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 strong operational momentum and robust performance across all business lines.

• Net operational earnings rose by 22% (26% in constant currency) year-over-year.

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

• Group solvency cover ratio remained strong and within target range.

Financial highlights

• Net results from financial services and cash net results grew 15% year-over-year, with strong contributions from general insurance, investment, and credit lines.

• Discretionary capital balance increased to ZAR 4.7 billion at quarter-end, and pro forma balance reached ZAR 9.7 billion after recent transactions.

• Group net client cash flows more than doubled to over ZAR 20 billion, with substantial contributions across all regions and lines of business.

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

• Investment management new business volumes were 21% higher year-over-year.

Outlook and guidance

• Guidance for FY2025 remains highly uncertain due to geopolitical tensions, tariff wars, and economic volatility.

• Previous guidance of 6%-16% normalized earnings growth is maintained, but management emphasizes increased uncertainty and difficulty in forecasting.

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

• A potential US recession could negatively affect global and regional economic growth, new business, and persistency.

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