is viable. Right. Maybe just looking at some of the progress that we've made, earnings growth, we ticked the box so far. Revenue growth, I think we ticked the box. ROE, the latest one that was presented as 26-point-something percent. So we ticked that box as well. Our underwriting margin I think I've mentioned before, and Brand alluded to that size matters in the insurance industry. Our benefit is the Guardrisk General Insurance business is shielded by this big machine the cell captive business. So we are not so affected by the size. We're not criticized by the size and the volume that we write top line. So we can really be selective. We do not have to write marginal business. We can really go and find those profitable business. That's why I can say our target for an underwriting margin is between 9% and 11%, and that's why we're on 9.5% for the first half year, it's possible for us, and we are in a unique scenario to do that. Then also the value for Guardrisk, we firmly believe we need to stay relevant in the Momentum Group. So it's important for us to grow value. We put a target. We want to grow the value of 25% over 3 years. So after the first half, we've already grown it with 9%. So we've already made up 1/3 of the target that we've set for ourselves in growing the value of the business. And then I think something which one should not be and that one should also look at is transformation, the sustainability element in our business. So there is a good possibility that the Guardrisk business will eventually be taken out of the momentum BEE rating and where we needed our own rating period because of the size in the short-term insurance understand currently do have. So there's a good chance that we'll have our own BEE rating. So we started with the process. We set ourselves a target. We will be -- we want to be at a level 3 in 3 years. We started off 3 years ago by being noncompliant. That's where we started. So with Level 3 stretch, and I'm happy to say that with the last rating review, we achieved a Level 2. And it's not -- we've done something special. The only thing is we've cleaned up the data and we've made sure that our data is complete. And with that, we managed to get to a Level 2. So it's for us to lose that level to per se. I've already talked about the India business. Then in terms of our confidence levels in terms of where we think we will get with the different items, our alternative model, we're in the last phases of navigating through all the governance, all the regulated -- the governance process, getting the necessary approvals. So we should have this in place by the end of the financial year. So this will set us up to compete not only with the cell captive businesses but to compete also with those general insurance businesses that exist in the market, even new players coming into the market. It's a capital low intensive model that we're going to introduce, and it will compete with some of the more known businesses in the market. Zestlife business. Francois was in the audience today. He is heading up the merger or the integration of the Zestlife business. It's an acquisition that we had a couple of months ago, I think beginning of the previous financial year. It's going well. There is a good meeting of minds between the 2 management teams between Zestlife and the Guardrisk management teams. And we continue to identify additional synergies that we did not initially anticipate, opportunities that we did not initially anticipated when we built the Zestlife business. Francois, I think it's fair to say they're meeting our expectations in terms of performance. So it's adding to the Guardrisk's bottom line, and it's one of the areas that we are giving a serious tick. The alternative capital models, I've talked about it, ROE, and then digital transformation. Digital transformation and data. It's such a fast-changing environment. You need to be so agile in your processes. You need to be so agile in what you do that you can change and keep up with the pace. And we think we're there where we can keep up. But the fact that it's in an [ underwriting ] is to reflect the fast-changing environment that you have there. Then knowing the Guardrisk business, we've got 300 cells, 300 partners out there that collect data that creates data by issuing policies. And it's important for Guardrisk to have the systems to pull that information into our ecosystem and to make the most of the information that we pull into the ecosystem. So you can imagine the type of infrastructure that you need to put in place to be able to import 15 million records on a monthly basis into the Guardrisk ecosystem. So it's a key focus for us. This is also unfortunately, one of those areas where one needs to be very careful in terms of your strategy and how you execute on the strategy because the cost can run away, there's a very fine balance between setting yourself up to be successful for the future, but also to protect your income statement, and I see Ravi nodding his head. And I think we're very careful that we do not step into a hole there neglected one end overemphasize the other one. So there's 1 or 2 very special projects or specific projects that we have in the business to help us with this data digital transformation process. And we'll look him up to date, and we work with the group IT team to assist us with that. Then in closing, right to win. For us, in Guardrisk, it's like eating a nice steak. For us, they work there, you just can't get enough of it. So that's how much we enjoy working for Guardrisk. It's such a dynamic changing environment. It's a stimulating environment. Ask Andre, ask Risto, ask Francois, every day is a different day. Every day, you get challenged with something new. But we believe we've got the right people, and we've got the right tools to change the value proposition that we have on the cell captive business, so that we can bring more people in, that includes the alternative capital solution that we're taking to market. Bolt-on transactions. We showed you how our successful can be. I -- at the previous Board meeting, one of the Board members when I said, no, it's a small transaction. It's not moving the dial. He said to me, you're making a mistake, 33% moves to dollar doesn't matter about the size of the transaction. And that's true. That's why we look at the smaller bolt-on transactions. Reinsurance partnerships team is currently in Europe looking at our reinsurers. I think the reinsurance market is in a very interesting space. Very different from what we had 2 years ago. The reinsurance market is open for opportunities now. The reinsurance market is a soft market. So we see new insurance companies, new reinsurance companies coming into play that wants to participate on some of our reinsurance structures that we have not seen before. So again, it's critical that you keep your partners, those long-standing partners, the bigger ones that took us through COVID, took us through everything so far during the years that we keep that partnership. End-to-end solutions, vertical integration, Jeanette talked about vertical integration. It means vertical integration for Guardrisk means integrate in more elements of our clients own systems, our clients value propositions. End-to-end product offerings, I've mentioned, we see multiple products. We assist companies to build products and I had to comment during one of the tea breaks, don't build another X, Y, Z, and not participate in the equity of that business. So yes, it is one of our strategies in the future. We're not going to just build businesses and build products, we obviously look at opportunities to also participate on a longer-term, more sustainable basis in those businesses. Selected risk taking. I've talked about that and then the deliberate focus on digital and specifically data within our business critical for us to manage that and get it right. And I think we've got the right people to do it. That was a big few quick glimpse into the Guardrisk world. Like I said, I've been called many things but never cereal. Thank you.

