COMMENTS ON THE RESULTS

Introduction
Continuing impact of IFRS
Group Equity Value
Earnings
Business volumes
Solvency
Dividend
Annual general meeting

Introduction

The Sanlam group financial statements for the year ended 31 December 2007 are presented based on and in compliance with IFRS.  The Group's external auditors, Ernst & Young Inc., have audited the financial statements.

Continuing impact of IFRS

IFRS have been developed as general-purpose accounting standards to be applied across all industries without exemption for any unique industry or country-specific circumstances. While we support the objective of IFRS to achieve consistency in financial reporting, we are concerned that the indiscriminate application of IFRS does not necessarily present the economic substance of transactions or the reality and performance of the reporting entity, to the potential detriment of the users of the financial statements.

The accounting treatment of investments in Sanlam shares and Group subsidiaries held by the policyholders' fund is an example where IFRS have a material disclosure but not a true economic impact on the Group's results.

In terms of IFRS, the investments of the policyholders' fund in Sanlam shares and Group subsidiaries are not reflected as equity investments at fair value in the Sanlam balance sheet, but deducted in full from equity on consolidation (in respect of Sanlam shares) or reflected at net asset value (in respect of subsidiaries). The valuation of the related policy liabilities however includes the fair value of these shares, resulting in a mismatch between policy liabilities and policyholder investments, with a consequential impact on the Group's earnings through a transfer between policyholders' and shareholders' funds.  For the calculation of basic and diluted earnings per share in terms of IFRS, the number of shares in issue is reduced by the Sanlam shares held by the policyholders' fund.  This is not a true representation of the earnings attributable to the Group's shareholders. This is specifically evident in instances where the share prices and/or the number of shares held by the policyholders' fund varies significantly, which results in losses being recognised in the IFRS earnings as the Sanlam share price increases and profits when the Sanlam share price decreases. These are not true economic profits and losses.  The Group therefore decided to also disclose normalised diluted earnings per share from the 2007 financial year that eliminate this IFRS impact.

As the granting of shares to the beneficiaries of Santam's Black Economic Empowerment transaction is still in the implementation phase, no charge has been recognised in the income statement in terms of IFRS 2 during 2007. Sanlam has followed Santam's disclosure of discontinued operations in terms of IFRS 5. Discontinued operations are excluded from Core Earnings.

Group Equity Value

Embedded Value terminology is traditionally associated with Life Insurance businesses. The ongoing transformation of the Sanlam group into a diversified financial services organisation, which includes a growing non-life component, caused our past practice to refer to the combined Group operations in terms of embedded value terminology and methodology to become increasingly inappropriate. Consistent with our objective to continuously improve the quality and relevance of our financial communication we will, with effect from the 2007 financial year, refer to the aggregate value of the group business as Group Equity Value (GEV). This change in terminology and presentation does not impact on the previously published group embedded value. 

GEV is the aggregate of the following components:

• The embedded value of covered business, being the life insurance businesses of the Group, which comprises the capital supporting these operations and the net value of their in-force books of business;
• The fair value of other Group operations, which includes the investment management, capital markets, credit, short-term insurance and the non-covered wealth management operations of the Group; and
• The fair value of discretionary and other capital.

GEV provides a meaningful basis of reporting the underlying value of the Group's different operations and the related performance drivers, while changes in GEV more accurately reflects the performance of the Group than results presented under IFRS. This basis also allows more explicitly for the impact of uncertainty in future investment returns and is consistent with the Group's operational management structure.

The embedded value methodology is still being applied to the Group's covered life insurance business as defined.  The methodology and assumptions used to determine the embedded value of covered business have however been adjusted from 2007 in preparation for the revised embedded value guidance from the Actuarial Society of South Africa that becomes effective for reporting periods ending on or after 31 December 2008. These are intended to be materially consistent with the CFO Forum's European Embedded Value (EEV) Principles. The change added R272 million to the GEV as at 31 December 2007. No adjustment has been made to the 2006 published embedded value.

The GEV as at 31 December 2007 amounted to R51,3 billion, up 9,6% on the R46,8 billion at the end of 2006. On a per share basis GEV increased by 14,8% from 2 047 cents to 2 350 cents at 31 December 2007. The Sanlam share price traded at a 3,2% discount to GEV at close of trading on 31 December 2007.

