Superior management of our financial and non-financial objectives in an increasingly competitive marketplace requires meaningful investment in the company’s relationships with all stakeholders. We recognise that these are the primary mechanisms for ensuring that we build long term sustainable profitability from one day to the next. While we acknowledge that it is not possible to please all of our stakeholders all of the time, we also understand that the interests of all stakeholders will converge in the long run.

During the year under review OUTsurance produced a solid set of financial and non-financial results in a challenging macroeconomic context characterised by increased competition, and the arrival of recession on South Africa’s shores.

Our financial results are underscored by continued focus on the core personal lines business, and incremental innovation and improvement in all areas of operations. The year saw the successful launch of operations in the Australian market with Youi (“You.Insured”) Insurance Company (Pty). During the year we extended business flows in Business OUTsurance and successfully launched our Credit Life product range which provides life risk products directly to the market though existing operational infrastructure. We also focused on maintaining strong organic growth and increased operational productivity in Personal OUTsurance. Our operations in Namibia also continued with steady growth with our Namibian client base increasing by 20.90% from the previous financial year.

These activities were supported through responding effectively to macroeconomic conditions affecting our stakeholders. Economic pressures have placed strain on new business and policy retention. We responded in a number of ways including clearly articulating the quality of our products and the value for money that they provide to customers, and drawing customers’ attention to our Essential products as a more affordable insurance solution.

We maintain our commitment to ensuring that we root out criminal elements that pose a threat to the insurance industry and within the country as a whole. These syndicates and individuals place a strain on resources which, if left unchecked, will prejudice all stakeholders within the industry. We drive this process through a dedicated fraud and ethics department as well as our affiliation to the South African Insurance Association (SAIA ) and the Insurance Crime Bureau (IC B). FirstRand Group forensic services are also on hand to provide us with support where necessary. These associations enable us to keep abreast of criminal syndicate activity and risks and also help us institute necessary contingency plans to protect all our stakeholders.

From a human resources point of view we prioritised leadership development to improve capacity and our ability to respond effectively to challenges and opportunities. This involved the continuation of a Leadership Development Programme. The programme aims to identify aspiring leaders at all levels and provide them with the necessary training, support and mentoring to ensure that they are equipped to deal with challenges and opportunities in what is a dynamic operating environment. The programme also helps candidates understand their leadership role.

We are constantly striving to ensure that OUTsurance is a great company to work for. Our company wide performance incentive programmes remain a great retention tool as well as a means for rewarding excellence by offering incentive holidays to top performing individuals and teams.

We minimized our environmental impact through recycling programmes and implementing energy efficiency measures. We implemented new strategies for increasing the socio-economic development benefit related to our procurement practice. We have also agreed to a new tree planting project that will complement our employee recognition programme.

The next year will see continued investment in all of these areas, and a constant drive to seek operational efficiencies through the linking of our business strategy with our operational plans. We will also ensure that we stay ahead of the curve with regards to best practice in the management of environmental, social and governance risks and opportunities via internal organic growth and participation in FirstRand’s sustainability forum.

This report details our management approach to, and performance in respect of, the non-financial and stakeholder issues that we have identified as being most material to our stakeholders and to our success as a business.

In 2009 we invested R1.4 million in corporate social investment. We also invested R10.5 million in the OUTsurance Pointsmen programme. This initiative alone has been one of our greatest successes. We are hoping to expand this programme into all major cities in the coming year. Currently motorists in Gauteng are the only benefi ciaries of this project. Sadly, during the writing of this report, two of the OUTsurance pointsmen were tragically killed while en-route to the Discovery 702 Walk the Talk family day. Our thoughts and prayers go out to the bereaved families and friends. We are currently engaged in efforts to assist the victims’ families.

I look forward to the next year with hope and great expectation. There will no doubt be challenges that bear down on us, but I am confident that with the team and strategy that we have here at OUTsurance, those challenges will be met and effectively dealt with. As CEO, I know that our success is due to our clients, suppliers and staff and it is to them that I would like to say thank you for your continued and loyal support