Financial highlights

The Group performed well across the key metrics it uses to measure performance.

Highlights included:

• Adjusted return on group equity value (RoGEV), the key metric the Group uses for creating value for shareholders, was 10.7% for the six-month period, above the six-month hurdle rate of 7.5%.
  
  ​​​The improved performance relative to 2023 was underpinned by robust new business and positive risk, working capital, and credit spread experience in the life insurance operations. In the non-life operations, results buoyed due to positive performance from the Indian credit business (Shriram Finance Limited), strong operating results from Santam, and cost efficiencies in the South African asset management operations.
• Life insurance and health operations grew NRFFS by 14%, new business volumes by 14%, and value of new business by 10%
• General insurance reported a 16% rise in NRFFS, highlighted by a particularly robust performance from Santam, where effective management actions and lower attritional losses offset the impact of continued adverse weather-related claims
• Investment management’s performance was satisfactory with 10% growth in NRFFS and net client cash inflows of R4.1 billion for the six-month period
• Credit and structuring operations recorded growth in NRFFS of 9%

The Group's discretionary capital balance rose to R3.8 billion at 30 June 2024, up from R2.7 billion at the end of December 2023.

Sanlam Group Chief Executive Officer, Mr Paul Hanratty, said: “The strategic choice to concentrate our efforts on fortifying our South Africa operations through leveraging our substantial scale and competitive edge, alongside focusing on Pan-Africa and Asia where we already have robust market positions in rapidly growing economies, continues to position our business favourably for long-term growth and value creation for all stakeholders.”

Outlook

Sanlam is prepared for the implementation of the two-pot retirement fund legislation in South Africa, allowing members access to a small portion of their retirement fund savings, for emergency purposes, before retirement. The Group expects a modest outflow of assets from retirement funds in the short term but for improved asset accumulation in the long term through increased preservation.

With strong momentum and continued investment in the business, the Group has confidence regarding overall performance for the remainder of 2024.

“We remain mindful about the risks posed by global geopolitics and the risks of a global recession as the global economy brings inflation under control. The Group’s balance sheet is strong and able to withstand macro shocks. Our earnings are also sensitive to significant moves in global investment market levels,” concluded Mr Hanratty.