Sanlam (SLM) Q4 2025 earnings summary

Executive summary

• Delivered strong operational results in 2025, with robust new business growth, a 9% increase in dividend per share, and strategic portfolio repositioning focused on high-growth markets like India and Africa.

• Completed key strategic transactions, including asset management disposals, acquisitions, and the SanlamAllianz JV restructuring, simplifying and strengthening the business.

• Maintained a consistent track record of high-quality growth, with a 14% CAGR in new business and 10% CAGR in dividends over five years.

• Entering 2026 with strong solvency, disciplined capital allocation, and a simplified, resilient platform.

• Vision 2030 strategy targets accelerated growth, stronger cash generation, and further international expansion.

Financial highlights

• Net result from financial services (NRFFS) up 20% on a normalized basis to just below R16 billion; reported NRFFS rose 3%.

• Net operational earnings up 5% year-on-year on a normalized basis, but headline earnings declined 17-18% due to lower investment returns and higher project costs.

• Adjusted return on group equity value (RoGEV) at 15.7%, above the hurdle rate; actual RoGEV at 13.4% due to currency effects.

• Dividend per share increased 9% to 485 cents, with a three-year CAGR of 10.4% and a payout ratio of 1.0x cash earnings.

• Economic solvency ratio at 183%, within the 150%-190% target range.

Outlook and guidance

• 2026 is a structural base year with a new reporting framework aligned to IFRS 17, increasing earnings volatility but maintaining a smooth dividend policy.

• Operating profit growth expected below CPI+6% in 2026 due to ongoing investment and internationalization; long-term targets reaffirmed: earnings > RSA CPI+6%, ROE > 20%, dividend growth > RSA CPI+4% by 2030.

• Margins expected to remain under pressure from product mix shifts and regulatory changes, especially in India.

• Solvency remains strong, positioned at the upper end of the target range.

• Earnings growth expected to accelerate beyond 2026 as investments mature and Vision 2030 strategy is implemented.