AVBOB by CMB Media Group

AVBOB

99 Years Strong for AVBOB PRODUCTION: Manelesi Dumasi

In August next year, AVBOB will celebrate its 100-year anniversary. To mark its centenary, the company will invest heavily in projects that will benefit South Africa’s youth. This is a company that is thinking about the past but has its eyes firmly fixed on the future.

As AVBOB approaches its centenary year, in an economic climate which is not conducive to sustainable growth, this old and proudly South African company continues to post excellent results. Frik Rademan, CEO since 2011, tells Enterprise Africa that his experiences over the past six years at the helm have been largely positive and AVBOB is now a different organisation to what it was when he took over. “I was appointed as CEO six years ago, at a time when things were not going terribly well for AVBOB. We had negative growth in more or less all sectors, but a focus on our strategies and our plan meant that we were able to turn things around, and at board level it is vital that we continue to apply these strategies and our

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differentiators.” The company held its AGM in November and announced healthy results. Rademan detailed a net income of R1.1 billion before tax, new business growth of 14.8% (156.3% over the past six years), total assets increased by 8.5% for the year, funerals conducted increased by 6.8%, and the surplus allocated for the improvement of policy holder benefits over the past decade amounted to R8 billion. On top of all of this, AVBOB was certified as a Top Employer, further entrenching its name amongst Southern Africa’s elite organisations. “I am very proud of what we have achieved, and of having become a top employer which would have seemed impossible six years ago,” says Rademan. “I cannot do anything

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Knowing where to look

We know that in today’s challenging economic environment, it’s sometimes hard to know where to start when you want to grow your business. We also understand that what separates truly great businesses from mediocre ones is not merely the quality of their service offering, but the calibre and dedication of their people.

Congratulations and best wishes to Avbob on its 100th anniversary. We wish you everything of the best with your future growth strategies and look forward to supporting you on this journey.

AVBOB

// THE GROUP IS WELL POSITIONED TO WEATHER THE CURRENT ECONOMIC CHALLENGES AND HELP OUR STAKEHOLDERS TO DO THE SAME // without the right people, however, and it has been invaluable to have them behind me and have their support, which allowed us to make this transformation so successfully and position us where we are now.” AVBOB has made its name as South Africa’s leading mutual assurance society, focussing on the funeral industry. The AVBOB Group, consisting of AVBOB Insurance, AVBOB Funeral Service and AVBOB Industries is South Africa’s only

mutual society that provides a onestop funeral insurance and burial service solution. What has propelled the company from a small group of related businesses operating during the early 1900s to become a multi-national industry leader? “We believe that we can offer a one-stop service, and this, together with our mutual status, gives us the edge over our competitors,” explains Rademan. “There is huge competition around every corner, and so in a niche market it is imperative to be the market leader, which is where our mutual status yet again keeps us ahead of the rest,” he adds. 2017: YEAR OF SUCCESS AVBOB’s Chairman, Piet Delport said in the company’s 2017 Integrated Annual Report that mutual status is what continues to set it apart from the chasing pack.

“Net new business increased by 14.8% and policyholder benefits by 25.4%. Our policyholders benefit directly from our growth and that is why our unique mutual status is and will remain our biggest competitive advantage,” he said. “As we continue our pattern of consistent growth we remain firmly committed to our vision, mission, values and mutual model. Our relentless focus on the needs of our policyholders will continue to create long-term value and entrench AVBOB as the leader in the funeral industry. “The Group is well positioned to weather the current economic challenges and help our stakeholders to do the same. Our corporate slogan ‘We’re here for you’ goes to the heart of the way we do business. Making this positive difference is where we will need to focus much of our attention in the coming years.” In the same report, Rademan proudly delivered positive comments

