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2008 Interim Results

Key Features

Earnings

  • Net result from financial services per share down 3%
  • Core earnings per share up 4%
  • Normalised headline earnings per share decreased by 57%
  • Diluted headline earnings per share decreased by 24

Business Volumes

  • Total new business volumes up 2% to R51 billion
  • Value of new covered business up 12% to R290 million
  • New covered business margin of 2,39%
  • Net fund inflows of R5,5 billion

Group Equity Value

  • Group Equity Value per share of R22,54
  • Return on Group Equity Value per share of 0%

Capital Management

  • 81 million shares bought back during 2008 for R1,6 billion
  • Discretionary capital of R3 billion at 30 June 2008

Salient Results

for the six months ended 30 June 2008

R million 2008 2007 %
Sanlam Group
Earnings
Net result from financial services per share cents 62,6 64,7 -3
Core earnings per share(1) cents 89,7 86,2 4
Normalised headline earnings per share(2) cents 58,8 135,9 -57
Diluted headline earnings per share cents 94,5 124,2 -24
Net result from financial services R million 1 334 1 488 -10
Core earnings(1) R million 1 913 1 983 -4
Normalised headline earnings(2) R million 1 254 3 126 -60
Headline earnings R million 1 955 2 745 -29
Group administration cost ratio(3) % 28,0 26,7
Group operating margin(4) % 17,8 22,5
Business Volumes
New business volumes R million 50 985 49 820 2
New fund inflows R million 5 470 1 250  
Net new covered business
Value of new covered business R million 290 260 12
Covered business PVNBP(5) R million 12 141 11 214 8
New covered business margin(6) % 2,39 2,32
Group Equity Value
Group Equity Value(7) R million 46 539 51 293 -9
Group Equity Value per share(7) cents 2 254 2 350 -4
Return on Group Equity Value per share(7)(8) % 0,0 18,8
Sanlam Life Insurance Limited
Shareholders' fund(7) R million 22 638 37 933
Capital adequacy requirements (CAR)(7) R million 8100 7525
CAR covered by prudential capital(7) times 2,8 3,5

Net result from financial services per share

cents
2008: 62,6
2007: 64,7
%: -3

Core earnings per share(1)

cents
2008: 89,7
2007: 86,2
%: 4

Normalised headline earnings per share(2)

cents
2008: 58,8
2007: 135,9
%: -57

Diluted headline earnings per share

cents
2008: 94,5
2007: 124,2
%: -24

Net result from financial services

R million
2008: 1 334
2007: 1 488
%: -10

Core earnings(1)

R million
2008: 1 913
2007: 1 983
%: -4

Normalised headline earnings(2)

R million
2008: 1 254
2007: 3 126
%: -60

Headline earnings

R million
2008: 1 955
2007: 2 745
%: -29

Group administration cost ratio(3)

%
2008: 28,0
2007: 26,7

Group operating margin(4)

%
2008: 17,8
2007: 22,5

New business volumes

R million
2008: 50 985
2007: 49 820
%: 2

New fund inflows

R million
2008: 5 470
2007: 1 250

Net new covered business
Value of new covered business

R million
2008: 290
2007: 260
%: 12

Net new covered business
Covered business PVNBP(4)

R million
2008: 12 141
2007: 11 214
%: 8

Net new covered business
New covered business margin(5)

%
2008: 2,39
2007: 2,32

Group Equity Value(7)

R million
2008: 46 539
2007: 51 293
%: -9

Group Equity Value per share(7)

cents
2008: 2 254
2007: 2 350
%: -4

Return on Group Equity Value per share(7)(8)

%
2008: 0,0
2007: 18,8

Shareholders' fund(7)

R million
2008: 33 638
2007: 37 933

Capital adequacy requirements (CAR)(7)

R million
2008: 8 100
2007: 7 525

CAR covered by prudential capital(7)

times
2008: 2,8
2007: 3,5

(1)Core earnings = net result from financial services and net investment 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)Comparative figures are as at 31 December 2007.

(8)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 period.

 

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