Sanlam has once again demonstrated strong business momentum, reporting “robust” performance for the nine months to the end of September.
The group achieved double-digit growth across most key earnings and new business metrics.
The net result from financial services increased by 15% during the reporting period, bolstered by satisfactory performance across all business lines. Net operational earnings saw an even greater rise, up 17%, driven by higher investment returns on the shareholder capital portfolio.
Life insurance emerged as a standout performer, with new business volumes climbing 12% and strong sales recorded across all regions. The net value of new business in this segment rose by 13%, maintaining a robust margin of 2.81%.
Sanlam also reported “satisfactory” general insurance new business trends, noting particularly strong growth in Asia and solid results in South Africa.
The group’s ability to attract significant asset flows was another highlight, with net client cash inflows more than doubling to R40 billion. Sanlam stated these inflows improved across all lines of business, underscoring the group’s appeal to investors.
Despite a decrease in discretionary capital from R3.8bn in June to R841 million in September, largely due to the acquisition of a 25% stake in African Rainbow Capital Financial Services Holdings, Sanlam remains well capitalised and within its solvency capital ratio target range, the group noted.
October brought a boost to discretionary capital with R2.3bn inflows from the integration of Sanlam’s Namibia holdings into SanlamAllianz, followed by R1.4bn in November from the Capitec reinsurance recapture fee.
The period also marked the culmination of Sanlam’s R6.5bn buyout of Assupol Holdings Limited, finalised on 7 October. Sanlam is now focused on integrating Assupol into its operations, with expectations of significant synergies over time.
Read: Sanlam proposes R6.5 billion buyout of Assupol
Paul Hanratty, Sanlam’s Group chief executive, attributed the group’s strong results to its people and strategy. “The excellent performance for the reporting period is testimony to the commitment of our people, the diversity of our operations, and the solid execution of our strategy across emerging markets,” he said.
Looking ahead, Hanratty expressed optimism for the remainder of 2024. “Our performance and continued strategic execution in the first nine months of 2024 support our optimism for the remainder of the year,” he said.
