Sanlam (SLM) CMD 2025 summary

Strategic vision and growth plans

• Focus on quality and accelerated growth through five vectors: India, Lloyd's market, Pan-African expansion, South African ecosystem, and asset management transformation, leveraging digital and ecosystem models for value creation.

• Partnerships in India (Shriram), Africa (Allianz), and South Africa (TymeBank) are central to the strategy, with emphasis on compounding, conservatism, and commitment for sustainable value creation.

• No changes to group structure, management, or prudent risk management; capital allocation and dividend policy remain unchanged.

• Management incentives now align with targets for ROE, ROGEV, and dividend growth, with higher hurdles for new share awards.

• Capital allocation prioritizes businesses and geographies with sustainable competitive advantage and strong, scalable cash generation.

Financial guidance and targets

• Ambitious 2030 targets: real earnings growth above 6% per annum, real dividend growth above 4% per annum, return on equity above 20%, and economic solvency ratio between 150%-190%.

• Dividend growth target increased to a minimum of 4% real per annum, reflecting higher growth expectations outside South Africa but lower cash conversion due to capital intensity.

• Introduction of economic solvency as a key metric, aligning with global peers, and a new sustainability index to be published.

• Enhanced financial reporting: shift to IFRS 17/9, streamlined disclosures, and a balanced scorecard with six key performance indicators.

• Group economic solvency ratio is robust, with a target range of 150%-190% and strong sensitivity to market shocks.

Business developments and regional strategies

• India: Deepening Shriram partnership, leveraging digital platforms and rural reach, targeting >RSA CPI+10% operating profit growth and 15-20% ROE between 2025-2030.

• Lloyd's market: Launching Syndicate 1918 to drive international specialty insurance growth, targeting GBP 300-400 million GWP by 2026 and >20% of GWP from international business by 2030.

• Africa: SanlamAllianz joint venture present in 26 countries, aiming to double profits by 2030, grow life and general insurance volumes 12-15% annually, and maintain insurance margins of 10-15%.

• South Africa: Building an integrated ecosystem with TymeBank, focusing on digital transformation, multi-channel distribution, and leveraging a large advisor network for growth and relevance among younger, urban consumers.

• Asset management: Transition to a solutions-led model, divestment of active management to Ninety One, focus on multi-management, indexation, alternatives, private wealth, and strong net client cash flows.