You often hear the words “once-in-a-lifetime” thrown around. However, Sanlam was on the money when it noted that its numbers are finally “back on track” after a series of one-in-100-year events between 2020 to 2022.

The financial services giant saw net operational earnings soar by 64% for the six months to June. Strong investment markets and a weakening of the rand relative to the main valuation currencies in the non-South African operations also contributed to the higher returns.

During the period under review, Sanlam bedded down several acquisitions including:

• A 60% stake in AfroCentric, a health insurance provider.
• A stake in Capital Legacy, which provides wills and estate planning services in the South African market.
• A buyout of the remaining shareholding in innovative insurer, BrightRock.
• A R35-billion joint venture with Germany’s Allianz to form SanlamAllianz.

On the back of all these transactions and share repurchases, the Sanlam kitty has reduced, with discretionary capital falling from R5.3-billion at the end of 2022 to R3.2-billion by the end of June. However, the market seems to approve, with the share price having jumped 25% from R54.66 last September to close at R68.42 on Wednesday this week. 

Chief executive Paul Hanratty says management is positive about the medium- to long-run prospects for the African countries where we operate, with the short-term economic challenges set to reverse over time and the continent likely to achieve good income growth. DM