SANLAM LIFE INSURANCE LIMITED - Availability of the Annual Financial Statements for the year ended 31 December 2021 - BISLI

Availability of the Annual Financial Statements for the year ended 31 December 2021 - BISLI

Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
Bond Issuer Code: BISLI
(the “Company” or “Issuer”)


AVAILABILITY OF THE AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2021

In terms of section 6.15 of the Debt Listings Requirements of the JSE Limited, investors are
advised that Sanlam Life Insurance Limited’s annual financial statements for the year ended 31
December 2021 are available for viewing and downloading at: www.sanlam.com
[http://sanl.am/AR2021]

The annual financial statements of the issuer have been audited by Ernst & Young Inc., who have
issued an unqualified audit opinion.

In terms of section 6.17(c) of the Debt Listings Requirements of the JSE Limited, investors are
advised of the below restatements in the Annual Financial Statements (refer to note 37 of the
Notes to the annual financial statements):

1.    Correction for hyperinflation accounting error

      During the second half of 2020, Lebanon was included in the list of countries considered to
      be a hyperinflationary economy for accounting purposes. With initial application in 2020, the
      opening balances of monetary assets and liabilities were restated by applying the consumer
      price index (CPI) differential between 1 January 2020 and 31 December 2020. The 2020
      opening balances of non-monetary assets were restated by applying the CPI differential
      between the date these items were acquired or incurred and 31 December 2020.

      Given the various complexities involved in consolidating Lebanon Insurance Africa (LIA) in a
      hyperinflationary environment, including recognising additional expected credit losses in
      respect of financial assets (in terms of the Group’s accounting policy), and impairments on
      the goodwill and value of business acquired, the monetary assets on which the opening
      balance restatement at 1 January 2020 was based, were understated. As a result, the initial
      application of the IAS 29 opening adjustment of negative R1 234 million reported in the 2020
      SOCE should have been positive R911 million attributable to the shareholders. This resulted
      in an increase in FCTR of R2 145 million and a corresponding decrease in retained earnings,
      with a zero impact on net asset value. Profit for the year ended 31 December 2020 also
      decreased from R3 032 million to R800 million.

      The error had no impact on Net Asset Value or any of the Group’s key performance indicators
      as hyperinflation accounting is regarded as a technical accounting requirement.

2.    IAS 21 translation error of IFRS 10 consolidated vehicle

      The Sanlam Four Global Equity Fund was rebranded during 2019 to Sanlam Sustainable
      Global Dividend fund. Its base currency also changed from British pound sterling (GBP) to
      United States Dollar (USD).

      2020 Statement of Financial Position balances (SOFP) were however translated to ZAR
      equivalent at GBP instead of USD exchange rates. This resulted in an overstatement of assets
      and liabilities in the SOFP. The impact on the line items in the Statement of Comprehensive
      Income (SOCI) was immaterial, with a zero impact on the SOCIE and the Statement of Cash
      Flows.

3.    Group statement of cash flow: Investment funds distributions

      Investors of investments funds may elect for distributions received from collective investment
      schemes to be reinvested back into the fund or received in cash. Previously these distributions,
      for both scenarios were treated as cash received in the Group Statement of Cash Flows with
      an equal and opposite entry in net movement of investments assets (reflected in cash utilised
      in operations for Sanlam). This was in line with the industry treatment. During 2021, the
      treatment of distributions reinvested was revisited by the accounting industry (including audit
      firms) and concluded that these should be treated as a non-cash flow item. The restatement
      does not have any impact on the overall Group cash flows from operating activities.



31 March 2022

Debt sponsor
Absa Bank Limited, acting through its Corporate and Investment Banking division

Date: 31-03-2022 10:01:00
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