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SANLAM LIMITED - Interim results for the six months ended 30 June 2013

Release Date: 05/09/2013 08:00
Code(s): SLM     PDF:  
Wrap Text
Interim results for the six months ended 30 June 2013

Sanlam Limited
(Registration number:1959/001562/06)
JSE share code (primary listing): SLM
NSX share code: SLA
ISIN: ZAE000070660
Incorporated in South Africa
Interim results for the six months ended 30 June 2013
Blueprint for Success

Contents                                                                          
                                                                                   
Overview                                                                          
Key features                                                              
Salient results                                                           
Executive review                                                          
Comments on the results                                                   
Interim financial statements                                               
Accounting policies and basis of preparation                             
Shareholders information                                                 
Report on review of Sanlam Limited interim Shareholders information      
Group Equity Value                                                        
Change in Group Equity Value                                              
Return on Group Equity Value                                              
Shareholders fund at fair value                                         
Shareholders fund income statement                                       
Notes to the Shareholders information                                   
Embedded value of covered business                                        
Interim condensed consolidated financial statements                       
Report on review of interim condensed consolidated financial statements   
Statement of financial position                                           
Statement of comprehensive income                                        
Statement of changes in equity                                            
Cash flow statement                                                       
Notes to the interim condensed consolidated financial statements         
Administration                                                            
                                                                                   

Key features
- Earnings                                                           
  Net result from financial services per share increased by 23%   
  Normalised diluted headline earnings per share up 35%   
- Business volumes                                                   
  New business volumes up 37% to R83 billion            
  Net value of new covered business up 20% to R587 million   
  Net new covered business margin of 2,83%               
  Net fund inflows of R13 billion                        
- Group Equity Value                                                 
  Group Equity Value per share of R37,47                 
  Annualised return on Group Equity Value per share of 14,3%   
- Capital management                                                 
  Discretionary capital of R3,2 billion at 30 June 2013   
  Sanlam Life Insurance Limited CAR cover of 3,9 times   
                                                                     
                                                                                                                                         
Salient results
for the six months ended 30 June 2013

                                                                                              %
                                                                     2013       2012     change                                                                                                
  Sanlam Group                                                                                 
  Earnings                                                                                     
  Net result from financial services per share             cents    118,1       96,2         23   
  Normalised diluted headline earnings per share(1)        cents    169,1      125,5         35   
  Diluted headline earnings per share                      cents    171,4      120,1         43   
  Net result from financial services                   R million    2 409      1 946         24   
  Normalised headline earnings(1)                      R million    3 449      2 539         36   
  Headline earnings                                    R million    3 474      2 408         44   
  Group administration cost ratio(2)                           %     29,3       30,4             
  Group operating margin(3)                                    %     20,5       19,9             
  Business volumes                                                                             
  New business volumes                                 R million   83 244     60 977         37   
  Net fund inflows                                     R million   12 611     10 183         24   
  Net new covered business                                                                     
  Value of new covered business                        R million      587        491         20   
  Covered business PVNBP(4)                            R million   20 731     17 150         21   
  New covered business margin(5)                               %     2,83       2,86             
  Group Equity Value                                                                           
  Group Equity Value(6)                                R million   76 609     75 352           
  Group Equity Value per share(6)                          cents    3 747      3 707            
  Annualised return on Group Equity Value                           
  per share(7)                                                 %     14,3       18,4                                       
  Sanlam Life Insurance Limited                                                                
  Shareholders fund(6)                                R million   55 481     55 466           
  Capital Adequacy Requirements (CAR)(6)               R million    7 250      7 125            
  CAR covered by prudential capital(6)                     times      3,9        4,3              
 Notes                                                                                            
 (1) Normalised headline earnings = headline earnings, excluding fund transfers.                                                
 (2) Administration costs as a percentage of income after sales remuneration.                                                
 (3) Result from financial services as a percentage of income after sales remuneration.                                                
 (4) PVNBP = present value of new business premiums and is equal to the present value of new recurring premiums plus 
     single premiums.                                                
 (5) New covered business margin = value of new covered business as a percentage of PVNBP.                                                
 (6) Comparative figures are as at 31 December 2012.                                                
 (7) Growth in Group Equity Value per share (with dividends paid, capital movements and cost of treasury shares acquired
     reversed) as a percentage of Group Equity Value per share at the beginning of the year.                                                
                                                                                                  

EXECUTIVE REVIEW
2013 marks the tenth anniversary of the introduction of the current Sanlam Group strategy. A strong commitment to this
strategy across the Group is evident in its steady and successful implementation over this period. Consistent delivery
has also become a key feature of the Groups financial performance and it is particularly satisfactory to report another
set of strong financial results for the six months ended 30 June 2013.

As anticipated, the challenging operating environment of 2012 persisted during the six months ended 30 June 2013.
Developed market economies failed to find noticeable traction to generate growth while growth in the Chinese economy also
experienced a slowdown. Demand for resources from Africa commensurately remained subdued. Investor appetite for emerging
markets diminished on concerns over the possible impact of a slowdown in emerging market growth, as well as uncertainty
around the unwinding of quantitative easing in the United States. As a consequence, equity and bond markets in most major
emerging countries underperformed relative to 2012, with currencies also depreciating sharply on the back of capital
outflows and risk aversion. The South African financial markets were no exception. Recent labour unrest in South Africa
and concerns around a potential unsecured credit bubble added to international investors cautious approach. The difficult
underwriting conditions in the South African general insurance industry also persisted. These challenges were partly
alleviated by a higher level of assets under management in the first half of 2013 relative to the same period in 2012,
following the strong investment market performance in the latter part of 2012, as well as underwriting experience in Sanlam
Personal Finance. Notwithstanding the challenging environment, the Groups diversification across business lines and
geographies provided significant resilience and enabled Sanlam to deliver overall satisfactory results for the period.

Optimising shareholder value, as measured by the Return on Group Equity Value (RoGEV) per share, is our primary
performance target. RoGEV per share of 6,9% (annualised 14,3%) for the first six months of 2013 exceeded the six-month target
of 5,3% (annualised 10,8%), despite the negative impact of higher long-term interest rates on the valuation of
businesses based on discounted cash flows. The adjusted RoGEV per share, which excludes the impact of investment markets during
the period, amounted to 7,3%, also well in excess of the target. 

The net result from financial services grew by 23% on a per share basis. Other salient results are:
- New business volumes increased by 37% to R83 billion;
- Net value of new covered business up 20%; and
- Net VNB margin of 2,83%, in line with 2012.

2013 strategic initiatives
We identified the following priorities for the 2013 financial year:
- Focus on top-line sales growth as well as operating and cost efficiencies;
- Improving capital efficiency on an ongoing basis;
- Pursuit of international strategy in emerging markets; 
- Continued focus on efficient and effective management of existing South African businesses; and
- Compliance with regulatory reform, in particular alignment with proposed TCF legislation.

Earnings growth
The Sanlam Group delivered strong growth in both new business volumes and operating earnings in the first half of
2013. 

New business volumes increased by 37%, with Sanlam Investments (SI) delivering exemplary growth of 58%. Product
innovation had a positive impact on Sanlam Personal Finances (SPF) new business growth of 27%, with the Cumulus and Nimbus
product ranges continuing to attract strong demand. Sanlam Emerging Markets (SEM) recorded 20% growth in new life
recurring premiums. Large single premium business volumes achieved by SEM in the first half of 2012 did, however, not repeat to
the same extent in 2013. Single premium flows are more volatile in nature and the lower single premium sales do not
reflect any deterioration in the underlying operational performance.
 
Strong persistency levels were maintained across all market segments as the focus remained on client retention and on
writing only quality new business that provides clients with affordable and appropriate products for their specific
needs.

The net result from financial services increased by 24% (23% per share), with most businesses contributing to the
growth. This is the combined result of higher fee income earned on a higher asset base as well as a focus in all businesses
on delivering improved cost efficiencies. The Group administration cost ratio declined from 30,4% in the first half 
of 2012 to 29,3% in 2013 as a result.
 
Capital efficiency
Capital efficiency is a key component of the Groups strategy to maximise RoGEV. This is achieved through the
allocation of capital to those areas that yield the highest risk adjusted return. Discretionary capital that is not required to
support the Group operations is managed at a central Group level, with investment in value-adding future growth opportunities the 
preferred application.

The Sanlam Group held discretionary capital of R4,2 billion at the end of December 2012. Major changes during 
the six months to 30 June 2013 include R1,1 billion utilised for the special dividend payment in April, R1,1 billion
utilised to acquire a direct stake of 4,1% in Shriram Transport Finance, and R412 million in discretionary capital
released through the disposal of non-core operations. Remaining discretionary capital of R3,2 billion at 30 June 2013 is 
substantially earmarked for expansion in Africa, India and South-East Asia.

Pursuit of international strategy in emerging markets
Our presence in emerging markets outside of South Africa was bolstered by the successful execution of two major
investment transactions in India and Malaysia. 

In India we increased our exposure to the credit operations of Shriram, our strategic partners in India, by the
investment of R1,1 billion in Shriram Transport Finance shares. This added to the R2,1 billion invested in Shriram Capital in
the latter half of 2012. These investments contributed R151 million to SEMs net result from financial services in the
first half of 2013, an annualised operating earnings yield of some 10%.

We also concluded the acquisition of a 49% stake in Pacific & Orient Insurance Co Berhad (P&O), a niche short-term
insurance business in Malaysia. The effective date of the transaction was 1 May 2013 and contributed R9 million to SEMs
net result from financial services.

We are confident of the growth prospects in both these regions and look forward to building our working relationship
with the P&O management team and further strengthening the excellent relationship established over a number of years with
the Shriram Group.

We are evaluating a number of other possible emerging market opportunities.

Efficient and effective management of South African businesses
The majority of the Groups earnings still comes from the more mature South African market. As is evident from the
strong growth reported by SPF over the last number of years, South Africa is by no means ex-growth and remains a key focus
area for the Group. Nevertheless, acquisitions of scale are not possible in this market given Sanlams large market
share. Organic growth will therefore be the driver of future earnings with a strong focus on product innovation, cost
efficiencies, cross selling and improved cooperation between the various business units. Sanlam is a formidable competitor in
the South African market and we still anticipate good growth from this region over the medium term, in particular the entry-level 
market.

Regulatory changes
The regulatory environment in South Africa continues to change in line with similar international developments. The
Financial Services Boards (FSB) proposed Treating Customers Fairly (TCF) regime is important market conduct legislation
that will come into effect in 2014. Sanlam is supportive of the initiative as putting the needs of our clients first is
an integral part of our business philosophy and will benefit the industry in the longer term. We made good progress in
analysing the regulations and identifying the few minor areas where we need to fully align our approach with the new
requirements. These will be implemented over the next few months.

Looking ahead
The operating environment in the second half of the year is expected to remain difficult with weak economic growth in
the Groups core markets and investment market volatility likely to continue. These conditions, combined with a higher
comparative base in the second half of the year and some once-off items impacting the results for the first six months of
2013 (refer below), are likely to impact the Groups ability to maintain the strong growth achieved in the key performance
metrics. However, we remain confident that we have the strategy and depth of skills and experience to face these
challenges and to continue in pursuit of sustainable delivery.

Forward-looking statements
In this report we make certain statements that are not historical facts and relate to analyses and other information based on 
forecasts of future results not yet determinable, relating, amongst others, to new business volumes, investment returns 
(including exchange rate fluctuations) and actuarial assumptions. These statements may also relate to our future prospects, 
developments and business strategies. These are forward-looking statements as defined in the United States Private Securities 
Litigation Reform Act of 1995. Words such as believe, anticipate, intend, seek, will, plan, could, may, 
endeavour and project and similar expressions are intended to identify such forward-looking statements, but are not the 
exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties and, if 
one or more of these risks materialise, or should underlying assumptions prove incorrect, actual results may be very different 
from those anticipated. Forward-looking statements apply only as of the date on which they are made, and Sanlam does not 
undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
Any forward-looking statements in this announcement have not been reviewed and reported on by Sanlam's external auditor.

Introduction
The Sanlam Group results for the six months ended 30 June 2013 are presented based on and in compliance with
International Financial Reporting Standards (IFRS), specifically IAS 34 on Interim Financial Reporting. The basis of preparation
and accounting policies for the IFRS financial statements and Shareholders information are in all material respects
consistent with those applied in the 2012 annual report, apart from the following:
- The adoption of new IFRSs that became effective during the 2013 financial year, that impacted the
  IFRS financial statements but did not have any effect on the presentation of the Shareholders information.
- The presentation within Group Equity Value (GEV) of non-life Group operations that are not valued at listed market
  value was amended to align with the treatment of covered business. The fair value of these non-life operations
  previously comprised their base valuation to which the year to date earnings were added. The year to date earnings essentially
  constituted the dividend payment expected from the businesses in terms of the Groups dividend policy. This presentation
  format is not consistent with covered business, where the operations are reflected at base valuation with year to date
  earnings (potential dividend) included in Other capital within the GEV statement. With effect from 30 June 2013, non-life
  Group operations are also reflected at base valuation, with year to date earnings included in Other capital. Comparative
  information has not been restated as the change in presentation does not have an impact on the overall GEV, GEV
  earnings and RoGEV.

Operating environment
Economic conditions
Economic conditions remained strained during the first half of 2013, with the low demand for resources impacting 
economic growth in many of the countries where the Group operates. 
The Groups largest exposure is to the economies of South Africa, Namibia, Botswana and India. The South African and
Namibian economies continued to deliver low growth, impacting negatively 
on job creation and overall disposable income. The Botswana economy also remains impacted by low diamond prices, the
backbone of economic growth for the country, while growth in India slowed down from its previous high base.

Equity markets
The South African equity market underperformed relative to developed markets and the prior year performance as
investor risk aversion impacted most major emerging markets. The FTSE/JSE All Share Index closed 0,8% up on its 
31 December 2012 level, with a total return of 2,3% for the six months to 30 June 2013. This compares to a return of 7% from
this index in the first six months of 2012. The MSCI World Index returned 26,9% in rand terms compared to 7,3% in 2012, 
reflecting both good underlying market performance and a sharp depreciation in the relative value of the rand.  

Interest rates
South African long-term interest rates increased markedly since the end of December 2012 as international investors
disinvested from emerging markets and inflationary risk increased due to the weakening of the rand. This had a negative
impact on the valuation of in-force covered business as well as other Group operations valued on a discounted cash flow
basis, with a commensurate impact on RoGEV for the period. The rise in long-term interest rates contributed to a negative
return in the All Bond Index of 1,3% for the first six months of 2013, compared to a positive return of 7,7% in 2012.

Foreign currency exchange rates
The rand weakened against most major currencies to which the Group has exposure. This had a positive impact on the
growth in new business volumes, value of new life business and earnings reported for the non-South African operations.

      Foreign              United                                Rest of   
    currency/   Europe    Kingdom     USA  Botswana     India     Africa   
          ZAR      EUR        GBP     USD       BWP       INR  (weighted)                                                                          
   31/12/2012    11,18      13,79    8,48      1,11      0,16                 
    30/6/2013    12,90      15,06    9,93      1,18      0,17                 
    Weakening    15,4%       9,2%   17,1%      6,3%      7,1%      15,3%   
Average first                                                             
    half 2012    10,29      12,51    7,93      1,09      0,15                
Average first                                                             
    half 2013    12,10      14,15    9,19      1,14      0,17                 
    Weakening    17,6%      13,1%   15,9%      4,8%     10,6%       4,7%   

Group Equity Value
As at 30 June 2013 total GEV amounted to R76,6 billion or 3 747 cents per share. Growth of 7,3% and 6,9% respectively
on the R75,4 billion and 3 707 cents per share GEV in December 2012 was achieved, both well above the 2013 performance
hurdle for the six months of 5,3%.
 
The Group has a significant exposure to investment markets, both in the shareholder capital portfolio that is invested
in financial instruments, as well as a significant portion of the fee income base that is linked to the level of assets
under management. The weak investment market performance during the first half of 2013 had a marked negative impact on
the RoGEV for the period. This was aggravated by the increase in long-term interest rates that reduced the valuation of
the in-force life book and other operations valued on a discounted cash flow basis. An adjusted RoGEV per share of 7,3%
that excludes the impact of investment returns that were below long-term expectations, the higher long-term interest
rates and certain other once-off effects, is also well in excess of the return target.


Group Equity Value at 30 June 2013                                             
                                                                  RoGEV %            
                                     Group Equity Value       (six months)            
  R million                           2013        2012*     2013     2012                                                                             
  Group operations                  71 808      68 166       8,2     10,7   
  Sanlam Personal Finance           33 155      32 762       6,8      8,9   
  Sanlam Emerging Markets            9 356       6 105      22,0      6,3   
  Sanlam Investments                16 328      16 424       9,2      6,3   
  Santam                            12 969      12 875       2,9     24,3                                                                       
  Covered business                  39 927      38 996       7,8      8,4   
  Value of in-force                 24 702      24 050       9,1     11,9   
  Net worth                         15 225      14 946       5,7      3,6   
  Other operations                  31 881      29 170       8,8     14,3   
                                    71 808      68 166       8,2     10,7   
  Discretionary capital and other    4 801       7 186      (2,5)    (3,1)  
  Group Equity Value                76 609      75 352       7,3      9,2   
  Per share (cents)                  3 747       3 707       6,9      8,8   
  * Comparative information as at 31 December 2012.  
      
