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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)
(“Sanlam Life”)
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23
Sanlam group operational update for the three-months ended 31 March 2025
Strong start to the year
All commentary and growth rates relate to the first three months of 2025 relative to the first three
months of 2024, unless otherwise indicated.
▪ Net result from financial services1 (NRFFS) and cash NRFFS increased by 15% (18% in
constant currency).
▪ Net operational earnings2 increased by 22% (26% in constant currency).
▪ Group new business volumes increased by 15%.
▪ Life insurance new business volumes3 and value of new business (VNB) both increased by 4%
on a normalised basis (to reflect the changes in the group structure between 2024 and 2025).
▪ The group solvency cover ratio remained strong and well within target range.
The first quarter of 2025 was marked by escalating global geopolitical tensions and shifting economic
policies. Equity markets in the United States (US) recorded small declines, primarily driven by the potential
impacts of these factors on inflation and economic growth. International markets, however, showed
resilience, benefiting from a rotation out of US equities and into European and emerging markets. Post
“liberation day”, US markets, as well as global markets have seen extremely heightened volatility.
South African economic indicators were subdued in the first quarter of 2025, despite easing inflation. SA long
bond yields, which had been on a declining trend through 2024, remained at relatively low levels for early
2025, before increasing from February 2025, in response to the challenging global and local environment.
Guaranteed annuity sales continued to moderate in 2025, following the 2024 declining trend which was
driven by declining long bond yields.
Economic growth in Pan-Africa showed signs of improvement despite challenges related to relatively high
government debt levels. In Asia, India’s economic growth remains strong, albeit with some signs of
moderation. The South African rand strengthened relative to the group’s main currency exposures in Pan-
1 A measure of the Sanlam group's operating performance allowing for specific shareholders' fund adjustments and aligned with
cash earnings that drive dividend distribution.
2 NRFFS including investment return after allowing for specific shareholders’ fund adjustments and project expenses.
3 On a present value of new business premiums (PVNBP) basis.
Africa and India over the first quarter. The group’s diverse portfolio, however, meant that this impact was not
significant on earnings and new business volumes. Depreciation of the Egyptian pound and Nigerian naira
however had a larger impact on the group’s VNB.
The group’s earnings (NRFFS) continued to grow strongly and demonstrated solid performance in all areas
of operations. There was strong growth in overall new business volumes, despite relatively muted life
insurance performance, reflecting the benefit of a diversified portfolio. Life insurance volumes were however
sustained at the exceptionally high levels recorded over the past few years.
The group's discretionary capital balance increased to R4,7 billion on 31 March 2025 from R4,1 billion on
31 December 2024, due to special dividends received from Assupol and the retail mass business.
Santam completed the transaction to acquire the 60% A1 ordinary shares in NMS Insurance services (SA)
Limited from Sanlam Life for R925 million, effective on 2 May 2025. On 7 April 2025, Allianz Europe BV
(Allianz) concluded the acquisition of 8,59% in SanlamAllianz for an initial cash consideration of R4,5 billion,
resulting in a final shareholding split in SanlamAllianz of 51% Sanlam and 49% Allianz.
Sanlam completed its subscription for additional shares in Shriram Wealth in India, increasing its effective
economic shareholding from 26% to 49,7%. The transaction to increase the group’s effective economic
shareholding in Shriram Asset Management Company from 16,3% to 35,5% received all required approvals.
The combined capital outlay for these transactions is R700 million, funded from discretionary capital.
Discretionary capital on 14 May 2025 is approximately R9,7 billion, after adjusting for transactions that
became effective after the reporting period. Approximately R5 billion of discretionary capital is currently
ringfenced for the Shriram insurance and stockbroking transactions which remain subject to regulatory
approvals. Given the state of global geopolitics and its potential to create disruptions in global financial
markets, the group has decided to maintain a significant discretionary capital buffer at this time, above what
the group would regard as the normal target range.
The group continues to focus on strategic delivery, making good progress on Assupol’s integration. Sanlam
has progressed well in consolidating the Assupol advisor force into the Sanlam advisor force as well as
consolidating support functions. In April 2025, Ninety One Limited and Plc shareholders approved the
resolution for the transaction relating to a long-term active asset management relationship, as set out in the
circular dated 6 March 2025. This transaction remains on track for completion later in the year.
Strong earnings growth across our operations
Growth in NRFFS was supported by satisfactory performance from all lines of business, with the general
insurance and investment management lines performing particularly well.
