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Sanlam Limited audited annual results for the year ended 31 December 2023
Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
("Sanlam", "Sanlam Group" or "the group")
JSE Share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
("Sanlam Life")
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23
Sanlam Limited audited annual results for the year ended 31 December 2023
Key performance indicators
For the 12 months ended 31 December Unit 2023 2022 % change
Earnings Restated
Shareholders' fund information
Net result from financial services(1) R million 12 379 10 473 18%
Cash net result from financial services(2) R million 12 398 10 473 18%
Net operational earnings(1) R million 13 889 11 077 25%
Headline earnings R million 14 467 9 687 49%
Weighted average number of shares million 2 089 2 078 1%
Adjusted weighted number of shares million 2 158 2 210 -2%
Net result from financial services per share cents 574 474 21%
Cash net result from financial services per share cents 574 474 21%
Net operational earnings per share cents 644 501 28%
Headline earnings per share cents 702 473 48%
Diluted headline earnings per share cents 692 466 49%
Dividend per share cents 400 360 11%
International Financial Reporting Standards (IFRS)
information
Basic profit attributable to shareholders' per share cents 703 598 17%
Diluted profit attributable to shareholders' per share cents 693 590 17%
Business volumes
Total new business volumes R million 396 590 335 201 18%
Total net client cash flows R million 35 672 59 975 -41%
Life insurance
New business volumes (PVNBP)(3) R million 100 241 87 814 14%
Value of new covered business R million 2 853 2 388 19%
New covered business margin % 2.85 2.72
Life insurance net client cash flows R million 18 678 21 615 -14%
General insurance
New business volumes R million 47 153 45 250 4%
Net client cash flows R million 16 744 16 384 2%
Investment management
New business volumes R million 274,579 225,139 22%
Net client cash flows R million 250 21 976 -99%
Group equity value
Group equity value R million 149 904 140 776
Group equity value per share cents 7 086 6 380
Return on group equity value per share % 16.7 4.2
Adjusted return on group equity value per share % 19.5 14.9
For the 12 months ended 31 December Unit 2023 2022 % change
Solvency cover
Sanlam Group % 170 169
Sanlam Life Insurance Limited % 245 230
Sanlam Life Insurance Limited covered business % 170 176
Notes
(1) The 2023 earnings and the restated earnings for the comparable period in 2022 are based on the new IFRS 17 accounting standard, after allowing for Sanlam specific
shareholders' fund adjustments.
(2) Cash NRFFS represents NRFFS as adjusted for the reversal of specific non-cash items: amortisation of capitalised IT projects and IFRS 17 specific and other non-cash
adjustments.
(3) Present value of new business premiums
IFRS 17 Insurance Contracts became effective 1 January 2023. Sanlam has restated the 2022
comparatives. The fundamentals of our business, including our strategy, are not changed by the
implementation of the standard. Our key financial performance focus remains on value creation, as
measured by return on group equity value (RoGEV), and dividend growth. Free cash flow generation
for dividend purposes, Sanlam's overall financial strength and solvency position are not impacted.
In line with past practice, the group will continue to prepare shareholders' fund information in addition
to the IFRS information, including the shareholders' fund income statement, which is a different
presentation form of the IFRS income statement and presents Sanlam's operational and investment
activities in the manner that the Sanlam board assesses the group's performance.
The IFRS numbers (previously IFRS 4 and now IFRS 17) are a base upon which Sanlam specific
shareholders' fund adjustments are made to derive the net result from financial services and the
underlying cash net result from financial services as disclosed. These shareholders' fund adjustments
do not impact headline and attributable earnings or total IFRS profit after tax.
The group achieved record earnings, with net result from financial services and cash net result from
financial services of R12,4 billion, 18% higher than 2022. Performance was broad based, with the life
insurance portfolio growing by 19%, general insurance increasing by 21%, investment management rising
by 14% and credit and structuring 29% higher. Growth was driven by strong life insurance risk experience,
higher investment market levels and overall book growth supporting asset-based revenue in life and
investment management, improved performance from the credit portfolio backing life insurance liabilities,
and strong performance from our credit business in India.
Net result from financial services and cash net result from financial services on a per share basis,
increased by 21%, lifted by a reduction in share count from share repurchases in 2022 and 2023, and
the consolidation of the B-BBEE SPV in the shareholders' fund following acquisition of the senior ranking
preference shares effective 30 June 2023.
Net operational earnings of R13,9 billion increased by 25% (28% higher on a per share basis). The higher
growth relative to net result from financial services is due to higher investment return of R2,1 billion (2022:
R1,1 billion) that benefited from the recovery in investment markets over the period, which also supported
the growth in headline earnings.
