Sanlam : Reports Satisfactory 4-month Results

Sanlam Emerging Markets recorded overall new business growth of 20%, with structural growth more than offsetting the negative impact of a stronger average Rand exchange rate. In constant currency, new business volumes increased by 29%. New business volumes in Botswana, Namibia and Malaysia disappointed and this is being attended to.

Saham Finances' growth and profitability was in line with the business plan, with the Angola operations in particular holding up well in a difficult environment. The Group acquired an additional 16.6% stake in Saham Finances in a deal concluded on 10 May 2017.

The Sanlam Investments cluster achieved satisfactory growth in institutional fund inflows. However, the uncertain political and economic environment in South Africa had a severe impact on demand for implemented consulting and Sanlam Private Wealth solutions. This was aggravated by lacklustre demand in the United Kingdom, contributing to a 2% decline in overall new business volumes in Sanlam Investments in constant currency (down 3% at actual exchange rate).

Sanlam Employee Benefits achieved a pleasing threefold increase in new recurring premium business.

Net result from financial services increased by 5% in constant currency compared to the same period in 2016 (up 3% at actual exchange rates).

Normalised headline earnings per share increased by 9% compared to the first four months of the 2016 financial year. A relatively stronger investment market performance in 2017 supported investment return earned on the capital base.

Diluted headline earnings per share, which include fund transfers recognised in respect of Sanlam shares held in policyholder portfolios, increased by 15% compared to the first four months of the 2016 financial year.

'While we expect the economic and operating environment to remain very challenging for the remainder of 2017, we are confident that the Group is well-positioned to weather the current headwinds and continue to deliver value for our shareholders and other stakeholders. We continue to focus hard on businesses not meeting our required hurdle rates,' Mr Kirk concluded.