The GEV at 31 December 2007 is analysed in the following table:

GEV at 31 December 2007 includes discretionary capital of R6,1 billion. By utilising the net asset value of other Group operations to partially cover the required capital of the Group's life operations, a diversification benefit of R1,2 billion was achieved at 31 December 2007. This contributes to the optimal use of the Group's capital base.

The return on GEV of 19,1% (18,8% per share) is again well in excess of the Group's long-term return target of the 10-year bond yield plus 3% to 4%. The Group has outperformed this target on a cumulative basis since Sanlam's demutualisation in 1998.

Sanlam Personal Finance achieved a return of more than 21% on its operations with covered business accounting for the bulk of the growth. Similarly the covered business of Sanlam Developing Markets substantially contributed towards its 19,3% return for the year.

Operations in the Institutional cluster achieved a return of 16,2%. This is the combined result of 28,9% growth in the Investment management and fund administration business, a 35,3% return recorded by Sanlam Capital Markets, somewhat offset by a disappointing 4,9% return in Sanlam Employee Benefits. Sanlam Capital Markets' return includes once-off profit realised on the disposal of an associated company and subsidiary. Excluding these items, Sanlam Capital Markets' return was slightly below its 25% target. While the required capital of Sanlam Employee Benefits remains disproportionate to its value of in-force, its return will be sub-optimal. The return in 2007 was also adversely affected by the R380 million impact of the change to EEV. Excluding this impact, Sanlam Employee Benefits' return amounts to 10,6%. An ongoing Group focus is the restructuring of Sanlam Employee Benefits' solutions to improve its capital efficiency.

Exceptional growth in the Santam share price plus dividends of R26,28 per share paid during the year (including a special dividend of R22,00) contributed to a return of 42% on the Group's investment in Santam.

The return on discretionary and other capital was negatively impacted by a number of low yielding assets in the portfolio. This includes international cash as well as the Group's interest in the Safair Lease Finance joint venture, which required a R62 million negative valuation adjustment. Other items impacting on the return include:   

• A shortfall of R71 million on the delivery of Sanlam shares to the Sanlam Demutualisation Trust in terms of an arrangement put in place as part of the Ubuntu-Botho (UB) empowerment transaction in 2004, being the difference between the fair value of the Sanlam shares delivered and the fair value of the equivalent number of UB preference shares received from the Trust in return;  
• The write-off, for GEV purposes, of the goodwill paid on the acquisition of Shriram Life in India of R108 million;
• A shortfall of R288 million on the delivery of Sanlam shares to the share incentive scheme participants at the applicable strike prices; and
• A negative change of R109 million in the net worth adjustments, essentially due to some reallocation of expenses formerly recognised in the calculation of the value of covered business.
   

Earnings
 

Core earnings

Core earnings for the year of R4 146 million are 23% up on 2006. Core earnings comprise the net result from financial services and net investment income earned on the shareholders' fund, but exclude abnormal and non-recurring items as well as investment surpluses. Net investment income includes dividends received from non-operating associated companies and joint ventures, but excludes the equity-accounted retained earnings. On a per share basis, core earnings increased by 27%, reflecting the impact of the 3,4% reduction in the weighted average number of shares in issue from the share buy-backs during the year.

The gross result from financial services of R4 539 million is 11% higher than the comparative period in 2006. Net of taxation and minority interests, the result from financial services is 16% higher than 2006. The relatively higher growth on a net basis is mainly due to a lower effective tax rate in Sanlam Developing Markets and Sanlam Capital Markets. 

• Sanlam Personal Finance achieved another set of satisfactory results with their result from financial services for the year 11% up on 2006. Higher market-related income was to an extent offset by lower administration profits due to new business strain. The profit contribution from non-life operations decreased slightly in 2007, primarily due to new business strain from the strong business volumes recorded by the Topaz linked business, which was launched in the latter part of 2006. The increase in individual life maintenance unit costs was well contained at 5%.
   
• The Sanlam Developing Markets' result from financial services is 19% down on 2006 and was in general affected by new business strain from the strong new business performance. New business strain is a normal element of a high-growth strategy and will positively impact on future profitability, as reflected in the growth in Value of New Life Business. In addition, African Life SA was negatively impacted by the relatively lower investment returns in 2007. Channel Life's contribution of R11 million is 70% lower than the R37 million in 2006, in part due to negative persistency experience and expense overruns in the call centre. Profit from the Botswana operation was also lower than 2006 following lower relative investment performance and an increase in staff numbers as part of an investment in additional capacity. Sanlam Developing Markets' after-tax results benefited from a release of an excess tax provision.
   
