The group delivered strong financial performance for the first six months of 2023, with the earnings pattern back on track after the series of what the group classifies as one-in-25/100-year events during the period from 2020 to 2022.

Growth in net result from financial services over the first six months of 2023 was broad-based, with life insurance increasing by 28%, general insurance by 38% and credit and structuring by 36%. Investment management increased by 9% on a comparable basis.

Net operational earnings increased by 64%. The higher growth relative to net result from financial services is due to increased investment return benefitting from the recovery in local and international investment markets over the period.

The group recorded new business volume growth of 19% due to good sales growth in investment management, supported by the addition of the Absa asset management business and general insurance supported by good premium growth across the portfolio. Life insurance new business volume growth was muted but reflected a shift to higher-margin products, resulting in increased value of new business and margins. Net value of new covered business (VNB) increased by 18% and was 21% higher on a constant economic basis.

Group net client cash flows of R11,4 billion were lower than 2022 due to an increase in outflows from savings products in South Africa, which reflect the challenging consumer environment, and a pick-up in outflows in our UK investment management operations.

Group equity value per share was R67,85 on 30 June 2023 and return on group equity value was 12,0% for the first six months of 2022. RoGEV benefited from robust contributions from value of new business, improved performance and outlook in our credit business in India, and a strong contribution from Santam. Strong investment markets and a weakening of the rand relative to the main valuation currencies in the non-South African operations also contributed to the higher return for the first six months of 2023.