South African insurance giant is rocking

Sanlam reported another set of strong results, as its 2024 financial year saw the insurance giant grow its profit by 46%.

Sanlam is the largest non-banking financial services group on the African continent and the largest insurer in South Africa.

On 6 March 2025, Sanlam released its results for the year ended 31 December 2024, revealing a strong performance.

The insurer’s result from insurance operations grew by over 26% to R13.08 billion, while its results from other operations increased by nearly 60% to R14 billion.

Overall, net operational earnings reached R17.2 billion, a 24% increase, having benefitted from higher investment returns.

The company’s profit for the year was up 46.1% to R24.84 billion. Basic earnings per share grew by 52% to 1,067.6 cents per share.

The significant growth in earnings is due to gains from proceeds on the sale of Sanlam’s

Namibia operations into the SanlamAllianz joint venture and the partial sale of the company’s direct stake in Shriram Finance.

Sanlam’s net result from financial services (NRFFS) grew to R14.1 billion in the year, up 14% from 2023.

The insurer attributed this increase to strong organic growth, with robust contributions from life insurance, general insurance and investment management, and good underlying performance from credit and structuring.

From a segmental perspective, the company benefited from improved risk experience in life insurance, which recorded robust inflows alongside general insurance.

Sanlam’s strong investment returns in the period were also a major driver of its strong results, as a solid market performance contributed to increased investment income.

Investment income rose to R32.09 billion, up 30% from the previous year.

In addition, higher net client cash flows boosted Sanlam’s income in the period, with increased inflows from investment products and insurance policies contributing to the insurer’s strong performance.

These positive results come after Sanlam embarked on an acquisition spree in the 2023 and 2024 financial year, which saw the insurer aggressively expand 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, in which 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 declared a final gross cash dividend of 445 cents per share, an increase of 11% on the prior year’s dividend.