Sanlam’s FY HEPS up 3%

Sanlam, a leading financial services group, has released its annual results, with shares edging higher in line with the company's forecasts. Despite facing challenges from volatile markets, surging inflation, and the recent flooding in KZN South Africa, Sanlam managed to increase its annual dividend by 8 percent to R3.60 per share. Paul Hanratty, Group CEO at Sanlam, discussed the numbers and the tough year the company has experienced. Hanratty highlighted the impact of the global economic conditions on Sanlam's earnings, particularly from adverse market conditions and inflation pressures. The company also faced challenges in its general insurance business due to weather events, surging inflation, and power outages. However, Hanratty expressed optimism about the company's performance, recognizing the efforts made to adapt to the changing environment by adjusting premiums, cover, and underwriting practices. Despite the ongoing challenges, Sanlam expects to see improvements in its results in the coming year. The company also addressed the decline in new business volumes in the life insurance sector, attributing it to the normalization of investment business volumes post-COVID lockdowns. Looking ahead, Sanlam remains focused on maintaining its position in the market and navigating the uncertainties in emerging markets. While acknowledging the risks in African countries due to rising debt levels, Sanlam sees opportunities for growth in markets like India, which have shown resilience in the face of global economic challenges. The company emphasizes the importance of a diversified portfolio in mitigating risks and stresses the importance of a stable global economic environment for the growth of emerging markets.