Sanlam’s cluster businesses showed overall resilience in executing their operational strategies in the 10 months ended 31 October.
Group CEO Ian Kirk commends Sanlam’s performance during its centenary year. ‘It reflects the diligence we’ve applied across our operations and focus to deliver shareholder value under challenging conditions, while executing growth strategies,’ he says.
‘This is testimony to the benefits of our strategy, which we embarked on more than a decade ago. We’ll continue with our strategic execution to ensure we realise further success for the business going forward.’
Here are the key features of the Group’s performance:
- New business volumes of R188 billion were up 3% on the first 10 months of the 2017 financial year with major trends remaining in line with the first-half 2018 performance.
- Net result from financial services increased by 2% on the first 10 months of the 2017 financial year (3% in constant currency and excluding structural activity).
- Normalised headline earnings declined by 10%, attributable to a 55% decline in net investment return. The JSE/FTSE Swix index recorded a negative return of 16% in the first 10 months of 2018, compared to a positive performance of 15% in the comparable period in 2017. The equity hedges in the Sanlam capital portfolios protected the Group from negative investment returns, particularly during October 2018, when the South African equity market experienced a significant decline. The JSE/FTSE Swix Index declined by 6% during the month.
- Diluted headline earnings per share, which include fund transfers recognised in respect of Sanlam shares held in policyholder portfolios, declined by 10%.