Sanlam reports strong growth and strategic advances in H1 2024
Sanlam reported strong performance in the first half of 2024, driven by consistent execution of its growth strategy, which combines organic growth with strategic acquisitions.
The group’s net result from financial services (NRFFS) increased by 19% per share, surpassing R7 billion for the first half of the year. This growth was supported by strong performance across its operations, scale advantages, diverse markets, and a focus on efficiency.
Key financial highlights include:
- Adjusted return on group equity value (RoGEV) was 10.7%, exceeding the target of 7.5%, driven by robust new business and strong performance in both life and non-life insurance.
- Life insurance and health saw 14% growth in NRFFS and new business volumes.
- General insurance reported a 16% rise in NRFFS, led by strong results from Santam.
- Investment management grew by 10% in NRFFS with R4.1 billion in net client cash inflows.
- Credit and structuring operations recorded 9% growth in NRFFS.
- The group’s discretionary capital balance increased to R3.8 billion as of June 2024.
Sanlam continued to strengthen its market position through strategic moves:
- In February, Sanlam announced plans to acquire Assupol Holdings, a South African insurer, for R6.5 billion, which received Competition Tribunal approval in August.
- In April, Sanlam announced plans to increase its stake in its Indian insurance businesses, Shriram Life Insurance and Shriram General Insurance, to over 50%.
- In June, the group announced a deal to acquire 60% of the insurance business of MultiChoice Group, pending regulatory approval.
- The Capitec funeral joint venture is expected to result in a reinsurance recapture fee of R1.9 billion to be paid to Sanlam in November.
Recent acquisitions, including BrightRock, Capital Legacy, Absa, and Alexander Forbes’ investment platform businesses, have positively impacted the group’s performance.
The SanlamAllianz joint venture integration is also progressing well, with successful mergers in multiple African countries.