Group operations yielded an overall return of 8,2% in the first half of 2013, compared to 10,7% in the 2012 comparable
period. The return on covered business for the first six months of 2013 of 7,8% is characterised by strong growth in
VNB and a continuance of positive operating experience variances, with risk and persistency the main contributors.
Operating assumption changes of R289 million in 2013 also exceed the comparative periods R68 million. The new HIV/Aids tables
issued by the Actuarial Society of South Africa, which assume lower Aids-related mortality, were implemented in 2013 and
contributed R552 million in positive operating assumption changes for risk experience. This was partly offset by
additional provisions for project expenses relating to the changing regulatory environment in South Africa. The increase in
long-term interest rates resulted in negative economic assumptions changes of R888 million compared to positive economic
assumption changes of R375 million in 2012. Excluding these, covered business outperformed the 2012 comparative return.

Other Group operations provided a return of 8,8% compared to 14,3% in 2012. The lower return is mainly due to the
listed Santam share price delivering a return of only 2,9% in the first half of 2013 compared to 24,3% in 2012. All other
operations delivered good returns, with valuations generally supported by an increase in assets under management 
and administration.

A low return on discretionary and other capital is essentially the combined effect of the investment return earned on
surplus capital (substantially invested in low yielding liquid assets), offset by corporate costs and timing differences
in the recognition of the share-based payment expense relating to the Groups long-term incentive schemes, 
which are weighted towards the first half of the year.

Earnings

Shareholders fund income statement 
for the six months ended 30 June 2013                                                                  
                                                                        %
  R million                                    2013        2012    change                                                                                
  Net result from financial services           2 409      1 946        24         
  Sanlam Personal Finance                      1 409      1 077        31         
  Sanlam Emerging Markets                        231        183        26         
  Sanlam Investments                             523        471        11         
  Corporate and other                            (42)       (59)       29         
                                               2 121      1 672        27         
  Sanlam Emerging Markets acquired earnings      160          -              
  Santam                                         128        274       (53)       
  Net investment return                        1 150        891        29         
  Project costs and amortisation                (101)       (68)      (49)       
  Equity participation costs                      (9)        (1)    >(100)    
  Secondary Tax on Companies                       -       (229)      100        
  Normalised headline earnings                 3 449      2 539        36         
  Per share (cents)                            169,1      125,5        35         

Net result from financial services (net operating profit) of R2,4 billion increased by 24% on the first half of 2012.
All clusters reported satisfactory growth, apart from Santam where the high claims experience of the second half of 2012
continued into the first six months of 2013. SEMs net operating profit more than doubled, assisted by a maiden
contribution from the investments in India and Malaysia during 2012 and 2013 (refer above). Excluding these impacts from Santam
and SEMs acquired earnings, net result from financial services increased by a satisfactory 27%. The individual cluster
results are discussed in more detail below.

Normalised headline earnings of R3,4 billion are 36% higher than in 2012, largely attributable to the following: 
- The 24% increase in net result from financial services.
- A 29% increase in the net investment return earned on the capital portfolio. Investment income declined by 31%,
  largely due to a lower level of discretionary capital following the utilisation of capital for acquisitions and the special
  dividend, but net investment surpluses more than doubled on the first half of 2012. The relatively weaker equity and
  bond market performance in South Africa in 2013 was offset by good returns on the international exposure in the portfolio
  and once-off investment gains of some R215 million realised in 2013. The latter includes an increase in the valuation of
  the Groups interest in Capricorn following the recent listing of Bank Windhoek in Namibia and a sizable recovery of a
  previously impaired portfolio investment.
- The abolishment of Secondary Tax on Companies (STC) in South Africa during 2012. No STC expense is recognised in
  the income statement with effect from the 2013 dividend compared to an expense of R229 million in 2012.

Business volumes
The Group achieved overall growth of 34% in new business volumes (excluding white label), a solid performance in the
difficult operating environment. SEM was the only business reporting lower new business sales, attributable to lower
single premiums in most regions. This was partly compensated for by strong new recurring premium sales in all SEM
operations. The strategic focus on the quality of new business written is reflected in good retention levels and a continuance 
of strong net fund inflows. Overall net fund inflows achieved of R13,7 billion (excluding white label) is a commendable
performance. SIM received notice from the Public Investment Corporation of the imminent withdrawal of an investment mandate
of some R9,5 billion due to the restructuring of its portfolios. This outflow will put severe pressure on the Groups
ability to repeat the level of net inflows achieved in the second half of 2013. The individual business performance is
discussed in more detail below.


Business volumes for the six months ended 30 June 2013                                                                 
                                          New business                          Net inflows
					                     %                                 %
  R million                          2013       2012    change         2013      2012     change                                                                                                   
  Sanlam Personal Finance          19 239     15 192        27        6 564     3 615         82      
  Sanlam Emerging Markets           5 933      6 483        (8)         607     2 296        (74)    
  Sanlam Investments               42 528     27 396        55        4 194     1 027        308     
  Santam                            8 096      7 703         5        2 381     2 614         (9)     
  Total (excluding white label)    75 796     56 774        34       13 746     9 552         44      
  Covered business                 14 956     12 159        23        5 159     4 433         16      
  Investment business              52 436     36 759        43        6 160     2 459        151     
  Short-term insurance              8 404      7 856         7        2 427     2 660         (9)     
  Total (excluding white label)    75 796     56 774        34       13 746     9 552         44      


Value of new covered business
The value of new life business (VNB) written during the first six months of 2013 increased 
by 20% on 2012 gross and net of non-controlling interest. Margins were maintained at a level similar to 2012. The
individual business performance is discussed in more detail below.


Value of new covered business for the six months ended 30 June 2013   

                                                                        %
  R million                                   2013       2012      change                                                                           
  Value of new covered business                639        533          20   
  Sanlam Personal Finance                      450        390          15   
  Sanlam Emerging Markets                      136        108          26   
  Sanlam Investments                            53         35          51   
  Net of non-controlling interest              587        491          20   
  Present value of new business premiums    21 455     17 930          20   
  Sanlam Personal Finance                   14 667     12 680          16   
  Sanlam Emerging Markets                    2 085      2 199          (5)  
  Sanlam Investments                         4 703      3 051          54   
  Net of non-controlling interest           20 731     17 150          21   
  New covered business margin                2,98%      2,97%          
  Sanlam Personal Finance                    3,07%      3,08%          
  Sanlam Emerging Markets                    6,52%      4,91%          
  Sanlam Investments                         1,13%      1,15%          
  Net of non-controlling interest            2,83%      2,86%          

Cluster performance
Sanlam Personal Finance

Key performance indicators 
for the six months ended 30 June 2013                                      
                                                                         %
  R million                                    2013        2012     change                                                                                
  Group Equity Value                                                         
  Group Equity Value*                        33 155      32 762          1   
  Covered business                           30 524      30 144          1   
  Other operations                            2 631       2 618          1   
  Return on Group Equity Value (6 months)      6,8%        8,9%              
  Covered business                             6,2%        9,1%              
  Other operations                            13,8%        7,0%              
  Business volumes                                                           
  New business volumes                       19 239      15 192         27   
  Life business                              10 114       8 733         16   
  Entry-level market                            503         430         17   
  Individual life                               353         337          5   
  Group life                                    150          93         61   
  Middle-income market                        5 200       4 464         16   
  Recurring premiums                            628         594          6   
  Single premiums                             4 572       3 870         18   
  Affluent market                             4 411       3 839         15   
  Investment business                         9 125       6 459         41   
  Middle-income market                          168         136         24   
  Affluent market                             8 957       6 323         42   
  Net fund flows                              6 564       3 615         82   
  Life business                               3 197       2 913         10   
  Entry-level market                          1 410         867         63   
  Middle-income market                         (791)       (125)     >(100)   
  Affluent market                             2 578       2 171         19   
  Investment business                         3 367         702        380   
  Value of new covered business                                              
  Value of new business                         450         390         15   
  Entry-level market                            146         150         (3)  
  Middle-income market                          240         186         29   
  Affluent market                                64          54         19   
  Present value of new business premiums     14 667      12 680         16   
  Entry-level market                          1 956       1 839          6   
  Middle-income market                        8 300       7 002         19   
  Affluent market                             4 411       3 839         15   
  New business margin                         3,07%       3,08%              
  Entry-level market                          7,46%       8,16%              
  Middle-income market                        2,89%       2,66%              
  Affluent market                             1,45%       1,41%              
  Earnings                                                                   
  Gross result from financial services        1 941       1 499         29   
  Entry-level market                            360         199         81   
  Middle-income market                        1 459       1 209         21   
  Affluent market                               122          91         34   
  Net result from financial services          1 409       1 077         31   
 * Comparative information as at 31 December 2012                                       


SPF achieved strong growth in all performance metrics for the six months to 30 June 2013. All market segments 
contributed to the high level of growth, a particularly pleasing result.

SPF achieved a RoGEV of 6,8% for the six months to June 2013, compared to 8,9% for the comparable period in 2012.
Covered business return was negatively affected in 2013 by the increase in long-term rates that resulted in negative
economic assumption changes. A decline in rates had the opposite effect in the comparable 2012 return. Strong growth in the 
value of new life business, continued positive experience variances and positive operating assumption changes, substantially
related to the introduction of the new HIV/Aids tables, supported the results in 2013. Investment return on the capital 
portfolio also exceeded the expected return for the period, attributable to an outperformance of benchmarks by Sanlam
Investments and a good return achieved on the international exposure in the portfolio. The return on the non-life
operations were positively impacted by an increase in the valuation of Glacier and Sanlam Personal Loans, due to an increase
in the level of assets under management and the size of the loan book respectively.

New business volumes increased by 27% on the first half of 2012, with new life business up 16% and new investment
business sales increasing by 41%. 

Sanlam SKY achieved growth of 17% in the entry-level market, the combined result of a 5% increase in individual life sales 
and growth of 61% in group life business. The Sanlam SKY agency channel achieved 21% growth in individual life sales, 
offset by a 25% decline in the broker channel. The increased compliance burden is resulting in many brokers leaving the 
industry or converting to tied agents, contributing to the decline in brokers contribution. The impact on overall growth 
should normalise over time as the structural change in distribution model to agents progresses. Compared to a slow start in 
2012, group life business, specifically credit life sales and Safrican business, recorded good growth in the first six months
of 2013. The bi-annual ZCC premium renewal occurred in the first half of 2013, also supporting the growth in group life business. 
VNB declined by 3%, partly attributable to an increase in the five-year long-term interest rate used to calculate VNB. On a 
comparable basis, VNB grew by 9% at slightly reduced margins, with lower margin group life business contributing relatively more to 
the overall margin in 2013.
 
Middle-income market sales increased by 17%, driven by 18% growth in single premiums. New recurring premium life
business increased by 6%, largely attributable to the newly launched Cumulus retirement annuity attracting strong new
business. New recurring premium risk business declined marginally on 2012, the combined result of competitive market rates and
a change in business mix from level to escalating premiums. VNB increased by 28% following the strong new business sales.

Glaciers non-life linked products remain popular in the affluent market, supporting the overall 32% growth in Glaciers 
new business.

The strategic focus on writing quality new business continues to impact positively on retention, with all market
segments maintaining persistency levels. Net fund flows commensurately benefited and increased by 82%. The only segment
experiencing net outflows was the middle-income market, where the strong single premium sales of the past five years have
started to mature with a resulting increase in benefit payments. 

Gross result from financial services increased by 29% (31% on a net of tax and non-controlling interest basis).
Entry-level market earnings were up 81%, primarily due to the growth in the in-force book over the last number of years,
positive mortality experience and the Channel4Life loss recognised in 2012 that reduced the comparative base. Middle-income
market profit grew by 20%, supported by positive mortality claims experience and higher fund-based fee income earned on
the higher average level of assets under management. Higher assets under management also impacted positively on Glaciers
fee income, which together with good cost control increased affluent market earnings by 34%. 

Sanlam Emerging Markets

Key performance indicators 
for the six months ended 30 June 2013  
                                                                         %                                   
  R million                                   2013         2012     change                                                                          
  Group Equity Value                                                        
  Group Equity Value*                        9 356        6 105         53   
  Covered business                           2 982        2 647         13   
  Other operations                           6 374        3 458         84   
  Return on Group Equity Value (6 months)    22,0%         6,3%              
  Covered business                           21,6%         7,8%              
  Other operations                           22,2%         3,0%              
  Business volumes                                                           
  New business volumes                       5 933        6 483         (8)  
  Namibia                                    4 263        4 599         (7)  
  Botswana                                     871        1 200        (27)  
  Rest of Africa                               436          465         (6)  
  India/Malaysia                               363          219         66   
  Net fund flows                               607        2 296        (74)  
  Namibia                                     (419)         648       (165)  
  Botswana                                     460        1 012        (55)  
  Rest of Africa                               530          554         (4)  
  India/Malaysia                                36           82        (56)  
  Value of new covered business                                              
  Value of new business                        136          108         26   
  Namibia                                       44           24         83   
  Botswana                                      37           39         (5)  
  Rest of Africa                                55           46         20   
  India                                          -           (1)             
  Present value of new business premiums     2 085        2 199         (5)  
  Namibia                                      444          502        (12)  
  Botswana                                     809          832         (3)  
  Rest of Africa                               720          739         (3)  
  India                                        112          126        (11)  
  New business margin                        6,52%        4,91%              
  Namibia                                    9,91%        4,78%              
  Botswana                                   4,57%        4,69%              
  Rest of Africa                             7,64%        6,22%              
  India                                      0,00%      (0,79)%              
  Earnings                                                                   
  Gross result from financial services         697          381         83   
  Namibia                                      112           97         15   
  Botswana                                     276          247         12   
  Rest of Africa                                76           38        100   
  India/Malaysia                               244            7       >100   
  Corporate                                    (11)          (8)       (38)  
  Net result from financial services           391          183        114   
 * Comparative information as at 31 December 2012                                      

The SEM results for the first half of 2013 include maiden contributions from the R3 billion additional investment in
Shriram in 2012 and 2013 as well as two months contribution from the P&O investment in Malaysia, effective 1 May 2013.
The weakening of the rand exchange rate also had a positive impact on the growth reported for 2013.

SEMs RoGEV for the period benefited from the weaker rand exchange rate. The return on covered business was also
supported by strong growth in VNB, positive experience variances as well as the abnormal value appreciation of the 
Capricorn investment held within the Namibian capital portfolio (refer above). The investment in Shriram Capital is the 
main contributor to the return on Other operations, with all valuations increasing in line with the growth in the 
underlying businesses.

New business volumes declined by 8%, with new single premium sales 13% lower from a high base in 2012. Single premiums
are more volatile in nature, with anticipated lower new business volumes in some periods. The challenging economic
environment in Botswana continues to impact new business volumes, with lower single premium annuity business the main
contributor to the 32% decline in new single premium business in this market. Kenya received a large bulk annuity mandate in
2012 that did not repeat in 2013, resulting in a 22% decline in Rest of Africa single premiums. New recurring premium
life business increased by a healthy 20% and short-term insurance premiums doubled (50% increase excluding the newly
acquired P&O). The Botswana business has done well to grow recurring premium sales by 24%. The growth trajectory in Rest of
Africa also remains intact with new recurring premium sales increasing by 23%. VNB grew by 26% on 2012, with VNB margins
increasing from 4,91% in the first half of 2012 to 6,51% in 2013. The change in mix to more profitable recurring premium
business supported the higher overall margins. Botswana was the only region experiencing a decline in VNB and margins,
attributable to the lower annuity sales.

The lower single premium sales resulted in a marked decline in net fund flows across all regions.

SEM delivered exceptional growth of 83% in gross result from financial services (114% net of tax and non-controlling
interest). This includes the maiden contributions from India and Malaysia as referred to above. Excluding earnings from
structural growth, comparable gross earnings improved by 22%. The earnings growth reflects the increasing in-force book
across Africa as well as higher fee income in the asset management operations from a higher level of assets under
management. Excluding new acquisitions, operating earnings in India more than doubled off a relatively low base, with Shriram
General Insurance in particular achieving good profit growth.

