Sanlam Achieves Record Earnings, Foresees Long-Term Growth Amid Short-Term Challenges

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Sanlam, Africa’s largest insurer, has announced record earnings, expressing optimism despite short-term economic challenges. In its financial results for the year ended December 31, 2023, Sanlam reported a cash net result from financial services of R12.4 billion, marking an 18% increase from 2022. The growth was propelled by strong performance across various portfolios, including life insurance, general insurance, investment management, and credit.

The group’s headline earnings per share surged by 48%, reaching 702 cents in FY23 compared to 473 cents in FY22. Additionally, Sanlam increased its dividend by 11% to 400 cents per share.

While geopolitical conflicts pose risks to investment markets, interest rates, and inflation, Sanlam remains positive about its prospects in 2024. The group acknowledges persistent challenges in the retail mass market due to economic conditions. Still, it is implementing measures to stabilize and ensure sustainable long-term growth the termination of the funeral deal with Capitec in October 2024, Sanlam’s proposed R6.5 billion purchase of Assupol, and other strategic activities are expected to mitigate the impact on new business value.

Sanlam maintains a positive outlook on the medium to long-term prospects for African countries, anticipating economic challenges to reverse over time with income growth. Similarly, the group is optimistic about its Indian operations’ medium to long-term prospects.