So we're going from the honeybee to the butterfly. And Brand, if it makes you feel any better, if you got one tick, imagine, how many Johann and Lourens would have had to put on their slides. So they might have accused us of changing our logo. Everyone, thank you very much for staying the course with us. If we've done what we've done correctly, then there should be very little that I talk about in terms of what we're doing that's new because you would have heard about our progress on each and every one of our businesses. But what we wanted to talk to in this last session was very much to bring it all together and speak to how are we engaging with digital and technology in a way that takes advantage of the economies of scale and benefits of scale that you get from executing well in the space? And how do we ensure that we are meeting the needs of our various businesses, not all of them are exactly the same. But how are we doing it in such a way that takes advantage of being part of it. Fundamentally, everything we do or a large part of what we do must be delivered in our business because we believe that if you're going to innovate in the digital and technology space, it's going to be close to the people who you are enabling. And so what I'll be talking about in the last session is very much how we're doing that. From a digital and technology perspective, it's important to just put down how do we see our role in the organization. And fundamentally, we believe that each and every one of our brands as well as our products relies on a trusting relationship with people, be they advisers or clients. And very little can break the trust and relationship and when the technology fails in that moment of truth or the technology or the journey has not met expectations. So our digital and technology teams across the group, we see ourselves as the guarantors of that trusted relationship that has to exist. In terms of our ambition, we feel that it is empowering our group in businesses with future capable, cost-effective and performance accelerating digital and technology capabilities that are going to enable us to achieve all of these. And the word empowering is the critical one there. It really is ensuring that we have an organization of people who are enthused and capable and confident about applying the art of the possible with regards to that our digital, technology and data capabilities. Now digital transformation is one of those words gets thrown around in every company, every presentation. And it was important for us to be able to be quite clear, what do we mean when we say that because what we were looking for is to ensure that we have a seen setting directional, make the boat go faster viewpoint, in terms of does everything we do matter and is it measurable? And is it having an impact? And so when we think about digital transformation, we think around the -- we believe that digital organizations are those where people engage with that organization with software. That means that you've got to be delivering high-quality, easy-to-use, wonderful experience at a fast cadence, in the software world. So we talk about meeting needs with the thoughtful and caring use of our technology and data capabilities. And that's something that is a North Star for all digital and technology teams across the group, be there in the center or in the business units. We always ask ourselves around, is it going to help us deliver better software. Now that talks to the drivers of delivering software. Now you've heard a lot around, for example, our technology platforms. These technology platforms are critical because they are -- it's not just because of the cost optimization, which it allows us but as Risto mentioned earlier, it's around modernization predominantly. And that modern systems will allow you to be better at delivering modern software. Data is critical, but apart from data, it's also around ensuring that you are automating your processes. We need to ensure that our processes are instant outcome for clients and advisers because if they're not then it's very hard to make the case that that's a quality journey in a software environment. To get that right, we've also got to make sure that your delivery practices and tools consistent, that they are best-in-class and that they are able to be trackable and measurable. And then finally, when you innovate, innovation should be with the aim of solving a real problem for user. Now this led us to the strategic choices that we've made from a digital and technology perspective, which we believe underpin the -- both our group strategy as well as the specific requirements of each and every one of our businesses. First and foremost, competitive trusted value for many technology environments are a nonnegotiable. That talks to the work that we've been doing in our re-platforming, that does talk to the work we've been doing around ensuring that we are looking at our architectures, and that we are always leveraging best-of-breed solutions. And more importantly, that we are flexible enough to change solutions as things change. We talk about our digital DNA very much in 2 cases. It's one, how do we deliver software, as I mentioned; and number two, are we looking at each and every one of our processes and automating them. The third one is enterprise data. Now Johann spoke about how without digital, you cannot have a strong advisory business. In addition to our digital capabilities, you require data. And as Peter mentioned, our ability to compete with both traditional and nontraditional competitors is going to be enhanced by being able to more actively leverage both the data that we have inside the business but also taking advantage of the exponentially growing sources of data outside of us, particularly in other categories like retail. We believe that technology teams need to be diverse but that's more than just human diversity. Fundamentally, if the -- one of the biggest changes that technology and AI is bringing isn't just as an output of technology but it actually has an input into how you deliver technology. And so making sure that we see the future as human plus machine. How do we ensure that our people are able to work with the augmentation and automated tools for both development and testing of all our technology. We think that's going to speed us up and we think that's going to add to our capacity. And then finally, new digital and technology value. Innovation is crucial. And as you heard from most of my colleagues, especially in Momentum Retail, we believe that we've been world first at some highly innovative capabilities. And apart from the benefits that that's given us directly, it's also ensured that everyone in our business has recognized the power of what we can deliver in terms of innovation. Now our operating model, as Jeanette mentioned earlier, we believe in the power of a federated operating model in terms of being able to action closer to the