Sanlam Limited has recently released its audited annual results for the year ended 31 December 2023. The company’s performance highlights robust growth and a solid financial position amidst challenging market conditions. Let’s delve deeper into the key insights from Sanlam’s annual report.
Financial Performance
Sanlam achieved record earnings in 2023, with net result from financial services and cash net result from financial services increasing by 18% compared to the previous year. Net operational earnings surged by 25%, demonstrating the group’s strong financial performance.
Business Volumes
Total new business volumes approached R400 billion, driven by significant growth in life insurance and investment management operations. Life insurance new business volumes rose by 14%, with a noteworthy increase in the value of new covered business, indicating a robust demand for Sanlam’s insurance products.
Client Cash Flows
Despite challenges in the consumer environment, Sanlam maintained robust net client cash flows of R36 billion. This resilience across all lines of business underscores the company’s effective client engagement strategies and product offerings.
Equity Value
Sanlam’s group equity value per share stood at R70.86 as of 31 December 2023, reflecting the strength and stability of the company’s balance sheet. Moreover, both the return on group equity value per share (RoGEV) and adjusted RoGEV surpassed the hurdle rate, demonstrating superior value creation for shareholders.
Dividend Declaration
In line with its commitment to rewarding shareholders, Sanlam declared a final gross cash dividend of 400 cents per share for the fiscal year 2023. This represents an 11% increase compared to the previous year, highlighting the company’s confidence in its financial performance and cash flow generation capabilities.
Board Changes
The appointment of Mr. Temba Mvusi as the new chair of the board, effective from April 1, 2024, reflects Sanlam’s commitment to strong corporate governance and leadership succession planning. Mr. Mvusi’s wealth of experience in the financial services sector positions him well to guide the company’s strategic direction in the coming years.
Conclusion
Sanlam Limited’s audited annual results for 2023 underscore its resilience and strong financial performance in a challenging operating environment. The record earnings, robust business volumes, and solid client cash flows demonstrate the effectiveness of Sanlam’s business strategy and its ability to adapt to evolving market dynamics. With a commitment to value creation for shareholders and strong leadership at the helm, Sanlam is well-positioned to navigate future opportunities and challenges in the financial services industry.
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