THE biggest life insurer in Africa, Sanlam, last week reported its latest financial results showing its financial services totalled R12.4 billion, which is record achievement from the group and ended 21% higher on a per share basis.
This follows the group’s strong operating performance in its 2023 annual results after a series of adverse events impacted the global economy between 2020 and 2022, beginning with the Covid-19 pandemic.
The figures, released last Thursday, show Sanlam’s life insurance portfolio grew earnings by 19%, general insurance by 21%, investment management by 14% and credit and structuring by 29%. New business volumes remained solid at just under R400 billion, also a record high, with the group reporting robust sales growth across all lines of business.
Based in these results Sanlam declared a dividend of 400 cents per share (2022: 360 cents per share), with the group stating that this declared dividend did not hamper its ability to deal with further financial stresses and reflects the underlying strength of the business.
Meanwhile, the group’s solvency position remained strong and well within its target range, with a group solvency cover ratio of 170% at 31 December 2023.
“This set of results reflects our focus over the past three years on improving the performance of existing operations, while investing in the group’s long-term growth path. We remain optimistic about future growth and performance, with the group being well positioned to serve our customers across all our operations,” said Sanlam group Chief Executive Officer, Paul Hanratty.
In addition, Sanlam has establishing a US$1 billion green hydrogen fund, aiming to accelerate South Africa’s decarbonisation efforts. Moreover, the Sanlam Resilient Investment Fund invested in assets over R403 million; the group invested R139 million in corporate social investment in 2023; is investing R4.4 billion on small medium and micro enterprises in South Africa; and is investing R24.6 billion in empowerment financing.
Sanlam also made changes to its board of directors and has appointed Temba Mvusi as independent non-executive director to the board of Sanlam and Sanlam Life, effective on 7 March 2024, and chair of the board from 1 April 2024.
Mvusi succeeds current chair of the board, Elias Masilela, who will step down as chair of the board on 31 March 2024. Masilela will remain as an independent non-executive director of the board. “While ongoing geopolitical conflicts pose risk to the outlook for investment markets, interest rates and inflation, the group is positive about its growth prospects for 2024. Sanlam’s earnings remain sensitive to significant moves in global investment markets, but the underlying businesses have good momentum and are resilient,” read a group statement.
“Our strong capital position and cash generation as well as the diversity of our operations by product, market segment and geography, position us well to navigate the current macroeconomic environment,” concluded Hanratty.