Sanlam’s new business rose 22% to R224 billion in the six months to 30 June, while regulatory approval cleared the way for a phased banking rollout with GoTyme from 2027.
The financial services group said Thursday growth was recorded across its African and Indian markets, supported by strong asset-management and retail flows, as well as contributions from its life and general-insurance businesses.
Net client cash flows increased 64% to R78bn, reflecting stronger customer focus and the competitiveness of Sanlam’s investment-management and life-insurance operations, the financial results showed.
Core earnings rose 1% to R7.4bn. However, the result was partly offset by severe weather-related claims and other large-loss events in South Africa and parts of the rest of Africa.
Adjusted headline earnings declined because shareholder investment returns were lower than in the previous period, reflecting weaker equity and bond-market conditions in Africa and India.
Group CEO Paul Hanratty said Sanlam remained optimistic about its performance for the full financial year.
“Our strong underlying growth reflects the attractiveness of our markets and the deep trust our clients place in Sanlam,” he said. “Despite severe regional weather and global economic headwinds, Sanlam grew core earnings and is optimistic about the outlook for the full 2026 financial year.”
Sanlam received regulatory approval to provide banking services in partnership with GoTyme. A phased rollout is planned from the first quarter of 2027, following beta testing in the second half of 2026.
Hanratty said the group continues to invest in South Africa, the rest of Africa and India. Capital was being deployed in high-growth markets and digital platforms to support long-term earnings.
In India, Sanlam’s Shriram financial-services ecosystem is focused on improving return on equity and generating more cash from its life-insurance, general-insurance and capital-markets businesses.
“Increased exposure to life and general insurance in the first six months positions the group well in the fast-growing and underpenetrated Indian market,” Hanratty said.
The addition of a capital-markets business is expected to support future earnings growth, improve capital efficiency and increase Sanlam’s overall return on equity in India, he said.
Sanlam has also completed the sale of its active asset-management business in South Africa to Ninety One in exchange for a 9% stake in Ninety One.
Hanratty said the transaction would allow management to focus on Sanlam’s fast-growing solutions-based asset-management, wealth and platform businesses.
Regulatory approval for the integration of SanlamAllianz’s Moroccan entities has been obtained, and the merger and regulatory integration were completed in July.
SanlamAllianz declared its first dividend three years after its inception. The directors said the portfolio was well positioned across the continent and that dividend flows to Sanlam were expected to improve as cash moved through the corporate structure.
Santam Syndicate 1918’s entry into the Lloyd’s market was also progressing. The syndicate was building its underwriting depth and operational capability.
It had concluded business with expected gross written premiums of R1.3 billion to date and was expected to deliver strong premium growth during the rest of the year.
Hanratty said the group’s underlying business momentum remained strong, in line with the guidance provided in the 2025 annual results. That guidance assumed that weather-related and large-loss claims would normalise during the second half of the year.
Improved working capital and cash conversion are expected to support dividend capacity and offset investment in future growth platforms, initial start-up losses at Santam Syndicate 1918, weaker shareholder investment returns and weather-related insurance claims.
Earnings growth is expected to strengthen progressively beyond 2026 as growth investments mature and operating leverage improves, said Hanratty.
edward.west@nationalMG.co.za
THE NATIONAL