Sanlam Expects Strong Growth in Financial Results for 2023

  • Sanlam Limited expects significant earnings growth for the financial year ended 31 December 2023.
  • Implementation of IFRS 17 accounting standard contributed to restated 2022 numbers for comparative purposes.
  • Strong performance attributed to various factors including robust risk experience and higher investment market levels.
Published by
Lethabo Ntsoane

Sanlam Limited has announced its expectations for robust growth in its financial results for the year ended 31 December 2023.

Financial Performance Overview

Sanlam anticipates positive performance across various key financial metrics, reflecting the group’s resilience and strategic initiatives amid a challenging economic environment. The following table outlines the expected earnings ranges for the year 2023, compared to the actual figures for 2022:

MetricExpected Range (cents per share)Actual 2022 (cents per share)
Net Result from Financial Services545 to 592474
Cash NRFFS545 to 592456
Net Operational Earnings616 to 666501
Headline Earnings per Share (HEPS)676 to 723473
Diluted HEPS671 to 718466
Earnings per Share (EPS)670 to 730598
Diluted EPS661 to 720590

Factors Driving Growth

Sanlam attributes its expected growth to various factors across its diverse lines of business:

  • Strong risk experience in the life insurance sector.
  • Higher investment market levels and overall book growth supporting asset-based revenue.
  • Improved performance from the credit portfolio.
  • Increased loan advances in the India operations, positively impacting earnings.

IFRS 17 Implementation

The group has applied the International Financial Reporting Standard (IFRS) 17 Insurance Contracts standard from 1 January 2023, restating 2022 numbers for comparative purposes. The restated figures align with the applicable standard and are not materially different from the previously reported IFRS 4 based numbers.

Cash NRFFS – A Better Representation

Sanlam highlights the significance of Cash NRFFS (Net Result from Financial Services adjusted for specific non-cash items) in providing a more accurate portrayal of business earnings, excluding non-cash elements such as amortisation of intangible assets and changes in insurance contract assets.

Conclusion

Sanlam’s anticipated strong growth in financial results for 2023 reflects its ongoing commitment to delivering value to shareholders and stakeholders despite prevailing economic challenges. The group’s strategic focus on operational excellence and prudent risk management continues to underpin its resilience in the dynamic financial services landscape.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo