Sanlam (SLM) Q3 2025 earnings summary

Executive summary

• Maintained strong operational momentum with double-digit growth in key earnings and new business metrics for the nine months ended 30 September 2025, despite challenging macroeconomic and geopolitical conditions.

• Net results from financial services increased 19% year-over-year on a normalized basis, with net operational earnings up 16% normalized.

• Transitioned to a new IFRS 17-aligned reporting framework, with operating profit as a new KPI, introducing more volatility but enhancing transparency.

• Strategic initiatives progressed well, notably the integration of overlapping countries in the Sanlam Alliance JV and Assupol, with most integrations completed and further closures expected by year-end.

Financial highlights

• Net result from financial services grew 19% year-over-year on a normalized basis, and group new business volumes rose 13% normalized.

• Normalized operating profit (excluding one-offs and investment variances) increased by 18% year-over-year.

• Reported operating profit decreased by 3% for the nine months compared to 2024, while adjusted headline earnings decreased 6% (up 4% normalized).

• Group net client cash inflows surged 87% to just under ZAR 75 billion, with strong contributions across all regions and business lines.

• Discretionary capital decreased from ZAR 9.2 billion to ZAR 8.6 billion, mainly to support Pan-African portfolio credit ratings.

Outlook and guidance

• Confident in achieving full-year net result from financial services target of ZAR 15–16.5 billion, reiterating through-the-cycle targets.

• Positive long-term outlook for Africa, supported by demographic trends and recent exits from the FATF grey list in key markets.

• South Africa's economic prospects are improving due to easing inflation, structural reforms, and increased private investment.

• India remains a robust growth vector, with ongoing reforms and resilient domestic demand.

• If long bond yields remain at current levels, expect ongoing pressure on life annuity volumes, while living annuities benefit from strong equity markets.