Sanlam (SLM) Q2 2025 earnings summary

Executive summary

• Delivered strong financial results for H1 2025, with robust profits and cash generation across all operating businesses, despite challenging economic and currency environments.

• Achieved double-digit growth in key earnings metrics, supported by successful integration of acquisitions such as Assupol and transformative partnerships in Africa and India.

• Sustainability initiatives and ESG improvements, including an MSCI ESG rating upgrade to AAA, are increasingly embedded in operations.

• Consistent value creation demonstrated by a 16% CAGR in NRFFS and adjusted ROGEV consistently above the group hurdle rate.

• Strategic transactions included the completion of the SanlamAllianz JV, Assupol acquisition, and asset management business transfer to Ninety One.

Financial highlights

• Net result from Financial Services per share up 15% year-over-year to 382 cents; net operational earnings per share up 15% to 439 cents.

• Group new business volumes grew 7% to R217.8bn; net client cash inflows reached R48.5bn, more than doubling year-over-year.

• Annualized actual ROGEV at 18.2%, adjusted ROGEV at 15.4%, both above target.

• Discretionary capital at R9.2bn, with solvency cover ratio stable at 170%.

• Return on equity was 19.4%; group equity value increased to R178bn.

Outlook and guidance

• Confident in achieving full-year net result from Financial Services/cash NRFFS between R15bn and R16.5bn, with expectations for stronger H2 sales and value of new business.

• Well positioned for future growth with momentum across all markets and ongoing strategic execution.

• Ongoing integration efforts in Africa and India, with regulatory approvals pending for key transactions.

• Continued focus on technology, distribution, and integration of recent acquisitions to drive growth.

• Ongoing geopolitical and trade tensions pose risks to investment markets, interest rates, and inflation.