Sanlam Investments

Key performance indicators 
for the six months ended 30 June 2013                                      
                                                                             %
  R million                                     2013          2012      change                                                                                  
  Group Equity Value                                                             
  Group Equity Value*                         16 328        16 424          (1)  
  Covered business                             6 421         6 205           3   
  Other operations                             9 907        10 219          (3)  
  Return on Group Equity Value (6 months)       9,2%          6,3%               
  Covered business                              9,5%          5,6%               
  Other operations                              9,1%          6,8%               
  Business volumes                                                               
  Net fund flows (excluding white label)       4 194         1 027         308   
  Investments                                  2 959           683         333   
  Asset management                            (2 828)        1 751        (262)  
  Wealth management                            2 457          (328)        849   
  Investment services                          2 018          (744)        371   
  International                                1 312             4        >100   
  Life business                                1 235           344         259   
  New life business volumes                    3 644         1 933          89   
  Recurring premiums                             178           194          (8)  
  Single premiums                              3 466         1 739          99   
  Value of new covered business                                                  
  Value of new business                           53            35          51   
  Present value of new business premiums       4 703         3 051          54   
  New business margin                          1,13%         1,15%               
  Earnings                                                                       
  Gross result from financial services           687           631           9   
  Investment management                          451           369          22   
  Employee Benefits                              174           189          (8)  
  Capital Management                              62            73         (15)  
  Net result from financial services             523           471          11   
  * Comparative information as at 31 December 2012                                      

SI delivered exemplary new business and net fund flow performances. The weaker rand exchange rate had a positive
impact on the results of the clusters international businesses but an allowance for the impairment of the Capital Management
units exposure to the First Strut bonds limited the increase in the clusters gross result from financial services to 9%. 

SI achieved a RoGEV of 9,2% for the six months to June 2013, with both covered and other operations contributing to
the growth. The valuation of SIs operations benefited from an increase in the level of assets under management, following
a continuance of net fund inflows and net positive investment returns. Good growth in operating profit in the
investment management operations also contributed to the RoGEV.

New business volumes increased by 58% with all business units delivering growth in excess of 20%. The international
businesses more than doubled their new business sales, with Wealth management and Investment services achieving growth of
79% and 70% respectively, a particularly satisfactory achievement in a very competitive market.

The strong new business performance flowed through to the clusters net fund flows, which increased from R1 billion in
the first six months of 2012 to more than R4 billion in 2013 (excluding white label). 

Asset management is the only business reporting worse net flows, declining from a net inflow of R1,8 billion in 2012
to a net outflow of R2,8 billion in the first half of 2013. This is due to two clients withdrawing R4,3 billion during the 
period, essentially due to portfolio restructuring. 

Gross result from financial services increased by 9%. The strong investment market performance in the second half of
2012 supported a higher level of assets under management in 2013 across all businesses in the cluster, resulting in a 22%
increase in earnings from the investment management businesses. Cost efficiency improvements also contributed to the
growth and remains a key focus area for the cluster. Sanlam Employee Benefits (SEB)s operating earnings declined by 8%,
attributable to once-off fee income in the first half of 2012 that increased the comparative base, as well as a 15%
decline in risk underwriting profit due to weaker claims experience. Operating profit in the Capital Management business
declined by 15%, attributable to a provision created against its exposure to First Strut, which went into liquidation,
partly offset by a partial recovery of a previously impaired investment. Excluding these two exceptional items, Capital
Management improved its operating earnings by 92%, with strong growth in both the equities and debt divisions.

Santam

Key performance indicators 
for the six months ended 30 June 2013 
                                                                       %       
  R million                                    2013     2012      change                                                                         
  Group Equity Value                                                       
  Group Equity Value*                        12 969   12 875           1   
  Return on Group Equity Value (6 months)      2,9%    24,3%               
  Business volumes                                                         
  Net earned premiums                         8 096    7 703           5   
  Net fund flows                              2 381    2 614          (9)  
  Earnings                                                                 
  Gross result from financial services          296      672         (56)  
  Net result from financial services            128      274         (53)  
  Ratios                                                               
  Claims                                      70,6%    66,1%           
  Administration costs                        17,2%    16,3%           
  Combined                                    98,8%    93,9%           
  Underwriting                                 1,3%     6,1%           
  * Comparative information as at 31 December 2012.                                   


The RoGEV of the short-term insurance cluster reflects the investment return earned on the listed Santam shares, which 
marginally outperformed the South African equity market.

The high claims experience in the South African short-term insurance industry continued into the first six months of
2013. The agricultural business, in particular, incurred significant losses from hail damage to summer crops and drought
in other parts of the country. At the same time the claims experience in the motor book was adversely affected by the
high replacement cost of imported vehicle parts following the sharp depreciation in the rand exchange rate. The
competitive environment in the mature South African market remains challenging. Gross written premiums increased by 9%; higher
reinsurance costs, however, limited the growth in net earned premiums to 5%.

Capital and solvency
Optimal capital management remains a key strategic priority for the Group, with specific focus on the following:
- Optimising the capital allocated to Group operations, taking account of the applicable regulatory requirements.
  Continuous attention is given to businesses and individual products attracting suboptimal levels of capital and thus
  diluting RoGEV. Product design, pricing and new business targets are therefore linked to capital required and the meeting of
  return hurdles. The Financial Services Boards implementation of a third country equivalent of the European Solvency II
  regime in South Africa (Solvency Assessment and Management (SAM)) is a major consideration. Sanlam is an active
  participant in this process with our own SAM implementation project running according to plan. The FSB conducted its second
  quantitative impact study in South Africa in 2012, which confirmed the Groups view that the capital allocated to its life
  insurance operations is appropriate based on the standard formula prescribed in this study. The standard formula is still
  developing with a third quantitative impact study planned for submission to the FSB in April 2014. Until the FSB has
  finalised the basis for determining the required capital for the Life Insurance operations, the Group will maintain its
  prudent approach to capital management.
- Releasing capital from illiquid and non-core investments. R412 million was released during the first half of 2013
  through the disposal of non-core operations in the United Kingdom and illiquid investments.
- Optimal utilisation of discretionary capital. The Groups preference remains to invest its discretionary capital in
  value-adding growth opportunities, with specific focus on the identified growth markets. R1,1 billion was utilised in
  2013 to acquire a direct interest of 4,1% in Shriram Transport Finance (refer Executive Review above). Discretionary
  capital invested in cash yields suboptimal return and any amount that is not expected to be utilised for acquisitions in the
  foreseeable future will be returned to shareholders. Excess investment return of some R1,1 billion earned during 2012
  was returned to shareholders in 2013 through a special dividend of 50 cents per share. 

At the end of December 2012 the Group held discretionary capital of R4,2 billion. Taking into account the movement set
out above, as well as the investment return earned by the discretionary capital portfolio and the cash operating profit
retained in the 2012 dividend earnings cover, the level of discretionary capital decreased to some R3,2 billion at the
end of June 2013. This amount is substantially earmarked for acquisitions in Africa, India and South-East Asia. 

All of the life insurance businesses within the Group were sufficiently capitalised at the end of June 2013. The total
admissible regulatory capital (including identified discretionary capital) of Sanlam Life Insurance Limited, the
holding company of the Groups major life insurance subsidiaries, of R28,5 billion covered its capital adequacy requirements
(CAR) 3,9 times. No policyholder portfolio had a negative bonus stabilisation reserve at the end of June 2013. 

Dividend 
The Group only declares an annual dividend due to the costs involved in distributing an interim dividend to our large
shareholder base.

Desmond Smith                       Johan van Zyl
Chairman                    Group Chief Executive
                       
Sanlam Limited
Bellville

4 September 2013

                                           
Accounting policies and basis of preparation
The preparation of the Groups reviewed interim financial statements was supervised by the Financial Director, Kobus
Möller CA(SA).

The basis of presentation applied for purposes of the interim condensed consolidated financial statements is in accordance 
with and contain the information required by International Financial Reporting Standards (IFRS), specifically IAS 34 on 
interim financial reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and 
Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act 
of South Africa. The accounting policies are consistent with those applied in the 2012 financial statements, apart from the
changes indicated below. The policy liabilities and profit entitlement rules are determined in accordance with prevailing 
legislation, generally accepted actuarial practice and the stipulations contained in the demutualisation proposal. There have 
been no material changes in the financial soundness valuation basis since 31 December 2012, apart from changes in the 
assumptions.

Application of new and revised IFRSs and interpretations
The following new or revised IFRSs and interpretations are applied in the Groups 2013 financial year:
- IFRS 10 Consolidated Financial Statements 
- IFRS 11 Joint Arrangements
- IFRS 12 Disclosure of Interests in Other Entities
- IFRS 13 Fair Value Measurement
- IAS 19 Employee Benefits - Amendment regarding removal of corridor method and other comprehensive income treatment
- Amendment to IFRS 7 - Disclosures relating to offsetting of financial assets and liabilities
- Amendments to IAS 1 - Financial statement presentation
- IAS 27 Separate Financial Statements - Consequential amendments resulting from consolidation project
- IAS 28 Investments in Associates and Joint Ventures - Consequential amendments resulting from consolidation project
- May 2012 Improvements to IFRS

The retrospective application of IFRS 10 required restatement of the Groups previous IFRS financial statements. The
nature and the effect of this change are disclosed below. 

The application of the remainder of the new standards and interpretations did not have a significant impact on the
Groups financial position, reported results and cash flows. Certain of these new standards will, however, require
additional disclosures in the annual financial statements. The additional fair value disclosures have, however, as required,
been presented as part of this interim financial statements.

IFRS 10 Consolidated financial statements
IFRS 10 establishes a single control model that applies to all entities including special purpose entities. IFRS 10
changes the definition of control such that an investor controls an investee when it is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. 

Previously, only holdings in investment funds of greater than 50% were consolidated. As a result of the adoption of
IFRS 10 the Group consolidated a number of additional funds, effectively leading to reclassifications of line items on the
Statement of Financial Position and the Statement of Comprehensive Income. 

This change has been applied retrospectively, as required by the transitional arrangements of IFRS 10, and hence led
to reclassifications of the 2012 comparative information. The impact of these reclassifications on the Statement of
Financial Position as at 31 December 2012, the Statement of Comprehensive Income and the Cash Flow Statement for the six
months ended 30 June 2012 is disclosed in note 6.

These reclassifications in the current and prior period had no impact on the Groups total comprehensive income,
shareholders fund or net asset value.

Additional disclosures 
IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change
the requirements of when an entity is required to use fair value, but rather provides guidance on how to measure fair
value under IFRS when fair value is required or permitted. 

The application of IFRS 13 did not materially impact the fair value measurements carried out by the Group. 

IFRS 13 also requires specific disclosures on fair values, some of which replace existing disclosure requirements in
other standards, including IFRS 7 Financial Instruments: Disclosures. Some of these disclosures are specifically required
for financial instruments by IAS 34, thereby affecting the interim condensed consolidated financial statements. 

The Group provides these disclosures in note 5.

The following new or revised IFRSs and interpretations have effective dates applicable to future financial years and
have not been early adopted:
- Amendment to IAS 32 - Clarification of the instances in which the set off of financial assets and liabilities is
  allowed (effective 1 January 2014)
- Amendment to IFRS 10 - Investment entities exemption (effective 1 January 2014)
- IFRS 9 Financial Instruments (effective 1 January 2015)

The application of these revised standards and interpretations in future financial reporting periods is not expected
to have a significant impact on the Groups reported results, financial position and cash flows.

The basis of preparation of the Shareholders information is also consistent with that applied in the 2012 annual
report, apart from the following: 
- The presentation within Group Equity Value (GEV) of non-life Group operations that are not valued at listed market
  value was amended to align with the treatment of covered business. The fair value of these non-life operations
  previously comprised their base valuation to which the year to date earnings were added. The year to date earnings essentially
  constituted the dividend payment expected from the businesses in terms of the Groups dividend policy. This presentation
  format is not consistent with covered business, where the operations are reflected at base valuation with year to date
  earnings (potential dividend) included in Other capital within the GEV statement. With effect from 30 June 2013, non-life
  Group operations are also reflected at base valuation, with year to date earnings included in Other capital. This change
  in presentation was also applied to the Shareholders Fund at fair value. Comparative information has not been restated
  as the change in presentation does not have an impact on the overall GEV, GEV earnings and RoGEV.

EXTERNAL AUDIT REVIEW

The appointed auditors, Ernst & Young Inc, reviewed the interim condensed financial statements and Shareholders
information of the Group at 30 June 2013. These reviews were conducted in accordance with International Standard on Review
Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. 
Copies of the unqualified audit reports of Ernst & Young Inc are presented.

SHAREHOLDERS INFORMATION 
for the six months ended 30 June 2013 

Contents                                                                      
                                                                               
 Report on review of Sanlam Limited interim Shareholders information       
 Group Equity Value                                                         
 Change in Group Equity Value                                               
 Return on Group Equity Value                                               
 Shareholders fund at fair value                                           
 Shareholders fund income statement                                        
 Notes to the shareholders fund information                               
 Embedded value of covered business                                        

Report on Review of Sanlam Limited Interim Shareholders Information
To the directors of Sanlam Limited

Introduction
We have reviewed the accompanying interim Shareholders Information of Sanlam Limited for the six months ended 30 June
2013, comprising Group Equity Value; Change in Group Equity Value; Return on Group Equity Value; Shareholders fund at
fair value; Shareholders fund income statement; Notes to the shareholders fund information; and Embedded Value of
covered business, Change in Embedded Value of covered business, Value of New Business and Notes to the Embedded Value of
covered business. The directors are responsible for the preparation and presentation of this
interim financial information in accordance with the basis of accounting set out. Our responsibility is to express a 
conclusion on this interim financial information based on our review.

Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim
Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists
of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim
Shareholders Information is not prepared, in all material respects, in accordance with the basis of accounting set out below.

Basis of accounting
Without modifying our opinion, we draw attention to the basis of accounting set out. The Sanlam Limited Interim Shareholders 
Information are prepared to provide additional information in respect of the Group shareholders fund in a format that 
corresponds with that used by management in evaluating the performance of the Group. As a result the Sanlam Limited Interim 
Shareholders information may not be suitable for another purpose.

Ernst & Young Inc.
Director: Johanna Cornelia de Villiers
Registered Auditor
Chartered Accountant (SA)

Group Equity Value
at 30 June 2013
                                                                          June reviewed                       June reviewed                    December audited                               
                                                                               2013                               2012                                2012                                  
                                                                         Fair value   Value of              Fair value   Value of               Fair value  Value of    
  R million                                           Note        Total   of assets   in-force       Total   of assets   in-force        Total   of assets  in-force                     
  Sanlam Personal Finance                                        33 155      11 382     21 773      30 053      10 789     19 264       32 762      11 299    21 463   
  Covered business(1)                                            30 524       8 751     21 773      27 819       8 555     19 264       30 144       8 681    21 463   
  Glacier                                                         1 368       1 368          -       1 206       1 206          -        1 338       1 338         -   
  Sanlam Personal Loans                                             822         822          -         620         620          -          816         816         -   
  Other operations                                                  441         441          -         408         408          -          464         464         -   
  Sanlam Emerging Markets                                         9 356       7 708      1 648       3 443       2 118      1 325        6 105       4 603     1 502   
  Covered business(1)                                             2 982       1 334      1 648       2 345       1 020      1 325        2 647       1 145     1 502   
  Shriram Capital                                                 4 190       4 190          -         153         153          -        2 398       2 398         -   
  Letshego                                                          663         663          -         512         512          -          602         602         -   
  Pacific & Orient                                                  872         872          -           -           -          -            -           -         -   
  Other operations                                                  649         649          -         433         433          -          458         458         -   
  Sanlam Investments                                             16 328      15 047      1 281      15 064      14 132        932       16 424      15 339     1 085   
  Covered business(1)                                             6 421       5 140      1 281       5 909       4 977        932        6 205       5 120     1 085   
  Sanlam Employee Benefits                                        5 419       4 825        594       5 132       4 741        391        5 301       4 825       476   
  Sanlam UK                                                       1 002         315        687         777         236        541          904         295       609   
  Investment Management                                           9 298       9 298          -       8 464       8 464          -        9 406       9 406         -   
  Capital Management                                                609         609          -         691         691          -          813         813         -   
  Santam                                                         12 969      12 969          -      11 134      11 134          -       12 875      12 875         -   
  Group operations                                               71 808      47 106     24 702      59 694      38 173     21 521       68 166      44 116    24 050   
  Discretionary capital                                           3 188       3 188          -       4 000       4 000          -        4 200       4 200         -   
  Balanced portfolio - other                                      2 899       2 899          -       4 441       4 441          -        4 139       4 139         -   
  Group Equity Value before adjustments to net worth             77 895      53 193     24 702      68 135      46 614     21 521       76 505      52 455    24 050   
  Net worth adjustments - present value                             
  of holding company expenses                                    (1 286)     (1 286)         -      (1 315)     (1 315)         -       (1 153)     (1 153)        -                          
  Group Equity Value                                             76 609      51 907     24 702      66 820      45 299     21 521       75 352      51 302    24 050   
  Value per share (cents)                                4        3 747       2 539      1 208       3 293       2 232      1 061        3 707       2 524     1 183   
  Analysis per type of business                                                                                                                                        
  Covered business(1)                                            39 927      15 225     24 702      36 073      14 552     21 521       38 996      14 946    24 050   
  Sanlam Personal Finance                                        30 524       8 751     21 773      27 819       8 555     19 264       30 144       8 681    21 463   
  Sanlam Emerging Markets                                         2 982       1 334      1 648       2 345       1 020      1 325        2 647       1 145     1 502   
  Sanlam Investments                                              6 421       5 140      1 281       5 909       4 977        932        6 205       5 120     1 085   
  Other Group operations                                         31 881      31 881          -      23 621      23 621          -       29 170      29 170         -   
  Discretionary and other capital                                 4 801       4 801          -       7 126       7 126          -        7 186       7 186         -   
  Group Equity Value                                             76 609      51 907     24 702      66 820      45 299     21 521       75 352      51 302    24 050   
 (1) Refer embedded value of covered business on page 49.                                                                                                                                      
 (2) Refer to note 2.4 for a description of the impact of the change in presentation format of non-life Group 
     operations applied to June 2013 values.                                                                                                                                                             
	 
