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Skip Navigation LinksFinancial Results

2011 Interim Results

Highlights

"The economies of developed markets are likely to remain weak with downside risk increasing significantly since the end of June. This elevates the risk of a slowdown in demand for commodities, which will impact on growth in the resource-based economies in which the Group operates. Volatility in investment markets is commensurately also expected to remain. The outlook for the remainder of the 2011 financial year therefore remains cautious."
Dr Johan van Zyl, Sanlam Group Chief Executive

22%

per share increase in Net Result Earnings

11%

growth in New Business Volumes

12.8%

return on Group Equity Value per share

Dr Johan van Zyl

Key Features

Earnings

  • Net result from financial services per share increased by 22%
  • Normalised headline earnings per share up 35%

Business Volumes

  • New business volumes up 11% to R55 billion
  • Net value of new covered business up 26% to R356 million
  • Net new covered business margin of 2,52%, up from 2,32%
  • Net fund inflows of R11 billion, up 72%

Group Equity Value

  • Group Equity Value per share of R28,77
  • Annualised return on Group Equity Value per share of 12,8%
  • Adjusted annualised return on Group Equity Value per share of 12,6%

Capital Management

  • Discretionary capital of R3,2 billion at 30 June 2011
  • Sanlam Life CAR cover of 3,2 times
Sanlam Investments: assets under management of R504 billion

Salient Results

for the six months ended 30 June 2011

R million 2011 2010 %
Sanlam Group
Earnings
Net result from financial services per share cents 84,7 69,4 22
Normalised headline earnings per share(1) cents 108,6 80,5 35
Diluted headline earnings per share cents 109,6 84,1 30
Net result from financial services R million 1 716 1 422 21
Normalised headline earnings(1) R million 2 202 1 650 33
Headline earnings R million 2 205 1 710 29
Group administration cost ratio(2) % 29,5 29,1
Group operating margin(3) % 19,8 17,9
Business Volumes
New business volumes R million 55 062 49 781 11
New fund inflows R million 11 418 6 649 72
Net new covered business
Value of new covered business R million 356 283 26
Covered business PVNBP(4) R million 14 112 12 220 15
New covered business margin(5) % 2,52 2,32
Group Equity Value
Group Equity Value(6) R million 57 885 57 361 1
Group Equity Value per share(6) cents 2 877 2 818 2
Annualised return on Group Equity Value per share(7) % 12,8 9,1
Adjusted annualised return on Group Equity Value per share(8) % 12,6 13,2
Sanlam Life Insurance Limited
Shareholders' fund(6) R million 40 572 40 521
Capital adequacy requirements (CAR)(6) R million 7 475 7 375
CAR covered by prudential capital(6) times 3,2 3,4

Net result from financial services per share

cents
2012: 84,7
2010: 69,4
%: 22

Normalised headline earnings per share(1)

cents
2012: 108,6
2010: 80,5
%: 35

Diluted headline earnings per share

cents
2012: 109,6
2010: 84,1
%: 30

Net result from financial services

R million
2012: 1 716
2010: 1 422
%: 21

Normalised headline earnings(1)

R million
2012: 2 202
2010: 1 650
%: 33

Headline earnings

R million
2012: 2 205
2010: 1 710
%: 29

Group administration cost ratio(2)

%
2012: 29,5
2010: 29,1

Group operating margin(3)

%
2012: 19,8
2010: 17,9

New business volumes

R million
2012: 55 062
2010: 49 781
%: 11

New fund inflows

R million
2012: 11 418
2010: 6 649
%: 72

Net new covered business
Value of new covered business

R million
2012: 356
2010: 283
%: 26

Net new covered business
Covered business PVNBP(4)

R million
2012: 14 112
2010: 12 220
%: 15

Net new covered business
New covered business margin(5)

%
2012: 2,52
2010: 2,32

Group Equity Value(6)

R million
2012: 57 885
2010: 57 361
%: 1

Group Equity Value per share(6)

cents
2012: 2 877
2010: 2 818
%: 2

Annualised return on Group Equity Value per share(7)

%
2012: 12,8
2010: 9,1

Adjusted annualised return on Group Equity Value per share(8)

%
2012: 12,6
2010: 13,2

Shareholders' fund(6)

R million
2012: 40 572
2010: 40 521

Capital adequacy requirements (CAR)(6)

R million
2012: 7 475
2010: 7 375

CAR covered by prudential capital(6)

times
2012: 3,2
2010: 3,4

(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)Comparative figures are as at 31 December 2010.

(7)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.

(8)Return on Group Equity Value per share, based on investment return assumptions as at the beginning of the period.

 

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