clients. But as part of our Federated 2.0, we've been thinking about how do we ensure that we're doing that whilst also taking advantage of being of the group. Now as I said, ideation and delivery must take place in our business units. That's critical because it's our business units who are in the face of the client and understand the needs of the clients and the advisers and can identify the right problems to be solved. However, the center still has a role. Firstly, the role of the center is in supporting, accelerating and scaling the solutions that we have. And we do that through ensuring that there are curated capabilities that the businesses are able to pull upon when they require it. And it also enables us to ensure that we remove duplication and are always looking to reduce complexity. But perhaps the most important thing that center does is that we ensure that there's a high level of visibility across everything we're doing from a digital and technology space. Where businesses are solving for key problems, we're able to bring that into the center and ensure that other businesses are able to look at it, understand how they might take advantage of it. So we can learn what -- learn from what works, learn from what hasn't worked and increase the ideation that we have in the rest of our businesses by looking at, well, what some of us have been able to achieve. And if we think about the portfolio of initiatives that we've been driving, there are a few, both current and ones that we're working on right now that I think are highly indicative of this. So on the first one, as Johann mentioned earlier, our direct business has started to really pick up steam in the momentum retail space. Now the challenge with that is that as you start bringing in a higher volume of applications, what you then have is a need to be able to quality assure those applications before they go into underwriting. Now with the multiples of applications that are coming in, we decided we did not want to have to hire people to be able to curate these things. If for no other reason that to quality assure an application means listening to a transcript, confirming that the questions were asked that they were answered that it's exactly that on the form and then creating a record of advice. That's a 90-minute to 2-hour process. So what we did with the Myriad team is that we developed AI agents that could do exactly that in 2.5 minutes. And what that has led to in the 9 months since we've deployed that is that we've been able to screen 31,000 calls, and we've been able to save the business ZAR 1.5 million in avoided costs, which -- and I can say the mom retail CFO is looking at me, which thankfully has already paid for the solution. So our development cost and implementation cost on that solution has been paid off in the 9 months. Secondly, biometric screening and active fitness, we've spoken about that a lot during today. This was one of our world first capabilities. But what's important about this functionality is that it has allowed us to offer a more seamless experience to clients who are able to get an immediate answer on both the initial application as well as the say early benefits. This means that for especially younger, healthier lives, we're able to attract them and we're able to have a higher conversion ratio. And thus far during the course of this year, we estimate that we've saved our clients 25,000 hours of time in avoiding health visits and biokinetics visits. Finally, I saw a paper recently that said that about 40% of time in organizations is spent, finding data and putting it together in terms of reports. So we said to ourselves that sounds like exactly what we ought to be using automation and AI for. So we've just completed a pilot amongst a few of our administrative teams where we've been able to show that with applying copilots and productivity tools, we're able to save individuals approximately 200 hours a year in that work. And by deploying this more openly, firstly, we're targeting a saving of about 19,000 hours across the group in these tasks but it also gives us a pattern on how we actually deploy these sorts of human augmentation capabilities into more complex roles. So current priorities that we're looking at. We're looking at how do we deploy AI and digital twin capabilities into processes like claims to be able to speed up our claims processes from days into minutes. We're looking at automating and augmenting software development and testing. Right now, we have road maps in the business that require more investment and more capacity, and whilst I don't agree that Risto is that stingy with the budget, even if he was able to give us the budget, it's not guarantee that we'd be able to find the capacity that we're looking for. So what these tools are going to allow us to do is to actually increase our capacity and ensure that we're able to take best advantage of our people in the business. And finally, improving the speed and quality of access to information and data stores, we have a lot of information in the organization that sits in document from. And the time spent looking for the answers is often at the cost of the user -- of the client and adviser experience. So if we can deploy AI tools to be able to make this information easily accessible and positioning it to our internal staff in a way that makes it easy to get that out to our advisers and clients faster, we think that, that's going to have a huge impact on our user experience and ensure that our time is used for higher-value activities. Now about 5 years ago, Jeanette was on the stage, and she talked about the vector about how we are going to succeed and she talked about how Momentum equals mass time velocity. Well, it's that velocity, that is what the digital and technology teams in the group aim to give us because we take the vector one step further. We aim to ensure that we pointed in the right direction regarding the technology out of the possible and that we are moving at the right speed. So to conclude, the right to win of this group is going to be enabled by us ensuring that we have quality designed software that's delivered to meet the specific experience and outcomes of our users that we have a technology environment that enables high quality, high stability and high cadence operations. We need to ensure that we effectively leverage data and new AI opportunities, understanding that with all the excitement around AI, we're still relatively early in the application cycle. And therefore, it is important to ensure that we are innovating in an outcomes focused way and not just spending money on -- and not just depending manually. And finally, modernizing our processes for delivering technology with human and machine teams. And to close, our vision is that we want this group to transform into a butterfly and not just a digital caterpillar. And with that, I will hand over to close -- oh, we do have questions. Sorry.