Change in group equity value
for the six months ended 30 June 2013                            
							                                              Full year    
                                                                               Six months reviewed      audited   
  R million                                                                     2013         2012          2012                                                                                                                   
  Earnings from covered business(1)                                            3 038        2 941         7 908   
  Earnings from other Group operations                                         2 627        3 133         6 395   
  Operations valued based on ratio of price to assets under management           733          588         1 450   
  Assumption changes                                                            (142)          44             4   
  Change in assets under management                                              371          355           813   
  Earnings for the year and changes in capital requirements                      142          165           497   
  Foreign currency translation differences and other                             362           24           136   
  Operations valued based on discounted cash flows                             1 307          106           628   
  Expected return                                                                552          250           618   
  Operating experience variances and other                                       175           40           129   
  Assumption changes                                                             173         (203)         (226)   
  Foreign currency translation differences                                       407           19           107   
  Operations valued at net asset value - earnings for the year                   215           58            84   
  Listed operations - investment return                                          372        2 381         4 233   
  Earnings from discretionary and other capital                                 (160)        (207)            7   
  Portfolio investments and other                                                128           65           149   
  Net corporate expenses                                                         (42)         (59)         (129)   
  Share-based payments transactions                                             (113)         (97)          (59)   
  Change in net worth adjustments                                               (133)        (116)           46                                                                                                                 
  Group Equity Value earnings                                                  5 505        5 867        14 310   
  Dividends paid                                                              (4 309)      (2 581)       (2 581)   
  Cost of treasury shares sold/(acquired)                                         61           13           102                                                                                                    
  Sanlam share buy back                                                            -          (22)          (26)   
  Share incentive scheme and other                                                61           35           128   
  Group Equity Value at the beginning of the year                             75 352       63 521        63 521   
  Group Equity Value at the end of the period                                 76 609       66 820        75 352                                                                     
 (1) Refer embedded value of covered business.                                                           


Return on group equity value 
for the six months ended 30 June 2013
                                                             Six months reviewed                Full year audited             
                                                       2013                   2012                   2012                
                                               Earnings    Return      Earnings    Return      Earnings    Return   
                                              R million         %     R million         %     R million         %                                                                                                                       
  Sanlam Personal Finance                         2 241       6,8         2 583       8,9         6 862      23,8   
  Covered business(1)                             1 879       6,2         2 430       9,1         6 296      23,6   
  Other operations                                  362      13,8           153       7,0           566      25,9   
  Sanlam Emerging Markets                         1 548      22,0           215       6,3           669      16,9   
  Covered business(1)                               572      21,6           182       7,8           628      27,1   
  Other operations                                  976      22,2            33       3,0            41       2,5   
  Sanlam Investments                              1 504       9,2           940       6,3         2 539      16,9   
  Covered business(1)                               587       9,5           329       5,6           984      16,8   
  Other operations                                  917       9,1           611       6,8         1 555      16,9   
  Santam                                            372       2,9         2 336      24,3         4 233      44,0   
  Discretionary and other capital                  (160)                   (207)                      7             
  Return on Group Equity Value                    5 505       7,3         5 867       9,2        14 310      22,5   
  Return on Group Equity Value per share                      6,9                     8,8                    22,0   
  Annualised return on Group Equity Value                       
  per share                                                  14,3                    18,4                    22,0                                                       
 (1) Refer embedded value of covered business.                                                                             

                                                                                        Six months      Full year   
                                                                                          reviewed        audited   
  R million                                                                          2013         2012       2012                                                                                                                 
  Reconciliation of return on Group Equity Value:                                                                   
  The return on Group Equity Value reconciles as follows to 
  normalised attributable earnings:                                            
  Normalised attributable earnings per shareholders fund income
  statement                                                                         3 483        2 533      5 811   
  Net foreign currency translation gains recognised in other 
  comprehensive income                                                                571           15        105   
  Earnings recognised directly in equity                                                                            
  Share-based payment transactions                                                   (122)        (105)       (62)   
  Net cost of treasury shares delivered                                              (265)        (266)      (297)   
  Share-based payments                                                                143          161        235   
  Movements in subsidiary interests                                                   (36)          (2)       (63)   
  Recognised in Statement of Changes in Equity                                        (36)         (26)       (63)   
  Less: Included in value of in-force                                                   -           24          -   
  Movement in fair value adjustment - shareholders fund at fair value              1 040        2 344      4 699   
  Movement in adjustments to net worth and other                                      (39)         (93)       124   
  Present value of holding company expenses and other                                (133)        (118)        46   
  Movement in book value of treasury shares held by subsidiaries valued at 
  fair value                                                                           33           28         33   
  Change in goodwill and value of business acquired adjustments less value 
  of in-force acquired                                                                 61           (3)        45   
  Growth from covered business: value of in-force(1)                                  608        1 175      3 696   
  Return on Group Equity Value                                                      5 505        5 867     14 310   
 (1) Refer embedded value of covered business.                                                                           


Shareholders' fund at fair value 
at 30 June 2013
                                                            
                                                                              June reviewed                    June reviewed               December audited      
                                                                                    2013                            2012                          2012           
                                                                                    Fair                            Fair                          Fair          
                                                                                   value       Net                 value      Net                value       Net 
                                                                          Fair   adjust-     asset        Fair   adjust-    asset       Fair   adjust-     asset 
  R million                                                 Notes        value      ment     value       value      ment    value      value      ment     value  
  Covered business, discretionary and other capital                     22 641       112    22 529      24 360       112   24 248     24 631       112    24 519 
  Property and equipment                                                   288         -       288         282         -      282        271         -       271 
  Owner-occupied properties                                                570         -       570         547         -      547        569         -       569 
  Goodwill(2)                                                              474         -       474         472         -      472        474         -       474 
  Value of business acquired(2)                                            637         -       637         692         -      692        643         -       643 
  Other intangible assets                                                   28         -        28          26         -       26         28         -        28 
  Deferred acquisition costs                                             2 460         -     2 460       2 132         -    2 132      2 244         -     2 244 
  Investments                                                           21 003       112    20 891      21 993       112   21 881     22 360       112    22 248 
  Equities and similar securities                                        8 685       112     8 573       7 955       112    7 843      9 210       112     9 098 
  Associated companies                                                   1 361         -     1 361         847         -      847      1 182         -     1 182 
  Joint ventures - Shriram Life Insurance                                    -         -         -         267         -      267          -         -         - 
  Public sector stocks and loans                                           333         -       333         105         -      105        225         -       225 
  Investment properties                                                     48         -        48          57         -       57        106         -       106 
  Other interest-bearing and preference share investments               10 576         -    10 576      12 762         -   12 762     11 637         -    11 637 
  Net term finance                                                           -         -         -           -         -        -          -         -         - 
  Term finance                                                          (3 083)        -    (3 083)     (4 917)        -   (4 917)    (3 737)        -    (3 737)
  Assets held in respect of term finance                                 3 083         -     3 083       4 917         -    4 917      3 737         -     3 737 
  Net deferred tax                                                        (375)        -      (375)       (107)        -     (107)      (256)        -      (256)
  Net working capital                                                   (1 264)        -    (1 264)       (751)        -     (751)      (563)        -      (563)
  Derivative liability                                                     (35)        -       (35)          -         -        -        (95)        -       (95)
  Non-controlling interest                                              (1 145)        -    (1 145)       (926)        -     (926)    (1 044)        -    (1 044)
  Other Group operations                                                31 881    17 097    14 784      23 621    13 702    9 919     29 170    16 057    13 113 
  Sanlam Investments                                          2.3        9 907     6 724     3 183       9 155     5 747    3 408     10 219     6 333     3 886 
  Investment Management                                                  9 298     6 697     2 601       8 464     5 660    2 804      9 406     6 253     3 153 
  Capital Management                                                       609        27       582         691        87      604        813        80       733 
  Sanlam Personal Finance                                     2.1        2 631     1 858       773       2 234     1 402      832      2 618     1 668       950 
  Glacier                                                                1 368     1 105       263       1 206       920      286      1 338       995       343 
  Sanlam Personal Loans(3)                                                 822       397       425         620       198      422        816       349       467 
  Other operations                                                         441       356        85         408       284      124        464       324       140 
  Sanlam Emerging Markets                                     2.2        6 374       361     6 013       1 098      (10)    1 108      3 458       (31)    3 489 
  Shriram Capital                                                        4 190       463     3 727         153         -      153      2 398        93     2 305 
  Letshego                                                                 663       (10)      673         512      (52)      564        602        (4)      606 
  Pacific & Orient                                                         872       (17)      889           -         -        -          -         -         - 
  Other operations                                                         649       (75)      724         433        42      391        458      (120)      578 
  Santam                                                                12 969     9 401     3 568      11 134     7 810    3 324     12 875     9 334     3 541 
  Goodwill held on Group level in respect of the above                                                                               
  businesses                                                                 -    (1 247)    1 247           -    (1 247)   1 247          -    (1 247)    1 247 
  Shareholders fund at fair value                                      54 522    17 209    37 313      47 981    13 814   34 167     53 801    16 169    37 632 
  Value per share (cents)                                       4        2 667       842     1 825       2 365       681    1 684      2 646       795     1 851       
                                                                                                                                        
                                                                       
  Reconciliation to Group Equity Value                                                                                                                             
  Group Equity Value before adjustments to net worth                 	77 895    53 193    24 702      68 135    46 614   21 521     76 505    52 455    24 050   
  Add: Goodwill and value of business acquired replaced by                                                             
  value of in-force                                                 	 1 329     1 329         -       1 367     1 367        -      1 346     1 346         -   
  Sanlam Life and Pensions                                                 356       356         -         356       356        -        356       356         -   
  Sanlam Developing Markets                                                732       732         -         771       771        -        753       753         -   
  Shriram Life Insurance(4)                                                210       210         -         210       210        -        210       210         -   
  Other                                                                     31        31         -          30        30        -         27        27         -   
  Less: Value of in-force                                              (24 702)        -   (24 702)    (21 521)        -  (21 521)   (24 050         -   (24 050)   
  Shareholders fund at fair value                                      54 522    54 522         -      47 981    47 981        -     53 801    53 801         - 
 (1)  Group businesses listed above are not consolidated, but reflected as investments at fair value.                                                                              
 (2)  The value of business acquired and goodwill relate mainly to the consolidation of Sanlam Sky Solutions, Channel Life and Sanlam Life and 
      Pensions and are excluded in the build-up of the Group Equity Value, as the current value of in-force business for these life insurance 
      companies are included in the embedded value of covered business.                                                                                                                         
 (3)  The life insurance component of Sanlam Personal Loans operations is included in the value of in-force business and therefore excluded 
      from the Sanlam Personal Loans fair value. 
 (4)  The carrying value of Shriram Life Insurance includes goodwill of R210 million (2012: R210 million) that is excluded in the build-up of
      the Group Equity Value, as the current value of in-force business for Shriram Life Insurance is included in the embedded value of covered business.                                       
 (5)  Refer to note 2.4 for a description of the impact of the change in presentation format for non-life Group operations applied to June 2013 values.                                                                                                                                              

Shareholders' fund income statement 
for the six months ended 30 June 2013

                                                                               Sanlam Personal        Sanlam Emerging            Sanlam                        
                                                                                    Finance               Markets              Investments                                                   
  R million                                                            Note     2013       2012       2013       2012       2013       2012                                                                                                                                                                                                                       
  Financial services income                                                    6 240      5 496      1 754      1 300      3 493      3 152    
  Sales remuneration                                                          (1 027)      (947)      (313)      (276)       (77)       (56)   
  Income after sales remuneration                                              5 213      4 549      1 441      1 024      3 416      3 096    
  Underwriting policy benefits                                                (1 632)    (1 435)      (339)      (289)    (1 064)      (967)   
  Administration costs                                                        (1 640)    (1 615)      (405)      (354)    (1 665)    (1 498)   
  Result from financial services before tax                                    1 941      1 499        697        381        687        631    
  Tax on result from financial services                                         (528)      (416)      (158)       (67)      (152)      (154)   
  Result from financial services after tax                                     1 413      1 083        539        314        535        477    
  Non-controlling interest                                                        (4)        (6)      (148)      (131)       (12)        (6)   
  NET RESULT FROM FINANCIAL SERVICES                                           1 409      1 077        391        183        523        471    
  Net investment income                                                          482        489         75         23         84        100    
  Dividends received - Group companies                                           253        157          -          -          -          -    
  Other investment income                                                        298        411        124         47        110        121    
  Tax on investment income                                                       (69)       (79)       (24)       (17)       (26)       (21)   
  Non-controlling interest                                                         -          -        (25)        (7)         -          -    
  Project expenses                                                                 -          -         (4)        (3)         -        (5)    
  Amortisation of value of business acquired and other intangibles               (18)       (18)        (6)        (6)       (59)       (24)   
  Equity participation costs                                                       -          -          -          -          -          -    
  Net equity-accounted headline earnings                                           -          -          2          1          -          -    
  Net investment surpluses                                                       471      1 032        150         47        175         57    
  Investment surpluses - Group companies                                         146        836          -          -          -          -    
  Other investment surpluses                                                     409        277        160         55        198         71    
  Tax on investment surpluses                                                    (84)       (81)        (1)        (4)       (21)       (14)   
  Non-controlling interest                                                         -          -         (9)        (4)        (2)         -    
  Net Secondary Tax on Companies                                                   -       (81)          -          -          -         (2)   
  NORMALISED HEADLINE EARNINGS                                                 2 344      2 499        608        245        723        597    
  Net profit on disposal of associated companies                                   -          -          -          -         42          -    
  Impairments                                                                      -          -          -          -         (1)        (6)   
  NORMALISED ATTRIBUTABLE EARNINGS                                             2 344      2 499        608        245        764        591    
  Fund transfers                                                                   -          -          -          -          -               
  Attributable earnings per Group statement of comprehensive income            2 344      2 499        608        245        764        591    
  Ratios                                                                                                                                       
  Admin ratio(1)                                                               31,5%      35,5%      28,1%      34,6%      48,7%      48,4%    
  Operating margin(2)                                                          37,2%      33,0%      48,4%      37,2%      20,1%      20,4%    
  Normalised diluted earnings                                             3                                                                    
  per share                                                                                                                                    
  Adjusted weighted average number of shares (million)                                                                                         
  Net result from financial services (cents)                                    69,1       53,2       19,2        9,0       25,6       23,3    
                                                                                                                                                                                              

