South Africa’s biggest insurer on a winning streak

Sanlam is expected to post another set of strong results for its 2024 financial year, in which the insurer has aggressively expanded its footprint through an acquisition spree.

In a trading update released on Thursday, 27 February 2025, Sanlam outlined its earnings expectations for the year through December 2024.

The insurer expects its earnings per share to grow by as much as 55%, while headline earnings are projected to increase by up to 40%.

The company’s net result from financial services (NRFFS) is expected to grow by between 20% and 30%.

Sanlam attributed this growth to excellent underlying organic growth, with all lines of its business recording a strong performance for the 2024 financial year.

It added that NRFFS and cash NRFFS growth were further enhanced by a one-off reinsurance recapture fee following the conclusion of a funeral insurance joint venture between Sanlam and Capitec.

In addition, higher investment returns on Sanlam’s shareholder capital portfolio in 2024, coupled with reduced project expenses, supported the expected percentage increase in net operational earnings.

The rise in earnings per share is attributed to strong operating results, which were bolstered by higher gains from the disposal of subsidiaries and associates.

A lower adjusted weighted average number of shares also positively impacted Sanlam’s NRFFS, cash NRFFS, and net operational earnings per share.

These positive results come after Sanlam embarked on an acquisition spree in the 2023 and 2024 financial year, whereby the insurer has aggressively expanded its footprint through strategic acquisitions and partnerships.

Some notable deals over the past two years include –

• Sanlam-Allianz Joint Venture – A major deal where Sanlam merged its African operations with Germany’s Allianz to create the largest pan-African insurer, covering over 30 countries.
• Acquisition of AfroCentric – Sanlam acquired a controlling stake in AfroCentric Group, a healthcare-focused financial services company, to strengthen its presence in the health insurance sector.
• Assupol acquisition – Sanlam Life’s acquired Assupol Holdings in a R6.5 billion transaction
• MultiChoice deal – Sanlam Life acquired a 60% stake in MultiChoice’s insurance business, NMS Insurance Services.
• Ninety One partnership – Ninety One and Sanlam entered into a 15-year partnership whereby Sanlam will appoint Ninety One as its primary active investment manager for its local and global products.
• Indian expansion – Sanlam announced plans to build out its partnership with Shriram Capital Group to expand its influence in India

This strategy seems to have served Sanlam well, as the insurer continues to report strong earnings growth and solid overall results.

Sanlam’s 2024 results will be released on Thursday, 6 March 2025.