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2009 Annual Results

Highlights

"In the context of the challenging environment caused by the turmoil in world financial markets, the Sanlam Group achieved a pleasing operational performance for the 2009 financial year. "
Dr Johan van Zyl, Sanlam Group Chief Executive

3%

growth in New Business Volumes

16.2%

return on Group Equity Value per share

 

 

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share decreased by 1%
  • Core earnings per share down 3%
  • Normalised headline earnings per share up 133%

Business Volumes

  • New business volumes up 3% to R103 billion
  • Value of new covered business down 1% to R689 million
  • New covered business margin of 2,61%
  • Net fund inflows of R15,5 billion, up 70%

Group Equity Value

  • Group Equity Value per share up 12% to R24,73
  • Return on Group Equity Value per share of 16,2%

Capital Management

  • Discretionary capital of R3,5 billion at 31 December 2009
  • Sanlam Life CAR cover of 3,1 times

Salient Results

Year ended 31 December 2009

R million 2009 2008 %
Sanlam Group
Earnings
Net result from financial services per share cents 132,2 133,8 -1
Core earnings per share(1) cents 179,7 184,8 -3
Normalised headline earnings per share(2) cents 218,9 93,9 133
Diluted headline earnings per share cents 218,8 132,2 66
Net result from financial services R million 2 714 2 802 -3
Core earnings(1) R million 3 690 3 870 -5
Normalised headline earnings(2) R million 4 494 1 966 129
Headline earnings R million 4 438 2 702 64
Group administration cost ratio(3) % 27,6 28,4
Group operating margin(4) % 16,9 18,4
Business Volumes
New business volumes R million 102 928 100 136 3
New fund inflows R million 15 499 9 122 70
Net new covered business
Value of new covered business R million 689 698 -1
Covered business PVNBP(5) R million 26 365 26 033 1
New covered business margin(6) % 2,61 2,68
Group Equity Value
Group Equity Value R million 51 024 45 238 13
Group Equity Value per share cents 2 473 2 213 12
Return on Group Equity Value per share (7) % 16,2 (1,7)
Adjusted return on Group Equity Value per share % 13,1 12,4
Sanlam Life Insurance Limited
Shareholders' fund R million 37 036 34 419
Capital Adequacy Requirements (CAR) R million 7 675 8 075
CAR covered by prudential capital times 3,1 2,7

Net result from financial services per share

cents
2009: 132,2
2008: 133,8
%: -1

Core earnings per share(1)

cents
2009: 179,7
2008: 184,8
%: -3

Normalised headline earnings per share(2)

cents
2009: 218,9
2008: 93,9
%: 133

Diluted headline earnings per share

cents
2009: 218,8
2008: 132,2
%: 66

Net result from financial services

R million
2009: 2 714
2008: 2 802
%: -3

Core earnings(1)

R million
2009: 3 690
2008: 3 870
%: -5

Normalised headline earnings(2)

R million
2009: 4 494
2008: 1 966
%: 129

Headline earnings

R million
2009: 4 438
2008: 2 702
%: 64

Group administration cost ratio(3)

%
2009: 27,6
2008: 28,4

Group operating margin(4)

%
2009: 16,9
2008: 18,4

New business volumes

R million
2009: 102 928
2008: 100 135
%: 3

New fund inflows

R million
2009: 15 499
2008: 9 122
%: 70

Net new covered business
Value of new covered business

R million
2009: 689
2008: 698
%: -1

Net new covered business
Covered business PVNBP(5)

R million
2009: 26 365
2008: 26 033
%: 1

Net new covered business
New covered business margin(6)

%
2009: 2,61
2008: 2,68

Group Equity Value

R million
2009: 51 024
2008: 45 238
%: 13

Group Equity Value per share

cents
2009: 2 473
2008: 2 213
%: 12

Return on Group Equity Value per share(7)

%
2009: 16,2
2008: (1,7)

Adjusted return on Group Equity Value per share

%
2009: 13,1
2008: 12,4

Shareholders' fund

R million
2009: 37 036
2008: 34 419

Capital adequacy requirements (CAR)

R million
2009: 7 675
2008: 8 075

CAR covered by prudential capital

times
2009: 3,1
2008: 2,7

(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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