Sanlam's businesses perform well in the first half and return on equity value is strong

SANLAM’S strong annualised return on group equity value of 18.2% for the six months to June 30 was well above its 14.7% hurdle rate and reflects strong value creation from high levels of new business and positive experience variances.

- EDWARD WEST

The results were achieved in a challenging operating environment marked by global trade tensions and shifting investor sentiment. Group earnings, the net result from financial services, increased by 15% per share, demonstrating satisfactory performance across all operations.

“The balance sheet remains healthy, our operating businesses all have tremendous momentum, and we continue to gain market share,” Sanlam Group CEO Paul Hanratty said in an online presentation.

New business volumes increased by 7% in a challenging economic environment for customers, reflecting the benefit of the group's diversified portfolio.

The South Africa business showed “really excellent results,” with life insurance bolstered by the Assupol acquisition, good profits reported at Assupol, and strong growth in the investment businesses and in Santam, he said.

Net client cash flow was positive; net inflows more than doubled to R48.5 billion, indicating attractive investment propositions and improved retention.