Sanlam, which reported another year of strong earnings growth on Thursday, is increasingly looking at deals and partnerships to grow its business.

The insurance, life assurer and financial services group said its 2024 financial year results had benefited from good business growth in South Africa, other African countries and in India, with underlying market share growth over a number of years, robust growth in new business, and after investment returns increased from relatively benign markets, said CEO Paul Hanratty.

“Our strategic corporate activity contributed to lifting the 2024 results, and we expect the contribution from this source to further enhance our performance in future periods,” he said.

The dividend was increased by 11% to 445 cents per share for the year.

He said they were optimistic about the outlook for 2025, as all their businesses were enjoying “good momentum” and economic conditions were improving in most markets where it operates.

Operational earnings a share increased 26%, the return on equity was 19.8% - both figures exclude a one-off profit on closure of the Capitec relationship. Group new business volumes increased to R420 billion.

Net cash from financial services increased by 17% per share. Net operational earnings increased by 26% a share, benefiting from higher investment returns on the shareholder capital portfolio, coupled with reduced corporate project expenses.

During the year, Sanlam deepened its partnership with its major shareholder Ubuntu‑Botho in 2024, after swapping its 25% shareholding in the investment arm of Ubuntu‑Botho, African Rainbow Capital Financial Services Investments (ARC FSI), for a 25% stake in ARC Financial Services Holdings (ARC FSH).

“Sanlam has benefited significantly from its holding in ARC FSI over recent years, through strong growth in value of the investments as well as leverage of assets such as Capital Legacy. This transaction allows Sanlam to leverage the capabilities of Tyme Bank to the group’s customers in future years,” Hanratty said.

In 2023, a joint venture was formed with Allianz to create the largest insurance group on the continent outside of South Africa. In 2024, Sanlam-Allianz made “substantive progress”, completing several integrations and delivering strong financial performance and growth.

Sanlam transferred its Namibian business into the joint venture and Allianz has exercised an option to increase its shareholding in the joint venture to 49%.

Following Sanlam’s R6.6bn acquisition of Assupol in September 2024, Sanlam started integrating Assupol into the group, and in early 2025, Assupol’s executive team became part of Sanlam’s retail mass executive team. The integration is planned to be completed in 2025.

In February 2025, Sanlam partnered with Fedhealth as its single open medical scheme provider. This follows Sanlam’s investment in Afrocentric in May 2023, which is part of a strategy to provide a holistic and differentiated healthcare offering.

BUSINESS REPORT

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Sanlam reports strong earnings growth and strategic partnerships for future success