                                                                                                      Corporate and                                             
                                                                                   Santam                Other(3)                 Total                                                       
  R million                                                                    2013       2012       2013       2012         2013       2012                                                                                                                                                                                                                       
  Financial services income                                                   8 291      7 906         96         79       19 874     17 933   
  Sales remuneration                                                         (1 027)    (1 025)         -          -       (2 444)    (2 304)   
  Income after sales remuneration                                             7 264      6 881         96         79       17 430     15 629   
  Underwriting policy benefits                                               (5 715)    (5 089)         -          -       (8 750)    (7 780)   
  Administration costs                                                       (1 253)    (1 120)      (150)      (158)      (5 113)    (4 745)   
  Result from financial services before tax                                     296        672        (54)       (79)       3 567      3 104   
  Tax on result from financial services                                         (69)      (198)        12         20         (895)      (815)   
  Result from financial services after tax                                      227        474        (42)       (59)       2 672      2 289   
  Non-controlling interest                                                      (99)      (200)         -          -         (263)      (343)   
  NET RESULT FROM FINANCIAL SERVICES                                            128        274        (42)       (59)       2 409      1 946   
  Net investment income                                                          21         35       (280)       (92)         382        555   
  Dividends received - Group companies                                            -          -       (253)      (157)           -          -   
  Other investment income                                                        33         57        (11)        39          554        675   
  Tax on investment income                                                        6          4        (16)        26         (129)       (87)   
  Non-controlling interest                                                      (18)       (26)         -          -          (43)       (33)   
  Project expenses                                                                -          -         (2)         -           (6)        (8)   
  Amortisation of value of business acquired and other intangibles              (12)       (12)         -          -          (95)       (60)   
  Equity participation costs                                                     (9)        (1)         -          -           (9)        (1)  
  Net equity-accounted headline earnings                                         16         23          -          -           18         24   
  Net investment surpluses                                                       97         50       (143)      (874)         750        312   
  Investment surpluses - Group companies                                          -          -       (146)      (836)           -          -   
  Other investment surpluses                                                    204        178          3        (40)         974        541   
  Tax on investment surpluses                                                   (43)       (93)         -          1         (149)      (191)   
  Non-controlling interest                                                      (64)       (35)         -          1          (75)       (38)   
  Net Secondary Tax on Companies                                                  -        (86)         -        (60)           -       (229)   
  NORMALISED HEADLINE EARNINGS                                                  241        283       (467)    (1 085)       3 449      2 539   
  Net profit on disposal of associated companies                                  -          -          -          -           42          -   
  Impairments                                                                    (7)         -          -          -           (8)        (6)   
  NORMALISED ATTRIBUTABLE EARNINGS                                              234        283       (467)    (1 085)       3 483      2 533   
  Fund transfers                                                                  -          -         25       (131)          25       (131)   
  Attributable earnings per Group statement of comprehensive income             234        283       (442)    (1 216)       3 508      2 402   
  Ratios                                                                                                                                       
  Admin ratio(1)                                                              17,2%      16,3%                              29,3%      30,4%   
  Operating margin(2)                                                          4,1%       9,8%                              20,5%      19,9%   
  Normalised diluted earnings                                                                                                                  
  per share                                                                                                                                    
  Adjusted weighted average number of shares (million)                                                                    2 039,2    2 023,2   
  Net result from financial services (cents)                                    6,3       13,5       (2,1)      (2,9)       118,1       96,2   
 (1) Administration costs as a percentage of income earned by the shareholders fund less sales remuneration.                                                                                   
 (2) Result from financial services before tax as a percentage of income earned by the shareholders fund less sales remuneration.                                                             
 (3) Corporate and Other includes the consolidation entries in respect of the dividends received and the investment surpluses on the Sanlam Limited 
     shares held by Sanlam Life Insurance Limited.                                                                                                                                                                                                                                                                                                                                                                              
Notes to the shareholders' fund information 
for the six months ended 30 June 2013


 1.      BUSINESS VOLUMES                                                                                                                     
  1.1    Analysis of new business and total funds received                                                                                            
         Analysed per business, reflecting the split between life and non-life business                                                                                            
                                                     Life Insurance(1)                   Other(2)                   Total                     
         R million                                    2013         2012             2013         2012         2013         2012                                                                                                                             
         Sanlam Personal Finance                    10 114        8 733            9 125        6 459       19 239       15 192   
         Entry-level(3)                                503          430                -            -          503          430   
         Middle-income                               5 200        4 464              168          136        5 368        4 600   
         Recurring                                     628          594               25           24          653          618   
         Single(3)                                   4 572        3 870              143          112        4 715        3 982   
         Affluent                                    4 411        3 839            8 957        6 323       13 368       10 162   
         Sanlam Emerging Markets                     1 198        1 493            4 735        4 990        5 933        6 483                                                                 
         Namibia                                       155          284            4 108        4 315        4 263        4 599   
         Recurring                                      73           58                -            -           73           58   
         Single                                         82          226            4 108        4 315        4 190        4 541   
         Botswana                                      561          657              310          543          871        1 200   
         Recurring                                      87           69               25           21          112           90   
         Single(4)                                     474          588              285          522          759        1 110   
         Rest of Africa                                402          465               34            -          436          465   
         Recurring                                     204          166                -            -          204          166   
         Single(4)                                     198          299               34            -          232          299   
         India                                          80           87              204          132          284          219   
         Recurring                                      38           42              204          132          242          174   
         Single                                         42           45                -            -           42           45   
         South-East Asia                                 -            -               79            -           79            -   
         Sanlam Investments                          3 644        1 933           38 884       25 463       42 528       27 396   
         Employee benefits                           1 157          943                -            -        1 157          943   
         Recurring                                     143          173                -            -          143          173   
         Single                                      1 014          770                -            -        1 014          770   
         Investment Management                       2 487          990           38 884       25 463       41 371       26 453   
         Asset Management                                -            -           16 258       12 931       16 258       12 931   
         Wealth Management                               -            -            9 874        5 502        9 874        5 502   
         Investment                                      -            -            9 455        5 578        9 455        5 578   
         Services                                                                                                           
         International                               2 487          990            3 297        1 452        5 784        2 442   
         Recurring                                      35           21                -            -           35           21   
         Single                                      2 452          969            3 297        1 452        5 749        2 421                                                                
         Santam                                          -            -            8 096        7 703        8 096        7 703   
         New business excluding white label         14 956       12 159           60 840       44 615       75 796       56 774   
         White label                                     -            -            7 448        4 203        7 448        4 203   
         Total new business                         14 956       12 159           68 288       48 818       83 244       60 977   
                                                                                                                                                                                                  
 1.1     Analysis of new business and total funds received                                                                                                                                   
         Analysed per business, reflecting the split between life and non-life business                                                                                            
                                                     Life Insurance(1)                  Other(2)                    Total                     
         R million                                    2013         2012             2013         2012         2013         2012                                                                                                                                       
         Recurring premiums on existing funds:                                                                                             
         Sanlam Personal Finance                                                                             7 073        6 617   
         Sanlam Emerging Markets                                                                             1 091        1 042   
         Sanlam                                                                                              2 680        2 583   
         Investments                                                                                                              
         Sanlam Employee Benefits                                                                            1 656        1 655   
         Sanlam Investment Management                                                                        1 024          928   
         Asset Management                                                                                      287          244   
         Investment Services                                                                                   642          453   
         International                                                                                          95          231                                                                                                                                  
         Total funds received                                                                               94 088       71 219   
        (1) Life insurance business relates to business written under a life licence that is included in the calculation of embedded value of covered business.                                 
        (2) Includes life licence, investment and short-term insurance business. Life licence business relates to investment products provided by means of a 
            life insurance policy where there is very little or no insurance risk. Life licence business is excluded from the calculation of embedded value of 
            covered business.                                                                                             
        (3) Comparative information for entry-level market single premiums have been reclassified as middle-income market single premiums to align with December 
            2012 disclosures.                                                                                             
        (4) Comparative information have been restated for Botswanas Zambian asset management operations (previously included in Rest of Africa) to align with 
            December 2012 disclosures.                                                                                             
                                                                                                                                           											  
  1.2    Analysis of payments to clients                                                                                                      
                                                     Life Insurance(1)                Other(2)                     Total                     
         R million                                    2013        2012           2013        2012            2013         2012                                                        
         Sanlam Personal Finance                    13 874      12 323          5 874       5 870          19 748       18 193   
         Entry-level(3)                                828       1 082              -           -             828        1 082   
         Middle-income                              11 213       9 573            194         176          11 407        9 749   
         Surrenders(3)                               1 751       1 690              -           -           1 751        1 690   
         Other                                       9 462       7 883            194         176           9 656        8 059   
         Affluent                                    1 833       1 668          5 680       5 694           7 513        7 362   
         Sanlam Emerging Markets                     1 562       1 360          4 855       3 870           6 417        5 230                                                               
         Namibia                                       672         660          4 338       3 604           5 010        4 264   
         Surrenders                                     94         336              -           -              94          336   
         Other                                         578         324          4 338       3 604           4 916        3 928   
         Botswana                                      546         446            267         178             813          624   
         Surrenders                                    147         130              -           -             147          130   
         Other                                         399         316            267         178             666          494   
         Rest of Africa                                230         155              -           2             230          157   
         Surrenders                                     29          15              -           -              29           15   
         Other                                         201         140              -           2             201          142   
         India                                         114          99            199          86             313          185   
         Surrenders                                     90          75              -           -              90           75   
         Other                                          24          24            199          86             223          110   
         South-East Asia                                 -           -             51           -              51            -   
         Sanlam Investments                          4 160       3 475         36 854      25 477          41 014       28 952   
         Sanlam Employee Benefits                    2 967       2 626              -           -           2 967        2 626   
         Terminations                                  973         253              -           -             973          253   
         Other                                       1 994       2 373              -           -           1 994        2 373   
         Investment Management                       1 193         849         36 854      25 477          38 047       26 326   
         Asset Management                                -           -         19 373      11 424          19 373       11 424   
         Wealth Management                               -           -          7 417       5 830           7 417        5 830   
         Investment Services                             -           -          8 079       6 775           8 079        6 775   
         International                               1 193         849          1 985       1 448           3 178        2 297   
         Santam                                          -           -          5 715       5 089           5 715        5 089   
         Payments to clients excluding white label  19 596      17 158         53 298      40 306          72 894       57 464   
         White label                                     -           -          8 583       3 572           8 583        3 572   
         Total payments to clients                  19 596      17 158         61 881      43 878          81 477       61 036                                                                                                                 
        (1) Life insurance business relates to business written under a life licence that is included in the calculation of embedded value of covered business.                              
        (2) Includes life licence, investment and short-term insurance business. Life licence business relates to investment products provided by means of a 
            life insurance policy where there is very little or no insurance risk. Life licence business is excluded from the calculation of embedded value of 
	    covered business.                                                                                             
        (3) Comparative information for entry-level surrenders have been reclassified as middle-income surrenders to align with December 2012 disclosures.                                                                                             
                                                                                     											  
  1.3    Analysis of net inflow/(outflow) of funds                                                                                            
                                                      Life Insurance(1)              Other(2)                      Total                     
         R million                                    2013        2012           2013        2012            2013         2012                                                           
         Sanlam Personal Finance                     3 197       2 913          3 367         702           6 564        3 615   
         Entry-level(3)                              1 410         867              -           -           1 410          867   
         Middle-income(3)                             (791)       (125)            90          73           (701)          (52)   
         Affluent                                    2 578       2 171          3 277         629           5 855        2 800   
         Sanlam Emerging Markets                       727       1 176           (120)      1 120             607        2 296   
         Namibia                                      (189)        (63)          (230)        711            (419)         648   
         Botswana(4)                                   417         647             43         365             460        1 012   
         Rest of Africa(4)                             496         556             34          (2)            530          554   
         India                                           3          36              5          46               8           82   
         South-East Asia                                 -           -             28           -              28            -   
         Sanlam Investments                          1 235         344          2 959         683           4 194        1 027   
         Sanlam Employee Benefits                     (154)        (28)             -           -            (154)         (28)   
         Investment Management                       1 389         372          2 959         683           4 348        1 055   
         Asset Management                                -           -         (2 828)      1 751          (2 828)       1 751   
         Wealth Management                               -           -          2 457        (328)          2 457         (328)   
         Investment Services                             -           -          2 018        (744)          2 018         (744)   
         International                               1 389         372          1 312           4           2 701          376   
         Santam                                          -           -          2 381       2 614           2 381        2 614   
         Net inflow excluding white label            5 159       4 433          8 587       5 119          13 746        9 552   
         White label                                     -           -         (1 135)        631          (1 135)         631   
         Total net inflow                            5 159       4 433          7 452       5 750          12 611       10 183   
        (1) Life insurance business relates to business written under a life licence that is included in the calculation of embedded value of covered business.                              
        (2) Includes life licence, investment and short term insurance business. Life licence business relates to investment products provided by means of a life
            insurance policy where there is very little or no insurance risk. Life licence business is excluded from the calculation of embedded value of covered 
	    business.                                                                                             
        (3) Comparative information for entry-level market single premiums have been reclassified as middle-income market single premiums to align with December 
            2012 disclosures.                                                                                             
        (4) Comparative information have been restated for Botswanas Zambian asset management operations (previously included in Rest of Africa) to align with 
            December 2012 disclosures.                                                                                             


  2.     CLUSTER INFORMATION                                                                                                             
  2.1    Sanlam Personal Finance                                                                                                         
                                                                         Life               Non-life                                          
                                                                     operations             operations                Total                            
         R million                                                2013        2012      2013        2012       2013        2012                                                                                                                                     
         Analysis of attributable earnings                                                                                            
         Gross result from financial services                    1 715       1 304       226         195      1 941       1 499       
         Entry-level market                                        360         199         -           -        360         199       
         Middle-income market life and investments               1 251       1 033        16          10      1 267       1 043       
         Administration                                            338         260         -           -        338         260       
         Risk underwriting - long-term insurance                   414         342         -           -        414         342       
         Asset-mismatch reserve                                    251         223         -           -        251         223       
         Working capital management                                143         139         -           -        143         139       
         Other                                                     105          69        16          10        121          79       
         Glacier                                                    51          37        71          54        122          91       
         Sanlam Personal Loans                                      53          35       104          98        157         133       
         Other operations                                            -           -        35          33         35          33       
         Tax on result from financial services                    (465)       (364)      (63)        (52)      (528)       (416)       
         Non-controlling interest                                    -          (3)       (4)         (3)        (4)         (6)       
         Net result from financial services                      1 250         937       159         140      1 409       1 077       
         Net investment return                                     949       1 518         4           3        953       1 521       
         Net investment income                                     478         486         4           3        482         489       
         Net investment surpluses                                  471       1 032         -           -        471       1 032       
         Net other earnings                                        (18)        (99)        -           -        (18)        (99)       
         Amortisation of intangibles                               (18)        (18)        -           -        (18)        (18)       
         Secondary tax on companies                                  -         (81)        -           -          -         (81)                                                                
         Normalised attributable earnings                        2 181       2 356       163         143      2 344       2 499       

                                                                         
  2.1    Sanlam Personal Finance                                                                        
         Analysis of Group Equity Value (GEV)
		 
                                       GEV at the                                             GEV at    
                                        beginning                  Capital                   the end    
                                           of the                  invest-     Dividend       of the     
         R million                         period     Earnings        ment         paid       period                                                                                            
         30 June 2013                                                                                   
         Life insurance operations         30 144       1 879           44       (1 543)      30 524    
         Non-life operations                2 618         362          (67)        (282)       2 631     
         Glacier                            1 338         184            -         (154)       1 368     
         Sanlam Personal Loans                816         164          (86)         (72)         822       
         Other                                464          14           19          (56)         441                                                                                            
         Group Equity Value                32 762       2 241          (23)      (1 825)      33 155    
         30 June 2012                                                                                  
         Life insurance operations         26 687       2 430           41       (1 339)      27 819   
         Non-life operations                2 189         153           36         (144)       2 234   
         Glacier                            1 169         117            -          (80)       1 206   
         Sanlam Personal Loans                494         129           36          (39)         620   
         Other                                526         (93)           -          (25)         408                                                                                            
         Group Equity Value                28 876       2 583           77       (1 483)      30 053
		 
                                         
  2.2    Sanlam Emerging Markets                                                  
         R million                                          2013        2012                                                                            
         Analysis of attributable earnings                                     
         Net result from financial services                  391         183   
         Life insurance                                      180         144   
         Short-term insurance                                  5         (12)   
         Investment management                                16          12   
         Credit and banking                                  179          42   
         Other                                                11          (3)   
         Net investment return                               225          70   
         Net investment income                                75          23   
         Net investment surpluses                            150          47   
         Net other earnings                                   (8)         (8)   
         Amortisation of intangibles and impairments          (6)         (6)   
         Project expenses and other                           (2)         (2)                                                                           
         Normalised attributable earnings                    608         245   
         Analysis of net result from financial services                        
         Life insurance operations                           180         144   
         Namibia                                              64          59   
         Botswana                                             56          55   
         Rest of Africa                                       49          20   
         India                                                11          10   
         Non-life operations                                 211          39   
         Namibia                                               8           7   
         Botswana                                             52          44   
         Rest of Africa                                        -           -   
         India/Malaysia                                      160          (6)   
         Corporate                                            (9)         (6)                                                                           
         Net result from financial services                  391         183   


         Analysis of Group Equity Value (GEV) 
		 
                                         GEV at                           
                                            the                                          GEV at
                                      beginning                 Capital                 the end    
                                         of the                   move-    Dividend      of the          
         R million                       period     Earnings       ment        paid      period                                                                                    
         30 June 2013                                                                              
         Life insurance operations        2 647          572          -        (237)      2 982   
         Non-life operations              3 458          976      2 009         (69)      6 374   
         Shriram Capital                  2 398          710      1 104         (22)      4 190   
         Pacific & Orient                     -           55        817           -         872   
         Letshego                           602           82          -         (21)        663   
         Other operations                   458          129         88         (26)        649                                                                                              
         Group Equity Value               6 105        1 548      2 009        (306)      9 356   
         30 June 2012                                                                             
         Life insurance operations        2 320          182        (5)        (152)      2 345   
         Non-life operations              1 089           33          -         (24)      1 098   
         Shriram Capital                    152            1          -           -         153   
         Letshego                           465           47          -           -         512   
         Other operations                   472         (15)          -         (24)        433                                                                                              
         Group Equity Value               3 409          215        (5)        (176)      3 443

