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​2013 Annual Results

The Group achieved exceptional operating earnings growth in 2013. 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

"We are pleased with our performance across the Group in 2013 and we believe that key to our success is the sustained and strong focus on our strategy, client centricity across all our business and our commitment to growing value for our shareholders."
Dr Johan van Zyl, Sanlam Group Chief Executive

34%

per share increase in Net Result Earnings

35%

growth in New Business Volumes

17%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share increased by 34%
  • Normalised headline earnings per share up 35%

Business Volumes

  • New business volumes up 36% to R185 billion
  • Net value of new covered business up 12% to R1 320 million
  • Net new covered business margin of 3,06%
  • Net fund inflows of R32 billion

Group Equity Value

  • Group Equity Value per share of R41.21
  • Return on Group Equity Value per share of 17%

Capital Management

  • Discretionary capital of R4 billion at 31 December 2013
  • Sanlam Life Insurance Limited CAR cover of 4,5 times

Dividend

  • Normal dividend of 200 cents per share, up 21%

Salient Results

Year ended 31 December 2013

R million 2013 2012 %
Sanlam Group
Earnings
Net result from financial services per share cents 266,0 198,8 34
Normalised headline earnings per share(1) cents 395,0 292,1 35
Diluted headline earnings per share cents 397,8 286,8 39
Net result from financial services R million 5 429 4 030 35
Normalised headline earnings(1) R million 8 060 5 919 36
Headline earnings R million 8 062 5 763 40
Group administration cost ratio(2) % 29,4 30,6
Group operating margin(3) % 22,2 19,4
Business Volumes
New business volumes R million 184 855 135 903 36
New fund inflows R million 31 848 22 989 39
Net new covered business
Value of new covered business R million 1 320 1 176 12
Covered business PVNBP(4) R million 43 197 36 528 18
New covered business margin(5) % 3,06 3,22
Group Equity Value
Group Equity Value R million 84 409 75 352 12
Group Equity Value per share cents 4 121 3 707 11
Return on Group Equity Value per share (6) % 17,0 22,0
Sanlam Life Insurance Limited
Shareholders' fund R million 60 542 55 466
Capital adequacy requirements (CAR) R million 7 550 7 125
CAR covered by prudential capital times 4,5 4,3

Net result from financial services per share

cents
2013: 266,0
2012: 198,8
%: 34

Normalised headline earnings per share(1)

cents
2013: 395,0
2012: 292,1
%: 35

Diluted headline earnings per share

cents
2013: 397,8
2012: 286,8
%: 39

Net result from financial services

R million
2013: 5 429
2012: 4 030
%: 35

Normalised headline earnings(1)

R million
2013: 8 060
2012: 5 919
%: 36

Headline earnings

R million
2013: 8 062
2012: 5 763
%: 40

Group administration cost ratio(2)

%
2013: 29,4
2012: 30,6

New business volumes

R million
2013: 184 855
2012: 135 903
%: 36

New fund inflows

R million
2013: 31 848
2012: 22 989
%: 39

Net new covered business
Value of new covered business

R million
2013: 1 320
2012: 1 176
%: 12

Net new covered business
Covered business PVNBP(4)

R million
2013: 43 197
2012: 36 528
%: 18

Net new covered business
New covered business margin(5)

%
2013: 3,06
2012: 3,22

Group Equity Value

R million
2013: 84 409
2012: 75 352
%: 12

Group Equity Value per share

cents
2013: 4 121
2012: 3 707
%: 11

Return on Group Equity Value per share(6)

%
2013: 17,0
2012: 22,0

Shareholders' fund

R million
2013: 60 542
2012: 55 466

Capital adequacy requirements (CAR)

R million
2013: 7 550
2012: 7 125

CAR covered by prudential capital

times
2013: 4,5
2012: 4,3

(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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