Sanlam reports strong operational performance amid geopolitical tensions
Financial services
Sanlam, South Africa-based financial services groups operating in 31 emerging markets, said it had performed strongly in the first quarter of its financial year to end-March, and had substantially bolstered its discretionary capital.
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Sanlam on Thursday announced a strong start in its operational update for the three months to March 31, 2025, in a period marked by escalating geopolitical tensions and shifting economic policies.
Earnings, excluding investment return on shareholder funds, for South Africa’s biggest non-banking financial services group increased 15%, while operational earnings, including these investment returns, increased by 22%. New business volumes were up by 15%.
“While we are pleased with the performance across all business lines, we are concerned about more serious and long-ranging impacts arising from the tariff policies. It is too early to provide any meaningful update to our earnings considering the uncertainties regarding the impacts of the tariff disputes,” CEO Paul Hanratty said in the quarterly update.
The general insurance, investment management, and credit and structuring lines of businesses performed well, the directors said in the update.
General insurance premium growth and flows into investment management were strong, with more muted growth in the life insurance business, following strong growth in recent years.
The group discretionary capital balance increased to R4.7 billion on March 31, 2025, and by May 14 stood at R9.7bn, creating a strong position in the uncertain environment.
Progress was made on Assupol’s integration, particularly the consolidation of the Assupol adviser force into the Sanlam adviser force, as well as the consolidation of the support functions.
Santam completed the transaction to acquire the DStv insurance business from Sanlam Life for R925m, effective on May 2, 2025.
On April 2, Allianz Europe acquired an additional interest in SanlamAllianz, resulting in a final shareholding split in SanlamAllianz of 51% Sanlam and 49% Allianz.
The group invested R700m in April into the Shriram asset management and wealth businesses in India.
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