	  
  2.2    Sanlam Emerging Markets                                                                                    
         Analysis of business volumes                                                                                          
                                                          Life Insurance                Other                   Total                  
         R million                                     2013           2012       2013          2012       2013          2012                                                                                                                        
         Recurring premiums                             402            335        308           153        710           488   
         Risk                                           248            213          -             -        248           213   
         Investment                                     154            111          -             -        154           111   
         Short-term                                       -              -        308           153        308           153   
         Annuities                                        -             11          -             -          -            11   
         Single premiums                                796          1 158      4 427         4 837      5 223         5 995   
         Risk                                           369            423          -             -        369           423   
         Savings                                        424            710          -             -        424           710   
         Continuations                                    3             25          -             -          3            25   
         Other                                            -              -      4 427         4 837      4 427         4 837                                                             
         Total new business                           1 198          1 493      4 735         4 990      5 933         6 483   
         Recurring premiums on existing business      1 091          1 042          -             -      1 091         1 042   
         Risk                                           563            579          -             -        563           579   
         Investment                                     428            368          -             -        428           368   
         Annuities                                      100             95          -             -        100            95                                                        
         Total funds received from clients            2 289          2 535      4 735         4 990      7 024         7 525   
         Death and disability benefits                  390            309          -             -        390           309   
         Maturity benefits                              502            204          -             -        502           204   
         Life and term annuities                        226            197          -             -        226           197   
         Surrenders                                     360            556          -             -        360           556   
         Other                                           84             94      4 855         3 870      4 939         3 964   
         Total payments to clients                    1 562          1 360      4 855         3 870      6 417         5 230   
                                                                                                                

                                                                                                                                                                             
  2.3    Sanlam Investments                                                                                                                                                                                          
         Analysis of attributable earnings                                                                                                                                                                           
                                                         Investment          Capital          Sanlam Employee       Intra-cluster                                  
                                                         Management         Management             Benefits          eliminations           Total                                  
         R million                                     2013     2012      2013     2012       2013      2012        2013     2012      2013      2012                                                                                                                                                 
         Financial services income*                   1 621    1 408       214      230      1 600     1 491        (8)      (17)     3 427     3 112   
         Sales remuneration                             (57)     (32)        -        -        (20)      (24)        -         -        (77)      (56)   
         Income after sales remuneration              1 564    1 376       214      230      1 580     1 467        (8)      (17)     3 350     3 056   
         Underwriting policy benefits                     -        -         -        -     (1 064)    (967)         -         -     (1 064)     (967)   
         Administration cost*                        (1 144)  (1 032)     (152)    (157)      (342)    (311)         8        17     (1 630)   (1 483)   
         Results from financial services before                                                                                                
	 performance fees                               420      344        62       73        174      189          -         -        656       606   
         Net performance fees                            31       25         -        -          -        -          -         -         31        25   
         Results from financial services                451      369        62       73        174      189          -         -        687       631   
         Tax on result from financial services         (104)     (87)        1      (14)       (49)     (53)         -         -       (152)     (154)   
         Non-controlling interest                       (12)      (6)        -        -          -        -          -         -        (12)       (6)   
         Net result from financial services             335      276        63       59        125      136          -         -        523       471   
         Net investment return                           42      (22)        2        4        215      175          -         -        259       157   
         Net investment income                           10        7         2        4         72       89          -         -         84       100   
         Net investment surpluses                        32      (29)        -        -        143       86          -         -        175        57   
         Net other earnings                             (18)     (37)        -        1          -       (1)         -         -        (18)      (37)   
         Normalised attributable earnings               359      217        65       64        340      310          -         -        764       591   
         *  Financial service income and administration cost on page 32 includes performance fees and related administration costs respectively.                                                                                                                                                     

       
                                              Net result from             Assets under                                                       
                                             financial services            management             Fee income         Administration cost                                                      
                                              June        June          June       December     June    December     June       December   
                                              2013        2012          2013           2012     2013        2012     2013           2012   
                                         R million   R million     R million      R million     %              %     %                 %                                           
         Asset management                                                                                                                          
         Investment management                 307         248       618 500        593 582                                                
         Asset Management                      135         132       354 031        356 605    0,25         0,23     0,15           0,14   
         Wealth Management                      53          22       121 465        107 187    0,72         0,73     0,59           0,65   
         Investment Services                    32          33       133 453        123 737    0,71         0,73     0,64           0,66   
         International                          82          78        82 839         69 722    0,73         0,74     0,49           0,50   
         Support Services                        5         (17)            -              -                                                
         Intra-cluster eliminations              -           -       (73 288)       (63 669)                                                 
         Capital Management                     63          59         2 793          2 863    1,26         1,11     0,81           0,72   
         Asset management operations           370         307       621 293        596 445                                                           
         Covered business:                     125         136        54 202         52 822                                                           
         Sanlam Employee Benefits                                                                                                                     
         Covered business:                      28          28        28 689         24 385                                                           
         Sanlam UK                                                                                                                                    
         Sanlam Investments total              523         471       704 184        673 652                                                           

                                                                                              
  2.3    Sanlam Investments                                                                                                
         Asset mix of assets under management                                                                                         
                                                           Fixed                     Off-        Pro-           
         R million                                      Interest     Equities       shore     perties        Cash        Total                                                                  
         June 2013                                                                                                               
         Asset Management                                 92 418      149 566      36 360       9 425      66 262      354 031   
         Wealth Management                                     -       76 938      41 229           -       3 298      121 465   
         Investment Services                              37 101       63 850      12 215       5 410      14 877      133 453   
         International                                         -            -      82 839           -           -       82 839   
         Capital Management                                    -        2 784           -           -           9        2 793   
         Intra-cluster eliminations                                                                                    (73 288)   
         Assets under management - Sanlam Investments    129 519      293 138     172 643      14 835      84 446      621 293   
         December 2012                                                                                                           
         Asset Management                                 93 445      151 181      31 954      11 011      69 014      356 605   
         Wealth Management                                     -       68 775      35 396           -       3 016      107 187   
         Investment Services                              30 609       69 086      11 844       4 458       7 740      123 737   
         International                                         -            -      69 722           -           -       69 722   
         Capital Management                                  513        2 341           -           -           9        2 863   
         Intra-cluster eliminations                                                                                    (63 669)   
         Assets under management - Sanlam Investments    124 567      291 383     148 916      15 469      79 779      596 445   


         Sanlam Employee Benefits                                             
                                                           2013      2012                                                                    
         Analysis of attributable earnings                                  
         Net result from financial services                 125       136   
         Risk underwriting                                   61        73   
         Investment and other                                67        70   
         Working capital management                          15        14   
         Administration                                     (18)      (21)   
         Analysis of new business per product line                          
         Recurring premiums                                 143       173   
         Guaranteed                                          31        71   
         Risk                                               112       102   
         Single premiums                                  1 014       770   
         Guaranteed                                         726       621   
         Annuity                                             56       149   
         Special structures                                 232         -   

		                                                                               
  2.3    Sanlam Investments                                                                                  
         Analysis of Group Equity Value (GEV)                                                                           
                                                          GEV at                                               GEV at    
                                                             the                                              the end   
                                                       beginning                    Capital                    end of   
                                                          of the                      move-     Dividend          the   
         R million                                        period      Earnings         ment         paid       period                                                             
         30 June 2013                                                                                                   
         Investment Management                            10 310           969         (312)        (667)      10 300   
         Asset Management                                  3 919            58            -         (295)       3 682   
         Wealth Management                                 1 558           232           22          (87)       1 725   
         Investment Services                                 995            36            -          (96)         935   
         International                                     3 838           643         (334)        (189)       3 958   
         Covered business                                    904           133            -          (35)       1 002   
         Other operations                                  2 934           510         (334)        (154)       2 956   
         Sanlam Employee Benefits:                                                                                      
         Covered business                                  5 301           454            -         (336)       5 419   
         Capital Management                                  813            81           75         (360)         609   
         Group Equity Value                               16 424         1 504         (237)      (1 363)      16 328   
         30 June 2012                                                                                                   
         Investment Management                             9 031           576          142         (508)       9 241   
         Asset Management                                  3 411           162            -         (138)       3 435   
         Wealth Management                                 1 259            78           12          (35)       1 314   
         Investment Services                                 865            70            -          (60)         875   
         International                                     3 496           266          130         (275)       3 617   
         Covered business                                    791            35            -          (49)         777   
         Other operations                                  2 705           231          130         (226)       2 840   
         Sanlam Employee Benefits: Covered business        5 077           296            -         (241)       5 132   
         Capital Management                                  801            67            -         (177)         691   
         Group Equity Value                               14 909           939          142         (926)      15 064	 
                                                  
  2.4    Valuation methodology                                                            
         The fair value of unlisted businesses has been determined by the application of the following valuation methodologies:                                
                                                                    Fair value                    
                                                                June       December   
         R million                                              2013           2012                                                                                   
         Valuation method                                                             
         Ratio of price to assets under management             8 520          8 385   
         Sanlam Investments                                    8 074          7 917   
         Asset Management                                      3 423          3 640   
         Wealth Management                                     1 515          1 335   
         Investment Services                                     949          1 003   
         International                                         2 103          1 844   
         Capital Management                                       84             95   
         Sanlam Emerging Markets                                 446            468   
         Discounted cash flows                                 9 257          6 983   
         Sanlam Investments                                    1 168          1 409   
         Asset Management                                        217            222   
         Wealth Management                                       210            223   
         International                                           741            964   
         Sanlam Emerging Markets                               5 458          2 956   
         Shriram Capital                                       4 190          2 398   
         Pacific & Orient                                        872              -   
         Other operations                                        396            558   
         Sanlam Personal Finance                               2 631          2 618   
         Glacier                                               1 368          1 338   
         Sanlam Personal Loans                                   822            816   
         Other operations                                        441            464   
         Net asset value                                       1 135            927   
         Sanlam Investments                                      665            893   
         Asset Management                                         42             57   
         Investment Services                                     (14)            (8)   
         International                                           112            126   
         Capital Management                                      525            718   
         Sanlam Emerging Markets                                 470             34   
                                                              18 912         16 295   
         As described in the accounting policies section the presentation format of non-life Group operations has been changed with 
         effect from June 2013 to base valuations, with year to date earnings reflected as Other capital on the GEV statement and Net 
	 working capital on the Shareholders fund at fair value. Comparative information has not been restated as the change in 
         presentation does not have an impact on total GEV, GEV earnings and RoGEV.                                                          
                                                                                                    
         The main assumptions applied in the primary valuation for the unlisted businesses                                 
         are presented below. The sensitivity analysis is based on the following changes                                 
         in assumptions:                                                                  
                                                               Change in assumption                    
                                                              June         December   
         %                                                    2013             2012                                                                                   
         Ratio of price to assets under management (P/AuM)     0,1              0,1   
         Risk discount rate (RDR)                              1,0              1,0   
         Perpetuity growth rate (PGR)                          1,0              1,0   


                                                         Weighted       Base      Decrease in      Increase in   
         R million                             average assumption      value       assumption       assumption                                                                                                                        
         Ratio of price to assets under             P/AuM = 1,06%
   	 management                              (Dec 2012: 1,06%)     8 520            7 715           9 325                                                                        
         Discounted cash                              RDR = 16,2%         
         flows                                   (Dec 2012: 16,4%)     9 257           10 311           8 324                                            
                                                   PGR = 2,5 - 5%         
                                              (Dec 2012: 2,5 - 5%)     9 257            8 686           9 929                                              


  3.     NORMALISED DILUTED EARNINGS PER SHARE                                                                                 
                                                                                                      June         June   
         Cents                                                                                        2013         2012                                                                                                                         
         Normalised diluted earnings per share:                                                                           
         Net result from financial services                                                          118,1         96,2   
         Normalised headline earnings                                                                169,1        125,5   
         Profit attributable to shareholders fund                                                   170,8        125,2   
		  
                                                                                                      June         June   
         R million                                                                                    2013         2012                                                                                                                        
         Analysis of normalised earnings (refer shareholders fund 
         income statement):                               
         Net result from financial services                                                          2 409        1 946   
         Headline earnings                                                                           3 449        2 539   
         Profit attributable to shareholders fund                                                   3 483        2 533   
         Reconciliation of normalised headline earnings:                                                                  
         Headline earnings 			                                                     3 474        2 408   
         Fund transfers                                                                                (25)         131   
         Normalised headline earnings                                                                3 449        2 539   
                                                                                                                          
                                                                                                      June          June   
         Million                                                                                      2013          2012                                                                                                                      
         Adjusted number of shares:                                                                                       
         Weighted average number of shares for diluted earnings                                       
         per share                                                                                 2 026,6       2 005,3
         Add: Weighted average Sanlam shares held by policyholders                                    12,6          17,9   
         Adjusted weighted average number of shares for normalised diluted earnings per share      2 039,2       2 023,2   
          
		  
  4.     VALUE PER SHARE                                                                                                       
         Fair value per share is calculated on the Group shareholders fund at fair value of                                   
         R54 522 million (June 2012: R47 981 million), divided by 2 044,5 million (June 2012:                                  
         2 029,1 million) shares.                                                                                              
         Net asset value per share is calculated on the Group shareholders fund at net                                        
         asset value of R37 313 million (June 2012: R34 167 million), divided by 2 044,5 million                                
         (June 2012: 2 029,1 million) shares.                                                                                  
         Equity value per share is calculated on the Group Equity Value of R76 609 million 
         (June 2012: R66 820 million), divided by 2 044,5 million (June 2012: 2 029,1 million) 
         shares.                               
                                                                                      June                     
         Million                                                               2013           2012                                                                                                                         
         Number of shares for value per share:                                                              
         Number of ordinary shares in issue                                 2 100,0        2 100,0   
         Shares held by subsidiaries in shareholders fund                   (148,7)        (154,5)  
         Outstanding shares in respect of Sanlam Limited                          
         long-term incentive schemes                                           32,1           33,2                             
         Convertible deferred shares held by Ubuntu-Botho                      61,1           50,4   
         Adjusted number of shares for value per share                      2 044,5        2 029,1   


Embedded value of covered business 
as at 30 June 2013                                                                  
                                                          June          June      December  
                                                      Reviewed      Reviewed       Audited    
  R million                                 Note          2013          2012          2012                                                                                              
  Sanlam Personal Finance                               30 524        27 819        30 144   
  Adjusted net worth                                     8 751         8 555         8 681   
  Net value of in-force covered business                21 773        19 264        21 463   
  Value of in-force covered business                    23 544        21 001        23 168   
  Cost of capital                                       (1 771)       (1 737)       (1 705)  
  Sanlam Emerging Markets                                2 982         2 345         2 647   
  Adjusted net worth                                     1 334         1 020         1 145   
  Net value of in-force covered business                 1 648         1 325         1 502   
  Value of in-force covered business                     2 802         2 240         2 534   
  Cost of capital                                         (297)         (235)         (273)  
  Non-controlling interest                                (857)         (680)         (759)  
  Sanlam UK(1)                                           1 002           777           904   
  Adjusted net worth                                       315           236           295   
  Net value of in-force covered business                   687           541           609   
  Value of in-force covered business                       742           592           664   
  Cost of capital                                          (55)          (51)          (55)  
  Sanlam Employee Benefits(1)                            5 419         5 132         5 301   
  Adjusted net worth                                     4 825         4 741         4 825   
  Net value of in-force covered business                   594           391           476   
  Value of in-force covered business                     1 568         1 320         1 374   
  Cost of capital                                         (974)         (929)         (898)                                                                                            
  Embedded value of covered business                    39 927        36 073        38 996   
  Adjusted net worth(2)                                 15 225        14 552        14 946   
  Net value of in-force covered business       1        24 702        21 521        24 050   
  Embedded value of covered business                    39 927        36 073        38 996   
 (1) Sanlam UK and Sanlam Employee Benefits are part of the Sanlam Investments cluster.                                                    
 (2) Excludes subordinated debt funding of Sanlam Life.                                                    

 
Change in embedded value of covered business 
for the six months ended 30 June 2013
                                                                       Six months reviewed                           Six months reviewed                
                                                                                                                                                    
