Annual results for year ended 31 March 2022
Operating income
Operating income from continuing operations of
R1 565 million
up 6% year on year, underpinned by market performance, higher opening asset balances and continued momentum in new business wins.
Interim dividend
Interim dividend per share declared of
12 cents
(2020: 13 cents).
Profit
Profit from continuing operations1 of
R389 million
up 5% year on year owing to top-line growth and disciplined cost containment.
Capital position
Our capital position remains strong, with a surplus of own funds over regulatory capital of
R1 243 million,
8% lower from year-end. The group cover ratio of 1.8 times is well above our policy solvency capital requirements (SCR) cover ratio of 1.2 times.
Headline earnings
Headline earnings per share from continuing operations improved
4% to 18.9 cents
AuA and AuM
AuA and AuM increased 20% year on year to
R423 billion
(up 6% since 31 March 2021) owing to higher market returns and an increase in net new business flows during the period.-
Operating income
-
Interim dividend
-
Profit
-
Capital position
-
Headline earnings
-
AuA and AuM
Operating income from continuing operations of
R1 565 million
up 6% year on year, underpinned by market performance, higher opening asset balances and continued momentum in new business wins.
Interim dividend per share declared of
12 cents
(2020: 13 cents).
Profit from continuing operations1 of
R389 million
up 5% year on year owing to top-line growth and disciplined cost containment.
Our capital position remains strong, with a surplus of own funds over regulatory capital of
R1 243 million,
8% lower from year-end. The group cover ratio of 1.8 times is well above our policy solvency capital requirements (SCR) cover ratio of 1.2 times.
Headline earnings per share from continuing operations improved
4% to 18.9 cents
AuA and AuM increased 20% year on year to
R423 billion
(up 6% since 31 March 2021) owing to higher market returns and an increase in net new business flows during the period.
The group achieved new business wins of R82 million in annualised revenue, with notable wins in retirements, healthcare, investments and individual consulting:
- 39% increase in new business written to R5.4 billion within the individual consulting segment.
- R2.1 billion in new business into Alexander Forbes Retirements Income Solution (AFRIS), adding five new funds with a 19% increase in members to 5 591 since March 2021.
- 75 new umbrella fund clients added with 6 200 members.
- Two new large clients added to our standalone retirement fund offering with 11 000 members.
- 47 new appointments, with R7.9 billion in total assets under administration (AuA) and assets under management (AuM) won in our investments business.
Headline earnings per share from total operations of 12.7 cents declined 12% owing to the financial performance of the discontinued operations:
Increased claims received and paid as a result of the deaths related to the Covid-19 pandemic affecting the discontinued group risk and retail life business which reported a loss for the period of R85 million (2020: R20 million profit).
The loss from the group risk business was partially offset by the profit from the recently discontinued Alexander Forbes Individual Client Administration (AFICA) group2 that reported a profit of R6 million (2020: R8 million).
Our capital position remains strong, with a surplus of own funds over regulatory capital of R1 243 million,8% lower from year-end. The group cover ratio of 1.8 times is well above our policy solvency capital requirements (SCR) cover ratio of 1.2 times.
The group has concluded and recently announced three corporate transactions in line with its growth strategy. The transactions will:
Consolidate Alexander Forbes’s leading position in the employee benefits market.
Enable the rapid transformation of Alexander Forbes towards being a member-oriented financial services provider.
Unlock our ability to accelerate growth by scaling up our core capabilities and enhancing our customer experience to amplify our impact on people’s lives.
1 Profit from continuing operations before non-trading and capital items.
2 The AFICA group comprises Alexander Forbes Individual ClientAdministration Proprietary Limited and its two wholly owned subsidiaries, Alexander Forbes Retail Client Administration Proprietary Limited and Alexander Forbes Nominees Proprietary Limited.
Alexforbes has delivered a pleasing set of results owing to disciplined strategic execution, a transformed organisational culture, sound corporate governance and focused innovation. The strategy set out in 2019 has proven to be resilient to the impact of the Covid-19 pandemic as it created the foundation for accelerated growth. The resolve to execute on the strategy has served the business well and there has been clear and demonstrable delivery across our strategic objectives.
The business is now in a strong position to forge a greater connection with the people who we ultimately serve resulting in a refreshed vision, purpose and overarching customer value proposition. This change is reflected by the launch of the Alexforbes brand in March 2022 that represents who we are, why we exist and how we add value, which is to pioneer insight to deliver advice and solutions that impact people’s lives.
We have had a productive year
- Our customer satisfaction score has improved for a third consecutive year.
- Our culture metrics have shown that employee engagement, morale and trust in leadership remain high.
- Continued momentum in winning new business, representing R148 million in annualised revenue.
- New business asset flows of R11.6 billion achieved in the individual consulting business, up 23% year on year.
- R9.4 billion in new institutional business assets under management (AuM), with an additional R4 billion pending regulatory approvals.
- Significant administration mandates won with membership within client funds ranging from 7 000 to 60 000 members per fund.
- Notable wins in both the healthcare broking and healthcare management solutions businesses.
- Continued our digital transformation as well as our member engagement and individualisation strategy, in line with our growth ambitions.
- Embedded environmental, social and governance (ESG) principles into our investment process and within our investment portfolios.
- Successfully implemented changes to the Performer portfolio bringing in new thinking and new managers. These changes aim to maintain a well-structured, diversified portfolio solution and accelerate our transformation objectives to advance a more inclusive asset management industry.
Accelerating our journey to become the most impactful provider of financial advice to institutional clients and individual customers
- Completed the sale and transfer of the group risk and retail life businesses to Sanlam Life.
- The group announced three corporate transactions in line with its growth strategy.
- Launched our refreshed vision, purpose, customer value proposition and brand.
- Improved the utilisation of our digital tools across individual customers.
- Delivered the Alexforbes Member Insights research, now augmented by non-retirement fund data.
We have built a solid foundation for our business to grow
- Strong governance principles supported by an active board.
- Modernised fund administration with further innovation imminent.
- Leading consulting across retirements and healthcare with opportunity to compete in a mature market.
- Stable retail advice with opportunity to extend reach into pre-retirement and discretionary markets.
- Further scale being created in fund administration through organic and acquisitive means.
- A culture of diversity, integrity, collaboration and leadership.
- A hybrid work environment where productivity is measured by output centered on our clients’ needs.
