Sanlam (SLM) Q2 2026 earnings summary

Executive summary

• Strong organic growth in new business volumes (up 22%) and net client cash flows (up 42% to R78 billion), with core earnings up 1% to R7.4 billion, despite severe weather-related claims and currency volatility impacting translated earnings.

• Strategic progress included increased stakes in Indian insurance operations, completion of the Ninety One asset management transaction, and launch of new retail credit and banking initiatives in South Africa.

• Robust capital and solvency positions maintained, with discretionary capital at R2.3 billion and a group solvency ratio of 177% within target range.

• Value creation driven by profitable new business, asset management growth, and increased Shriram Finance stake.

Financial highlights

• Core earnings grew 1% to R7.4 billion; life and health up 9%, investment management up 48%, credit and structuring up 6%.

• Adjusted headline earnings fell 22% due to lower shareholder investment returns; operating profit down 2% year-over-year.

• Adjusted ROE was 18.4% (above 5-year average); adjusted ROGEV was 15.5% annualised.

• New business volumes up 22% to R224 billion; net client cash flow reached R78 billion (+42%).

• Solvency and discretionary capital remain within target ranges, supported by R2.4 billion new subordinated debt.

Outlook and guidance

• Full-year guidance maintained, with earnings growth expected below medium-term targets due to deliberate investment in growth, start-up losses in Santam Syndicate 1918, weaker investment returns, and weather-related claims.

• Dividend outlook unchanged, supported by improved cash conversion and working capital management.

• Priorities include cost control, margin recovery, improved cash conversion, and disciplined execution as investments mature.

• Management remains cautious of macroeconomic, market, and weather-related risks.