• The Institutional cluster recorded another strong performance in 2007, increasing its result from financial services by 14% against the high comparative base in 2006.
   
  
  • Sanlam Employee Benefits posted a 147% improvement on 2006, representing a major turnaround in profitability. These results include the full cost associated with the ongoing migration of the retirement fund administration to Coris Capital. Independent Financial Services carried some of these costs in 2006. Comparative information has not been restated. The outperformance against 2006 can largely be ascribed to a 38% improvement in risk underwriting profits following good claims experience, as well as profit realised on an improvement in the matching profile of the annuity book.
     
  • Sanlam Investments' result from financial services is 14% up on 2006. This performance reflects the positive gearing effect of its higher assets base, assisted by the recent positive market performance and performance fees earned by the Cluster, which increased by 48% from R356 million in 2006 to R526 million in 2007. The inclusion of new acquisitions also contributed to the improvement, including Coris Multi-Manager acquired during 2006, and Simeka acquired in 2007. Sanlam Private Equity and Sanlam Private Investments both recorded exceptional results.
    
    Major progress has been made over the past few years in transforming the business from a wholesale asset manager into a diversified boutique of investment-related businesses. International business contributed 35% of profit during 2007 and performance fees represented 17% of revenue.
     
  • Sanlam Capital Markets' result from financial services is 52% down on 2006 and 33% down on an after tax basis. The increased volatility in debt and equity markets, including a general widening of credit spreads following the US subprime crisis, had a severe impact on capital market activities in the second half of 2007. Despite these challenges, Sanlam Capital Markets reported a marginal profit in the second half of the year and still succeeded in recording a return of 23,5% on its R400 million allocated capital for the year, slightly below the long-term target of 25%.
     
• Santam's results for the year were negatively affected by major local and international claims towards the end of the year. The international businesses due for closure and/or sale are classified as discontinued operations and reported a net loss of R168 million (R91 million after minorities) compared to a profit of R70 million (R37 million after minorities) in 2006. These results are recognised separately in the income statement. The results from continuing operations of R987 million are 12% higher than in 2006. A claims experience of 68% was in line with 2006, while an underwriting margin achieved of 6,2% is also broadly in line with the 6,5% reported in 2006.
   
• Independent Financial Services results are 65% lower than 2006, due to a combination of lower profit contributions from and a reduction in the Group's interest in certain business.
   
• The reduction in corporate costs versus 2006 is mainly due to the first-time inclusion in corporate costs of the interest earned on the cash held for the Sanlam Limited dividend payment in May 2007. Corporate administration expenses were well contained within inflationary limits.

Net investment income for the 2007 financial year is 47% higher than the comparative period in 2006, due to relatively higher cash interest rates and the more conservative investment asset mix that was adopted for the balanced portfolio during 2006.  This resulted in a higher exposure to interest-bearing investments (lower exposure to equities) in 2007 compared to 2006 with a higher investment income return. This was partially offset by reduced income on the cash used for the share buy-backs during the year.

Normalised headline earnings

Normalised headline earnings of R5 199 million are 22% lower than the comparative period in 2006. Normalised headline earnings exclude the IFRS accounting impact of investments in Sanlam shares and Group subsidiaries held by the policyholders' fund (refer 'Earnings' section above). Including the effect of fund transfers recognised in terms of IFRS in respect of these shares, headline earnings decreased by 29%.

Normalised headline earnings per share decreased by 19% with the lower reduction on a per share basis attributable to the reduction in the weighted average number of shares in issue following the share buy-backs during the year.

• Headline earnings include R85 million spent on Sanlam Personal Finance's SanlamConnect distribution channel (launched in December 2007) and the MiWay direct distributional channel (launched in February 2008) during the set-up phases. Some ongoing project costs still need to be incurred in respect of further development phases on these projects, which will be recognised in the 2008 income statement. These projects are aligned with Sanlam's strategy to diversify and expand the Group's distribution reach.
• Investment surpluses amounted to R1 264 million (after tax and minorities) in 2007 compared to R3 215 million (after tax and minorities) in the 2006 financial year. The 61% decrease in net investment surpluses is primarily due to much lower relative equity returns during 2007.  The JSE All Share Index return in 2007 was less than half than that of 2006. The more conservative asset mix implemented for the balanced portfolio, as well as portfolio investments utilised for the share buy-back, also contributed to the lower return.
• The 56% increase in secondary tax on companies (STC) is mainly attributable to the increased dividend paid in 2007, the deferred tax impact of the change in the STC rate from 12,5% to 10% and lower dividend income earned on the balanced portfolio due to the more conservative asset mix, and thus less STC credits generated.
• Discontinued operations relate to Santam's operations in Europe that will be closed down and/or disposed of in due course. The profit or loss earned from discontinued operations must be recognised separately in the income statement in terms of IFRS.
   

