Sanlam full-year HEPS climbs 37%

Assurance conglomerate Sanlam has impressed investors and analysts alike with its strong financial performance across all lines of business, with new business volumes increasing by 6 per cent driven largely by robust inflows in the South African asset management segment. The group's CEO, Paul Hanratty, credits this success to the stellar performance of all key growth engines within Sanlam, including South Africa, the rest of Africa north of the Limpopo River, and Asia, particularly India. Hanratty expressed his satisfaction with the consistent delivery and positive momentum seen in all these key markets, reflecting the strength and resilience of Sanlam as a leading financial services provider. Moreover, Hanratty shed light on the turnaround efforts being made at Afrocentric, emphasizing the importance of offering high-quality medical aid and health products to the South African consumer market. Despite the initial financial challenges, Sanlam is focused on enhancing the operational fundamentals of Afrocentric and is optimistic about the future prospects of this business segment. Sanlam's strategic partnerships and investments in the financial services sector, such as its stake in the portfolio of ARK, have positioned the company for further growth opportunities. The CEO mentioned ongoing efforts to leverage these assets, particularly through developing a relationship with Time Bank and exploring innovative service options in collaboration with New Bank. These initiatives are expected to expand Sanlam's product offerings and enhance its market presence in the coming months. Looking ahead, Sanlam has its sights set on scaling operations in key African markets like Kenya, Nigeria, and Ghana, where there is significant room for growth given the favorable economic conditions and low market penetration rates. With a robust presence in eight of the continent's top ten economies, Sanlam remains vigilant for strategic opportunities to strengthen its market position and achieve sustainable growth in these regions. On the local front, Hanratty discussed the positive trends observed in the South African market post the May elections and government announcements, noting the uptick in economic growth forecasts. However, he also highlighted the interconnectedness of global economic factors, particularly developments in the U.S., that could impact inflation and interest rates in South Africa, underscoring the need for vigilance in a volatile market environment. In contrast, Hanratty expressed optimism about Sanlam's prospects in India, where the company has a longstanding partnership and a niche focus on serving rural and peri-urban segments. With low penetration rates and strong economic growth in India, coupled with the company's unique market positioning, Sanlam sees significant growth potential in the Indian insurance sector. As part of its strategic priorities for 2025, Sanlam is actively working towards solidifying its leading position in South Africa, completing the 91 Sanlam Alliance, and advancing transactions in India. The recent progress in contracting detailed agreements with 91 signals significant milestones in these strategic initiatives, with timelines set for the completion of these transactions over the course of the year. In conclusion, under the leadership of CEO Paul Hanratty, Sanlam continues to navigate a dynamic and evolving financial landscape with a focus on sustainable growth, strategic partnerships, and operational excellence. The company's strong performance, coupled with its forward-looking growth strategy, reaffirms Sanlam's position as a leading player in the global financial services industry.