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Skip Navigation Linksinterim-results-2017 2017 Interim Results

Skip Navigation LinksFinancial Results

2017 Interim Results

The operating environment during the first half of 2017 proved even more demanding than anticipated, in particular in South Africa, our largest market.

Growth in all key performance indicators were also impacted by a significantly stronger average Rand exchange rate in the first half of 2017, increased new business strain at Sanlam Personal Finance, catastrophe claims at Santam and the effect of the demonetisation initiative in India. Strategic execution remained a key focus under these difficult conditions, enabling the Group to deliver resilient results for the first six months of the 2017 financial year.

Highlights

Most of the Group businesses achieved a solid underlying performance in the first half of 2017 despite challenging economic and investment market conditions. Particularly pleasing is the double-digit annualised Adjusted Return on Group Equity Value (RoGEV) of 16.2% delivered to shareholders. This exceeded the target of 13.2% for 2017 by a healthy margin.

1%

increase in net result from financial services per share

4%

decline in new business volumes

6,1%

return on Group Equity Value per share for the six months

Ian Kirk

Key Features

Earnings

  • Net result from financial services increased by 1% (up 5% in constant currency)

Business Volumes

  • Net value of new covered business up 11% to R782 million (up 17% in constant currency)
  • Net new covered business margin of 2.61% (2.44% in 2016)
  • New business volumes declined by 4% to R110 billion (down 2% in constant currency)
  • Net fund inflows of R19 billion compared to R22 billion in 2016

Group Equity Value

  • Group Equity Value per share of R54,69
  • Return on Group Equity Value per share of 6.1% for the six-month period
  • Adjusted Return on Group Equity Value per share of 8.1%; exceeding target of 6.4%

Capital Management

  • Strategic investments of R4.8 billion finalised during 2017
  • Unallocated discretionary capital up to R2 billion at 30 June 2017
  • Sanlam Group SAM cover ratio of 2.1 times; Sanlam Life Insurance Limited SAM cover ratio of 3 times
  • Sanlam Life Insurance Limited CAR cover ratio of 5.3 times

 
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