Sanlam underperforms, full year profit fell by 6%

Enterprise Insurance

South Africa’s largest life insurance group, Sanlam has just posted 6% year on year fall in its profit for 2016.

Sanlam has a stake in Nigeria’s FBN Insurance, a subsidiary of FBN Holdings, West Africa’s largest financial services company.

The company said currency moves and a weak equity market weakened its year on year profit

According to the disclosure, normalised headline earnings, a key profit measure that strips out certain one-off items, came in at 8.4 billion rand (USD638.79 million), or 408.5 cents per share, in the year to end-December 2016, compared with 8.8 billion rand, or 432.5 cents per share, a year earlier.

Ian Kirk, Sanlam Group Chief Executive commented on the result saying “The operational performance of the Group in 2016 is testimony to a well-executed sustainable strategy. The five-pillar strategy introduced in 2003 transformed the Group into a business diversified across business lines, geographies, market segments and products, with an exceptionally strong capital base”.

He added that “The Group’s strategy is by no means unique with many other multi-national insurance and financial services groups following a similar approach. Sanlam’s ability to consistently execute on the strategy has, however, been a key differentiator. This enabled the Group to achieve particularly satisfactory results in the 2016 financial year, delivering double-digit growth in all key operating indicators despite a challenging environment”.

Sanlam is present in over 11 African countries, India and Malaysia.

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