Sanlam (SLM) CMD 2026 summary

Financial outlook and 2030 targets

• 2030 targets remain unchanged: adjusted RoE above 20%, core earnings growth above RSA CPI + 6%, and dividend growth above RSA CPI + 4%; adjusted ROGEV growth above RFR + 4% and solvency of 150%–190%.

• 2026 core earnings guidance is R15.88bn and CPI + 3%; H1 core earnings of R7.377bn delivered 46% of guidance. Adjusted RoE guidance remains above 18%.

• 2030 RoE ambition is to widen the spread over cost of equity to more than 8 percentage points; natural RoE accretion of ~1 percentage point p.a. is expected from 2028.

• 2026–2030 assumptions include RSA CPI of 4%, South African nominal GDP growth of 5%–6%, Pan-African growth of 5%–9% and Indian growth of 8%–10%.

• Volume assumptions to 2030 are broadly in line with or slightly below the prior decade; earnings growth is expected to accelerate through stronger conversion, cost efficiency, operating leverage and a more capital-efficient business mix.

Cash generation and capital allocation

• Cash remittance target is 70%–75% of core earnings in 2026–2030, returning towards 75% by 2030; cash conversion averaged in the mid-70s over the past decade.

• Dividend growth guidance is RSA CPI + 4% in 2026 and above RSA CPI + 4% from 2027, with 1x–1.2x cover; dividends take priority, followed by value-accretive buybacks where appropriate.

• Pan-African cash conversion is expected to rise from low to medium as integration costs and holding-company layers fall; India remittances are expected to rise from low towards low-to-medium by 2030, with stronger cash generation from 2028.

• 2020–2025 capital allocation released R17.9bn, deployed R28.4bn in M&A and returned R51.3bn to shareholders, including R47.1bn in dividends and R4.2bn in buybacks.

• No material acquisition capital is earmarked through 2030 beyond the proposed Santam transaction; priorities are owned-platform investment and returning excess capital.

South African ecosystem and investment business

• GoTyme app soft launch is planned for November 2026, with commercial launch in 2027; the ecosystem combines transactions, credit, rewards, insurance and investments, following banking distribution approval and credit joint-operation launch.

• 2030 targets include 2m–4m banking customers, unsecured credit growth from R6bn in 2025 to R10bn in 2030, and banking-services break-even; GoTyme credit is already profitable.

• Banking investment includes R180m to date and R150m–R200m p.a. through 2030; additional investment includes R100m for credit IT migration and R364m to date in rewards, with R100m–R200m more planned.

• Following Ninety One transactions, R402bn of assets transferred; asset management AuM was R1.3tn and H1 2026 net client cash flow was R37bn. Satrix, Amplify and Sanlam Multi-Manager captured 52% of industry retail flows.

• R560m of stranded costs was removed over 12 months, with remaining costs expected to leave by mid-2027; the private markets business is positioned for significant growth.