Attributable earnings increased by 18% to R14,5 billion from R12,3 billion in 2022, due to strong
operational performance, partly dampened by lower accounting profit on disposal of operations.
Total new business volumes were again strong in 2023, at just under R400 billion. Growth was
underpinned by the life insurance and investment management operations. Life insurance new business
volumes were solid in South Africa, driven by retail and corporate single premiums, with satisfactory
growth in recurring premiums. India did very well on both recurring and single premiums. Investment
management new business volumes benefited from good growth in the South Africa, supported by the
inclusion of the Absa asset management business, and improved volumes in the Pan-Africa operations.
Sales mix shifts towards higher-margin products, resulted in improved value of new business and
margins. Net value of new covered business (VNB) increased by 19% and was 16% higher on a constant
economic basis, with a net new business margin of 2.85%.
The established asset gathering ability of the group ensured that despite the continued challenging
consumer environment, that resulted in more clients accessing their savings, net client cash flows
remained robust at R36 billion, with all lines of business recording positive net flows.
Group equity value (GEV) per share was R70,86 on 31 December 2023. RoGEV and adjusted RoGEV
per share was 16,7% and 19,5% respectively for 2023, ahead of the hurdle rate of 15,5%. Positive
contributors to the RoGEV came from value of new business, risk experience, working capital and credit
spread experience in the life insurance operations, and in the non-life operations, a strong contribution
from our credit business in India, the realisation of synergy benefits from the Absa asset management
integration and an improved contribution from Santam.
Shareholders are advised that a final gross cash dividend of 400 cents per share was declared for the
year ended 31 December 2023, an increase of 11% on the prior year dividend. The dividend is payable
on Monday, 8 April 2024 by way of electronic bank transfers to ordinary shareholders recorded in the
register of Sanlam at close of business on Friday, 5 April 2024. The last date to trade to qualify for this
dividend will be Tuesday, 2 April 2024, and Sanlam shares will trade ex-dividend from Wednesday, 3
April 2024. Share certificates may not be dematerialised or rematerialised between Wednesday, 3 April
2024 and Friday, 5 April 2024, both days included. Shareholders who have not yet provided their banking
details for dividend payments are requested to do so by contacting Sanlam's transfer secretary,
Computershare, at 0861 100 913 or +27 (0)11 370 5000.
The South African dividend withholding tax regime applies in respect of this dividend. The dividend in full
will be subject to the 20% withholding tax, where applicable, which results in a net dividend, to the
shareholders who are not exempt from paying dividend tax, of 320 cents per share. The number of
ordinary shares in issue in the company's share capital as at the date of the declaration is 2,060,609,562
excluding treasury shares of 142,306,438. The company's tax reference number is 9536/346/84/5.
Changes to the board of Sanlam and Sanlam Life
Shareholders and noteholders are advised of the appointment of Mr Temba Mvusi as independent non-
executive director to the board of Sanlam and Sanlam Life effective 7 March 2024, and chair of the board
from 1 April 2024. Mr Mvusi will succeed current chair of the board, Mr Elias Masilela, who will step down
as chair of the board on 31 March 2024. Mr Masilela will remain as an independent non-executive director
of the board.
The board welcomes Mr Mvusi and expresses appreciation to Mr Masilela for his leadership over the past
four years and look forward to his continued contribution.
This short-form results announcement is the responsibility of the Sanlam board of directors and is a
summary of the information contained in the long form summarised financial results which can be found
at:
https://senspdf.jse.co.za/documents/2024/jse/isse/slm/fy23.pdf
Further commentary is also available on the Sanlam website at http://sanl.am/2023AR.
The audited consolidated annual financial statements, including restated comparatives for the year ended
31 December 2022 where applicable, have been independently audited by the group's joint auditors,
PwC Inc. and KPMG Inc. Their audit report containing an unqualified opinion, along with the full audited
consolidated annual financial statements are available for inspection at the company's registered office
and also available on Sanlam's website at http://sanl.am/2023AFS.
Copies of the full audited consolidated annual financial statements are available for inspection at, or may
be requested from the Company Secretary: Sanlam's registered office and the offices of its sponsor
during office hours, at no charge. Any investment decision should be based on a consideration of the full
audited consolidated annual financial statements.
SANLAM LIMITED
Registered office: 2 Strand Road, Bellville, 7530, South Africa
Sanlam Investor Relations
Tel: +27 21 947 8455
E-mail: ir@sanlam.co.za
JSE SPONSOR
Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited
Debt Sponsor to Sanlam Life Insurance Limited
Rand Merchant Bank, a division of FirstRand Bank Limited
7 March 2024
Date: 07-03-2024 12:07:00
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