AVBOB Integrated Annual Report 2018

I am proud to report that the Group continues to receive accolades in a number of areas. The Group has retained its certification as a Top Employer. The Society was voted the winner of the Financial Services: Funeral Cover Category in the 2017/18 Icon Brands Survey for the third consecutive year and the winner of the Financial Services: Funeral Cover Category in the Ask Afrika Kasi Star 2017/18 Township Brands Survey. The Group also received the Ask Africa Orange Index award for the best Service in the Funeral Industry for the third consecutive year. The AVBOB Poetry project won four Prism Awards that recognise excellence in Public Relations and our advertising agency, Brand et al, won the “best marketing campaign in financial and utility services” in the International Media and Market Global Awards (M&M) for the project. Highlights In respect of the financial year ended 30 June 2018: • Premium income increased by 16.1% to R3,6 billion. • Net new insurance business grew by 9.2% in a tough economic environment. • The number of policyholders increased by 8.7% to 1,95 million. • Funerals conducted grew for the sixth year in a row. Growth of 9.2% was achieved. • Our national footprint was expanded by 33 new funeral and insurance offices. In respect of cumulative performance over the past seven years ended 30 June 2018: • The number of policyholders increased by 63.2%, from 1,19 million to 1,95 million. • Premium income increased by 181.5% to R3,6 billion. • Net new insurance business grew by 180.4% • Funeral units grew by 39.4% • Total assets increased by 176.3% to R17,1 billion. Strategy The entrance of new competitors in the funeral insurance industry, the slowing economy and rapid technological advances continue to confront the Group. The investment market remains volatile mostly driven by political uncertainty and the impact of emerging market concerns on South African confidence. The year however delivered exceptional investment returns mostly due to local listed equities and foreign investments. Our key differentiator that sets us apart from our competitors remains our mutual status. All profits are for the benefit of the policyholders, who ultimately own the Society. This differentiator is underpinned by a culture of continuous improvement in service excellence. TheGroup continues to invest in improving the efficiency of our customer service points and enhancing our retention capabilities through a pro-active product and service approach. This includes investing in innovative digital customer applications, the continuous expansion of our footprint, refurbishing existing buildings and the fleet of hearses, the modernisation of our technology infrastructure and the development of our people. World-class contact centre infrastructure was successfully implemented in our Inbound Call Centre during June 2018. To expand our premium collection footprint in support of our retention initiatives, we are busy implementing alternative premium collection points through selected retail partners countrywide. 20