Sanlam continues to perform well. Net result from financial services trends in the life insurance, credit and structuring and investment management operations remained solid and broadly in line with the run rate for the first half of 2023. General insurance had a weaker third quarter due to weather and fire events impacting performance. The health operations recorded improved performance trends relative to the first half of 2023 with AfroCentric benefiting from higher admin fees and sales in the pharmacy cluster.
New business trends in the life insurance operations improved in the third quarter of 2023, with growth in new business profitability, as measured by value of new business, improving from the first half. General insurance new business trends remained robust across the portfolio, as strong premium increases in response to high claims inflation and frequency were dampened by management actions to remove unprofitable business.
+19% Net results from financial services
+19% cash net result from financial services
+35% net operational earnings
+13% on 2022 group new business volumes
+22% on 2022
+28% on 2022 on a constant economic basis
-66% on 2022
12,0% for the six-month period
Adjusted RoGEV of 8,5% for the six-month period
+26% Net results from financial services
+30% Cash net results from financial services
+64% Net operational earnings
R1 265m (constant economic basis: R1 305m)
+18% (constant economic basis: +21%)
2,91% on a constant economic basis
The Sanlam Group achieved a strong operating performance for the first three months of 2023. The Group’s life insurance, general insurance as well as credit and structuring lines of business contributed to strong growth in net result from financial services, with our Pan Africa and India operations performing particularly well.
The Group recorded good growth in new business volumes supported by the addition of the recently acquired Absa asset management business, strong life insurance recurring premium growth and satisfactory growth in general insurance. Growth was dampened by lower life insurance single premium sales due to rand weakness and broader investment market volatility.
Group net value of new business achieved significant growth despite muted life insurance sales, driven by margin improvements as a result of a shift to more profitable recurring and single premium products in the South Africa and Emerging Markets operations.
Group net client cash inflows declined to R7,7 billion due to lower life insurance single premium sales and increased outflows from savings products in South Africa, a single large institutional withdrawal from the Sanlam Investments multi-manager, as well as outflows in the UK investment management operations.
+25% on 2022
+26% cash net result from financial services
+9% on 2022 Group new business volumes
+18% on 2022
+21% on a constant economic basis
-63% on 2022
-5% on a comparative basis
R2 388 million
-14% (R2 731 million, -1% on a constant economic basis)
(2021: 2,87%) 3,06% on a constant economic basis