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The Sanlam Group this morning reported its results for the year ended 31 December 2011, reflecting sustained delivery in a year characterised by uncertainty and global economic headwinds.
The highlights were as follows:
The Group also declared a dividend of 130 cents per share, up 13% from the previous year.
Said Sanlam Group Chief Executive, Dr Johan van Zyl: “We are pleased with our performance for 2011 and we are determined to continue delivering value to our shareholders despite the challenging operating environment.”
Dr Van Zyl said Sanlam performed well across all the key performance indicators supported by, among others, growth of 9% in new business volumes to R115 billion and strong operating earnings growth of 15% per share. Sanlam Personal Finance (SPF) recorded excellent earnings growth of 18%, while newly established Sanlam Emerging Markets (SEM) and Sanlam Investments grew earnings by 8% and 7% respectively.
Acknowledging Santam’s contribution to Sanlam’s performance, Dr Van Zyl said the favourable underwriting experience of 2010 continued in 2011 and Santam again achieved excellent underwriting results as well as double digit growth of 12% in gross written premium.
Commenting further, Dr Van Zyl said the Group had persistently focused on its strategy, most notably by growing earnings in a sustainable manner and through management of the Group’s capital.
optimal capital utilisation,
costs and efficiencies,
During 2011, Sanlam restructured its South African retail businesses and combined SPF and Sanlam Sky; created SEM, which now includes all of Sanlam’s businesses in Africa (excluding South Africa) and India; and incorporated Sanlam UK into Sanlam Investments. This restructuring will contribute to the creation of a solid base from which to continue to sustain a solid performance over time.
“2011 was as challenging as we had anticipated and the year ahead will not be an easy one either. We are facing many challenges, including global economic uncertainty and a raft of regulatory changes.”
“However, we believe that a continued focus on our strategy coupled with our diversified offering and experienced staff, will enable us to continue withstanding more turmoil while at the same time enabling us to sustain value growth for our shareholders,” Dr Van Zyl concluded.