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In its results for the six months to end-June, Sanlam warned that “slower than expected” progress in solving SA’s challenges has “severely limited” its new business growth prospects.
It highlighted a lack of corporate and foreign investment confidence, weak growth, unemployment, Eskom, and low growth in household disposable income, which are hurting its ability to grow business among its wealthier clients.
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“A recovery in the South African mass affluent and high net worth new business performance is largely dependent on developments in the political environment,” the company said in a statement.
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Still, its new business volumes increased by 4% to R111 billion, while net fund inflows rose to R23 billion. But while its net operating profit of R5 billion increased by 13%, headline earnings declined by 31% to R3.5 billion.
The company sold one million funeral business policies to Capitec customers since May, as part of a deal with the bank.
Sanlam took full control of the Moroccan insurer SAHAM Finances, which does business in 33 African countries, last year, and reports that SAHAM’s gross result from financial services more than doubled. Its Indian business also reported strong growth.
The Group does not expect a major recovery in the South African conditions in the remainder of 2019. “New business growth potential will commensurately remain under pressure.” Outside South Africa, new business growth in other emerging markets is expected to remain strong.
No interim dividend was declared.
