Sanlam group operating earnings up by 44%

By: Fred Yaw Sarpong (Daily Express)

Interim financial results released in September, this year by the management of Sanlam Group shows that the group achieved operating earnings growth of 44% (43% on a per share basis) during the six months ended 30 June 2014.

The group recorded increasing overall customer base (organic growth) of 40% augmented by an earnings contribution of R130 million from its recent acquisitions, up from R33 million in 2013.

"Commitment to executing on our strategy over the years, coupled with a focus on specific priorities identified for 2014, supported our sustained growth during the first six months of the year," said Dr. Johan van Zyl, Sanlam Group Chief Executive.

The company recorded 7% to R89 million growths in new business volumes and 18% annualized return on group equity value per share.

Among the key findings, the group normalized headline earnings per share up 27%, net value of new covered business up 7% to R626 million, net new covered business margin of 2,68%, and net fund inflows of R22 billion.

The group equity value per share was R42,77, discretionary capital of R3,3 billion at 30 June 2014. Meanwhile, Sanlam Life Insurance Limited CAR cover performance was however better than previous year.

Since its establishment in 1918, Sanlam has been a prominent part of the South African business landscape. The group has always held a long-term view of how business adapts to the demands of the environment in which it operates.

Today, in a dynamic world, Sanlam see an evolving set of social, economic, political and environmental imperatives that require their skilful response. “For us at Sanlam, sustainable business practice means recognizing both our broader responsibilities as an organization in society, and the new opportunities that arise from this thinking,” said the company.

Sanlam’s vision is to be the leader in wealth creation and protection in South Africa, leading that process in emerging markets and playing a niche role in developed markets.

The Group’s core values are acting with integrity; growing shareholder value through innovation and superior performance; leading with courage; serving with pride; and caring because there is respect for one another.

Founded in 1918, Sanlam has a rich heritage. The Group has over the years evolved from a traditional insurer to a diversified financial service provider with both local and international footprints.

The Group has consistently grown its local as well as an international footprint – it now has a presence in more than 10 African countries, India, Malaysia, Philippines, the UK /Ireland, the US, Switzerland and Australia.