Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
(“Sanlam”, “Sanlam Group” or “the group”)
JSE Share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660

Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23
(“Sanlam Life”)

Interim results for the six months ended 30 June 2023: Sanlam
achieves strong operating performance in the first half of 2023
Key performance indicators
 For the six months ended 30 June                              Unit           2023     2022       % change
 Earnings                                                                             Restated
 Shareholders’ fund information
 Net result from financial services(1)                         R million     6 177       4 895     26%
 Cash net results from financial services(2)                   R million     6 256       4 828     30%
 Net operational earnings                                      R million     7 486       4 557     64%
 Headline earnings                                             R million     6 902       3 185     117%
 Weighted average number of shares                             million       2 068       2 076
 Adjusted weighted number of shares                            million       2 204       2 209
 Net result from financial services per share                  cents           280         222     26%
 Net operational earnings per share                            cents           340         206     65%
 Headline earnings per share                                   cents           339         156     118%
 Diluted headline earnings per share                           cents           334         154     117%
 International Financial Reporting Standards (IFRS)
 information
 Basic profit attributable to shareholders’ fund per share     cents           389         250      56%
 Diluted profit attributable to shareholders’ fund per share   cents           383         246      55%

 Business volumes
 Total new business volumes                                    R million   190 793     159 887      19%
 Total net client cash flows                                   R million    11 357      37 074     (69%)
 Life insurance
    New business volumes (PVNBP)(3)                            R million    44 751      43 032       4%
    Value of new covered business                              R million     1 265       1 076      18%
    New covered business margin                                        %    2.83%       2.50%
    New covered business margin (CEB) (4)                              %    2.91%       2.50%
    Life insurance net client cash flows                       R million     7 465      13 762     (46%)
 General insurance
    New business volumes                                       R million    24 039      21 765      10%
    Net client cash flows                                      R million     8 698       7 491      16%
 Investment management
    New business volumes                                       R million   134 317     104 891      28%
    Net client cash flows(5)                                   R million    (4 806)     15 821

 Group equity value
 Group equity value(6)                                         R million   143 544     140 776
 Group equity value per share(6)                               cents         6 785       6 380
 Return on group equity value per share                        %              12.0        (2.8)
 Adjusted return on group equity value per share               %               8.5          6.8


                                                     1
 For the six months ended 30 June                                                                   Unit                      2023             2022              % change
 Solvency cover
 Sanlam Group(6)                                                                                    %                        167                169
Notes
    (1)   The 2023 earnings and the restated earnings for the comparable period in 2022 are based on the new IFRS 17 accounting standard, after allowing for Sanlam specific
          shareholder fund adjustments
    (2)   Cash NRFFS represents NRFFS as adjusted for the reversal of specific non-cash items: amortisation of capitalised IT projects and IFRS 17 specific and other non-cash
          adjustments
    (3)   Present value of new business premiums
    (4)   Constant economic basis
    (5)   Percentage changes are greater than plus or minus 100%
    (6)   Comparative figures on 31 December 2022



IFRS 17 Insurance Contracts became effective 1 January 2023. Sanlam has restated the 2022
comparatives. The fundamentals of our business, including our strategy, are not changed by the
implementation of the standard. Our key financial performance focus remains on value creation, as
measured by return on group equity value (RoGEV), and dividend growth. Free cash flow generation for
dividend purposes, Sanlam’s overall financial strength and solvency position are not impacted.

In line with past practice, the group will continue to prepare shareholders’ information in addition to the
IFRS information, including the shareholders’ fund income statement, which is a different presentation
form of the IFRS income statement and presents Sanlam’s operational and investment activities in the
manner that the Sanlam board assesses the group’s performance.

The IFRS numbers (previously IFRS 4 and now IFRS 17) are a base upon which Sanlam specific
shareholders’ fund adjustments are made to derive the net result from financial services and the
underlying cash net result from financial services as disclosed. These shareholders’ fund adjustments do
not impact attributable earnings or total IFRS profit after tax.

The group recorded a strong performance for the first six months of 2023 despite the ongoing challenging
consumer environment, with inflation and interest rates at multi-year highs. Results were supported by
favourable claims experience in our life insurance operations, a rebound in general insurance and a
strong performance from our credit operations in India. Improved equity market performance over the
period supported asset-based income.

Cash net results from financial services increased by 30%, while net results from financial services
increased by 26%. The improved performance was broad-based. Net result from financial services from
our general insurance line of business increased by 38%, life insurance by 28% and credit and structuring
by 36%. Our investment management operations increased by 2% and would be 9% higher when
excluding the earnings from disposed UK businesses in the 2022 base.

Net operational earnings increased by 64%. The higher growth relative to net result from financial services
is due to increased investment return on shareholder capital due to the recovery in local and international
investment markets over the period, relative to declines over the first six months of 2022.

The group recorded new business volume growth of 19% due to good sales growth in investment
management, supported by the addition of the Absa asset management business, and general insurance
supported by good premium growth across the portfolio. Life insurance new business volume growth was
muted but reflected a shift to higher-margin products, resulting in increased value of new business and
margins. Net value of new covered business (VNB) increased by 18% and was 21% higher on a constant
economic basis.

Group net client cashflows of R11,4 billion were lower than 2022 due to a rise in outflows from savings
products in South Africa, which reflect the challenging consumer environment, and a pick-up in outflows
in our UK investment management operations.

Group equity value (GEV) per share was R67,85 on 30 June 2023 and RoGEV per share was 12,0% for
the first six months of 2023, ahead of the six-month hurdle rate of 7,5%. RoGEV benefited from robust
contributions from value of new business, improved performance and outlook in our credit business in
India, and a strong contribution from Santam. Strong investment markets and a weakening of the rand
relative to the main valuation currencies in the non-South African operations also contributed to the higher
return for the first six months of 2023. Adjusted RoGEV per share, which excludes market, currency and
other impacts beyond management control, was 8,5% for the period, also ahead of the 7,5% hurdle rate.

On a per share basis, RoGEV benefited from the 85 million Sanlam shares held by the broad-based black
economic empowerment special purpose vehicle (B-BBEE SPV), which are now treated as treasury
shares for GEV per share purposes post the acquisition of the senior ranking preference shares from the
Standard Bank of South Africa, as announced on 14 August 2023 on the stock exchange news service
of the JSE and available at www.sanlam.com.

This short-form results announcement is the responsibility of the Sanlam board of directors and is a
summary of the information contained in the full announcement which can be found at:
https://senspdf.jse.co.za/documents/2023/jse/isse/slm/HY23.pdf and available on the Sanlam website at
http://sanl.am/2023IR

The interim financial results for the six months ended 30 June 2023, including restated comparatives for
the six months ended 30 June 2022 where applicable, have been independently reviewed by the group’s
joint auditors, PwC Inc. and KPMG Inc. Their review opinion, along with the full reviewed interim financial
results are available for inspection at the company’s registered office and also available on Sanlam’s
website at http://sanl.am/2023IR

Copies of the full reviewed interim results are available for inspection at, or may be requested from the
Company Secretary: Sanlam’s registered office and the offices of its sponsor during office hours, at no
charge. Any investment decision should be based on a consideration of the full reviewed interim results.
SANLAM LIMITED
Registered office: 2 Strand Road, Bellville, 7530, South Africa

Sanlam Investor Relations
Tel: +27 21 947 8455
E-mail: ir@sanlam.co.za

JSE SPONSOR

Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited

Debt Sponsor to Sanlam Life Insurance Limited
Absa Bank Limited, acting through its Corporate and Investment Banking division

7 September 2023