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The Group has attributed its sustained performance, despite a challenging local and global operating environment, to the company’s strong commitment to its strategy which has been implemented over the last 10 years.

Its diversification across its businesses and geographies provided significant resilience and enabled the Group to deliver overall satisfactory results for the period.

The Return on Group Equity Value (RoGEV) per share, which is the Group’s primary performance target for measuring shareholder value creation, of 6,9% (annualised 14,3%) was well in excess of the six-month target of 5,3% (annualised 10,8%).

New business volumes increased to R83 billion, up 37% compared to the same period last year with Sanlam Investments (SI) delivering exemplary growth of 58%. Other business clusters also performed well: Sanlam Personal Finance’s (SPF) new business growth of 27% was driven by, among others, product innovation, while Sanlam Emerging Markets (SEM) recorded 20% growth in new life recurring premiums.

Other highlights of the results are as follows:

  • Net result from financial services per share increased by 34%
  • Net result from financial services per share up 23%
  • Normalised diluted headline earnings per share up 35%
  • Net fund inflows of R13 billion

Net operating profit (net result from financial services) per share increased by a healthy 23%, with all businesses contributing to the growth, apart from Santam where the high claims experience of the second half of 2012 persisted into 2013. SEM’s operating profit more than doubled with a strong maiden contribution from acquisitions made in India and Malaysia during the second half of 2012 and 2013.

In India SEM concluded two major investment transactions over this period – an investment of R2,1 billion in Shriram Capital and a direct investment of R1,1 billion in Shriram Transport Finance. SEM also concluded the acquisition of a 49% stake in Pacific & Orient Insurance Co Berhad (P&O), which was effective on 1 May 2013. These investments contributed some R160 million to SEM’s net result from financial services.

Commenting on the interim results, Sanlam Group Chief Executive, Dr Johan van Zyl, said a strong commitment to strategy over the past 10 years as well as the depth of skills and experience within Sanlam had yielded the consistent satisfactory performance over the years.

“We are pleased with these results. It reaffirms our confidence in our strategy and supports our resolve to continuously deliver value to our shareholders. We are also satisfied with the good progress we are making from our investments in emerging markets,” Dr Van Zyl said.

As at 30 June 2013, the Group held discretionary capital of R3,2 billion, a substantial portion of which is earmarked for expansion in Africa, India and South-East Asia. The Group is evaluating a number of possible market opportunities in these regions.

The key strategic initiatives for 2013 are:

  • Focusing on top-line earnings growth as well as operating and cost efficiencies;
  • Improving capital efficiency on an on-going basis;
  • Growing in selected emerging markets; and
  • Continued focus on efficient and effective management of existing South African businesses.

“We will continue to focus on our strategy to sustain growth through the priorities we have identified for this year. I am confident that we have the people and the expertise to execute on these initiatives,” Dr Van Zyl said.

Sanlam Life Insurance is a licensed financial service provider.
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