Brand, thanks for telling us what you wanted to tell us by telling us. Thanks. Lourens, I think we've learned that you like to eat steak and not cereal. There's one person who asked me if Ravi really is our IT guy because he owns a suit and he's not here in short slots. But more seriously, thanks for the last session. Are there any questions in the room?

Brand, it's -- I've only got a question for you. Your new business volumes were up 20% for the first 9 months we heard yesterday. What I'm more interested in is how does your run rate compared to its peak because obviously, you're not quite there yet. Otherwise, your GWP would be growing. So I'm just interested in how current run rate compares to the peak.

That's a good question, Marius. So maybe the first comment is when we ran at our peak, that was in an environment where pricing and underwriting wasn't as tight as what it should be. So it's not necessarily something that we compare ourselves against. For us, the measure is at a minimum that we must run at a new business run rate that eliminates what we lose from a lapse point of view. So that's the sort of key starting point that we measure our new business volumes against. And we are currently running probably about 15% below what that level is but we're closing that gap to compensate for what we lapse, something which I neglected earlier to say is we are obviously in a soft market cycle, it's competitive, and we see competitors invest in lead generation, so acquiring new business. And also there's a big fight to retain clients. It is difficult to churn given just the fact that our industry is not growing. So we don't think that high renewal increases in the long run at the levels that we saw perhaps over the last 18 months or so is sustainable. So on our own book, we're probably reducing our targeted renewal increase by about 10%, 15%, but that will be compensated for by lower lapse rates. So it sort of cancels each other out. So new business is the trick. So we need to step up back to your question by probably 10%, 15% to get to that level where we cancel out what we lose.

