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​2009 Interim Results

Highlights

"Our results indicate that the Sanlam Group is performing relatively well in the context of the very challenging business environment. I am therefore pleased with our solid operational performance in the first six months of 2009."
Dr Johan van Zyl, Sanlam Group Chief Executive

1%

growth in New Business Volumes

5.2%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share decreased by 4%
  • Core earnings per share down 2%
  • Normalised headline earnings per share up 34%

Business Volumes

  • New business volumes up 1% to R51 billion
  • Net value of new covered business down 3% to R243 million
  • Net new covered business margin of 2,23%, up from 2,17%
  • Net fund inflows of R7,7 billion, up 40%

Group Equity Value

  • Group Equity Value per share of R21,72
  • Annualised return on Group Equity Value per share of 5,2%

Capital Management

  • Discretionary capital of R2,8 billion at 30 June 2009
  • Sanlam Life CAR cover of 2,5 times

Salient Results

for the six months ended 30 June 2009

R million 2009 2008 %
Sanlam Group
Earnings
Net result from financial services per share cents 60,4 62,6 -4
Core earnings per share(1) cents 87,5 89,7 -2
Normalised headline earnings per share(2) cents 78,5 58,8 34
Diluted headline earnings per share cents 82,6 94,5 -13
Net result from financial services R million 1 234 1 334 -7
Core earnings(1) R million 1 789 1 913 -6
Normalised headline earnings(2) R million 1 605 1 254 28
Headline earnings R million 1 664 1 955 -15
Group administration cost ratio(3) % 26,8 28,0
Group operating margin(4) % 15,1 17,8
Business Volumes
New business volumes R million 51 485 50 985 1
New fund inflows R million 7 677 5 470 40
Net new covered business
Value of new covered business R million 243 250 -3
Covered business PVNBP(5) R million 10 906 11 501 -5
New covered business margin(6) % 2,23 2,17
Group Equity Value
Group Equity Value(7) R million 44 490 45 238 -2
Group Equity Value per share(7) cents 2 172 2 213 -2
Annualised return on Group Equity Value per share(7)(8) % 5,2 (1,7)
Adjusted annualised return on Group Equity Value per share(7) % 12,2 12,4
Sanlam Life Insurance Limited
Shareholders' fund(7) R million 31 620 34 419
Capital adequacy requirements (CAR)(7) R million 8200 8 075
CAR covered by prudential capital(7) times 2,5 2,7

Net result from financial services per share

cents
2009: 60,4
2008: 62,6
%: -4

Core earnings per share(1)

cents
2009: 87,5
2008: 89,7
%: -2

Normalised headline earnings per share(2)

cents
2009: 78,5
2008: 58,8
%: 34

Diluted headline earnings per share

cents
2009: 82,6
2008: 94,5
%: -13

Net result from financial services

R million
2009: 1 234
2008: 1 334
%: -7

Core earnings(1)

R million
2009: 1 789
2008: 1 913
%: -6

Normalised headline earnings(2)

R million
2009: 1 605
2008: 1 254
%: 28

Headline earnings

R million
2009: 1 664
2008: 1 955
%: -15

Group administration cost ratio(3)

%
2009: 26,5
2008: 28,0

Group operating margin(4)

%
2009: 15,1
2008: 17,8

New business volumes

R million
2009: 51 485
2008: 50 985
%: 1

New fund inflows

R million
2009: 7 677
2008: 5 470
%: 40

Net new covered business
Value of new covered business

R million
2009: 243
2008: 250
%: -3

Net new covered business
Covered business PVNBP(4)

R million
2009: 10 906
2008: 11 501
%: -5

Net new covered business
New covered business margin(5)

%
2009: 2,23
2008: 2,17

Group Equity Value(7)

R million
2009: 44 490
2008: 45 238
%: -2

Group Equity Value per share(7)

cents
2009: 2 172
2008: 2 213
%: -2

Annualised return on Group Equity Value per share(7)(8)

%
2009: 5,2
2008: (1,7)

Adjusted annualised return on Group Equity Value per share(7)

%
2009: 12,2
2008: 12,4

Shareholders' fund(7)

R million
2009: 31 620
2008: 34 419

Capital adequacy requirements (CAR)(7)

R million
2009: 8 200
2008: 8 075

CAR covered by prudential capital(7)

times
2009: 2,5
2008: 2,7

(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 2008.

(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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