Sanlam, Africa’s biggest insurer reported record 2023 earnings, powered by acquisitions, India and new business growth in its South African market.
The Cape Town-based insurer said headline earnings per share advanced 48 percent as the life insurance portfolio grew 19 percent, general insurance jumped 21 percent and a 14 percent jump in investment management earnings after the acquisition of ABSA Group’s asset management unit.
“This set of results reflects our focus over the past three years on improving the performance of existing operations, while investing in the group’s long‑term growth path,’’ CEO Paul Hanratty said in a statement. “We remain optimistic about future growth and performance, with the group being well positioned to serve our customers across all our operations.”
Sanlam is benefitting from a diversification drive that has seen it expand its presence to North Africa through the acquisition of Saham, the purchase of banking group ABSA Group’s asset management unit and the creation of SanlamAllianz, with a presence in 27 countries. Last month, the company said it agreed to buy Assupol, a 110-year-old insurer based in Pretoria.
Hanratty said the general insurance division was one of the star performers in 2023, driven by the Sanlam Allianz joint venture, lifting earnings up by 25 percent. The company’s Indian operation also starred, he said, praising what he called the country’s “well-managed entrepreneurial economy.’’ ABSA’s former asset management unit had also been integrated faster than expected, he said.
Despite the challenging economic environment in South Africa and across the continent, Hanratty said Sanlam was thriving as people prioritized savings and investments. While the African countries continued to fiscal constraints and volatility in its currencies, opportunities for growth remain, he said. “India, of course, also shooting the lights out, growing and highly profitable. We think it will continue to run hard,’’ Hanratty told CNBC Africa. “So we’re very excited about what’s happening. And despite our consumers being under pressure across the African continent, I think the fact that we managed to grow our new business is really great.’’
India’s economy grew 8.4 percent in last quarter of 2023, faster than analysts’ estimates, buoyed by strong private consumption and upbeat manufacturing and construction activity. Reuters estimates had forecast growth in the October to December period at 6.6%.