We've got a question online from James Stack [indiscernible]. Guardrisk has an impressive track record validating the captive model. You mentioned the diversification across clients and industries that gives you that level of resilience. Can you give some color around the characteristics and intrinsic features and opportunities that lend themselves to using cell captive solution? So why would a corporate news first-party cell or a third-party cell? And so where is it most relevant?

Yes. So I think there's 2 different areas that one needs to cover, first party and third party because 2 completely different regions why they will enter into a cell captive space. First party, very much ensuring your own risk, and there the big benefit is you can protect yourself against market volatility increase in rates. In hard markets, you can make use of your own facility, you can smooth the rate that you pay for insurance. Also, first part is often those areas where it's difficult for us to ensure or where it's very expensive to ensure. So you have an opportunity with this first-party cell captive to access the reinsurance market directly via the Guardrisk system. So there's some benefits in that. So I think that's the first one. Third-party it allows you to share in the profits that you generate in your client base relating to insurance. So if you already have a client base, you already have an affinity group, you already have a distribution channel, it makes sense to add financial services to your solution and to your product offering, which immediately creates a second stream of revenue in the business. And we've seen it with many of our retailers where their financial services insurance element grows to an extent where it starts competing sometimes with some of the other retail elements. So I think that's the biggest benefit, it creates that opportunity for someone to build a business, to build an insurance business, get access to an insurance license.

And learn how big an insurance written premium sort a first-party so. Are we talking about the biggest companies? Are we talking about [ bubbles ] coming down the street.

Rowan, But it all depends on the risk that you're right. It's not so much the size of the premium net counts because we've got more than one option. You don't have to go into a cell. You can go into a different type of structure where it's potentially cheaper but it gives you the same protection as a first-party cell. Obviously, the moment that it becomes a difficult to insure risk, a more complicated risk. It's easier to put it in a first-party type environment. Obviously, on the life side, if it's a first-party type of arrangement, EV type arrangement. It obviously makes sense to put it in itself that you will not necessarily put in a different structure. So it's not really size, it's complexity of what you're putting there.

And then your team, are they hunting in specific industries for specific types of risk? Or are you pretty agnostic to the types of risk that you might underwrite within Guardrisk?

Pretty agnostic. It's not that we hunt in specific industries. Obviously, there are certain industries that you stay away from. Heavy motor vehicles is something that we try and avoid on the non-life side. Aviation on the non-life side, we try and avoid that. It's a high-risk industries. But yes, it's where the opportunity gives it, we'll take it. And it all goes back to the underwriting risk in that particular space. Even in the first-party side, you're not going to necessarily write something in a first-party cell where it's an unreasonable underwriting risk. It must be a reasonable.

And then that's obviously how you choose to set up a sell and collect the admin revenue. How do you decide when you want to participate in the underwriting experience?

So that's typically on your first part -- on your third-party side, both life and nonlife, where we will decide participate in underwriting risk. It depends on the underwriting performance that you anticipate. Again, we will not participate in underwriting risk if it's a risk that's not acceptable and that you don't anticipate making an underwriting profit on. And you can select life side, very often, funeral credit life -- it's a profitable business. So it's a good one to sharing. On the non-life side, again, volume and affinity, good opportunity to participate in the risk.

Sean, Rechargeable. I've applied for a cell captive before as a start-up business. And I discovered that the minimum capital contribution that you have to put on the table is ZAR 1 million. Apparently, you can go down ZAR 500,000 worth reasons, flexibility, perhaps. And what's interesting to me is we sell a particular technology product, which is called the Google Chromebook, which is like a laptop, but it runs on the Chrome operating system, not Windows. The device failure rate on those is about 1% on average industry-wide. We sell extended warranties on those devices, which increases the cost of that device by about 20%. So I'm just kind of curious, number one, are there any plans to lower that capital requirements for start-up businesses? I understand that small businesses make up most of the GDP in South Africa. And that ZAR 1 million limit might be beyond especially the informal sector coming on to the markets with similarly viable products. And also just personally, as a business, we spend probably 25% per month on short-term insurance. So if you can combine those 2 and put the businesses self-insurance and their products solution into a viable cell captive, is there a way to onboard more SMMEs, schools, private, individuals, et cetera?

