4 December 2019
Highlights for the four month-period since the end of June 2019 include continued strong net fund inflows at Sanlam Investment Group; improved traction in Glacier’s new business sales; as well as a marked improvement in Sanlam Corporate and Santam’s risk underwriting profits. Overall new business volumes increased by 6% and net result from financial services grew by 12%, contributing to a 16% rise in net operational earnings.
Operating conditions remained challenging in South Africa with no improvement expected in the country’s economic growth in the short to medium term. Economic conditions in the other emerging markets where Sanlam operates remained broadly unchanged from the first half of 2019.
Sanlam CEO Ian Kirk said, “We are satisfied about this performance in the challenging conditions. It is pleasing that we continue to deliver good relative performance across our businesses. This is testimony to the quality of our business and our people, their ability to execute and deliver value for all our stakeholders.”
“We remain focused on our core competencies, which are to deliver shareholder value under challenging conditions while executing future growth strategies. This is founded on our diversified profile and federal management model that supports a dual focus on operational and strategic delivery,” Kirk added.
Salient features of the Group’s performance for the 10 months to 31 October 2019 were:
The Group’s operations remain well capitalised. The Sanlam Group Solvency Capital Requirement cover ratio amounted to 216% on 30 September 2019. Discretionary capital available at the end of June 2019 was largely utilised for corporate transactions amounting to some R770 million.
The Group does not expect a major recovery in the economic conditions in South Africa, Namibia, Angola and Lebanon for the remainder of 2019. New business growth potential will commensurately remain under pressure. Investment market volatility is also expected to persist, aggravated by Brexit and the finalisation of a trade deal between the United States and China.
A recovery in the South African mass affluent new business performance will depend on developments in the political and economic environment. Outside South Africa, new business growth in other emerging markets is expected to remain strong, supported by the base effect of the Saham structural impact.
“Our short term focus remains delivering results from Sanlam pan Africa and executing on our organic growth strategies in our SA based business clusters" said Kirk.