To allow for the dividend calculation, Sanlam’s share register (including Sanlam’s two nominee companies, namely Sanlam Share Account Nominee (Pty) Ltd and Sanlam Fundshares Nominee (Pty) Ltd), will be closed for all transfers, off-market transactions and dematerialisations or rematerialisations between Wednesday, 7 April 2021 and Friday, 9 April 2021, both dates included.
Transactions on the JSE via Strate are not affected by this arrangement.
As part of our business reviews, business planning and budget processes, we stress test and apply adverse event shocks to the business to monitor and safeguard the stability of Sanlam’s financial soundness and overall capital position. In terms of these stress tests, we remain within the required levels of capital.
Sanlam’s dividend policy is based on cash operating earnings, which is equal to the portion of the business clusters’ reported operating earnings that are distributed to the Group as cash dividends. The level of cash earnings available for distribution to the Group is informed by a number of factors, including working capital requirements, as well as the solvency position of the various entities within a cluster. The key principle is that the entities within a cluster should be sufficiently capitalised after a dividend distribution to ensure compliance with internal risk appetites and local regulatory solvency requirements, taking cognisance of future growth plans. The same considerations apply in setting the Sanlam dividend, taking due cognisance of the Group solvency position under the South African regulations. This dividend policy is aligned with the guidance issued by the Prudential Authority during 2020 amidst the worse of the pandemic.
At a secondary level, the Group’s objective is to maintain a 1.0x – 1.2x times Group cash operating earnings cover in any year to manage a smooth dividend profile.
An important component of the Sanlam investment case is the provision of stable and strong dividends. As mentioned above, Sanlam has a long and unbroken dividend record since demutualisation and listing.