Sanlam reports solid financial performance
by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – FINANCIAL services group, Sanlam, has announced a solid operational update for the ten months to October 31.
Among other achievements despite the challenging business and economic environment in the markets the Group operates include total new business volumes of R175 billion, rising 17 percent compared to the same period in 2014.
Net result from financial services was up 8 percent while normalised headline earnings per share up 12 percent.
Sanlam Personal Finance achieved a 22 percent increase in new business sales with new business sales benefitting from the biennial premium renewal of the ZCC scheme as well as a large new voluntary scheme awarded to Sanlam Sky.
Sanlam Emerging Markets grew overall new business by 42 percent as Botswana operations more than doubled their new business contribution, supported by strong annuity and investment business volumes.
The Namibian operations experienced lower inflows of the more volatile unit trust business, more than offsetting good growth in new life business.
All of the other regions (Rest of Africa, Malaysia and India) achieved growth in excess of 20 percent despite some headwinds experienced simultaneously in some key markets.
Sanlam Investments increased its new business volumes by 14 percent, with the South African Investment Management and Wealth Management businesses achieving particularly strong growth.
Overall net fund inflows of R11.5 billion were achieved, representing a satisfactory performance given the large outflows experienced in 2015 from the Public Investment Corporation (R11,2 billion) from Sanlam Investment Management and the Botswana Public Officers Pension Fund (R17,3 billion) from Sanlam Emerging Markets and Sanlam Investments’ International business.
Sanlam Group Chief Executive Officer, Ian Kirk, said despite the headwinds experienced, the Group was satisfied with the overall operational performance for the period under review.
“Given the economic climate in most of the markets in which we operate, we are satisfied with our operational performance in the first 10 months of the financial year.
“While we expect the current challenging conditions to persist for the remainder of the financial year, we are confident that the Group’s strategy is appropriate to deliver on our longer term growth targets.”
Last week the Group, together with Santam, announced the proposed joint acquisition of a 30 percent stake in Morocco-based Saham Finances for a purchase consideration of US$375 million.
Sanlam is listed in the Johannesburg and Namibia Stock Exchanges.
– CAJ News
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