                                                                               2013                                     2012                       
                                                                                            Adjusted                                Adjusted    
                                                                       Value of   Cost of        net            Value of   Cost of       net   
   R million                                           Notes    Total  in-force   capital      worth     Total  in-force   capital     worth                                                                                                                                                                                                    
  Embedded value of covered business at the                                      
  beginning of the period                                      38 996    26 897    (2 847)    14 946    34 875    23 145    (2 823)   14 553    
  Value of new business                                    2      587     1 499       (68)      (844)      491     1 272       (68)     (713)   
  Net earnings from existing covered business                   2 029      (371)        9      2 391     1 557      (524)      101     1 980    
  Expected return on value of in-force business                 1 269     1 192        77          -     1 259     1 197        62         -    
  Expected transfer of profit to adjusted net worth                 -    (1 884)        -      1 884         -    (1 641)        -     1 641    
  Operating experience variances                           3      471        (4)      (16)       491       230      (175)        -       405    
  Operating assumption changes                             4      289       325       (52)        16        68        95        39       (66)   
  Expected investment return on adjusted net worth                462         -         -        462       528         -         -       528    
  Embedded value earnings from operations                       3 078     1 128       (59)     2 009     2 576       748        33     1 795    
  Economic assumption changes                              5     (888)     (850)      (46)         8       375       401        41       (67)   
  Tax changes                                                       3         3         -          -      (234)      (83)      (91)      (60)   
  Investment variances - value of in-force                        316       323       (35)        28       207       202       (39)       44    
  Investment variances - investment return on                                    
  adjusted net worth                                              385         -         -        385        54         -         -        54    
  Exchange rate movements                                         144       161       (17)         -       (37)      (41)        4         -    
  Embedded value earnings from covered business                 3 038       765      (157)     2 430     2 941     1 227       (52)    1 766    
  Acquired value of in-force                                        -         -         -          -        36        25        (1)       12    
  Transfers from/(to) other Group operations                       44        44         -          -         -         -         -         -    
  Transfers from covered business                              (2 151)        -         -     (2 151)   (1 779)        -         -    (1 779)   
  Embedded value of covered business at the                                      
  end of the period                                            39 927    27 706    (3 004)    15 225    36 073    24 397    (2 876)   14 552    
  Analysis of earnings from covered business                                                                                                     
  Sanlam Personal Finance                                       1 879       332       (66)     1 613     2 430     1 188       (16)    1 258    
  Sanlam Emerging Markets                                         572       161       (15)       426       182        21        (1)      162    
  Sanlam UK                                                       133        78         -         55        33        17       (17)       33    
  Sanlam Employee Benefits                                        454       194       (76)       336       296         1       (18)      313    
  Embedded value earnings from covered business                 3 038       765      (157)     2 430     2 941     1 227       (52)    1 766    

  
  
                                                                            Full year   
                                                                              Audited   
                                                                                 2012                                                                                                                
  R million                                                                     Total                                                                                                                                                                                                   
  Embedded value of covered business at the beginning of the period            34 875   
  Value of new business                                                         1 176   
  Net earnings from existing covered business                                   3 210   
  Expected return on value of in-force business                                 2 560   
  Expected transfer of profit to adjusted net worth                                 -   
  Operating experience variances                                                  555   
  Operating assumption changes                                                     95   
  Expected investment return on adjusted net worth                              1 075   
  Embedded value earnings from operations                                       5 461   
  Economic assumption changes                                                     874   
  Tax changes                                                                    (228)  
  Investment variances - value of in-force                                      1 344   
  Investment variances - investment return on adjusted net worth                  460   
  Exchange rate movements                                                          (3)  
  Embedded value earnings from covered business                                 7 908   
  Acquired value of in-force                                                       47   
  Transfers from/(to) other Group operations                                        -   
  Transfers from covered business                                              (3 834)  
  Embedded value of covered business at the end of the period                  38 996   
  Analysis of earnings from covered business                                             
  Sanlam Personal Finance                                                       6 296   
  Sanlam Emerging Markets                                                         628   
  Sanlam UK                                                                       162   
  Sanlam Employee Benefits                                                        822   
  Embedded value earnings from covered business                                 7 908
  
  
Value of new business                                                      
for the six months ended 30 June 2013                                     
                                                                                         Full   
                                                       Six months     Six months         year   
                                                         Reviewed       Reviewed      Audited   
  R million                                    Note          2013           2012         2012                                                                                                
  Value of new business (at point of sale):                                                     
  Gross value of new business                                 713            610        1 443   
  Sanlam Personal Finance                                     484            412        1 003   
  Sanlam Emerging Markets                                     152            126          303   
  Sanlam UK                                                    25             10           17   
  Sanlam Employee Benefits                                     52             62          120   
  Cost of capital                                             (74)           (77)        (165)  
  Sanlam Personal Finance                                     (34)           (22)         (64)  
  Sanlam Emerging Markets                                     (16)           (18)         (36)  
  Sanlam UK                                                    (2)            (2)          (3)  
  Sanlam Employee Benefits                                    (22)           (35)         (62)  
  Value of new business                                       639            533        1 278   
  Sanlam Personal Finance                                     450            390          939   
  Sanlam Emerging Markets                                     136            108          267   
  Sanlam UK                                                    23              8           14   
  Sanlam Employee Benefits                                     30             27           58   
  Value of new business attributable to:                                                       
  Shareholders fund                              2           587            491        1 176   
  Sanlam Personal Finance                                     450            390          939   
  Sanlam Emerging Markets                                      84             66          165   
  Sanlam UK                                                    23              8           14   
  Sanlam Employee Benefits                                     30             27           58   
  Non-controlling interest                                     52             42          102                                                                                     
  Sanlam Personal Finance                                       -              -            -   
  Sanlam Emerging Markets                                      52             42          102   
  Sanlam UK                                                     -              -            -   
  Sanlam Employee Benefits                                      -              -            -                                                                                                
  Value of new business                                       639            533        1 278   
  Geographical analysis:                                                                        
  South Africa                                                480            417          997   
  Africa                                                      136            109          266   
  Other international                                          23              7           15   
  Value of new business                                       639            533        1 278   
                                                                                                 
                                                                                         Full   
                                                       Six months     Six months         year   
                                                         Reviewed       Reviewed      Audited   
  R million                                                  2013           2012         2012                                                                                            
  Analysis of new business profitability:                                                         
  Before non-controlling interest                                                               
  Present value of new business premiums                   21 455         17 930       38 129   
  Sanlam Personal Finance                                  14 667         12 680       27 332   
  Sanlam Emerging Markets                                   2 085          2 199        4 537   
  Sanlam UK                                                 2 636          1 042        2 210   
  Sanlam Employee Benefits                                  2 067          2 009        4 050   
  New business margin                                       2,98%          2,97%        3,35%   
  Sanlam Personal Finance                                   3,07%          3,08%        3,44%   
  Sanlam Emerging Markets                                   6,52%          4,91%        5,88%   
  Sanlam UK                                                 0,87%          0,77%        0,63%   
  Sanlam Employee Benefits                                  1,45%          1,34%        1,43%   
  After non-controlling interest                                                                 
  Present value of new business premiums                   20 731         17 150       36 528   
  Sanlam Personal Finance                                  14 667         12 669       27 321   
  Sanlam Emerging Markets                                   1 361          1 430        2 947   
  Sanlam UK                                                 2 636          1 042        2 210   
  Sanlam Employee Benefits                                  2 067          2 009        4 050   
  New business margin                                       2,83%          2,86%        3,22%   
  Sanlam Personal Finance                                   3,07%          3,08%        3,44%   
  Sanlam Emerging Markets                                   6,17%          4,62%        5,60%   
  Sanlam UK                                                 0,87%          0,77%        0,63%   
  Sanlam Employee Benefits                                  1,45%          1,34%        1,43%   
                                                                                            
                                                                                            
Notes to the embedded value of covered business
for the six months ended 30 June 2013
                                                          Gross                                Change   
                                                       value of                  Net value       from    
                                                       in-force      Cost of   of in-force       base   
                                                       business      capital      business      value   
                                                      R million    R million     R million          %                                                                                           
  1.    Value of in-force sensitivity analysis                                                          
        Base value at 30 June 2013                       27 706       (3 004)        24 702                                                                                                 
        - Risk discount rate increase by 1%              26 318       (3 684)        22 634        (8)  
        Base value at 31 December 2012                   26 897       (2 847)        24 050                                                                                            
        - Risk discount rate increase by 1%              25 604       (3 546)        22 058        (8)  
                                                                                                        
                                                          Gross                                Change   
                                                       value of                   Net value      from    
                                                            new      Cost of         of new      base   
                                                       business      capital       business     value   
                                                      R million    R million      R million         %   
                                                                                                        
  2.    Value of new business sensitivity analysis                                                                                                                                                     
        Base value                                          655          (68)           587             
        - Risk discount rate increase by 1%                 566          (86)           480       (18)  
                                                                                                        

                                                      Six months    Six months    Full year   
                                                        Reviewed      Reviewed      Audited   
        R million                                           2013          2012         2012                                                                                            
  3.    Operating experience variances                                                        
        Risk experience                                      325           340          559   
        Persistency                                          123            65           26   
        Working capital and other                             23          (175)         (30)  
        Total operating experience variances                 471           230          555   
  4.    Operating assumption changes                                                                               
        Risk experience                                      552           (54)          66   
        Persistency                                           45            29           52   
        Modelling improvements and other                    (308)           93          (23)  
        Total operating assumption changes                   289            68           95   
  5.    Economic assumption changes                                                                               
        Investment yields                                   (923)          312          876   
        Long-term asset mix assumptions and other             35            63           (2)  
        Total economic assumption changes                   (888)          375          874   

                                                                          June         June     December   
                                                                      Reviewed     Reviewed      Audited   
        %                                                                 2013         2012         2012                                                                                                      
  6.    Economic assumptions                                                                               
        Gross investment return, risk discount rate and inflation                                          
        Sanlam Life                                                                                        
        Point used on the relevant yield curve                          9 year       9 year       9 year   
        Fixed-interest securities                                          7,8          7,6          6,8   
        Equities and offshore investments                                 11,3         11,1         10,3   
        Hedged equities                                                    8,3          8,1          7,3   
        Property                                                           8,8          8,6          7,8   
        Cash                                                               6,8          6,6          5,8   
        Return on required capital                                         8,8          8,6          7,8   
        Inflation rate(1)                                                  5,8          5,6          4,8   
        Risk discount rate                                                10,3         10,1          9,3   
       (1) Expense inflation of 7,8% (December 2012: 6,8%) assumed 
	   for retail business administered on old platforms.                                                                                  
        
		SDM Limited                                                                                                                                                                                           
        Point used on the relevant yield curve                          5 year       5 year       5 year   
        Fixed-interest securities                                          7,2          6,7          5,9   
        Equities and offshore investments                                 10,7         10,2          9,4   
        Hedged equities                                                    n/a          n/a          n/a   
        Property                                                           8,2          7,7          6,9   
        Cash                                                               6,2          5,7          4,9   
        Return on required capital                                         8,5          8,0          7,2   
        Inflation rate                                                     5,2          4,7          3,9   
        Risk discount rate                                                 9,7          9,2          8,4   
        
        Sanlam Investments and Pensions                                                                    
        Point used on the relevant yield curve                         15 year      15 year      15 year   
        Fixed-interest securities                                          3,0          2,3          2,3   
        Equities and offshore investments                                  6,2          5,5          5,5   
        Hedged equities                                                    n/a          n/a          n/a   
        Property                                                           6,2          5,5          5,5   
        Cash                                                               3,0          2,3          2,3   
        Return on required capital                                         3,0          2,3          2,3   
        Inflation rate                                                     3,0          2,3          2,5   
        Risk discount rate                                                 6,7          6,0          6,0   
                                                                                                                                                                                    
        Botswana Life Insurance                                                                            
        Fixed-interest securities                                          9,0          9,5          9,0   
        Equities and offshore investments                                 12,5         13,0         12,5   
        Hedged equities                                                    n/a          n/a          n/a   
        Property                                                          10,0         10,5         10,0   
        Cash                                                               8,0          8,5          8,0   
        Return on required capital                                         9,1          9,6          9,1   
        Inflation rate                                                     6,0          6,5          6,0   
        Risk discount rate                                                12,5         13,0         12,5   
        
        Illiquidity premiums                                                                              
        Investment returns on non-participating annuities and guarantee plans include assumed illiquidity premiums 
        due to matching assets being held to maturity. Assumed illiquidity premiums generally amount to between 
	25 bps and 50 bps (2012: 25 bps and 50 bps) for non-participating annuities and between 25 bps and 110 bps
	(2012: 25 bps and 110 bps) for guarantee plans.                                                                                                                                    

        Asset mix for assets supporting required capital                                                                                                                                                
        Sanlam Life                                                                                     
        Equities                                                            26           26           26   
        Offshore investments                                                10           10           10   
        Hedged equities                                                     13           13           13   
        Fixed-interest securities                                           15           15           15   
        Cash                                                                36           36           36   
                                                                           100          100          100   
        SDM Limited                                                                                        
        Equities                                                            50           50           50   
        Cash                                                                50           50           50   
                                                                           100          100          100   
        Sanlam Investments and Pensions                                                                    
        Cash                                                               100          100          100   
                                                                           100          100          100   
        Botswana Life Insurance                                                                            
        Equities                                                            15           15           15   
        Property                                                            10           10           10   
        Fixed-interest securities                                           25           25           25   
        Cash                                                                50           50           50   
                                                                           100          100          100    

Contents                                                                         
                                                                                 
Report on review of interim condensed consolidated financial statements      
Statement of financial position                                              
Statement of comprehensive income                                            
Statement of changes in equity                                               
Cash flow statement                                                          
Notes to the interim condensed consolidated financial statements             
                                                                              


REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  

To the directors of Sanlam Limited
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Sanlam Limited as
of 30 June 2013 and the related statements of comprehensive income, changes in equity and cash flow for the six-month
period then ended, other explanatory notes and the basis of accounting set out above. 

The Groups directors are responsible for the preparation and presentation of these interim condensed consolidated
financial statements in accordance with International Financial Reporting Standard, IAS 34 - Interim Financial Reporting,
the SAICA Financial Reporting Guides as issued by the Accounting Practice Committee and Financial Pronouncements as
issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. Our
responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review
We conducted our review in accordance with International Standard of Review Engagements 2410, Review of Interim
Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists
of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim
condensed consolidated financial statements of Sanlam Limited is not prepared, in all material respects, in accordance with
International Financial Reporting Standard IAS 34, Interim Financial Reporting, the SAICA Financial Reporting Guides as
issued by the Accounting Practice Committee and Financial Pronouncements as issued by the Financial Reporting Standards
Council and the requirements of the Companies Act of South Africa. 

Ernst & Young Inc.
Director: Johanna Cornelia de Villiers
Registered Auditor
Chartered Accountant (SA)

Ernst & Young House
35 Lower Long Street
Cape Town

4 September 2013

Statement of financial position 
at 30 June 2013
                                                                                      Restated   
                                                                           June       December   
                                                                       Reviewed       Reviewed   
  R million                                                                2013           2012                                                                                                         
  ASSETS                                                                                            
  Property and equipment                                                    471            449        
  Owner-occupied properties                                                 684            665        
  Goodwill                                                                3 559          3 457      
  Other intangible assets                                                    72             63         
  Value of business acquired                                              1 588          1 599      
  Deferred acquisition costs                                              2 826          2 717      
  Long-term reinsurance assets                                              760            746        
  Investments                                                           439 543        426 745    
  Properties                                                             19 081         18 372     
  Equity-accounted investments                                            8 047          5 412      
  Equities and similar securities                                       221 102        206 203    
  Public sector stocks and loans                                         65 143         64 617     
  Debentures, insurance policies, preference shares and other loans      59 510         64 678     
  Cash, deposits and similar securities                                  66 660         67 463     
  Deferred tax                                                              416            450        
  Non-current assets held for sale                                            -            308        
  Short-term insurance technical assets                                   2 366          2 096      
  Working capital assets                                                 52 486         50 958     
  Trade and other receivables                                            36 349         36 006     
  Cash, deposits and similar securities                                  16 137         14 952                                                                                                  
  Total assets                                                          504 771        490 253    
  Equity and liabilities                                                                            
  Capital and reserves                                                                              
  Share capital and premium                                                  22             22         
  Treasury shares                                                        (3 539)        (3 632)    
  Other reserves                                                          9 635          9 156      
  Retained earnings                                                      30 364         31 373     
  Shareholders fund                                                     36 482         36 919     
  Non-controlling interest                                                3 119          2 970      
  Total equity                                                           39 601         39 889     
  Long-term policy liabilities                                          348 505        328 584    
  Insurance contracts                                                   149 475        148 427    
  Investment contracts                                                  199 030        180 157    
  Term finance                                                            4 833          5 463      
  Margin business                                                           905          1 487      
  Other interest-bearing liabilities                                      3 928          3 976      
  Derivative liabilities                                                 11 192         16 507     
  External investors in consolidated funds                               36 761         38 386     
  Cell owners interest                                                     722            688        
  Deferred tax                                                            1 264          1 333      
  Short-term insurance technical provisions                               9 870          9 877      
  Working capital liabilities                                            52 023         49 526     
  Trade and other payables                                               48 788         46 825     
  Provisions                                                                402            396        
  Taxation                                                                2 833          2 305                                                                                                       
  Total equity and liabilities                                          504 771        490 253    


