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2011 Annual Results

Highlights

"We are pleased with our performance for 2011 and we are determined to continue delivering value to our shareholders despite the challenging operating environment."
Dr Johan van Zyl, Sanlam Group Chief Executive

15%

per share increase in Net Result Earnings

9%

growth in New Business Volumes

15.7%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share increased by 15%
  • Normalised headline earnings per share down 1%

Business Volumes

  • New business volumes up 9% to R115 billion
  • Net value of new covered business up 44% to R958 million
  • Net new covered business margin of 3,05%, up from 2,57%
  • Net fund inflows of R25 billion, up 16%

Group Equity Value

  • Group Equity Value per share of R31,46
  • Return on Group Equity Value per share of 15,7%

Capital Management

  • Unallocated discretionary capital of R1,9 billion at 31 December 2011
  • Sanlam Life Insurance Limited CAR cover of 3,7 times

Dividend

  • Dividend of 130 cents per share, up 13%

Salient Results

Year ended 31 December 2011

R million 2011 2010 %
Sanlam Group
Earnings
Net result from financial services per share cents 187,1 161,5 15
Normalised headline earnings per share(1) cents 248,7 251,5 -1
Diluted headline earnings per share cents 250,1 252,4 -1
Net result from financial services R million 3 760 3 303 14
Normalised headline earnings(1) R million 5 023 5 143 -2
Headline earnings R million 5 015 5 122 -2
Group administration cost ratio(2) % 30,1 29,6
Group operating margin(3) % 20,2 19,8
Business Volumes
New business volumes R million 115 087 105 526 9
New fund inflows R million 25 480 22 026 16
Net new covered business
Value of new covered business R million 958 666 44
Covered business PVNBP(4) R million 31 449 25 891 21
New covered business margin(5) % 3,05 2,57
Group Equity Value
Group Equity Value R million 63 521 57 361 11
Group Equity Value per share cents 3 146 2 818 12
Return on Group Equity Value per share (6) % 15,7 18,2
Sanlam Life Insurance Limited
Shareholders' fund R million 45 172 40 521
Capital Adequacy Requirements (CAR) R million 7 350 7 375
CAR covered by prudential capital times 3,7 3,4

Net result from financial services per share

cents
2011: 187,1
2010: 161,5
%: 15

Normalised headline earnings per share(1)

cents
2011: 248,7
2010: 251,5
%: -1

Diluted headline earnings per share

cents
2011: 250,1
2010: 252,4
%: -1

Net result from financial services

R million
2011: 3 760
2010: 3 303
%: 14

Normalised headline earnings(1)

R million
2011: 5 023
2010: 5 143
%: -2

Headline earnings

R million
2011: 5 015
2010: 5 122
%: -2

Group administration cost ratio(2)

%
2011: 30,1
2010: 29,6

New business volumes

R million
2011: 115 087
2010: 105 526
%: 9

New fund inflows

R million
2011: 25 480
2010: 22 026
%: 16

Net new covered business
Value of new covered business

R million
2011: 958
2010: 666
%: 44

Net new covered business
Covered business PVNBP(4)

R million
2011: 31 449
2010: 25 891
%: 21

Net new covered business
New covered business margin(5)

%
2011: 3,05
2010: 2,57

Group Equity Value

R million
2011: 63 521
2010: 57 361
%: 11

Group Equity Value per share

cents
2011: 3 146
2010: 2 818
%: 12

Return on Group Equity Value per share(6)

%
2011: 15,7
2010: 18,2

Shareholders' fund

R million
2011: 45 172
2010: 40 521

Capital adequacy requirements (CAR)

R million
2011: 7 350
2010: 7 375

CAR covered by prudential capital

times
2011: 3,7
2010: 3,4

(1)Normalised headline earnings = headline earnings, excluding fund transfers.

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

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

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

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

(6)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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