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
R7,7 billion
-63% on 2022
+4,2%
+8%
R64,8bn
-5% on a comparative basis
R2 388 million
-14% (R2 731 million, -1% on a constant economic basis)
2,72%
(2021: 2,87%) 3,06% on a constant economic basis
The Sanlam Group recorded satisfactory performance for the first 10 months of 2022, amid a challenging operating environment from volatility in global equity markets, sustained higher inflation and the resulting interest rate increases. The Group’s diverse portfolio and leading competitive positioning supported earnings, with strong results in the life insurance, credit and investment management businesses offsetting weak general insurance results. General insurance earnings were under pressure due to significant claims inflation, market volatility and, in South Africa, high levels of electrical power-surge and vehicle theft-related claims, in addition to the adverse weather conditions and catastrophic floods in KwaZulu-Natal reported in the first half of the year.
-1% on 2021
+10% on 2021 excluding one-off items
-4% on 2021 Life Insurance business (excluding UK disposals)
-6% on 2021 Investment business
+5% on 2021 General Insurance business
-14% on 2021
-1% on 2021 on a constant economic basis
R57,4 billion
-6% on 2021
-2,8% for the six-month period
adjusted RoGEV of 6.8% (14,1% annualised)
+1% Overall performance
+23% Life Insurance
+25% Investment Management
+22% Credit and Structuring
-57% General Insurance
R33,2bn
-1% on comparative basis
R1 076m (constant economic basis: R1 264m)
-17% (constant economic basis: -2%)
2,50%
2,89% on a constant economic basis