Sound operating results for 2007 achieved ...

29 February 2008

In terms of the JSE Limited Listings Requirements a listed company is required to publish a trading statement as soon as it is satisfied, with a reasonable degree of certainty, that the financial results for the period will differ by at least 20% from that reported for the previous corresponding period.

The Sanlam Group achieved sound operating results for the year to 31 December 2007, with satisfactory growth achieved in Core Earnings and new business volumes. Core Earnings per share and the Value of New Life insurance business for the year are both expected to be between 25% and 30% (gross VNB +31% on EEV basis) up on 2006.

The slowdown in equity market performance in 2007, relative to the exceptional performance in 2006, however, had a negative impact on the level of investment returns achieved for the year. In addition to the equity market impact, Santam's contribution to Sanlam's results was also to a lesser extent affected by underwriting losses and provisions in Santam's European operations. Sanlam's Headline Earnings per share, including the IFRS impact of Sanlam shares held by the policyholders' funds, are therefore expected to be between 25% and 30% lower than for the corresponding period in 2006.
   
The information in this trading statement has not been reviewed or reported on by Sanlam's auditors. The audited results for the year ended 31 December 2007 are expected to be announced on 6 March 2008.