Business volumes

New business flows

Total new business volumes increased by 26% from R81 billion in 2006 to R102 billion in the 2007 financial year. All of the Group businesses contributed to the performance.

Sanlam Personal Finance's new business volumes increased by an exemplary 27%. Recurring premium business (including both life and non-life) is up 24% with single premium business reflecting growth of 28% on 2006.

• South African new business volumes increased by 22%, with good support experienced for both life and investments solutions.  These results have been achieved despite the negative impact of increasing interest rates on consumers' disposable income. The introduction of more flexible, tailored and transparent solutions assisted in improving the recent negative sentiment towards the insurance industry.
  
  
  • Strong new recurring premium life sales were recorded, being 15% up on the same period in 2006. This is somewhat down on the 21% growth reported for the first six months of 2007, but reflects the impact of the higher comparative base towards the end of 2006. Competitive solutions and good advisor and broker support contributed to the growth in recurring premiums.
  • Total single premium life sales are up 14% on 2006, an improved performance compared to the 9% growth reported for the first six months of 2007. Growth in the Glacier life insurance solution range accelerated during the year to achieve an increase of 28% in inflows. Despite volatility in equity markets during 2007, overall returns were still attractive and supported the sales of single premium business.
  • Sanlam Personal Finance's investment business increased by 31% in 2007, confirming the successful diversification of the business into investment products. Glacier continued its strong growth in investment business, which increased by 26% compared to 2006. The new Topaz linked investment solution recorded exceptional growth to make a solid contribution to overall investment business volumes.
• The Namibian operations experienced another good year and increased their new business volumes by 36%. The majority of the growth stems from investment business, which grew by 37% compared to 2006. The popularity of unit trust solutions continued, with new business volumes increasing by 51% from R3,8 billion in 2006 to R5,8 billion in 2007.
• Merchant Investors' increased focus on new business initiatives and on further extending its distribution capacity contributed to excellent growth of 71% in new business volumes for the year to in excess of R1 billion.

Sanlam Developing Markets again exceeded expectations and delivered sterling results with an 80% increase in new life insurance business. Excluding the relatively low margin single premium business in Channel Life and African Life SA, new business volumes are 30% up on 2006.

• South African total new business inflows more than doubled in 2007 to R2,8 billion, aided by two large single premiums amounting to some R1,1 billion. New recurring premiums increased by 27% to R584 million, the combined result of 28% growth in African Life SA's recurring business and a 26% increase in Channel Life sales. African Life SA's results were supported by improvements in manpower and average premium size as well as a substantial reduction in the not taken up (NTU) rate of traditional channels in 2007. A relatively high NTU rate in the direct channel is, however, still receiving management attention. The Channel Life call centre experienced operational problems during the year, which are being addressed. Notwithstanding these problems, Channel Life recorded strong new recurring business volumes.
• The African operations' new business volumes increased by 22%. Botswana Life remains the main contributor to African flows and increased its recurring premiums by 35% to R139 million, and single premiums by 15% to R404 million. Recurring premium business was supported by the launch of new solutions, improvements in validation and the strengthening of broker relationships. Double-digit single premium growth is particularly satisfactory in the face of strong competition from the Botswana Government annuity product. The Kenyan operations had a very good year and reported an increase of 68% in its new business volumes to reach R103 million for 2007.
• Shriram Life, our 26% held life operation in India, is continuing its strong sales performance with 2007 full-year sales of R126 million up 186% on the R44 million for 2006. Accredited agents increased from 9 400 at the end of 2006 to more than 16 000. Agent productivity is still lower than target but this was offset by a higher average premium size. 

Institutional new business flows increased by 30% compared to the 2006 financial year.

