Sanlam (SLM) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and strategic delivery in 2024, with robust performance and organic growth across all business clusters and core regions, supported by successful integration of acquisitions and partnerships, including Assupol and the SanlamAllianz JV.

• Strategic partnerships, notably with Ubuntu-Botho and Allianz, underpin growth and market leadership in South Africa and Pan-Africa, with the Ubuntu-Botho partnership extended for another 10 years.

• Group equity value grew to R171.8 billion, or 8,123 cents per share, up from R149.9 billion in 2023.

• Dividend per share increased 11% to 445 cents, reflecting strong cash generation and confidence in future prospects.

• Capital allocation and integration initiatives are progressing well, supporting future growth and operational synergies.

Financial highlights

• Net result from financial services (NRFFS) rose 14% to R14.1 billion, with net operational earnings up 24% and attributable earnings up 54% to R22.2 billion.

• Cash net result from financial services per share up 17% year-over-year, with operational earnings per share up 26%.

• Group new business volumes increased 6% to R420 billion; net client cash flows improved 52% to R54.1 billion.

• Life insurance new business volumes (PVNBP) up 3% to R103.2 billion; value of new covered business up 2% to R2.9 billion.

• General insurance NRFFS climbed 40% to R3.0 billion, with Santam's underwriting margin improving to 7.6%.

Outlook and guidance

• Focus for 2025 on consolidating South African leadership, completing integrations, expanding digital and banking services, and implementing key transactions in South Africa, Pan-Africa, and India.

• Targeting 2025 cash NRFFS of R15.0bn–R16.5bn, up from R14.2bn in 2024 (excluding Capitec/reinsurance recapture fee).

• ROGEV and real dividend growth expected to remain above minimum hurdles, with continued strong growth in all business clusters barring major geopolitical disruptions.

• Confident in long-term outlook, driven by consistent performance and strategic execution across three growth engines.