5 December 2012
The salient features of the Group’s performance for the ten months to October 2012 are:
All of the Group operations remain well capitalised. Sanlam Life Insurance Limited’s statutory capital covered its Capital Adequacy Requirements by 4.2 times on 30 September 2012.
The Group had excess capital of some R6 billion available for redeployment at the end of June 2012. Utilisation since then included the cash settlement of the Shriram Capital transaction announced in the latter half of 2011 for R2 billion, as well as a number of smaller transactions totalling some R250 million, including the acquisition of the 50% interest in Satrix Managers that the Group did not own. Net of capital earmarked for the recently announced potential acquisition in Malaysia, the resultant discretionary capital balance amounts to some R3 billion. A number of opportunities are being investigated that could utilise a substantial portion of available discretionary capital.
We do not anticipate any easing in the strained global economic conditions for the remainder of the year and the operating environment are therefore expected to remain challenging. This is likely to impact on growth in the Group’s key operational performance indicators. The Group also achieved a very strong operational result towards the end of the 2011 financial year, both in respect of new business sales and operating profit. This was partly attributable to some positive operating assumption changes at year-end.
Shareholders also need to be aware of the impact of financial market returns and volatility on the investment return component of the Group’s earnings and Group Equity Value. Relative market movements may have a major impact on the growth in Group Equity Value and normalised headline earnings to be reported for the full 2012 financial year.
The information in this operational update has not been reviewed and reported on by Sanlam's auditors. Sanlam’s financial results for the year ending 31 December 2012 are due to be released on 7 March 2013. Shareholders are advised that this is not a trading statement as per section 3.4 of the JSE Limited Listings Requirements.
A conference call for analysts, investors and the media will take place at 17h00 (South African time) today. Investors and media who wish to participate in the conference call should dial the following numbers:
A toll free dial-in facility will be available. We kindly advise callers to dial in 5 - 10 minutes before the conference call starts at 17:00.
South Africa and other countries
Toll +27 (0)11 535 3600 Toll-free 0800 200 648
Toll 1 412 858 4600 Toll-free 1 800 860 2442
Toll-free 0800 917 7042
Recorded playback will be available for three days after the conference.
Access code for recorded playback: 2560#
South Africa and other countries Toll +27 (0)11 305 2030
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