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Skip Navigation Linksinterim-results-2016 2016 Interim Results

Skip Navigation LinksFinancial Results

2016 Interim Results

Economic growth in most of the markets where the Group operates remained well below longer-term potential, in particular in South Africa, the Group’s largest market.

Investment market volatility also persisted as global investors navigated an increasingly uncertain global environment. Markets grappled with the risk of an economic slowdown in China, the downturn in the commodity cycle, rising geopolitical risks and the impact of potentially opposing monetary policy stances by central banks in the United States, United Kingdom, Europe and Japan. The fragile outlook for global economic growth was dealt a further blow at the end of the second quarter by the UK electorate’s surprise vote in favour of Britain leaving the European Union, signifying rising pressure in a number of countries for more protectionist policies. These conditions contributed to rising risk aversion, increasing the pressure on the economies, currencies and investment markets of emerging market countries.

Highlights

In an unsupportive business environment during the first half of the 2016 financial year, the Group once again achieved a solid operational performance. Delivering double digit Return on Group Equity Value (annualised) and double digit growth in new business volumes and net result from financial services under challenging conditions is testimony to the resilience of the Group’s strategy and its operations.

11%

increase in net result from financial services per share

15%

growth in new business volumes

7,9%

return on Group Equity Value per share for the six months

Ian Kirk

Key Features

Earnings

  • Net result from financial services per share increased by 11%
  • Normalised headline earnings per share down 7%

Business Volumes

  • New business volumes up 15% to R115 billion
  • „Net value of new covered business up 7% to R702 million
  • Net new covered business margin of 2,44% (2,66% in 2015)
  • Net fund inflows of R22 billion compared to R7 billion in 2015

Group Equity Value

  • Group Equity Value per share of R52,12
  • Return on Group Equity Value per share for the six months of 7,9%

Capital Management

  • „Unallocated discretionary capital of R3,1 billion at 30 June 2016
  • Sanlam Life Insurance Limited CAR cover of 5,3 times

 

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