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2010 Annual Results

Highlights

"Our strategy, which has proved resilient and sustainable, was fundamental in helping us to once again deliver a solid set of results. By focusing resolutely on our strategy, we have achieved market-leading growth over the past seven years and have transformed Sanlam into an efficient and profitable company with a healthy capital position."
Dr Johan van Zyl, Sanlam Group Chief Executive

23%

per share increase in Net Result Earnings

3%

growth in New Business Volumes

18.2%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share increased by 23%
  • Normalised headline earnings per share up 15%

Business Volumes

  • New business volumes up 3% to R106 billion
  • Net value of new covered business up 10% to R666 million
  • Net new covered business margin of 2,57%, up from 2,42%
  • Net fund inflows of R22 billion, up 42%

Group Equity Value

  • Group Equity Value per share of R28,18
  • Return on Group Equity Value per share of 18,2%
  • Adjusted return on Group Equity Value per share of 16%

Capital Management

  • Discretionary capital of R4 billion at 31 December 2010
  • Sanlam Life CAR cover of 3,4 times

Dividend

  • Dividend of 115 cents per share, up 11%
Sanlam Investments assets under management of R491 billion

Salient Results

Year ended 31 December 2010

R million 2010 2009 %
Sanlam Group
Earnings
Net result from financial services per share cents 161,5 131,8 23
Core earnings per share(1) cents 203,1 179,3 13
Normalised headline earnings per share(2) cents 251,5 218,5 15
Diluted headline earnings per share cents 252,4 218,4 16
Net result from financial services R million 3 303 2 705 22
Core earnings(1) R million 4 154 3 681 13
Normalised headline earnings(2) R million 5 143 4 485 15
Headline earnings R million 5 122 4 429 16
Group administration cost ratio(3) % 29,6 27,7
Group operating margin(4) % 19,8 16,9
Business Volumes
New business volumes R million 105 526 102 928 3
New fund inflows R million 22 026 15 499 42
Net new covered business
Value of new covered business R million 666 607 10
Covered business PVNBP(5) R million 25 891 25 102 3
New covered business margin(6) % 2,57 2,42
Group Equity Value
Group Equity Value R million 57 361 51 024 12
Group Equity Value per share cents 2 818 2 473 14
Return on Group Equity Value per share (7) % 18,2 16,2
Adjusted return on Group Equity Value per share (8) % 16,0 13,1
Sanlam Life Insurance Limited
Shareholders' fund R million 40 521 37 036
Capital Adequacy Requirements (CAR) R million 7 375 7 675
CAR covered by prudential capital times 3,4 3,1

Net result from financial services per share

cents
2010: 161,5
2009: 131,8
%: 23

Core earnings per share(1)

cents
2010: 203,1
2009: 179,3
%: 13

Normalised headline earnings per share(2)

cents
2010: 251,5
2009: 218,5
%: 15

Diluted headline earnings per share

cents
2010: 252,4
2009: 218,4
%: 16

Net result from financial services

R million
2010: 3 303
2009: 2 705
%: 22

Core earnings(1)

R million
2010: 4 154
2009: 3 681
%: 13

Normalised headline earnings(2)

R million
2010: 5 143
2009: 4 485
%: 15

Headline earnings

R million
2010: 5 122
2009: 4 429
%: 16

Group administration cost ratio(3)

%
2010: 30,1
2009: 29,6

Group operating margin(4)

%
2010: 19,8
2009: 16,9

New business volumes

R million
2010: 105 526
2009: 102 928
%: 3

New fund inflows

R million
2010: 22 026
2009: 15 499
%: 42

Net new covered business
Value of new covered business

R million
2010: 666
2009: 607
%: 10

Net new covered business
Covered business PVNBP(5)

R million
2010: 25 891
2009: 25 102
%: 3

Net new covered business
New covered business margin(6)

%
2010: 2,57
2009: 2,42

Group Equity Value

R million
2010: 57 361
2009: 51 024
%: 12

Group Equity Value per share

cents
2010: 2 818
2009: 2 473
%: 14

Return on Group Equity Value per share(7)

%
2010: 18,2
2009: 16,2

Adjusted return on Group Equity Value per share(8)

%
2010: 16,0
2009: 13,1

Shareholders' fund

R million
2010: 40 521
2009: 37 036

Capital adequacy requirements (CAR)

R million
2010: 7 375
2009: 7 675

CAR covered by prudential capital

times
2010: 3,4
2009: 3,1

(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.

(8)Return on Group Equity Value per share, based on investment return assumptions as at the beginning of the year.

 

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