Annual results 2019

Quick read

Read the highlights from our 2019 annual results in our quick read summary.

2019 FIGURES

Annual results 2019

12 March 2020

Looking back on the past year we can again be proud of the Group’s accomplishments amid major political and economic headwinds, particularly in South Africa.

Our performance is testimony to Sanlam’s resilience and the quality and scale of our business. Also central to our success is the calibre and commitment of our employees and their ability to execute and deliver value for our stakeholders.

Key indicators

Return on group equity value per share

6,4%
Adjusted RoGEV of 11,9%

Net result from financial services

+ 9%

New business volumes

R249bn
+ 12%


Net value of new covered business (VNB)

R2 280mn
+ 15%

Net VNB margin

2,98%
2,67% in 2018


Economic conditions in a number of the markets where we operate were not conducive to growth. The South African rand experienced significant volatility throughout 2018 and 2019. The Group’s translated rand operating earnings and new business metrics benefited from the weaker average exchange rates. RoGEV was, however, negatively affected by the absolute appreciation year-on-year.

Highlights

The Group’s strategic intent of creating sustainable value for all key stakeholders remains firmly in place, pursued through a strategy focused on four pillars. We continue to execute on all our strategic pillars, underpinned by our federal operating model and diversified profile that support a dual focus on growing our existing operations while concluding transactions to drive future growth.

Highlights for the year include

  • The completion of the 5% B-BBEE share issuance, strengthening Sanlam’s capital base and simultaneously providing Sanlam with leading empowerment credentials in support of future growth.
  • Record net fund inflows into SIG third party asset manager.
  • Value through partnerships: Capitec Bank funeral business policies sold since launch in May 2018 reached 1,4 million.
  • Net value of new business growth of 15%.

Key features

Earnings
  • Net result from financial services increased by 9%
  • Net operational earnings increased by 14%
New business
  • Net value of new covered business up 15% to R2,3 billion
  • Net new covered business margin of 2,98% (2,67% in 2018)
  • New business volumes increased by 12% to R249 billion
  • Net fund inflows of R57 billion compared to R42 billion in 2018
Group Equity Value
  • Group Equity Value per share of R64,36
  • Return on Group Equity Value per share of 6,4% (2018: 11,6%)
  • Adjusted Return on Group Equity Value per share of 11,9% (2018: 19,4%)
Capital management
  • Net R4,5 billion raised through share issuance
  • R593 million surplus unlocked from operations
  • R2 billion invested in Group operations
  • Discretionary capital of R220 million at 31 December 2019
  • Sanlam Group SAM cover ratio of 211% (2018: 215%)
Dividend
  • Dividend per share of 334 cents, up 7,1% (3% real growth)

More information

Results presentation IAS booklet Results press release Interim results 2021 SENS announcement Webcasting video