SANLAM LIMITED - SLM : Audited Annual Results for the year ended 31 December 2019
12 March 2020 7:05
SLM : Audited Annual Results for the year ended 31 December 2019: https://senspdf.jse.co.za/documents/2020/jse/isse/slm/SLMFY19.pdf
Audited Annual Results for the year ended 31 December 2019
Sanlam Limited Group
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
"Sanlam", "Sanlam Group", or "the Company"
JSE Share code (Primary listing): SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
Sanlam Limited Audited Annual Results for the year ended 31 December 2019
Key features
Earnings
Net result from financial services increased by 9%
Net operational earnings increased by 14%
New business
Net value of new covered business up 15% to R2.3 billion
Net new covered business margin of 2,98% (2,67% in 2018)
New business volumes increased by 12% to R249 billion
Net fund inflows of R57 billion compared to R42 billion in 2018
Group Equity Value
Group Equity Value per share of R64.36
Return on Group Equity Value per share of 6.4% (2018: 11.6%)
Adjusted Return on Group Equity Value per share of 11.9% (2018: 19.4%)
Capital management
Net R4.5 billion raised through share issuance
R593 million surplus unlocked from operations
R2 billion invested in Group operations
Discretionary capital of R220 million at 31 December 2019
Sanlam Group SAM cover ratio of 211% (2018: 215%)
Dividend
Dividend per share of 334 cents, up 7.1% (3% real growth)
SALIENT RESULTS
for the year ended 31 December 2019 2019 2018
SANLAM GROUP
GROUP EQUITY VALUE
Group Equity Value R million 143 271 134 052 7%
Group Equity Value per share cents 6 436 6 341 1%
Return on Group Equity Value per share % 6,4 11,6
Adjusted Return on Group Equity Value per share % 11,9 19,4
Earnings
Net result from financial services R million 9 674 8 890 9%
Net operational earnings R million 10 798 9 455 14%
Headline earnings R million 7 481 9 162 -18%
Normalised weighted average number of shares (1) million 2 208,5 2 098,8 5%
Weighted average number of shares (1) million 2 090,0 2 077,3 1%
Net result from financial services per share cents 438,0 423,6 3%
Net operational earnings per share cents 488,9 450,5 9%
Basic headline earnings per share cents 361.8 445.6 -19%
Diluted headline earnings per share cents 357.9 441,1 -19%
Basic profit attributable to the shareholders' fund per share cents 345.8 565.4 -39%
Diluted profit attributable to the shareholders' fund per share cents 342.1 559.7 -39%
Business volumes
New business volumes R million 249 323 223 029 12%
Net fund inflows R million 56 766 41 539 37%
Net new covered business
Value of new covered business R million 2 280 1 985 15%
Covered business PVNBP (2) R million 76 446 74 378 3%
New covered business margin % 2,98 2,67
Solvency cover
Sanlam Group % 211 215
Sanlam Life Insurance Limited % 253 264
Sanlam Life Insurance Limited covered business % 206 221
(1) Weighted average number of shares excludes Sanlam shares held directly or indirectly through consolidated
investment funds in policyholder portfolios, as well as Sanlam shares held by the Group's Broad-Based Black Economic
Empowerment special purposes vehicle (B-BBEE SPV) that is consolidated in terms of International Financial Reporting
Standards. These shares are treated as shares in issue for purposes of normalised weighted average number of shares,
which are used for the per-share metrics for the Shareholders' fund information.
(2) PVNBP = present value of new business premiums and is equal to the present value of new recurring premiums plus
single premiums.
The Group achieved a solid operational performance in 2019, with growth of 14% and 15% respectively in net operational
earnings and the net value of new covered business (VNB) written. The 37% increase in net fund inflows is a particular
highlight.
We recognised from the outset that we will face a number of headwinds in 2019. Low economic growth in some of our key
markets, heightened global geopolitical risks as well as volatility in investment and currency markets did not bode well
for growth in our key performance indicators. Our diversification across geographies, market segments and lines of
business provided significant resilience, enabling us to continue delivering value to all our stakeholders.
Net result from financial services (net operating profit) of R9.7 billion increased by 9%, with solid contributions from
most major businesses. Relatively stronger investment market returns in 2019 augmented this performance, contributing to
the 14% growth in net operational earnings. New business volumes increased by 12% despite low investor confidence in
South Africa and lower investment inflows in the UK, Namibia and Kenya. Life insurance new business volumes increased
marginally, investment business inflows grew by 14% and general insurance earned premiums were 22% higher.
Shareholders are advised that a final cash dividend of 334 cents per share was declared for the year ended 31 December
2019, an increase of 7.1% on the prior year dividend. This represents 3% real growth in the Sanlam dividend. The South
African dividend withholding tax regime applies in respect of this dividend. The dividend in full will be subject to the
20% withholding tax, where applicable, which result in a net dividend, to the shareholders who are not exempt from paying
dividend tax, of 267.2 cents per share. The number of ordinary shares in issue in the company's share capital as at the
date of the declaration is 2,069,106,282 excluding treasury shares of 274,231,765 at 31 December 2019. The company's tax
reference number is 9536/346/84/5.
The dividend is payable on Monday, 20 April 2020 by way of electronic bank transfers to ordinary shareholders recorded in
the register of Sanlam at close of business on Friday, 17 April 2020. The last date to trade to qualify for this dividend
will be Tuesday, 14 April 2020, and Sanlam shares will trade ex-dividend from Wednesday, 15 April 2020. Share certificates
may not be dematerialised or rematerialised between Wednesday, 15 April 2020 and Friday, 17 April 2020, both days
included. Shareholders who have not yet provided their banking details for dividend payments are requested to do so by
contacting Sanlam's transfer secretary, Computershare, at 0861 100 913 or +27 (0)11 370 5000.
This short-form results announcement is the responsibility of the Sanlam board of directors and is a summary of the
information contained in the full announcement which can be found at:
https://senspdf.jse.co.za/documents/2020/jse/isse/slm/SLMFY19.pdf and available on the Sanlam website at www.sanlam.com.
Direct company link to full announcement: http://sanl.am/37nF4
While this report, in itself, is not audited, the audited consolidated annual financial statements from which the
summarised consolidated financial statements were derived have been audited by the Group's auditors, Ernst & Young. Their
unmodified audit report, including key audit matters relating to the valuation of insurance contract liabilities,
valuation of unlisted financial instruments and the valuation of strategic investments for impairment testing, along with
the audited consolidated annual financial statements are available for inspection at the Company's registered office and
also available on Sanlam's website at http://sanl.am/r-UdM.
Copies of the full audited results are available for inspection at, or may be requested from, Sanlam's registered office
and the offices of its sponsor during office hours, at no charge. Any investment decision should be based on a
consideration of the full audited results.
SANLAM LIMITED
Registered office: 2 Strand Road, Bellville, 7530, South Africa
JSE SPONSOR
The Standard Bank of South Africa Limited
Registered office: 30 Baker Street, Rosebank, Johannesburg, 2196, South Africa.
12 March 2020
Date: 12-03-2020 07:05:00
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