Sanlam (SLM) Q1 2025 earnings summary

Executive summary

• Strategic initiatives advanced in Q1 2025, including Assupol integration and completion of the SanlamAllianz partnership structure in April.

• Net result from financial services and cash NRFFS increased by 15% (18% in constant currency) compared to Q1 2024, with operational earnings up 22%.

• Group new business volumes grew by 15%, with life insurance new business and value of new business (VNB) up 4% on a normalised basis.

• ZAR 700 million invested in Indian Asset Management and Wealth business; further regulatory approvals pending for insurance transactions in India.

• Acquisition of 60% of MultiChoice insurance business and increased stakes in Shriram Wealth and Shriram Asset Management in India.

Financial highlights

• Net results from financial services and cash net results grew 15% year-over-year, with robust performance across all operational areas.

• Discretionary capital balance increased to ZAR 4.7 billion at 31 March 2025, up from ZAR 4.1 billion at 31 December 2024.

• Pro forma discretionary capital at 14 May 2025 is ZAR 9.7 billion, with ZAR 5 billion ring-fenced for Shriram Insurance transactions.

• Group net client cash flows more than doubled to over ZAR 20 billion, with strong contributions across all regions.

• General insurance net earned premiums grew by 13%, with Santam and Asia (notably India) showing strong growth.

Outlook and guidance

• Geopolitical tensions, tariff wars, and economic uncertainties make providing guidance for the rest of 2025 extremely challenging.

• The group remains resilient and robust from a solvency and liquidity perspective under all analyzed scenarios.

• Previous guidance of 6%-16% normalized earnings growth for FY2025 remains the target, but management highlights increased uncertainty.

• Volatile equity markets, currency fluctuations, and long bond yields are key variables impacting results.

• Inflationary pressures and supply chain disruptions may increase claims costs and reduce underwriting margins.