Sanlam reported solid growth in its key financial metrics for the year to end-December, driven by strong organic growth across its life insurance, general insurance and investment management businesses.
Headline earnings per share rose 37% to 964c. Net operational earnings grew 34% to R18.5bn, supported by higher investment returns on the shareholder capital portfolio and reduced corporate project expenses.
The company also recorded growth in business volumes and client cash flows. Total new business volumes increased 6% to R420bn, driven primarily by strong inflows in investment management. Net client cash flows leapt by 52% to R54bn, which the company said reflected a recovery in SA investment management operations and improved performance in asset and wealth management businesses.
Sanlam declared a final gross cash dividend of 445c per share, an 11% increase from the previous year.
Life insurance new business volumes grew 3%, while general insurance new business volumes increased 4%, supported by a strong underwriting performance at Santam.
The life insurance business reported a 2% increase in net value of new covered business, “despite challenges such as currency depreciation in pan-African markets and structural changes like the termination of the Capitec joint venture”, the company said.
Group equity value per share increased 15% to R81.23, with a return on group equity value of 20.3%. Sanlam’s solvency cover ratio remained strong at 168%.
CEO Paul Hanratty said global economic uncertainty associated with the return of President Donald Trump to the White House posed risks to global growth, but he remains optimistic about Sanlam’s prospects. “While inflation and interest rates remain a concern globally, for SA growth forecasts have improved.
“Most economists are forecasting a growth rate for SA that is one percentage point higher than last year. Factors such as easing interest rates and improvement in energy supply are contributing to this more positive outlook,” he said.
Speaking about the effects of Covid-19 on the business, Hanratty cautioned that lingering effects of the pandemic, particularly elevated government debt, continued to shape fiscal policies worldwide.
“Covid drove debt levels of governments around the world to very high levels and these effects will persist for years,” he said.
In a separate statement on Thursday, Sanlam and Ninety One announced they are making progress on their strategic partnership, with key operative agreements in place. The deal was announced in November last year.
As part of the agreement, Ninety One will acquire Sanlam Investment Management for about R5bn, expanding its assets under management by R400bn. In return, Sanlam will receive a 12.3% equity stake in Ninety One and appoint the company as its primary active asset manager. The partnership, which is expected to be finalised this year, will be underpinned by a 15-year strategic relationship.
Update: March 7 2025
This story has been updated with new information.
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