Sanlam profit takes a dive, but final dividend hiked by 7%

Sanlam’s headline earnings fell by 18% to R7.5 billion for the year to end-December due in part to currency losses in its African businesses and a depressed local market.

The value of Sanlam’s new business grew by 12%, while net inflows into its funds grew by 37% to R56.8 billion.

However, while Sanlam Investment Group – which also manages assets for external clients, including other pension funds – saw record net fund inflows from these clients, fund inflows into its South African wealth and investment management businesses disappointed.

And while Sanlam has now sold 1.4 million funeral policies as part of a partnership with Capitec since 2018, the group has seen pressure on its investment and financial planning arm Glacier and sales of its products to middle-income clients.

Santam also dragged on its results. Sanlam, which owns a controlling stake in Santam, says Santam’s 2018 “favourable claims experience did not persist in the first half of 2019". Last week, Santam reported a surge in claims, which hit its earnings.

READ | It's part of our business, says Santam as claims soar

Sanlam's UK wealth and advice businesses saw pressure on advice fees and one-off costs.

The group saw a “stellar performance” from its businesses in India, with strong growth at Shriram General Insurance. But its Morocco-based insurer Saham was hit by increased claims in its Africa businesses and a deterioration in the Lebanese economy. Currency depreciation in Angola added to pressure.

Sanlam declared a final cash dividend of 334c per share - 7% higher than in the previous year.