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2012 Annual Results

The Group achieved exceptional operating earnings growth in 2012. Organic growth contributed 71% of the growth and was achieved by extracting more value from existing businesses, improving efficiencies and reducing costs. Acquisitions made with surplus capital contributed 29% of earnings growth. We had particular success with approach in India, Malaysia and Namibia.

Highlights

"The five pillars that underpin our strategy continue to yield good results for us and we will continue to pursue this focus going forward in order to sustain our performance and grow shareholder value while treating customers fairly."
Dr Johan van Zyl, Sanlam Group Chief Executive

6%

per share increase in Net Result Earnings

18%

growth in New Business Volumes

22%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share increased by 6%
  • Normalised headline earnings per share up 17%

Business Volumes

  • New business volumes up 18% to R136 billion
  • Net value of new covered business up 23% to R1 176 million
  • Net new covered business margin of 3,22%, up from 3,05%
  • Net fund inflows of R23 billion

Group Equity Value

  • Group Equity Value per share of R37,07
  • Return on Group Equity Value per share of 22%

Capital Management

  • Unallocated discretionary capital of R4,2 billion at 31 December 2012
  • Sanlam Life Insurance Limited CAR cover of 4,3 times

Dividend

  • Normal dividend of 165 cents per share, up 27%
  • Special dividend of 50 cents per share

Salient Results

Year ended 31 December 2012

R million 2012 2011 %
Sanlam Group
Earnings
Net result from financial services per share cents 198,9 187,1 6
Normalised headline earnings per share(1) cents 292,1 248,7 17
Diluted headline earnings per share cents 286,8 250,1 15
Net result from financial services R million 4 030 3 779 7
Normalised headline earnings(1) R million 5 919 5 023 18
Headline earnings R million 5 763 5 015 15
Group administration cost ratio(2) % 30,6 29,9
Group operating margin(3) % 19,4 20,3
Business Volumes
New business volumes R million 135 903 115 087 18
New fund inflows R million 22 989 25 480 (10)
Net new covered business
Value of new covered business R million 1 176 958 23
Covered business PVNBP(4) R million 36 528 31 449 16
New covered business margin(5) % 3,22 3,05
Group Equity Value
Group Equity Value R million 75 352 63 521 19
Group Equity Value per share cents 3 707 3 146 18
Return on Group Equity Value per share (6) % 22,0 15,7
Sanlam Life Insurance Limited
Shareholders' fund R million 55 466 45 172
Capital Adequacy Requirements (CAR) R million 7 125 7 350
CAR covered by prudential capital times 4,3 3,7

Net result from financial services per share

cents
2012: 198,8
2011: 187,1
%: 6

Normalised headline earnings per share(1)

cents
2012: 292,1
2011: 248,7
%: 17

Diluted headline earnings per share

cents
2012: 286,8
2011: 250,1
%: 15

Net result from financial services

R million
2012: 4 030
2011: 3 779
%: 7

Normalised headline earnings(1)

R million
2012: 5 919
2011: 5 023
%: 18

Headline earnings

R million
2012: 5 763
2011: 5 015
%: 15

Group administration cost ratio(2)

%
2012: 30,6
2011: 29,9
%:

New business volumes

R million
2012: 135 903
2011: 115 087
%: 18

New fund inflows

R million
2012: 22 989
2011: 25 480
%: (10)

Net new covered business
Value of new covered business

R million
2012: 1 176
2012: 958
%: 23

Net new covered business
Covered business PVNBP(4)

R million
2012: 36 528
2011: 31 449
%: 16

Net new covered business
New covered business margin(5)

%
2012: 3,22
2011: 3,05

Group Equity Value

R million
2012: 75 352
2011: 63 521
%: 19

Group Equity Value per share

cents
2012: 3 707
2011: 3 146
%: 18

Return on Group Equity Value per share(6)

%
2012: 22,0
2011: 15,7

Shareholders' fund

R million
2012: 55 466
2011: 45 172

Capital adequacy requirements (CAR)

R million
2012: 7 125
2011: 7 350

CAR covered by prudential capital

times
2012: 4,3
2011: 3,7

(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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