Sanlam Announces New Operational Structures

Sanlam Announces New Operational Structures                                     
Sanlam Limited                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1959/001562/06)                                            
("Sanlam")                                                                      
Share code: SLM     ISIN No: ZAE000028262                                       
The Sanlam Limited board today announced new operational structures in the first
step in the group"s strategy of improving operational focus and delivery.       
The group will be aligned into four clusters, namely life assurance, short-term 
insurance, investment and banking. Each cluster will operate autonomously with  
set targets and will be headed by an executive with strong operational          
experience.                                                                     
The head office will be downsized and be responsible for the group"s centralised
functions, such as the strategic direction, financial and risk management, black
economic empowerment and corporate communications.                              
Sanlam CEO Johan van Zyl said that it was essential that the group focused on   
getting the basics right to ensure that it delivered on its strategy of customer
centric wealth creation. The strategy has been approved by the board. The core  
focus areas are on turning around the fund outflows in the business by improving
investment performance, offering the right products, improving distribution     
networks and through focusing on client service.                                
Van Zyl said the new structure was the first step in delivering on this strategy
in practical terms by putting the right people in the right jobs and by making  
sure that specialists were driving each area of the business.                   
The head office will be structured around three functional domains:             
CEO and team                                                                    
Flip Rademeyer (CFO) and team                                                   
Corporate Services, a new appointment will head up this business                
The group executive management team will be refocused into a smaller team that  
will drive strategic issues, with a group management committee driving          
operational issues.                                                             
Although there will be some downsizing at the head office level, the aim will be
to redeploy people into the different clusters. Some new senior executives will 
be recruited to strengthen the businesses, increase the employment equity       
profile and deepen the succession pool.                                         
The Life assurance cluster will be responsible for employee benefits, individual
life and distribution, assisted by a number of shared support services. Lize    
Lambrechts, the current CEO of Sanlam Life, will head up the cluster.           
A major growth area in the life business is employee benefits. The group will be
restructuring this business, with its own identity, deliverables and a dedicated
leader to drive performance. A workable BEE strategy is a crucial part of the   
future success of this cluster and the group is committed to finding the best   
solution as soon as possible.                                                   
The short-term insurance cluster will consist of Santam and will focus on       
retaining its strong brand in the short-term insurance market and on continuing 
to investigate international and local expansion opportunities. The group is in 
the process of appointing a head of this business.                              
Sanlam Investment Management will form the core of the investment cluster.      
Sanlam Unit Trusts and Innofin will move to the investment cluster to optimise  
synergies and opportunities. Sanlam Investment Management CEO Johan van der     
Merwe will head up this cluster.                                                
Gensec Bank forms the banking cluster, which will be headed by Marius Ferreira, 
the current CEO of Gensec Bank.                                                 
Van Zyl said that the same back to basics strategy would apply to the banking   
cluster. Gensec Bank"s future is, however, largely dependent on Sanlam"s        
strategy regarding ABSA.                                                        
The group said that it is committed to a final outcome in the short-term that is
beneficial for both Sanlam and ABSA and that it believes in collaboration on    
several fronts, with an initial focus on the distribution of insurance and      
investment products through the banking channels and banking products through   
the insurance channels.                                                         
Internationally the emphasis will be on profitability and not just growth, which
implies consolidation over the short to medium term. Better integration of the  
international businesses with the local operations will ensure that costs are   
contained and that investment returns are guided by relevant South African      
benchmarks.                                                                     
Sanlam"s leadership team is resolute in improving the group"s performance by    
remaining focused on the basic principles of good business practice.            
-ends-                                                                          
Issued by Brunswick SA                  011 268 5750                            
Heidi Geldenhuys                        083 325 8924                            
Di Munro                                083 3265958                             
 21 May 2003                                                                    
Date: 21/05/2003 08:01:10 AM Supplied by www.sharenet.co.za                     
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