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2008 Annual Results

Key Features

Earnings

  • Net result from financial services per share in line with 2007
  • Core earnings per share up 1%
  • Normalised headline earnings per share decreased by 59%
  • Diluted headline earnings per share decreased by 40%
  • Dividend per share up 5% to 98 cents per share

Business Volumes

  • Total new business volumes down 2% to R100 billion
  • Value of new covered business up 23% to R698 million
  • New covered business margin of 2,68%, up from 2,37%
  • Net fund inflows of R9,1 billion

Group Equity Value

  • Group Equity Value per share of R22,13
  • Return on Group Equity Value per share of -1,7%

Capital Management

  • 117 million shares bought back during 2008 for R2,2 billion
  • Discretionary capital of R2,1 billion at 31 December 2008
  • Sanlam Life CAR cover of 2,7 times

Salient Results

Year ended 31 December 2008

R million 2008 2007 %
Sanlam Group
Earnings
Net result from financial services per share cents 133,8 133,3 0
Core earnings per share(1) cents 184,8 182,4 1
Normalised headline earnings per share(2) cents 93,9 228,7 -59
Diluted headline earnings per share cents 132,2 220,8 -40
Net result from financial services R million 2 802 3 029 -7
Core earnings(1) R million 3 870 4 146 -7
Normalised headline earnings(2) R million 1 966 5 199 -62
Headline earnings R million 2 702 4 833 -44
Group administration cost ratio(3) % 28,4 27,8
Group operating margin(4) % 18,4 20,8
Business Volumes
New business volumes R million 100 136 102 004 -2
New fund inflows R million 9 122 11 363  
Net new covered business
Value of new covered business R million 698 567 23
Covered business PVNBP(5) R million 26 033 23 886 9
New covered business margin(6) % 2,68 2,37
Group Equity Value
Group Equity Value R million 45 238 51 293 -12
Group Equity Value per share cents 2 213 2 350 -6
Return on Group Equity Value per share (7) % -1,7 18,8
Sanlam Life Insurance Limited
Shareholders' fund R million 34 419 37 933
Capital Adequacy Requirements (CAR) R million 8 075 7 525
CAR covered by prudential capital times 2,7 3,5

Net result from financial services per share

cents
2008: 133,8
2007: 133,3
%: 0

Core earnings per share(1)

cents
2008: 184,8
2007: 182,4
%: 1

Normalised headline earnings per share(2)

cents
2008: 93,9
2007: 228,7
%: -59

Diluted headline earnings per share

cents
2008: 132,2
2007: 220,8
%: -40

Net result from financial services

R million
2008: 2 802
2007: 3 029
%: -7

Core earnings(1)

R million
2008: 3 870
2007: 4 146
%: -7

Normalised headline earnings(2)

R million
2008: 1 966
2007: 5 199
%: -62

Headline earnings

R million
2008: 2 702
2007: 4 833
%: -44

Group administration cost ratio(3)

%
2008: 28,4
2007: 27,8

Group operating margin(4)

%
2008: 18,4
2007: 20,8

New business volumes

R million
2008: 100 136
2007: 102 004
%: -2

New fund inflows

R million
2008: 9 122
2007: 11 363

Net new covered business
Value of new covered business

R million
2008: 698
2007: 567
%: 23

Net new covered business
Covered business PVNBP(5)

R million
2008: 26 033
2007: 23 886
%: 9

Net new covered business
New covered business margin(6)

%
2008: 2,68
2007: 2,37

Group Equity Value

R million
2008: 45 238
2007: 51 293
%: -12

Group Equity Value per share

cents
2008: 2 213
2007: 2 350
%: -6

Return on Group Equity Value per share(7)

%
2008: -1,7
2007: 18,8

Shareholders' fund

R million
2008: 34 419
2007: 37 933

Capital adequacy requirements (CAR)

R million
2008: 8 075
2007: 7 525

CAR covered by prudential capital

times
2008: 2,7
2007: 3,5

(1)Core earnings = net result from financial services and net investments income (including dividends received from non-operating associates)..

(2)Normalised headline earnings = core earnings, net project expenses, net investment surpluses, secondary tax on companies and equity-accounted headline earnings less dividends received from non-operating associates, but excluding fund transfers. Headline earnings include fund transfers.

(3)Administration costs as a percentage of income after sales remuneration.

(4)Result from financial services as a percentage of income after sales remuneration.

(5)PVNBP = present value of new business premiums and is equal to the present value of new recurring premiums plus single premiums.

(6)New covered business margin = value of new covered business as a percentage of PVNBP.

(7)Growth in Group Equity Value per share (with dividends paid, capital movements and cost of treasury shares acquired reversed) as a percentage of Group Equity Value per share at the beginning of the year.

 

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