Sanlam first-half headline profit drops as stronger rand weighs
New business volumes fell, and the group was also affected by catastrophe claims at Santam
Financial services group Sanlam on Thursday reported a drop in its headline profit as the stronger rand took shine off some of the underlying businesses. The stronger currency added to what it described as a tough operating environment in SA, its home market. As a result, diluted headline earnings per share dropped 19% to R2.25 in six months to June, the company said in a statement on Thursday. Normalised headline earnings were up 5% to R4.5bn as a result of a 1% increase in the net result from financial services and a 55% rise in net investment return earned on the capital portfolio. But a stronger rand affected the translated earnings of its offshore capital portfolio. Overall new business volumes declined 4%, largely attributable to lower single-premium life and investment inflows in SA, Namibia and Botswana. Life and investment new business volumes declined by 3% and 8% respectively, while general insurance earned premiums increased by 16%. New business sales in personal finance...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.