Message From Our Group Chief Executive

As the world shows tentative signs of recovering from financial crisis and one of the worst recessions in living memory, I am pleased to be able to report that, despite the turmoil of the past 18 months, the Sanlam Group delivered another solid and stable performance during 2009, as fully detailed in our 2009 Annual Report.

Our resilience and persistence at a time when many of our financial sector peers have flailed or failed are enormously encouraging. They are the result of a robust business model, our sage and sober corporate governance, a prudent approach to overseeing and managing risks; and our loyal and dedicated people. The way we manage these aspects shows that we have a responsible approach to business and this has ensured our continued success through the difficult times we face.

These are some of the basic building blocks required to ensure that any business is appropriately geared for the long haul. But whilst they are a necessary condition for corporate prosperity, they are no longer a sufficient condition to ensure that a business is sustainable in the eyes of all its stakeholders.

At Sanlam our primary purpose is to create economic value for our policyholders and shareholders, though for us to remain relevant today we know that we cannot grow our bottom line in isolation. Instead, we are examining our value creation more holistically by:

• Appreciating that a broad range of stakeholders – not only our policyholders and shareholders – are affected by our approach to business,
• Anticipating and understanding the full range of possible risks and opportunities that we face in the long term, and
• Recognising that our business activities have broader social and environmental impacts and consequences.

Based on these principles the Sanlam Board and our senior management team have, over the past few years, been putting in place a number of strategies to ensure that we remain a viable, successful enterprise for many years to come.

Our approach starts at the leadership level: our Board Sustainability Committee provides oversight and direction on environmental, social and transformational issues, and I am personally committed to providing leadership in this regard. We also have a dedicated sustainability department within our Corporate Affairs division to help drive our sustainability actions in the businesses, to report on these issues, and to identify new ways of thinking and of doing in this crucial space.

These actions and approaches are, amongst other things, strongly informed by Sanlam’s proud association with the United Nations Global Compact. In essence, we realise that our practices and policies impact far beyond our own immediate business environment. Our experience with and commitment to the principles of the UN Global Compact is, therefore, firmly rooted in the knowledge that as a business we can and do make a difference to the lives of people. We realise that we influence our business partners, clients and associates through our approach to business and ethical practices – whether through the manner in which we employ our people, to our actions and concern for the environment or the spirit with which we endeavour to uplift and improve the lives of communities with which we do business.

As a signatory to the UN Global Compact, our continued commitment to and association with universally accepted principles in areas such as labour, environment and anti-corruption will ensure that we stay focused on our journey to ever-improving good corporate citizenship. These principles are incorporated and expanded upon in our 2009 sustainability-related reporting against the GRI reporting guidelines.

As a stakeholder with an interest in our business, I invite you to read about what we are doing to grow as a responsible organisation, I urge you to challenge us constructively where you think we are falling short, and to encourage us where you think we are doing well.

Johan van Zyl
Group Chief Executive: Sanlam Ltd