SANLAM LIMITED - Sanlam Limited Audited Annual Results for the Year ended 31 December 2020
11 March 2021 7:05
Sanlam Limited Audited Annual Results for the Year ended 31 December 2020
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 2020
Key features
Earnings
• Net result from financial services decreased by 13%
• Net operational earnings decreased by 23%
New business
• New business volumes exceeded R300 billion for the first time, up 25% to
R311 billion
• Net fund inflows of R62 billion compared to R57 billion in 2019
• Net value of new covered business decreased by 16% to R1 921 billion
• Net new covered business margin of 2,58% (2,98% in 2019)
Group Equity Value
• Group Equity Value per share of R59.20 (2019: R64.36)
• Return on Group Equity Value per share of -2.8% (2019: 6.4%)
• Adjusted Return on Group Equity Value per share of 2.6% (2019: 11.9%)
Capital management
• Discretionary capital of R636 million at 31 December 2020
• Sanlam Group SAM cover ratio of 191% (2019: 211%)
Dividend
• Dividend of 300 cents per share (2019: 334)
SALIENT RESULTS
for the year ended 31 December 2020 Measure 2020 2019
SANLAM GROUP
Group Equity Value
Group Equity Value R million 131 812 143 271 (8%)
Group Equity Value per share cents 5 920 6 436 (8%)
Return on Group Equity Value per share % (2.8) 6,4
Adjusted Return on Group Equity Value per share % 2,6 11,9
Earnings
Net result from financial services R million 8 382 9 674 (13%)
Net operational earnings R million 8 349 10 798 (23%)
Headline earnings R million 9 249 7 481 24%
Normalised weighted average number of shares (1) million 2 226,7 2 208,5 1%
Weighted average number of shares (1) million 2 087,8 2 090,0 -
Net result from financial services per share cents 376,4 438,0 (14%)
Net operational earnings per share cents 374,9 488,9 (23%)
Basic headline earnings per share cents 448.5 361.8 24%
Diluted headline earnings per share cents 443.0 357.9 24%
Basic profit attributable to the shareholders’ fund per
share cents 138.8 345.8 (60%)
Diluted profit attributable to the shareholders’ fund per
share (1) cents 137.1 342.1 (60%)
Business volumes
New business volumes R million 310 875 249 323 25%
Net fund inflows R million 61 563 56 766 8%
Net new covered business
Value of new covered business R million 1 921 2 280 (16%)
Covered business PVNBP (2) R million 74 591 76 446 (2%)
New covered business margin % 2,58 2,98
Solvency cover
Sanlam Group % 191 211
Sanlam Life Insurance Limited % 257 253
Sanlam Life Insurance Limited covered business % 197 206
(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 commenced the 2020 financial year from a solid and strong footing to navigate the
challenges faced through the year. The outbreak of the COVID-19 pandemic, followed by the
declaration of states of disaster and emergency in several countries where we operate, abruptly
transformed the operating environment into one of the most challenging periods faced by the
Group and our stakeholders since our listing more than 20 years ago.
The business was resilient through this difficult period with net result from financial services
declining by 13%, impacted by COVID-19 and related market conditions as set out in the
Integrated Report.
New business volumes increased by 25%, with Sanlam Emerging Markets (SEM) and Sanlam
Investment Group (SIG) recording strong growth. Life insurance volumes increased by 4% relative
to the 2019 financial year and general insurance volumes improved by 3%. Investment business
was the key driver of overall volume growth, increasing by 37%. Overall Group net fund inflows of
R62 billion in 2020 (8% higher than 2019) is a particularly satisfactory performance given the
challenging market conditions.
Net VNB declined by 16% to R1 921 million at actual interest rates and 14% on constant economic
assumptions. Both Sanlam Life and Savings (SLS) and SEM experienced lower VNB in 2020
relative to 2019, impacted by increased lapse assumptions and higher acquisition and
maintenance unit costs.
Shareholders are advised that a final gross cash dividend of 300 cents per share was declared for
the year ended 31 December 2020, a decrease of 10% on the prior year dividend. The dividend is
payable on Monday, 12 April 2021 by way of electronic bank transfers to ordinary shareholders
recorded in the register of Sanlam at close of business on Friday, 9 April 2021. The last date to
trade to qualify for this dividend will be Tuesday, 6 April 2021, and Sanlam shares will trade ex-
dividend from Wednesday, 7 April 2021. Share certificates may not be dematerialised or
rematerialised between Wednesday, 7 April 2021 and Friday, 9 April 2021, 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.
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 240 cents per share. The
number of ordinary shares in issue in the company’s share capital as at the date of the declaration
is 2,061,645,628 excluding treasury shares of 165,328,780 at 31 December 2020. The company’s
tax reference number is 9536/346/84/5.
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/2021/jse/isse/slm/SLMFY20.pdf and available on the Sanlam
website at www.sanlam.com. Direct company link to full announcement: http://sanl.am/nT3Uz
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/MzYCH
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
Sanlam Investor Relations
Tel: +27 21 947 8455
E-mail: ir@sanlam.co.za
JSE SPONSOR
The Standard Bank of South Africa Limited
Registered office: 30 Baker Street, Rosebank, Johannesburg, 2196, South Africa.
11 March 2021
Date: 11-03-2021 07:05:00
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