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INDUSTRY FOCUS: FINANCIAL SERVICES

surrounding financial and HR performance. “The Group has delivered excellent results for the year,” he said. “All three South African businesses once again achieved growth and positive operating results. AVBOB Funeral Service achieved its best ever operating profit as a result of unit growth. “We continue to demonstrate to the AVBOB family and South Africa, that our mutual status sets us apart and represents an opportunity to create policyholder value.” Now certified by Amsterdambased Top Employers Institute as one of the world’s premier employers, AVBOB is continuously investing in its more than 7000 people. “We have expended considerable

resources to improve the quality, skills and knowledge of the Society’s representatives. The claims turnaround time has reduced with a further 7% during the year under review,” said Rademan. “I am proud to report that the Group has been certified as a Top Employer, and that the Society was ranked third in the long-term insurer category in the Sunday Times Top Brand Survey, was voted the winner of the Financial: Funeral Cover Category Award for the second year running in the 2016/17 Icon Brands Survey and also received a total of seven awards for results-driven advertising campaigns.” The Top Employers Institute said of AVBOB: “Our comprehensive independent research revealed

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// THE PROJECT’S OBJECTIVE IS TO RENOVATE AND UPGRADE NINE SCHOOLS THROUGHOUT SOUTH AFRICA, COMMENCING WITH THE JOE SOLOMONS PRIMARY SCHOOL IN BLOEMFONTEIN // that AVBOB provides exceptional employee conditions, nurtures and develops talent throughout all levels of the organisation and has demonstrated its leadership status in the HR environment, always striving to optimise its employment practices and to develop its employees.” CENTENARY APPROACHING On 15th August 2018, AVBOB will reach a major milestone – its 100th birthday. Internally, the company will celebrate with staff and partners but it is the external projects that the company has started with that will be remembered in the future. Partnering with the Department of Basic Education, AVBOB is contributing to the upskilling of young South Africans in a major way. R150 million modernisations and refurbishment of schools, the supply of container libraries complete with books, and various other competitions and projects all aimed at youth are rightly garnering a lot of attention. “The project’s objective is to renovate and upgrade nine schools throughout South Africa, commencing with the Joe Solomons Primary School in Bloemfontein,” says Rademan.

AVBOB

“It is a historic moment for AVBOB to be launching this project in Bloemfontein, because the Society was established here in Mangaung on 15 August 1918.” Assistant General Manager, Kebo Mosweusweu, added: “We at AVBOB strongly believe in uplifting the community and making sure that we equip it with the necessary facilities to succeed.” Now approaching its end, the container library project is something of which Rademan is proud. “Currently we are running a flagship project which sees us donating container libraries to underprivileged schools all around South Africa.” This project has been hailed by the government with Minister of Basic Education, Angie Motshekga labelling AVBOB “the single largest contributor of fully functional container libraries given to primary schools in South Africa, each of which is worth approximately R500,000 and comes with 2500 books, to benefit

thousands of learners.” To date, 45 container libraries have been delivered and the final five will be delivered by August 2018. The investment goes hand in hand with the National Development Plan that aims to eliminate poverty and reduce inequality by 2030. Of course, for the company to continue investing in projects like this, sustainability and future proofing are vital. The CEO has no doubt that AVBOB’s future is bright. “Without wishing to sound arrogant, I believe we are the market leader but there is still room for us to do things better and more effectively. I do think that most people regard us as the leader in this industry, which ultimately is integral to our strategy. “Within the next two years we want to open another 100 branches, mostly in the rural areas, to get closer to our policyholders and provide them with an even better service.” Piet Delport reiterates this

optimism. “South Africa is a country of opportunity,” he said. “AVBOB is a strong South African brand and we have a robust ONE AVBOB strategy that we will build on to allow us to remain a leader in the funeral industry.”

AVBOB 012 303 1000 info@AVBOB.co.za www.avbob.co.za

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Journey of a

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Exclusive interview with CEO Andrew Darfoor ALSO IN THIS ISSUE:

Buffalo Coal / Nautic Africa / Grindrod / SAOTA

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ENTERPRISE AFRICA

DECEMBER 2017