Net result from financial services
(percentage increase for the first three months of 2025 relative
to the first three months of 2024) Actual Normalised4
Sanlam group 15% 19%
By line of business
General insurance 49% 56%
Investment management5 16% 16%
Life insurance and health6 7% 7%
Credit and structuring7 6% 21%
4 In constant currency with adjustments as in below footnotes and detailed in appendix.
5 Normalised includes Namibia with 2025 shareholding applied to 2024.
6 Normalised excludes Capitec from 2024 base, includes Assupol in 2024 and 2025 and includes Namibia with 2025 shareholding
applied to 2024.
7 Normalised includes India and Namibia with 2025 shareholding applied to 2024.
NRFFS in the general insurance operations benefited from excellent performance in South Africa from
Santam as well as strong earnings growth in India. Pan-Africa’s net insurance result margin remained within
its 10% to 15% target range.
Investment management recorded strong double-digit growth in NRFFS, with South Africa investment
management posting solid growth on the back of fund establishment fees in the alternatives business,
continued strong performance in Satrix, as well as higher brokerage income in the private wealth business.
Life insurance and health performance was driven by satisfactory growth in the South Africa life insurance
portfolio and improved earnings in Malaysia, partly dampened by weaker performance in India from
investment in distribution channels that continue to deliver strong new business growth. Pan-Africa delivered
good growth in constant currency.
Credit and structuring performance was driven by continued good growth in Shriram Finance Limited (SFL)
in India, as well as strong performance from the structuring business in South Africa. On a normalised basis,
credit and structuring NRFFS increased by 21%, with the higher normalised growth reflecting the SFL and
Namibia shareholding change and the appreciation of the South African rand against the Indian rupee.
Satisfactory growth in new business volumes and net client cash flows
Key group new business metrics
(percentage increase/(decrease) for the first three months of
2025 relative to the first three months of 2024) Actual Normalised8,9
Sanlam group
New business volumes 15% 17%
Net client cash inflows >100% >100%
Life insurance new business metrics
PVNBP (3%) 4%
VNB (20%) 4%
VNB margin 2,2% 2,3%
Life insurance new business volumes 10 increased by 4% on a normalised basis. South Africa showed low
growth off an elevated base, benefiting from good sales in the affluent market which was partly dampened
by weaker single premiums in corporate and weaker group business in retail mass, both of which are lumpy
and expected to improve over the remainder of the year. Increased Pan-Africa new business volumes were
driven by West Africa and most of Southern Africa, while Asia benefited from continued strong growth in
India.
Actual VNB was lower due to structural changes of the termination of the Capitec relationship and sale of
Namibia to SanlamAllianz, coupled with a product mix change in the affluent market away from high margin
guaranteed annuity sales towards less capital-intensive market-linked annuity products. On a normalised
basis VNB increased by 4%.
Following the various structural changes to the group’s operations in 2024, actual VNB growth is expected
to decline significantly in 2025, but to increase on a normalised basis, reflecting growth in the group’s core
operations.
General insurance net earned premiums grew by 13%, with strong contributions across all regions. Santam
recorded strong growth in the conventional insurance business. In the Pan-Africa portfolio, SanlamAllianz
recorded growth below its 12% to 15% target range due to the timing of recognition of premiums, which is
8
In constant currency. See normalisation footnotes below and detailed in appendix.
9 Excludes Capitec from 2024 base, includes Assupol in 2024 and 2025 and includes Namibia with 2025 shareholding applied to 2024.
10 PVNBP basis
expected to unwind over the year. Adjusting for this, net earned premiums increased by 14% in constant
currency. Asia recorded growth of 30%, driven by continued strong motor third party business in India.
Investment management new business volumes were 21% higher with strong inflows recorded across all
the group’s investment management operations. Group net client cash flows more than doubled to over
R20 billion, with substantial contributions across all regions and lines of business.
Outlook
At the 2024 annual results the group indicated that geopolitical risks and potential increases to tariffs posed
the biggest risk to 2025 guidance. Tariff dispute outcomes remain uncertain and hard to analyse. The scale
and speed with which they have been implemented, frequent changes in the negotiations globally and the
deepening global rifts make it difficult to forecast those economic variables that most impact our results, with
any degree of accuracy.
