Sanlam hits financial services record
Sanlam released its annual results for the year ended 31 December 2022, showing a new historic high for net results from financial services, which exceeded R10 billion for the first time.
Life insurance increased by 25%, credit and structuring operations increased by 19%, and investment management operations increased by 18%.
The group said that the general insurance net result from financial services declined by 32%, owing to significant claims inflation, poor weather conditions, and market volatility.
Group equity value amounted to R141 billion or 6,380 cents per share on 31 December 2022, with a return on equity of 4.3% for the year.
“We are delighted with the Group’s performance, the strength with which we have emerged from this period of extreme turbulence,” Sanlam CEO Paul Hanratty said.
Sanlam declared a dividend of 360 cents per share. There may be more to come, as Hanrratty said the group had accumulated a small amount of “excess capital”.
“We are also in a position to return a small amount of excess capital to shareholders in due course,” said Hanratty.
“In the absence of any compelling new significant opportunities, we will look to return this small excess capital to shareholders in due course,” he said.
Sanlam is set to acquire majority shareholdings in healthcare investment company AfroCentric and wills and estate specialists Capital Legacy.
They also announced plans for a joint venture with international financial services provider Allianz, although they are still awaiting approval. The group expects implementation by mid-2023.
Transactions for AfroCentric, Capital Legacy and BrightRock are also expected to conclude around this time.
A 2022 transaction between Sanlam and Absa that combines their investment management businesses in South Africa is expected to contribute positively towards earnings, Sanlam said.
Sanlam also announced earlier this month that they acquired 100% of Alexforbes’ individual client administration business, which they expect to contribute to increased earnings.