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Salient features

Earnings

  • Net result from financial services per share increased by 14%
  • Core earnings per share up 2%
  • Normalised headline earnings per share up 2%

Business volumes

  • Overall new business volumes stable
  • New life business volumes increased by 13%
  • Net value of new covered business up 16% to R283 million
  • Net new covered business margin of 2,32%, up from 2,23%
  • Net fund inflows of R6,6 billion

Group Equity Value

  • Group Equity Value per share of R24,79
  • Annualised return on Group Equity Value per share of 9,1%

Capital management

  • Discretionary capital of R2,8 billion at 30 June 2010
  • Sanlam Life CAR cover of 2,9 times

Sanlam's Group Chief Executive, Johan van Zyl, commented as follows:

‘The Group performed well despite challenging business conditions during the first six months of 2010, with all key performance indicators reflecting a satisfactory result on a comparable basis. This again confirms the Group’s track record of resilient results as our diversification strategy (which includes market segmentation, solutions offerings and geographical presence), combined with prudent operational and financial practices, contributed towards its defensive character in adverse trading conditions. Our core operations continue to provide a stable base, complemented by an increasing contribution from investments in new growth initiatives.

“The Group’s well-established strategy successfully supported these interim results. The Board and management remain committed to the Group’s key objective of maximising shareholder value. The five pillars of optimal capital utilisation, earnings growth, cost control and efficiencies, diversification and transformation underpin this strategy and good progress has been made on all of these pillars.

Looking ahead, Dr van Zyl said that ‘Optimism in the face of uncertainty’ best describes the outlook for the second half of the year.

“2010 started with renewed investor confidence that the worst of the financial markets crisis was over and that the world was gearing up for accelerated growth. While global economic growth is gradually returning, uncertainty and risk aversion remain, aggravated by the emergence of sovereign credit risk in Europe and regular economic data that confirms a prolonged upturn at best.

“We remain confident and optimistic that the Group will continue to deliver sound operating results. The business environment is however expected to remain challenging in the second half of the year, with only slow economic recovery in most of the economies in which we operate. This is not expected to result in any meaningful performance improvement in the second half of the year compared to the first six months of 2010 or relative to the strong second half of 2009,” he concluded.

Click here for a copy of Johan van Zyl's presentation to investors.

Click here for a copy of our full results.

Sanlam Life Insurance is a licensed financial service provider.
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