The variables where we have seen significant change to date are volatile equity market levels, currency and
long bond yields. The group is cognisant of the increased probability of a US recession and the likelihood
that this would impact the global economy significantly. South Africa, Pan-Africa and Asia would all be
impacted by a global recession or slow-down, in addition to the immediate and long-term direct impacts of
the tariff changes. Lower new business, lower gross written premiums and deteriorations in persistency are
all likely in this scenario.
The group is also concerned that increased tariffs may have an inflationary impact that may not be offset by
recessionary forces. The impact of inflation may also be exacerbated by supply chain disruption, risking
higher general insurance claims costs and lower underwriting margins. Lower asset fees earned, lower
growth across our businesses, higher inflation and reduced persistency coupled with increased credit
defaults, could reduce our outlook for earnings.
A weaker economic environment is also likely to negatively impact credit default rates. We anticipate a limited
impact on the SFL business in India because of its prudence and type of credit granted, but the Sanlam
group’s corporate credit portfolio and corporate bond spreads remain vulnerable.
We believe it is too early to provide any meaningful update to our earnings guidance considering the
uncertainties regarding the impacts of the tariff disputes.
Appendix: Basis of normalisation
The following businesses’ 2024 bases were normalised for ease of comparability on a like-for-like basis per
the table below.
Business Transaction Treatment
SanlamAllianz Sanlam Life Namibia sold to SanlamAllianz with Treated as though transaction occurred effective 1
financial effective date of 1 July 2024. Prior to this January 2024, with Sanlam shareholding of Sanlam
Sanlam owned 100%, and post transaction Sanlam Life Namibia at 59,59% from 1 January 2024.
owned an effective 59,59% of Sanlam Life Namibia.
Sanlam Life Sanlam acquired 100% of Assupol with an effective Treated as though transaction occurred effective 1
and Savings date of 1 October 2024. January 2024, with Assupol included as a subsidiary
from 1 January 2024.
Conclusion of the Sanlam joint venture with Capitec on Treated as though transaction occurred effective 1
31 October 2024. January 2024 and therefore 2024 results removed.
Asia - India Reduction of shareholding in SFL at end of March Treated as though transaction occurred effective 1
2024. Prior to this date Sanlam owned an effective January 2024, with effective 9,54% shareholding in
10,19% of SFL, and post transaction date, Sanlam SFL from 1 January 2024.
owned an effective 9,54%.
The information in this operational update has not been reviewed or reported on by Sanlam's external auditors. Shareholders are advised that this is
not a trading statement as per paragraph 3.4(b) of the JSE Limited Listings Requirements.
Currency movements did not have a material impact on group earnings and new business metrics.
Conference call
Paul Hanratty, group CEO, will host a conference call for investors, analysts, and the media at 17:00 South African time (UTC+2) on 15 May 2025.
Those wishing to participate in the conference call should navigate to: https://www.diamondpass.net/4719591
Registered participants will receive their dial-in number on registration.
Recorded playback will be available until 20 May 2025.
Access code for recorded playback: 47544
South Africa 010 500 4108
USA and Canada 1 412 317 0088
UK 0 203 608 8021
Australia 073 911 1378
Other countries +27 10 500 4108
Cape Town
15 May 2025
Equity sponsor: The Standard Bank of South Africa Limited
Debt sponsor: The Standard Bank of South Africa Limited
NSX sponsor: Simonis Storm Securities (Pty) Ltd
Disclaimer
In this document, Sanlam Ltd (“SLM” or “Sanlam”), its subsidiaries and, where applicable, its joint ventures and associates are referred to as “we”,
“us”, “our”, “Sanlam” and the “group”.
Forward-looking statements
In this document, we make certain statements that are not historical facts and relate to analyses and other information based on forecasts of future
results not yet determinable, relating, amongst others, to financial results, to new business volumes, investment returns (including exchange rate
fluctuations) and actuarial assumptions. These statements may also relate to our prospects, developments, and business strategies. These are
forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as “believe”, “anticipate”,
“intend”, “seek”, “will”, “plan”, “could”, “may”, “expect” and “project” and similar expressions are intended to identify such forward-looking statements
but are not the exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties and, if one or
more of these risks materialise, or should underlying assumptions prove incorrect, actual results may be very different from those anticipated.
Forward-looking statements apply only as of the date on which they are made, and Sanlam does not undertake any obligation to update or revise
any of them, whether as a result of new information, future events or otherwise. Any forward-looking information contained in this document has not
been reviewed and reported on by Sanlam’s external auditors
