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SANLAM LIMITED - Interim results for the six months ended 30 June 2024
2024/09/05 09:00:00Download PDF Stock report
Interim results for the six months ended 30 June 2024
Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
('Sanlam', 'Sanlam Group' or 'the group')
JSE Share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
('Sanlam Life')
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23
Interim results for the six months ended 30 June 2024
Sanlam achieved robust operating performance in the first half of
2024
Key performance indicators
For the six months ended 30 June Unit 2024 2023 % change
Earnings
Shareholders' fund information
Net result from financial services(1) R million 7 056 6 177 14%
Cash net result from financial services(2) R million 7 181 6 256 15%
Net operational earnings R million 8 087 7 486 8%
Headline earnings R million 9 838 6 902 43%
Weighted average number of shares million 2 108 2 068 2%
Adjusted weighted number of shares million 2 116 2 204 (4%)
Net result from financial services per share cents 333 280 19%
Cash net result from financial services per share cents 339 284 20%
Net operational earnings per share cents 382 340 12%
Headline earnings per share cents 473 339 40%
Diluted headline earnings per share cents 467 334 40%
International Financial Reporting Standards (IFRS)
information
Basic profit attributable to shareholders' per share cents 478 389 23%
Diluted profit attributable to shareholders' per share cents 471 383 23%
Business volumes
Total new business volumes R million 203 992 190 793 7%
Total net client cash flows R million 23 972 11 357 111%
Life insurance
New business volumes (PVNBP)(3) R million 51 044 44 751 14%
Value of new covered business R million 1 394 1 265 10%
New covered business margin % 2,73 2,83
Life insurance net client cash flows R million 10 570 7 465 42%
General insurance
New business volumes R million 23 667 24 039 (2%)
Net client cash flows R million 9 254 8 698 6%
Investment management
New business volumes R million 143 129 134 317 7%
Net client cash flows R million 4 148 (4 ,806) 186%
Group equity value
1
For the six months ended 30 June Unit 2024 2023 % change
Group equity value(4) R million 155 270 149 904
Group equity value per share(4) cents 7 341 7 086
Return on group equity value per share % 9,3 12,0
Adjusted return on group equity value per share % 10,7 8,5
Solvency cover
Sanlam Group(4) % 166 170
Sanlam Life Insurance Limited(4) % 246 245
Sanlam Life Insurance Limited covered business(4) % 170 170
Notes
(1) A measure of operating performance of the Sanlam group that is better aligned to cash earnings that drive dividend distribution.
(2) Cash NRFFS represents NRFFS as adjusted for the reversal of specific non-cash items: amortisation of capitalised IT projects and IFRS 17 specific and other non-cash
adjustments.
(3) Present value of new business premiums.
(4) Comparative figures on 31 December 2023.
The group has again achieved a robust operating performance.
The group's earnings momentum continued, growing net result from financial services (NRFFS) by
14%, reflecting strong trading performances across our businesses. Our life and health insurance
operations grew net results from financial services by 14%, general insurance reported a 16% rise,
investment management performance was satisfactory with 10% growth, while the group's credit and
structuring operations recorded growth of 9%. NRFFS per share increased by 19% due to lower adjusted
weighted average number of shares in 2024 relative to 2023.
Net operational earnings increased by 8% (12% per share) to R8,1 billion, underpinned by the strong
performance in NRFFS and a decline in project expenses. The lower growth rate relative to NRFFS is
due to lower investment return on shareholder capital of R1,2 billion (2023: R1,5 billion), largely
attributable to foreign exchange movements.
Headline earnings and diluted headline earnings per share increased by 40%, with the higher growth
relative to net operational earnings due to positive movements in shareholders' fund reserves, including
the acceleration of profit recognition of the Capitec funeral JV reinsurance recapture fee which is excluded
from NRFFS and cash NRFFS.
International Financial Reporting Standards (IFRS) requires that the group recognise part of the recapture
fee in attributable earnings (also included in headline earnings) at the half year, following the April 2024
regulatory approval of the termination of the JV. Consistent with shareholders' fund reporting, this amount
will not be recognised in NRFFS and cash NRFFS until the cash payment is received in November 2024.
The net of tax cash amount will be recognised in NRFFS and cash NRFFS in the second half of 2024.
Attributable earnings increased by 25% to R9,9 billion from R7,9 billion in 2023. The lower increase
relative to headline earnings is due to lower accounting profit on disposal of operations in 2024 compared
to 2023.
Total new business volumes were strong for the first six months of 2024, at R204 billion. Growth was
underpinned by the life insurance operations, growing sales by 15%. Life insurance new business
volumes were strong across all regions. Net value of new covered business increased by 10%, with a
net new business margin of 2,73%.
The strong asset gathering ability of the group resulted in net client cash flows more than doubling to
R24 billion, with all lines of business recording positive net flows.
Group equity value (GEV) per share was R73,41 on 30 June 2024. Return on GEV (RoGEV) per share
and adjusted RoGEV per share was 9,3% and 10,7 % respectively for the first six months of 2024, ahead
of the hurdle rate of 7,5%. Positive contributors to RoGEV were strong value of new business, risk
experience, working capital and credit spread experience in the life insurance operations, and in the non-
life operations, higher valuation of the Indian credit business (Shriram Finance Limited) due to improved
performance and outlook, strong operating results from Santam, and cost efficiencies in the South Africa
asset management operations.
The group's solvency position remained strong and well within target ranges with group solvency cover
ratio of 166% as at 30 June 2024.
This short-form results announcement is the responsibility of the Sanlam board of directors and is a
summary of the information contained in the full announcement which can be found at:
https://senspdf.jse.co.za/documents/2024/jse/isse/slm/HY24.pdf
and available on the Sanlam website at https://www.sanlam.com/financial-reporting.
The condensed consolidated interim financial statements for the six months ended 30 June 2024,
including comparatives for the six months ended 30 June 2023 where applicable, have been
independently reviewed by the group's joint auditors, PwC Inc. and KPMG Inc. Their unmodified review
opinion, along with the full reviewed condensed consolidated interim financial statements are available
for inspection at the company's registered office and also available on Sanlam's website at
http://sanl.am/gl-P1.
Copies of the full reviewed interim results are available through a secure electronic manner at the election
of the person requesting inspection and for inspection at, or may be requested from the Company
Secretary: Sanlam's registered office and the offices of its sponsor during office hours, at no charge. Any
investment decision should be based on a consideration of the full reviewed interim results.
SANLAM LIMITED
Registered office: 2 Strand Road, Bellville, 7530, South Africa
Sanlam Investor Relations
E-mail: ir@sanlam.co.za
JSE SPONSORS
Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited
Debt Sponsor to Sanlam Life Insurance Limited
Rand Merchant Bank, a division of FirstRand Bank Limited
5 September 2024
Date: 05-09-2024 09:00:00
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