• Sanlam Employee Benefits' flows are 7% up on 2006 in a very competitive market for risk and investment solutions. Sanlam Employee Benefits' performance has shown a significant turnaround from the reported 28% reduction in sales volumes in the first half of 2007. The improvement is the combined effect of a major recovery in single premium volumes, partially offset by a slowdown in recurring premium growth against the higher comparative base towards the end of 2006.
• Sanlam Investments' inflows increased by 31% to R47,8 billion, of which R4,4 billion was accounted for by the non-South African businesses. Wholesale segregated inflows and Sanlam Multi-Manager inflows more than doubled in 2007. As expected, after an exceptional 2006, new business inflows in Octane and Sanlam Private Investments moderated by 55% and 19% respectively. All other investment management businesses experienced satisfactory improvement in new fund flows.

Santam recorded a 12% overall increase in net earned premiums, a satisfactory result in a highly competitive environment. Santam has made a strategic decision to discontinue its international operations in Europe. Excluding premiums attributable to the discontinued operations, net earned premiums increased by 11% from R9,6 billion in 2006 to R10,7 billion in 2007.

Net business flows

Total inflows increased by 24% to R116,9 billion, while outflows in respect of fund withdrawals and policy benefits were up by only 4% to R105,5 billion. Net inflows amounted to R11,4 billion, somewhat down on the net inflow of R14,1 billion in the corresponding period in 2006 (before the PIC withdrawal of R21,6 billion).

Sanlam Personal Finance's net flows of R3,5 billion are marginally down on the R3,7 billion recorded in 2006. RSA life business recorded net outflows of R1,2 billion compared to a net inflow of R103 million in 2006. This is the result of higher maturity claims, which can be ascribed to the relatively bigger block of business sold five years ago as well as higher maturity values due to the current higher market levels. Policy surrenders are marginally down on 2007. Net investment inflows improved from R3,9 billion in 2006 to R4,9 billion for the 2007 financial year, offsetting the reduction in net life business flows.

Sanlam Developing Markets is continuing to perform well and recorded net inflows (excluding white label) for the 2007 year of R2,3 billion compared to R1,7 billion in 2006. The high level of single premiums written by Channel Life was the main contributor to the increase in South African net fund flows. Alternative Channel, that contributed most of the single premium volumes, was sold at the end of 2007. A similar level of single premium business is therefore not expected in the future. All non-South African operations contributed to an increase in non-South African net flows.

Institutional cluster net flows increased from a net outflow of R17,7 billion in 2006 to a net inflow of R390 million in 2007. Net inflows are somewhat down on 2006 excluding the PIC fund withdrawal of R21,6 billion. Sanlam Investments recorded net inflows of R4,5 billion in 2007 compared to R6,7 billion in 2006 (excluding PIC) . This shortfall is substantially due to a few large mandates that were lost during the first half of 2007 as a result of changes in client investment strategy and the impact of the closure of the Sanlam Dividend Income Fund. Non-South African net inflows declined from R2,8 billion in 2006 to R1,2 billion for the 2007 financial year, mainly due to a decline in Octane inflows from a relatively high base. Sanlam Employee Benefits recorded net outflows of R4,1 billion compared to R2,8 billion in 2006. The increased level of net outflows is in part attributable to a deliberate effort to reduce its capital and margin inefficient business.

White label net inflows of R1,8 billion was marginally higher than 2006, the combined effect of a decline in Collective Investments net inflows and a significant increase in Sanlam Developing Markets' contribution. White label flows are volatile in nature and variances can be expected between reporting periods.

Value of new business (VNB)

Total life VNB for 2007 of R567 million reflects exceptional growth of 31% on the back of similar new business volume performance. Net of minority interests, VNB improved by 30% to R493 million. The overall new life business margin increased from 2,14% to 2,37%.

The Sanlam Personal Finance VNB was positively impacted by the good sales achieved for the year, with the VNB margin also increasing from 1,90% in 2006 to 2.04%. Sanlam Personal Finance also calculates the VNB of its non-life business and reported an 8% increase in the value of non-life linked and loan business from R64 million in 2006 to R69 million in 2007.

