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2010 Interim Results

Highlights

"The Group performed well despite challenging business conditions during the first six months of 2010, with all key performance indicators reflecting a satisfactory result on a comparable basis."
Dr Johan van Zyl, Sanlam Group Chief Executive

14%

per share increase in Net Result Earnings

Stable

growth in New Business Volumes

9.1%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share increased by 14%
  • Core earnings per share up 2%
  • Normalised headline earnings per share up 2%

Business Volumes

  • Overall new business volumes stable
  • New life business volumes increased by 13%
  • Net value of new covered business up 16% to R283 million
  • Net new covered business margin of 2,32%, up from 2,23%
  • Net fund inflows of R6,6 billion

Group Equity Value

  • Group Equity Value per share of R24,79
  • Annualised return on Group Equity Value per share of 9,1%

Capital Management

  • Discretionary capital of R2,8 billion at 30 June 2010
  • Sanlam Life CAR cover of 2,9 times

Salient Results

for the six months ended 30 June 2010

R million 2010 2009 %
Sanlam Group
Earnings
Net result from financial services per share cents 69,4 60,8 14
Core earnings per share(1) cents 89,8 87,9 2
Normalised headline earnings per share(2) cents 80,5 78,9 2
Diluted headline earnings per share cents 79,2 83,0 -5
Net result from financial services R million 1 422 1 242 14
Core earnings(1) R million 1 839 1 797 2
Normalised headline earnings(2) R million 1 650 1 613 2
Headline earnings R million 1 610 1 672 -4
Group administration cost ratio(3) % 29,1 26,7
Group operating margin(4) % 17,9 15,1
Business Volumes
New business volumes R million 49 781 51 485 -3
New fund inflows R million 6 649 7 677 -13
Net new covered business
Value of new covered business R million 283 243 16
Covered business PVNBP(5) R million 12 220 10 906 12
New covered business margin(6) % 2,32 2,23
Group Equity Value
Group Equity Value(7) R million 50 202 51 024 -2
Group Equity Value per share(7) cents 2 479 2 473 0
Annualised return on Group Equity Value per share(7)(8) % 9,1 16,2
Adjusted annualised return on Group Equity Value per share(7) % 13,2 13,1
Sanlam Life Insurance Limited
Shareholders' fund(7) R million 35 282 37 036
Capital adequacy requirements (CAR)(7) R million 7 875 7 675
CAR covered by prudential capital(7) times 2,9 3,1

Net result from financial services per share

cents
2010: 69,4
2009: 60,8
%: 14

Core earnings per share(1)

cents
2010: 89,8
2009: 87,9
%: 2

Normalised headline earnings per share(2)

cents
2010: 80,5
2009: 78,9
%: 2

Diluted headline earnings per share

cents
2010: 79,2
2009: 83,0
%: -5

Net result from financial services

R million
2010: 1 422
2009: 1 242
%: 14

Core earnings

R million
2010: 1 839
2009: 1 797
%: 2

Normalised headline earnings(2)

R million
2010: 1 650
2009: 1 613
%: 2

Headline earnings

R million
2010: 1 610
2009: 1 672
%: -4

Group administration cost ratio(3)

%
2010: 29,1
2009: 27,7

Group operating margin(4)

%
2010: 17,9
2009: 15,1

New business volumes

R million
2010: 49 781
2009: 51 485
%: -3

New fund inflows

R million
2010: 6 649
2009: 7 677
%: -13

Net new covered business
Value of new covered business

R million
2010: 283
2009: 243
%: 16

Net new covered business
Covered business PVNBP(4)

R million
2010: 12 220
2009: 10 906
%: 12

Net new covered business
New covered business margin(5)

%
2010: 2,32
2009: 2,23

Group Equity Value(7)

R million
2010: 50 202
2009: 51 024
%: -2

Group Equity Value per share(7)

cents
2010: 2 479
2009: 2 473
%: 0

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

%
2010: 9,1
2009: 16,2

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

%
2010: 13,2
2009: 13,1

Shareholders' fund(7)

R million
2010: 35 282
2009: 37 036

Capital adequacy requirements (CAR)(7)

R million
2010: 7 875
2009: 7 675

CAR covered by prudential capital(7)

times
2010: 2,9
2009: 3,1

(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 2009.

(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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