Sanlam today announced a strong start in its operational update for the three-months ending 31 March 2025, in a period marked by escalating geopolitical tensions and shifting economic policies.
Performance highlights included:
Earnings, excluding investment return on shareholder funds, increased by 15%
Net operational earnings, including investment returns on shareholder funds, increased by 22%
Group new business volumes increased by 15%
Discretionary capital in excess of R4 billion during times of uncertainty
The group solvency cover ratio remained strong and well within target range.
Strong performance across operations
Growth in earnings was supported by satisfactory performance from all lines of business with the general insurance, investment management and credit and structuring lines of businesses performing particularly well.
There was strong growth in general insurance premiums and flows into investment management, with more muted growth in the life insurance business, following strong growth in recent years.
The group's discretionary capital balance increased to R4,7 billion on 31 March 2025 and at 14 May 2025 was R 9,7 billion. This creates a strong position for the group in the current uncertain environment.
Strategy
The group continues to focus on strategic delivery, making good progress on Assupol’s integration into Sanlam. Management has progressed well in consolidating the Assupol advisor force into the Sanlam advisor force as well as consolidating support functions.
Santam completed the transaction to acquire ordinary shares in NMS Insurance services (SA) Limited, the DSTV insurance business, from Sanlam Life for R925 million, effective on 2 May 2025.
On 7 April 2025, Allianz Europe BV (Allianz) concluded the acquisition of an additional interest in SanlamAllianz, resulting in a final shareholding split in SanlamAllianz of 51% Sanlam and 49% Allianz. This brings to conclusion the SAZ JV transaction to arrive at the final partnership structure in early April.
The group has also invested R700 million in April into the Shriram asset management and wealth businesses in India.
In April 2025, Ninety-One Limited and Plc shareholders approved the resolution for the transaction as announced in the circular on 6 March 2025, wherein Ninety One would become the Sanlam group’s active asset management partner. This transaction remains on track for completion later in the year.
Outlook
At the 2024 annual results Sanlam indicated that geopolitical risks and potential increases to tariffs posed the biggest risk in 2025. Tariff dispute outcomes remain uncertain and hard to analyse. The scale and speed with which tariff changes have been implemented, the frequent changes in negotiations globally and the deepening global rifts, make it difficult to forecast those economic variables that most impact the group’s results with any degree of accuracy.
Sanlam Group CEO Mr Paul Hanratty said, “While we are pleased with the performance across all business lines, we are concerned about more serious and long ranging impacts arising from the tariff policies. It is too early to provide any meaningful update to our earnings considering the uncertainties regarding the impacts of the tariff disputes.”