Sanlam, South Wales' largest insurance company with a JSE market capitalization of R160 billion, on Thursday reported strong full-year results with double-digit growth in key financial metrics, including an 11% increase in dividends. .
The group announced its firm intention to acquire Pretoria-headquartered niche insurance company Aspor last month and is also expanding into the Indian market, but its net profit from financial services (NRFFS) is a record ¥12.4 billion. It was reported that it became Rand. . This is an 18% increase over the prior financial year and a 21% increase on a per share basis.
advertisement
Continue reading below
For Sanlam, NRFFS is considered an important revenue indicator. The group said in its Sens results statement that the 21% rise in the metric on a per-share basis was “driven by a reduction in the number of shares due to share buybacks in 2022 and 2023, as well as the shareholder consolidation of the B-BBEE SPV. “It has said. “Fund after Senior Preferred Stock Acquisition Effective June 30, 2023.”
read:
Sanlam bids R6.5bn for Aspor
Sanlam forced to bail out failed R8 billion BEE deal
The non-bank financial services giant announced a dividend of 400 cents per share (2022: 360 cents per share).
“The dividend declared does not impede the group's ability to cope with further financial stress and reflects the underlying strength of the business,” the report said.
Other highlights:
- Revenues from the group's life insurance portfolio increased by 19%, general insurance by 21%, investment management by 14% and credit and structuring by 29%.
- New transaction volume remained steady at just under R400 billion, also a new record high, and sales grew steadily in all business areas.
- Total customer net cash flow remained strong despite the challenging consumer environment.
- The Group's solvency position remains strong and well within its target range, with the Group's solvency coverage ratio at 31 December 2023 being 170%.
Sanlam said the company's “outstanding performance demonstrates its strategy execution and vision” following a series of adversities that have hit the global economy since 2020 when the coronavirus outbreak occurred. .
Group CEO Paul Hanratty said: “This set of results reflects our focus over the past three years on improving the performance of our existing businesses, while investing in the group's long-term growth trajectory.” .
He added: “We remain optimistic about our future growth and performance as the Group is well placed to serve our customers across all our businesses.”
Read: Sanlam Bank eyes India to engage SA market
advertisement
Continue reading below
The group's shares fell more than 3% in afternoon trading on Thursday, trading at around R71.96 per share.
Sanlam stock price
Meanwhile, the group also noted that net operating profit increased by 25% to R13.9 billion.
“The higher growth compared to NRFFS is due to higher investment returns of R2.1 billion.” [2022: R1.1 billion] “We benefited from the recovery in the investment market during this period, which also supported overall profit growth.”
Overall, the group's total revenue increased by 49% to just over R14.4 billion. This resulted in a 48% increase in headline earnings per share for the year from 473 cents per share in fiscal 2022 to 702 cents per share in fiscal 2023.
