Sanlam achieves solid performance amid persistently challenging economic conditions

Highlights

· Total new business volumes up 16% compared to the same period in 2011
· Net operating profit up 10% on the same period in 2011
· Normalised HEPS 19% up on the same period in 2011

In an operational update released today, the Sanlam Group says it has achieved solid operational results for the 10 months to 31 October 2012. This was boosted by relatively strong South African equity and bond markets, despite economic conditions that remain challenging in most of the countries where the company operates.

Says Sanlam Group Chief Executive, Dr Johan van Zyl: “We are pleased with the sustained operational performance across the business and we believe our resilience and continued focus on our strategy will see us through these challenging economic times.”

Sanlam Personal Finance increased new business sales by 16% and performed well in middle income and affluent market segments. Sanlam Emerging Markets also achieved strong new business growth, with the Rest of Africa businesses, in particular, recording aggregate growth in excess of 50%. The Investment cluster grew new business by some 16%, supported by a similar level of growth in both Employee Benefits and the investment management operations. Santam had some exposure to recent hail and flooding events which impacted adversely on its reported underwriting results.

The Group also announced that its operations remained well capitalised. Sanlam Life Insurance Limited’s statutory capital covered its Capital Adequacy Requirements by 4.2 times on 30 September 2012.

Sanlam’s discretionary capital balance amounts to some R3 billion, net of capital earmarked for the recently announced potential acquisition in Malaysia. The Group continues to investigate opportunities through which it could utilise a substantial portion of the available discretionary capital.