Sanlam reported 7% growth in new business volumes for the first half of 2025, although life business grew by only 1%.
In the six months to the end of June, Sanlam’s net result from financial services (NRFFS) per share climbed by 15% to 382 cents per share, totalling R8.1 billion, while cash NRFFS per share rose by 14% to 388 cents, or R8.2bn.
Net operational earnings per share increased by 15% to 439 cents, amounting to R9.3bn, supported by enhanced investment returns on shareholder capital.
Attributable earnings per share grew more modestly at 3%, constrained by 2024’s higher investment variances, a non-cash Capitec reinsurance recapture fee recognised later, and profits from subsidiary disposals.
On a normalised basis, NRFFS growth reached 20% (R8.076bn), with general insurance leading at 42% (R1.982bn), followed by life and health at 15% (R4.528bn), and credit and structuring at 18% (R1.18bn). Investment management lagged at 8% (R631 million), hampered by net outflows and shifts to lower-fee products, although the South African asset and wealth management business grew by 14%.
New business volumes and value of new business
General insurance drove the increase in new business, with growth of 15% (R27.146bn). In South Africa, Santam’s conventional insurance business saw net earned premiums grow by 16%.
Life insurance, however, experienced virtually no growth compared with the first half of 2024, increasingly slightly from R51.044bn to R51.213bn on a present value of new business premium (PVNBP) basis.
In South Africa, PVNBP was 2% higher, thanks to good single- and recurring-premium sales in the affluent market, which recorded a 10% increase in PVNBP. Single-premium sales increased by 9%, with international and market-linked annuity products recording increased flows, while life annuity sales reduced because of lower bond yields. Recurring-premium sales benefited from higher endowment and annuity sales. Sanlam said it continues to see market share gains in individual underwritten life policies and good growth in savings products.
South African PVNBP was dampened by weaker single-premium sales in the corporate segment, the cessation of the Capitec joint venture at the end of October 2024, and weaker group business in the retail mass market. However, recurring-premium sales in corporate increased by 5%.
Across the group, the net value of new business (VNB) dropped by 18%, impacted by structural changes: the cessation of the Capitec relationship, the sale of the Namibia business to SanlamAllianz, and a reduction in SanlamAllianz’s shareholding from 59.59% to 51%.
In South Africa, net VNB declined by 21%. Affluent market net VNB decreased by 5% as good contributions from individual life risk, Capital Legacy, and BrightRock were dampened by a lower contribution from Glacier because of lower life annuity sales.
Retail mass VNB declined by 50% after the end of the Capitec joint venture and weaker group business sales. Sanlam expects this to recover in the second half of 2025 as the benefits of the Assupol integration emerge.
Corporate VNB increased by 14% because of stronger sales of higher margin business.
In investment management, new business volumes increased by 7% to R153bn, supported by good growth from South Africa with strong inflows in the retail and institutional multi-management operations, as well as strong retail segment growth. The international operations business inflows were 4% higher than in 2024.
Net client cash flows
Group net client cash inflows more than doubled to R48.5bn, with improved performance across all lines of business.
Life net client cash inflows increased by 48% to R15.6bn. South Africa recorded high double-digit growth in net inflows from improved market-linked annuity and platform sales in the affluent market. The retail mass market benefited from good premium growth and the inclusion of Assupol in the first six months of 2025, while the corporate business recorded a rebound to positive net inflows from lower fund terminations.
In investment management, net inflows increased significantly to R21bn from R4bn in 2024. South Africa recorded R18bn in net inflows from R2.6bn in 2024, driven by asset management and retail operations. Asset management’s net inflows improved in the retail and institutional multi-management and Satrix operations.
The international asset manager recorded a 24% increase in net inflows to R1.1bn. The retail and corporate business grew from R547 million in 2024 to R4.5bn, mainly from strong platform net inflows and improved retention in Glacier.
In general insurance, net client cash flows increased by 29% to R11.9bn relative to 2024. South Africa recorded 46% growth, mainly from double-digit growth in net earned premiums in Santam coupled with lower attritional experience, as well as an absence of weather-related catastrophes.
Operational and strategic developments
Sanlam’s operational efforts in the first half of 2025 focused on integration and expansion.
The group said the integration of Assupol has progressed well, unifying the retail mass segment with employee and agent harmonisation. Agent productivity rose, new business volumes increased, persistency improved, and early expense synergies were realised.
Santam acquired 60% of NMS Insurance Services South Africa Limited for R925 million from Sanlam Life, enhancing its presence in the general insurance market.
In the Pan-Africa operations, SanlamAllianz adjusted to a 51% Sanlam/49% Allianz split after Allianz Europe BV purchased an 8.59% stake for R4.5bn in April 2025.
In Asia, Sanlam increased its stake in Shriram Wealth from 26% to 49.7% and in Shriram Asset Management from 16.3% to 35.5%, investing R700m, with R5bn ringfenced for pending Shriram insurance deals that are awaiting approval.
The group said Shriram’s extensive reach in the Indian finance market, and wide presence in underserved areas, offers Sanlam immense potential to drive insurance growth and financial inclusion.
The UK leg of the Ninety One transaction closed on 16 June 2025, transferring £1.9bn in assets to Ninety One Plc, with the South African leg targeted for later in 2025.