You're asking me a question that fits in right with the offerings that we put in the market. So I think there's some regulatory barriers to some of the questions that you're asking. First of all, you're not allowed to do first party and third party in the same cell. So you won't be able to put your first-party business, your onerous together with client risk, unless you can structure that warranty that is your risk and your offering that you offer. I think when you found out the micro insurance licenses were not in place yet. So there is a legal requirement, a regulatory requirement for minimum capital of ZAR 1 million if you set up a call. Guardrisk has come up with solutions where we support you in terms of capital that you need to put up. But on the lower end, the entry level of the market, simple products, the lower sum insured products, you now have a micro insurance license. ZAR 250,000 if I'm correct, is your entry capital that you and that's specifically why we got the micro insurance license to accommodate smaller options. But then the alternative solutions that I've talked about, the alternative solution that we're going to put in place is probably a nice one to look at because that's low capital intensive. If it's a warranty where the underwriting is good, it is probably the ideal vehicle for you to start. And on the risk, the premium that you're talking about, there's is a very simple facility available in Guardrisk where you can do that, which gives you the same options, the same flexibility as a cell captive but it's not a cell captive. It operates like a normal insurance policy.

Great. Thanks for the question. I don't have any further questions online. Are there any more in the room? Before I hand over to Jeanette, I would like to invite those of you who don't quite have the energy to tackle the traffic to join us for a drink or a snack. And the team will be around if there are any further questions that you thought about over the break and you don't have an opportunity within these sections. But thanks very much to the gentlemen on the stage with me.

I'm deeply aware that I am now between you and a drink and a snack. I'm glad I'm not between you and an education session on Guardrisk. But if you need one, you can also spend your time really well afterwards on that. Lourens, I have to give you a little bit of stick there. So I mean, from my side, I really just wanted to say thank you so much for a great day. I know it was a long day, but it really was a great one. I want to specifically say thank you to my team for keeping the energy up for conforming to our very strict rules around where, what slide will go to make sure that we at least helped to remove some of the complex ever businesses and help everyone to kind of follow and get the same idea of where we are in our business. Today was also a ready great day for another reason. And that was that our share price has hit its all-time high in its history at ZAR 36.11, now it was while Johann was presenting. Someone did say to me. No, it's not Johann, it's a lag, on -- after Risto's presentation. So whatever works for you, I mean, unfortunately, we didn't end exactly there. But I mean, in a fairly rare day in the financial services sector, I mean, to still be up 2%, 2.5%, I think, is incredible. And we have all of you to thank for that, for your believe in us, your support in us as a group and for investing us and staying the course. And I guess also just keeping us honest, [ Anika, ] who is head of our kind of media relations also shared with me that while I was presenting scamsters actually created 3 new deep fake identities for me on Telegram, inviting all of you to buy and invest with Momentum, so please don't fall for those. I promise you that is the last thing I will ever do. So just -- that's just our scary the world is and how quickly things happen. You've seen many of these slides today. And I thought I'll take an opportunity to also just end on exactly the same note. And again, all of these 10 components was on a slide exactly as they are when we presented last year. And I think for me, when I was sitting here today, is like last year, we said this is our right to win, and it was a vision. Today, they're a reality. And I think we're starting to bring this to life through the diligent execution on our strategy. And again, I have not just a team, but 17,000 people to thank for that. To maybe summarize the very, very quickly, our federated model that consists of diversified empowered businesses that each have to compete out there against all of their own sets of competitors every single day. I think, is what makes us an amazing business. Not just are we diversified, but also federated. And each one normal in charge of our destiny in terms of that delivery. Then, the combination of our distribution strength and our advice focus, as you know, advise being a massive focus for us to increase our market share and our focus there. Again, also a very, very competitive world out there. Some of you asked me over the last break, what keeps me awake at night. And I have to actually -- I have to think quite a lot about what exactly it is to keep me awake, because I think there could be so many things. But at the same time, when business has been out there competing every single day, that helps me to sleep really, really well. You have our commitment that -- and of course, digital, thank you, Ravi, for all of that. And Ravi is a medical doctor by the way. In case you think there's no diversity here, shows you know who we can put in front of clients and in front of actually caring about our clients and how we show up there. Investing in successful businesses, the optimization potential of our businesses, the promise we made that we will constantly keep our finger on the path of where things are working and we're not and that we will address it wherever we need to do it. And then I think lastly and probably most proudly, our cash generation ability, a very, very strong balance sheet and our disciplined cash management or our disciplined capital deployment that we again made a promise that we will keep our eye on that very, very closely. So I think just with these 10 components firmly in place, we don't just believe that we have the right to win. I think we are proving it every single day, and thank you very much for sharing today with us. Thank you.