SPF has performed well in the year to date, but we’ll have to pull out all the stops to defy challenging market conditions.
Sanlam Personal Finance performed well in the first six months of this year, with an increase of 29% in new volumes of recurring-premium business in the middle and affluent market.
This figure is thanks to the BrightRock acquisition, which is fully included for the first time and growing strongly, as well as growth of 18% in the Savings business, says Jurie Strydom, CEO: SPF.
Sanlam Sky achieved excellent results, increasing individual recurring risk business by 23% and obtaining Capitec’s credit life group scheme. The partnership sealed earlier this year with Capitec to offer funeral products to the bank’s 11 million clients is by all indications on course for success, Jurie adds.
Glacier linked investments increased 10%, while inflows from traditional single-premium life investment products remained unchanged compared to the previous year.
Jurie says the increase in linked investments reflects clients’ appetite for market exposure compared to the previous year, particularly following the ANC elective conference in December 2017. ‘One outcome of this is that SPF’s net cash flow has grown 71% compared to last year.’
More results highlights
- SPF’s total new business rose 8%
- Value of new covered business grew by 14%
- Risk new business increased by 63%, largely thanks to the BrightRock acquisition
- Savings new business grew by 18%, mostly through retirement annuities
- Business inflows at Sanlam Personal Loans increased 13%
- Manpower figures were satisfactory.
Difficult for consumers
Although the economy showed positive signs in the first quarter, conditions had become more difficult for consumers by the end of the second quarter, Jurie says.
‘The hike in fuel prices, higher VAT and other increases have had a definite effect on consumers’ disposable income.
‘We’ve also noticed concerns in the market on the back of the current political debate in South Africa, which is leading to investor uncertainty. This underlines the importance of also offering guaranteed-type investments where appropriate.’
Jurie is confident that the business strategy is on track. ‘SPF’s strategic focus areas are clear and we continue to execute on them.
‘Our resilience in tough times comes from our outstanding people and their focus on delivering great service and value to intermediaries and clients. This opens up opportunities to grow market share, even in difficult economic conditions.’
New SPF business initiatives, such as the BrightRock acquisition, Capitec partnership, Glacier Invest, MiWayLife and the Indie digital platform, are on track. ‘Our digital transformation is also creating wonderful opportunities to put us at the forefront of technology in terms of how we do business, analyse and use data, and find new ways to interact with our clients.
‘I want to thank each and every SPF staff member and intermediary for their dedication and hard work,’ Jurie says. ‘I’m constantly reminded how our clients depend most on our advice and support during times of uncertainty. Let’s continue to do these basics well to close our centenary year on a high note.’