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Johannesburg - Sanlam [JSE: SLM] said on Wednesday that for the four months ended April 2103‚ its new business volumes were up 30% at R49bn.
Releasing an operational update‚ it said Personal Finance recorded a 28% increase in new business sales.
Commenting on the results, Sanlam Group Chief Executive, Dr Johan van Zyl, said consistent focus on the diversification strategy supported the Group to absorb the relatively weak investment market performance in South Africa over the period as well as a challenging claims environment experienced by Santam.
Middle income volumes increased by some 18%‚ attributable to strong growth in single premium business‚ and affluent market sales by more than 30%.
Emerging Markets results were impacted by the volatility of single premium business‚ in particular the Namibian investment business‚ which contributed to 12% lower new business volumes in 2013.
New life recurring premium sales remained strong and increased by some 26%‚ supported by all operations.
The Investments cluster increased its new business volumes by 48%‚ with Wealth Management‚ Investment Services and International operations achieving strong growth.
Net business flows of R3.6bn (excluding white label) were significantly up on the R1.4bn achieved in 2012‚ despite withdrawals of R4bn by two institutional clients as part of the restructuring of their portfolios.
Net value of new life business increased by 27% reflecting the strong growth in new life insurance business but also the benefit of a lower risk discount rate in 2013.
Net fund inflows (excluding white label) of R9.4bn were achieved compared to R7.6bn in the comparable 4-month period in 2012‚ it said.
All business clusters apart from Santam reported strong earnings growth.
The increase in operating profit is in general supported by a relatively higher level of assets under management as well as a maiden contribution from the increased investment in the Shriram Group made in 2012. Excluding the latter‚ the net result from financial services increased by 22%.
Santam experienced a continuing high level of claims frequency and severity in its traditional intermediated business. This was aggravated by flood related claims and an increase in commercial fire claims‚ as well as significant hail and drought claims in its agriculture business‚ causing a substantially lower insurance result relative to the same period in 2012.
Normalised headline earnings per share increased by 23%.
Looking ahead‚ it said it does not anticipate any material improvement in the economic environment for the remainder of the year. General operating conditions are therefore expected to remain challenging with a resulting impact on the group’s key operational performance indicators.
At 13:55 on the JSE‚ the company’s share price was up 38c at R47.58.
Releasing an operational update‚ it said Personal Finance recorded a 28% increase in new business sales.
Commenting on the results, Sanlam Group Chief Executive, Dr Johan van Zyl, said consistent focus on the diversification strategy supported the Group to absorb the relatively weak investment market performance in South Africa over the period as well as a challenging claims environment experienced by Santam.
“We are satisfied with our performance and will continue to implement our strategy which we believe has delivered value for our shareholders,” Van Zyl said.
Entry level new business in South Africa increased by 28%‚ supported by a more than doubling in group life business as well as good growth in agency channel individual life sales.Middle income volumes increased by some 18%‚ attributable to strong growth in single premium business‚ and affluent market sales by more than 30%.
Emerging Markets results were impacted by the volatility of single premium business‚ in particular the Namibian investment business‚ which contributed to 12% lower new business volumes in 2013.
New life recurring premium sales remained strong and increased by some 26%‚ supported by all operations.
The Investments cluster increased its new business volumes by 48%‚ with Wealth Management‚ Investment Services and International operations achieving strong growth.
Net business flows of R3.6bn (excluding white label) were significantly up on the R1.4bn achieved in 2012‚ despite withdrawals of R4bn by two institutional clients as part of the restructuring of their portfolios.
Net value of new life business increased by 27% reflecting the strong growth in new life insurance business but also the benefit of a lower risk discount rate in 2013.
Net fund inflows (excluding white label) of R9.4bn were achieved compared to R7.6bn in the comparable 4-month period in 2012‚ it said.
All business clusters apart from Santam reported strong earnings growth.
The increase in operating profit is in general supported by a relatively higher level of assets under management as well as a maiden contribution from the increased investment in the Shriram Group made in 2012. Excluding the latter‚ the net result from financial services increased by 22%.
Santam experienced a continuing high level of claims frequency and severity in its traditional intermediated business. This was aggravated by flood related claims and an increase in commercial fire claims‚ as well as significant hail and drought claims in its agriculture business‚ causing a substantially lower insurance result relative to the same period in 2012.
Normalised headline earnings per share increased by 23%.
Looking ahead‚ it said it does not anticipate any material improvement in the economic environment for the remainder of the year. General operating conditions are therefore expected to remain challenging with a resulting impact on the group’s key operational performance indicators.
At 13:55 on the JSE‚ the company’s share price was up 38c at R47.58.
