Skip Ribbon Commands
Skip to main content

Skip Navigation Linksannual-results 2016 Annual Results

Skip Navigation LinksFinancial Results

​2016 Annual Results

The 2016 financial year presented the Group with a particularly challenging operating environment. Despite these conditions, the Group delivered a good overall operational performance. This was achieved through diligent focus on executing the Group’s strategy that is premised on building a diversified financial services group that can deliver sustainable long-term growth. The significant global and local events that made 2016 memorable – including Brexit, the US election, local elections and sovereign rating milestones – again emphasised the need for large corporates, such as Sanlam, to play an increasingly active role in shaping the environment in which businesses operate. Active participation in industry and community bodies – to influence development, job creation and ensure stability – is an important feature to sustain long term growth.

Highlights

"The operational performance of the Group in 2016 is testimony to a well-executed sustainable strategy. The five-pillar strategy introduced in 2003 transformed the Group into a business diversified across business lines, geographies, market segments and products, with an exceptionally strong capital base. The Group’s strategy is by no means unique with many other multi-national insurance and financial services groups following a similar approach. Sanlam’s ability to consistently execute on the strategy has, however, been a key differentiator. This enabled the Group to achieve particularly satisfactory results in the 2016 financial year, delivering double-digit growth in all key operating indicators despite a challenging environment. ".
Ian Kirk, Sanlam Group Chief Executive

10%

increase in Net Result from financial services

11%

growth in New Business volumes

11.8%

Return on Group Equity Value per share

Ian Kirk

Key Features

Earnings

  • Net result from financial services per share increased by 10%
  • Normalised headline earnings per share down 6%
  • Diluted headline earnings per share up 6%

Business Volumes

  • New Business volumes up 11% to R233 billion
  • Net value of new covered business up 18% to R1 605 million
  • Net new covered business margin of 2,69% (2,62% in 2015)
  • Net fund inflows of R41 billion compared to R19 billion in 2015

Group Equity Value

  • Group Equity Value per share of R54,07
  • Return on Group Equity Value per share of 11,8%

Capital Management

  • R3,4 billion redeployed during 2016
  • Unallocated discretionary capital of R550 million at 31 December 2016
  • Further planned releases of discretionary capital of R500 million – R1 billion per annum over next four years
  • Sanlam Life Insurance Limited CAR cover of 5,8 times
  • Sanlam Group SAM cover ratio of 2,2 times; Sanlam Life Insurance Limited at 3,1 times

Dividend

  • Normal dividend per share of 268 cents, up 9,4%

 

Sanlam Life Insurance is a licensed financial service provider.
Copyright © Sanlam