Bophelo Insurance Group ("BIG", "The Group") is an insurance group owned 70% by Mvunonala Holdings (Pty) Limited and 30% by the Public Investment Corporation ("PIC"). BIG wholly owns two insurance companies, Bophelo Life Insurance Limited ("Bophelo Life") and Nzalo Insurance Services Limited ("Nzalo Insurance").

The above structure can be described diagrammatically as follows:

Nzalo Insurance is registered to write short term insurance.

The company was granted an operating insurance license by the FSB in November 2016. The company is an Authorized Financial Services Provider under license number 46850, and it is authorized to write all classes of short term insurance as defined in the Short Term Insurance Act. These are listed below:

• Property
• Motor
• Transportation (incl. Marine and Aviation)
• Accident & Health
• Liability
• Guarantee
• Engineering
• Miscellaneous

Nzalo Insurance has set themselves to be the preferred non-life insurer in its selected target market. This will be achieved by embedding and living the values set by Management and approved by the Board. The values and culture entail various virtues such as integrity, trust, transparency, fairness and equity, innovation, sense of urgency, client centricity and commitment to staff.

The principles of treating clients fairly will be embedded in the business, emphasizing that the client's interests should come before the interests of the respective companies. Protection of personal information supplied by clients should also be high on the list as we acknowledge the trust bestowed upon us by the client.

Nzalo Insurance is authorized by the FSB to write all classes of short term insurance business. This can be done on personal lines, commercial lines and/or corporates. The classes of business include property, motor, transportation (including marine and aviation), accident & health, liability, guarantee, engineering and miscellaneous.

In the initial years, the company will write business on corporate and commercial lines only. Personal lines require a rather comprehensive infrastructure and therefore this will only be considered in later years if necessary.

The goals for the group are appropriately classified into 5 categories for each subsidiary company.

The broad categories of goals are classified as follows:

1. Business Development Goals - These are the goals set for the company to grow the business. The goals cover a period of 5 years, with a fair stretch for the targeted growth in the selected markets.

2. Financial Goals - Financial goals are set in line with the group's risk appetite. These include targets on expense management, profitability and most importantly solvency and capital requirements. Specific tolerance limits are defined in the objectives of the said goals.

3. Business Sustainability Goals - These goals are set to ensure the business is sustained in a sound form. The goals and the objectives include definitions for the structures the group should have to ensure good governance, risk management, compliance with all laws and directives, operational management and proper internal controls.

4. People Goals - The goals set here are predominantly directed to the development of staff. It is recognized that staff is one of the most important assets in the group and all efforts should be instituted to ensure that the group attracts and retains good quality staff.

5. Strategic Goals - These are goals that the group appreciate will not be addressed in the short term, but efforts will be employed to lay a foundation for the goals to be addressed in the medium to long-term.

1. Vision Nzalo Insurance set themselves to be the preferred non-life insurer respectively in its selected target market.

2. Mission Statement Nzalo Insurance wishes to partner with select corporate and commercial intermediaries with a view of offering tailored insurance solutions

3. Values and Culture

   1. Culture

   Culture is perceived to be "how we do things around here"

   We are:

   • Supportive and caring.
   • Self-driven and people orientated.
   • Hands-on and competitive.
   • Risk conscious and reward good performance.
   • Strive for excellence and nurture talent.
   • Have an open door policy and value relationships.
   2. Values

   The value system incorporates; customer focus, excellence (team work), people

Some of the selected target markets will include:-

The specific target clients are listed below:

1. Engineering Portfolio - Made Possible with the partnership with Da Vinci Underwriting Managers Holdings.
2. Property Portfolio's - Targeting the various property portfolio's which could include large shopping malls and other commercial properties.
3. Municipalities - Targeting various municipalities across the country for insurance of both movable (motor) and immovable properties.
4. Department of Public Works - Targeting the various properties owned by the department, including buildings and vehicles as well as national monuments.
5. Large to medium Commercial business within our risk appetite.

Nzalo Insurance will be open to both direct and intermediated model of business distribution.

Nzalo Insurance has a Level 1 - BBBEE rating. We do not have a credit rating as yet and this will most likely only be completed later this year.

At Nzalo Insurance we are very excited and eager with our new venture and we are particularly interested to partner with intermediaries that are willing to embark with us on this new journey. Embarking on this new journey is both quite exciting and very challenging, which will hopefully open new doors for all stakeholders involved. Our aim is to have strong relationships with our intermediaries that we will be doing business with and with a key focus on profitable growth and a regular inflow of sustainable business in line with our risk appetite.

Our reinsurance program will be underwritten on either A (-) or A (+) reinsurers papers.

Yours Sincerely

Steven J Isaacs

Managing Executive

Nzalo insurance Limited

Contact Details:

Email address: steven.isaacs@bophelolife.co.za (email address for Nzalo Insurance under construction)

Office Number: 011 772 1068 (landlines not functional as yet - just moved offices)

Cell Number: 064 757 9701