19 August 2008

Sanlam trading statement for the six months ended 30 June 2008

In terms of the JSE Limited Listings Requirements on trading statements, a listed company is required to issue a trading statement as soon as it becomes reasonably certain that the financial results for the current reporting period will differ by at least 20% from the previous corresponding reporting period.

Shareholders are referred to the Sanlam operational update released on SENS on 4 June 2008 that indicated the impact that adverse market conditions had on the Group’s earnings for the four months to April 2008, in particular on headline and normalised headline earnings. The extreme volatility in debt and equity markets, combined with the under performance of financial and industrial stocks, continued during May and June 2008. Notwithstanding this challenging business environment, the Sanlam group achieved satisfactory operating results for the six months to 30 June 2008. Core earnings per share are expected to be slightly up on the comparable period in 2007.

The adverse performance of global equity and debt markets, however, had a negative effect on the investment return earned on shareholder funds relative to 2007, in particular given the Group’s underweight exposure to the stronger performing resources sector. Headline earnings per share for the six months to 30 June 2008 are consequently expected to decrease by between 20% and 25% on the corresponding period in 2007. Normalised headline earnings per share, which exclude certain IFRS related adjustments, are anticipated to be down between 55% and 60%.

Shareholders are also referred to the trading statement issued by Santam Limited on 4 August 2008.

The information in this trading statement has not been reviewed or reported on by Sanlam's auditors. Sanlam’s interim results for the six months to 30 June 2008 are due to be released on 4 September 2008.