All of the operations in Sanlam Developing Markets contributed to an exceptional 51% growth in gross VNB to R203 million. African Life SA and Kenya more than doubled their contribution during 2007, the latter supported by strong bancassurance sales. African Life SA's performance was positively impacted by good volume growth, an improved mix of business and persistency gains (refer above for decline in NTU rates in the traditional distribution channels). Channel Life's VNB declined by 19% to R30 million and was negatively impacted by deteriorating persistency and an expense overrun in the call centre. The Botswana operations are continuing to do well, with both VNB of R93 million and margins positively impacted by strong bancassurance sales, good margins on a newly launched risk underwriting solution and persistency gains. The decline in the overall VNB margin from 4,31% in 2006 to 3,71% in 2007 is largely attributable to single premium contracts written at relatively low margins. Excluding these contracts, VNB margins are slightly higher than 2006.

As part of the restructuring of Sanlam Employee Benefits, the market-related investment business written by Sanlam Employee Benefits has been reclassified as life licence business with effect from 2007, to be consistent with the treatment of similar business written by Sanlam Investment Management under life licence. It has commensurately also been excluded from the embedded value of covered business and VNB. Comparative information has not been restated for the change in classification. This resulted in a significant 39% decline in the present value of new business premiums included in the VNB calculations. The VNB is however down by only 3%, given the lower margins earned on the reclassified investment business. Overall profitability improved from 1,13% in 2006 to 1,53% in 2007.

Solvency

All of the life insurance businesses within the Group were sufficiently capitalised at the end of the 2007 financial year.  The total capital of Sanlam Life Insurance Limited, the holding company of the Group's major life insurance subsidiaries, amounted to R37,9 billion on 31 December 2007. Its allocated regulatory capital at the end of December 2007 amounted to R26,3 billion, which covered its regulatory Capital Adequacy Requirement (CAR) 3,5 times, compared to 4,4 times on 31 December 2006. No policyholder portfolios held negative bonus stabilisation reserves at the end of 2007.

In terms of its capital efficiency strategy, Santam reduced its capital by way of the buy-back of Santam shares worth R713 million as well as a special dividend of R2,5 billion paid in December 2007. As a result, Santam's regulatory capital (shareholders' funds including subordinated debt) constituted 42% of net earned premiums on 31 December 2007 compared to 62% as at 31 December 2006. The reduced solvency level is well within the target range set by Santam.

Discretionary capital that is surplus to the Group's immediate operational requirements is separately identified and centrally managed. Net of capital set aside for the final dividend in respect of 2007, share incentive scheme commitments and an allowance for some illiquid investments, discretionary capital amounted to R6,1 billion on 31 December 2007, a reduction of R100 million on the R6,2 billion level reported in 2006. The Group's approach towards the application of discretionary capital remains unchanged. The overall objective of the Group is to maximise return on GEV and value to shareholders. This requires that the Group cannot retain unproductive capital indefinitely. The priority remains to find investment opportunities that complement Group strategy and will enhance shareholder value. Any discretionary capital not to be utilised for suitable acquisitions or ventures will be returned to shareholders in the most efficient form.

Dividend

It is Sanlam's practice to pay only an annual dividend, given the cost associated with the distribution of a dividend to our large shareholder base.

Sustainable growth in dividend payments is an important consideration for the Sanlam board in determining the dividend for the year. The Sanlam board uses cash operating earnings as a guideline in setting the level of the dividend, subject to the Group's liquidity and solvency requirements. The strong operational performance of the Group in the 2007 financial year enabled the Sanlam board to increase the dividend distribution by 13%, maintaining a cash operating earnings cover of approximately 1,2 times. Taking cognisance of the reduction in the number of issued Sanlam shares following the share buy-backs during the year, the dividend per share increased by 21% to 93 cents.

The cash dividend for the year ended 31 December 2007 will be paid to shareholders recorded in the register on Friday, 25 April 2008. The last day to trade to qualify for this dividend will be Friday, 18 April 2008, and Sanlam shares will trade ex-dividend from Monday, 21 April 2008. Dividend payment by way of electronic bank transfers will be effected on Wednesday, 7 May 2008. The mailing of cheque payments in respect of dividends due to those shareholders who have not elected to receive electronic dividend payments will commence on or as soon as practically possible after that date. Share certificates may not be dematerialised or rematerialised between Monday, 21 April 2008 and Friday, 25 April 2008.

Annual general meeting

These results will be tabled at the annual general meeting. Shareholders are invited to attend this meeting, to be held on Wednesday, 4 June 2008 at 14:00 at the Sanlam head office in Bellville.

Sanlam Limited
Cape Town
5 March 2008