Statement of comprehensive income  
for the six months ended 30 June 2013
                                                                                            Restated   
                                                                            Reviewed        Reviewed   
  R million                                                       Note          2013            2012                                                                                                          
  Net income                                                                  40 431          36 894   
  Financial services income                                                   21 572          19 397   
  Reinsurance premiums paid                                                   (2 582)         (2 188)  
  Reinsurance commission received                                                337             270   
  Investment income                                                            9 660           9 846   
  Investment surpluses                                                        13 025          11 088   
  Finance cost - margin business                                                 (19)            (82)  
  Change in fair value of external investors liability                       (1 562)         (1 437)  
  Net insurance and investment contract benefits                             (26 524)        (24 589)  
  and claims                                                                                          
  Long-term insurance and investment contract benefits                       (21 176)        (19 859)  
  Short-term insurance claims                                                 (6 892)         (5 859)  
  Reinsurance claims received                                                  1 544           1 129   
  Expenses                                                                    (8 634)         (7 771)  
  Sales remuneration                                                          (2 774)         (2 589)  
  Administration costs                                                        (5 860)         (5 182)  
  Impairments                                                                    (12)             (6)  
  Amortisation of intangibles                                                   (114)            (70)  
  Net operating result                                                         5 147           4 458   
  Equity-accounted earnings                                                      505             271   
  Finance cost - other                                                          (176)           (181)  
  Profit before tax                                                            5 476           4 548   
  Taxation                                                                    (1 602)         (1 788)  
  Shareholders fund                                                          (1 005)         (1 298)  
  Policyholders fund                                                           (597)           (490)                                                                                                    
  Profit for the period                                                        3 874           2 760   
  Other comprehensive income                                                                          
  Movement in foreign currency translation reserve                               713               2   
  Comprehensive income for the period                                          4 587           2 762   
  Allocation of comprehensive income                                                                  
  Profit for the period                                                        3 874           2 760   
  Shareholders fund                                                           3 508           2 402   
  Non-controlling interest                                                       366             358   
  Comprehensive income for the period                                          4 587           2 762   
  Shareholders fund                                                           4 079           2 417   
  Non-controlling interest                                                       508             345                                                                                                  
  Earnings attributable to shareholders of the company (cents)                                        
  Profit for the period:                                                                              
  Basic earnings per share                                           1         181,1           124,8   
  Diluted earnings per share                                         1         173,1           119,8   


Statement of changes in equity  
for the six months ended 30 June 2013
                                                            Reviewed        Reviewed   
  R million                                                     2013            2012                                                                                            
  Shareholders fund                                                                     
  Balance at the beginning of the period                      36 919          33 822     
  Comprehensive income                                         4 079           2 417      
  Profit for the period                                        3 508           2 402      
  Other comprehensive income: movement in foreign                         
  currency translation reserve                                   571              15                         
  Net acquisition of treasury shares(1)                         (182)           (413)      
  Share-based payments                                           143             161        
  Acquisitions, disposals and other movements in interests      (194)            (28)       
  Dividends paid(2)                                           (4 283)         (2 556)    
  Balance at the end of the period                            36 482          33 403     
  Non-controlling interest                                                               
  Balance at the beginning of the period                      2 970            3 046      
  Comprehensive income                                          508              345        
  Profit for the period                                         366              358        
  Other comprehensive income: movement in foreign                      
  currency translation reserve                                  142              (13)                          
  Share-based payments                                           18               15         
  Dividends paid                                               (325)            (682)      
  Acquisitions, disposals and other movements in interests      (52)             (24)       
  Balance at the end of the period                            3 119            2 700      
  Shareholders fund                                         36 919           33 822     
  Non-controlling interest                                    2 970            3 046      
  Total equity at the beginning of the period                39 889           36 868     
  Shareholders fund                                         36 482           33 403     
  Non-controlling interest                                    3 119            2 700      
  Total equity at the end of the period                      39 601           36 103     
 (1) Comprises movement in cost of shares held by subsidiaries and the share incentive trust.                                
 (2) Dividend of 215 cents per share paid during 2013 in respect of the 2012 financial year (2012: 130 cents                                 
     per share).                                                                             

	 
Cash flow statement  
for the six months ended 30 June 2013
                                                                           Restated   
                                                          Reviewed         Reviewed   
  R million                                                   2013             2012                                                                                                
  Net cash flow from operating activities                    7 228            5 691      
  Net cash flow from investment activities                  (6 017)            (154)      
  Net cash flow from financing activities                     (829)            (456)      
  Net increase in cash and cash equivalents                    382            5 081      
  Cash, deposits and similar securities at 
  the beginning of the period                               82 415           74 250                             
  Cash, deposits and similar securities at 
  the end of the period                                     82 797           79 331                            
                                                                                        
Notes to the interim condensed consolidated financial statements
for the six months ended 30 June 2013

  1.    EARNINGS PER SHARE                                                                                                              
        For basic earnings per share the weighted average number of ordinary shares is adjusted for the treasury shares 
	    held by subsidiaries and policyholders. Basic earnings per share is calculated by dividing earnings by the 
        adjusted weighted average number of shares in issue.                                     
        For diluted earnings per share the weighted average number of ordinary shares is adjusted for the shares not yet 
	    issued under the Sanlam Share Incentive Scheme, treasury shares held by subsidiaries and the conversion of deferred 
	    shares. Diluted earnings per share is calculated by dividing earnings by the adjusted diluted weighted average number 
	    of shares in issue.                                     
        Refer to normalised earnings per share, which is based on the economic earnings attributable to the 
	    shareholders fund, and in managements view should be used when evaluating the Groups economic performance.                                     
                                                                                                                                        
                                                                     Reviewed         Reviewed   
        Cents                                                            2013             2012                                                                                                                                
        Basic earnings per share:                                                                
        Headline earnings                                               179,4            125,1   
        Profit attributable to shareholders fund                       181,1            124,8   
        Diluted earnings per share:                                                              
        Headline earnings                                               171,4            120,1   
        Profit attributable to shareholders fund                       173,1            119,8   
                                                                                                 
        R million                                                                                                                                                                
        Analysis of earnings:                                                                    
        Profit attributable to shareholders fund                       3 508            2 402   
        Less: Net profit on disposal of operations                        (42)               -   
        Plus: Impairments                                                   8                6   
        Impairments                                                        12                6   
        Non-controlling interest                                           (4)               -                                                                                           
        Headline earnings                                               3 474            2 408   
        Headline earnings includes remeasurements of                                             
        investment properties, which are largely attributable                                    
        to policyholders.                                                                        
                                                                                                 
        Million                                                                                                                                                                         
        Number of shares:                                                                        
        Number of ordinary shares in issue at the beginning              
        of the period                                                 2 100,0          2 100,0                           
        Less: Weighted Sanlam shares held by subsidiaries 
	(including policyholders)                                      (163,2)          (174,6)  
        Adjusted weighted average number of shares for 
	basic earnings per share                                      1 936,8          1 925,4   
        Add: Weighted conversion of deferred shares                      57,7             46,7   
        Add: Total number of shares in respect of Sanlam Limited 
	long-term incentive schemes                                      32,1             33,2   
        Adjusted weighted average number of shares for incentive 
	schemes diluted earnings per share                            2 026,6          2 005,3   
                                                                                                                                         
  2.    RECONCILIATION OF SEGMENTAL INFORMATION                                                  
                                                                     Reviewed         Reviewed   
        R million                                                        2013             2012                                                                                          
        Segment financial services income               
        (per shareholders fund information)                           19 874           17 933                          
        Sanlam Personal Finance                                         6 240            5 496   
        Sanlam Emerging Markets                                         1 754            1 300   
        Sanlam Investments                                              3 493            3 152   
        Santam                                                          8 291            7 906   
        Corporate, consolidation and other                                 96               79   
        IFRS adjustments                                                1 698            1 464   
        Total financial services income                                21 572           19 397   
        Segment results (per shareholders fund information                
        after tax and non-controlling interest)                         3 483            2 533                         
        Sanlam Personal Finance                                         2 344            2 499   
        Sanlam Emerging Markets                                           608              245   
        Sanlam Investments                                                764              591   
        Santam                                                            234              283   
        Corporate, consolidation and other                               (467)          (1 085)   
        Non-controlling interest included in segment result               366              358   
        Fund transfers                                                     25             (131)   
        Total profit for the period                                     3 874            2 760   
        Additional segmental information is provided in the Shareholders information                                      
		
  3.    CONTINGENT LIABILITIES                                                                   
        Shareholders are referred to the contingent liabilities disclosed in the 2012 integrated report. The 
        circumstances surrounding the other contingent liabilities remain materially unchanged.   
		
  4.    SUBSEQUENT EVENTS                                                                        
        No material facts or circumstances have arisen between the dates of the balance sheet and this report that 
        affect the financial position of the Sanlam Group at 30 June 2013 as reflected in these financial statements. 
        The SLI 1 listed bond issued by Sanlam Life Insurance Limited with a nominal value of R1,16 billion reached its 
        first call date on 15 August 2013. This bond was redeemed on 15 August, but replaced by the successful issuance 
        of a new bond to the same value.                                    

  5.    FAIR VALUE DISCLOSURES                                                                                             
        Determination of fair value and fair value hierarchy                                                               
        Below follows required disclosure of fair value measurements, using a three-level fair value hierarchy that 
	reflects the significance of the inputs used in determining the measurements. It should be noted that these 
	disclosure only cover instruments measured at fair value.                                                  
        Included in level 1 category are financial assets and liabilities that are measured by reference to unadjusted, 
        quoted prices in an active market for identical assets and liabilities. Quoted prices are readily and regularly 
	available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those 
        prices represent actual and regularly occurring market transactions on an arms length basis.                                                  
        Included in level 2 category are financial assets and liabilities measured using inputs other than quoted prices 
	included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly 
	(ie derived from prices). For example, instruments measured using a valuation technique based on assumptions that are 
	supported by prices from observable current market transactions are categorised as level 2.                                                                                  
        Financial assets and liabilities measured using inputs that are not based on observable market data are categorised 
	as level 3.                                                  
        
        R million                                          Level 1     Level 2    Level 3       Total                                                                                           
        30 June 2013 - Reviewed                                                                         
        Equities and similar securities                    205 166      13 169      2 767     221 102   
        Public sector stocks and loans                      60 502       4 641          -      65 143   
        Listed property companies and property 
	collective investments                               9 301       1 643          -      10 944   
        Debentures, insurance policies, preference 
	shares and other loans                              17 346      41 469        166      58 981   
        Trading account assets                               1 784      17 312          -      19 096   
        Cash deposits and similar securities                28 294      38 336          2      66 632   
        Total financial assets                             322 393     116 570      2 935     441 898   
        Investment contract liabilities                      2 791     195 527        712     199 030   
        Term finance                                         3 536          76        118       3 730   
        Valued at stock exchange price                       3 402           -          -       3 402   
        Based on internal valuation                            134          76        118         328   
        Derivative liabilities                                   -      11 192          -      11 192   
        Trading account liabilities                          1 965      19 580          -      21 545   
        Total financial liabilities                          8 292     226 375        830     235 497   
        31 December 2012 - Restated Reviewed                                                            
        Equities and similar securities                    192 258      11 589      2 356     206 203   
        Public sector stocks and loans                      55 579       9 038          -      64 617   
        Listed property companies and property 
	collective investments                               7 367         884          -       8 251   
        Debentures, insurance policies, preference 
	shares and other loans                              22 674      41 358        163      64 195   
        Trading account assets                               2 729      16 817          -      19 546   
        Cash deposits and similar securities                28 354      38 942          2      67 298   
        Total financial assets                             308 961     118 628      2 521     430 110   
        Investment contract liabilities                      2 804     176 701        652     180 157   
        Term finance                                         3 281          77         97       3 455   
        Valued at stock exchange price                       3 121           -          -       3 121   
        Based on internal valuation                            160          77         97         334   
        Derivative liabilities                                   -      16 507          -      16 507   
        Trading account liabilities                          2 701      18 649          -      21 350   
        Total financial liabilities                          8 786     211 934        749     221 469   
                                                                                                                           
        Reconciliation of movements in level 3 financial instruments measured at fair value
                                                                                Deben-
                                                                                tures,
                                                                             insurance
                                                                             policies,	
                                                                     Public      pref-       Cash,					
                                                       Equities	     sector	erence    deposits 												
                                                            and      stocks     shares         and       Total
                                                        similar         and  and other     similar   financial						
        R million	                                 securities   loans      loans  securities      assets
        30 June 2013 Reviewed
        Financial assets	 				
	Balance at 1 January 2013	                      2 356	  	   163	         2       2 521
	Total gains/(loss) in statement of 
	comprehensive income	                                282 	  	     4	         	   286
        Acquisitions	                                        742	  	     3	         	   745
        Disposals	                                       (623)	           (4)	         	  (627)
        Foreign exchange movements	                         10	  	                          10
        Balance at 30 June 2013	                              2 767               166 	         2 	 2 935
        31 December 2012  Audited			
        Financial assets					
        Balance at 1 January 2012	                      3 349 	  1 	   625 	                3 975
        Total gains/(loss) in statement of                              
	comprehensive income	                                (54) 	   	  (216) 	  	  (270)
        Acquisitions	                                        317 	   	    30 	         2 	   349
        Disposals	                                       (798) 	   	  (276) 	       (1 074)
        Foreign exchange movements	                         38 	   	      	          	    38
        Transfers from level 1 and level 2	               (496) 	 (1) 	     	                 (497)
        Not significant (net in/out)	                           	 (1) 	      	          	    (1)
        Significant  transfer out	                       (496) 	   	      	          	  (496)				
        Balance at 31 December 2012	                      2 356 	   	   163 	         2 	 2 521
                                                         
                                             Investment                       Total   
                                               contract         Term      financial   
        R million                           liabilities      finance    liabilities                                                                                
        30 June 2013 - Reviewed                                                         
        Financial liabilities                                                         
        Balance at 1 January 2013                    652          97            749   
        Total (gain)/loss in statement of                
        comprehensive income                          51          18             69                                
        Foreign exchange movements                     9           3             12   
        Balance at 30 June 2013                      712         118            830   
        31 December 2012 - Audited                                                         
        Financial liabilities                                                         
        Balance at 1 January 2012                    752          59            811   
        Total (gain)/loss in statement 
	of comprehensive income                      126          34            160   
        Acquisitions                                 128           -            128   
        Disposals                                   (354)          -           (354)  
        Foreign exchange movements                     -           4              4   
        Balance at 31 December 2012                  652          97            749   
                                                                                        
                                                                Six            
                                                             months        Full year  
                                                           Reviewed          Audited          
        R million                                              2013             2012                                              
        Gains and losses (realised and unrealised)                                               
        included in profit and loss - level 3                                             
        Total gains or losses included in 
	profit or loss for the period                           217              411   
        Total gains or losses included in 
	profit or loss for the                          
        period for assets held at the end of 
	the reporting period                                    183              287                    
          
        Transfers between categories                                              
        There were no transfers between categories during the six months ended 30 June 2013.                                          
        Full year - Audited                                                       
        2012                                                                                                 
                                             Public               
                                             sector          Cash,       
                                             stocks       deposits        Total              
                                                and    and similar    financial                     
        R million                             loans     securities       assets                                 
        Transfer from level 1 to level 2        103             59          162   
                                                103             59          162   

        Valuation techniques used in determining the fair value of financial asset 
        and liabilities
                              Applicable        Valuation             Main
        Instrument            to level          basis                 assumptions

        Investment funds 
        included in:                                
        - Equities                  2           Quoted (exit) price   n/a
        - Properties                2           provided by fund
        - Interest bearing          2           manager

        Equities and similar        3           Discounted cash       Bond and interbank swap 
        securities                              flow model (DCF)      interest rate curve
                                                Earnings multiple     Cost of capital
                                                                      Consumer price index

        Debentures, insurance
        policies, preference
        shares and other loans                                
        -  Debentures, preference  2 & 3        DCF                   Bond and forward rate
        shares and other loans                                        Agreement interest curves
                                                                      Liquidity spread
                                                                      Credit ratings of issuer
        - Insurance policies        2           Quoted put/           n/a
                                                surrender price 
                                                by issuer
            
        Trading account assets      2           DCF                   Forward rate
        and liabilities                                               Credit risk spread
                                                                      Liquidity spread

        Unlisted term deposits      2           DCF                   Bond and forward rate
                                                                      Agreement interest curves
                                                                      Liquidity spread
                                                                      Credit ratings of issuer

        Investment contract
        liabilities                                
        - Unit-linked policies      2           Current unit price    n/a
                                                of underlying
                                                unitised financial
                                                asset, multiplied
                                                by the number
                                                of units held            
        - Other                    2 & 3        DCF                   Bond interest rate curves

        Term finance                2           DCF                   Bond and forward rate
                                                                      Agreement interest curves
                                                                      Liquidity spread
                                                                      Credit ratings of issuer

        Derivative assets and       2           Option pricing        Bond and interbank swap
        liabilities                             models                interest rate curve
                                                DCF                   Forward equity and currency rates
                                                                      Volatility factors
                                                                                                                           
        Sensitivity of level 3 financial instruments measured at fair value to changes in key assumptions                                                                                                                                                                                                    
                                                                                                          Effect of     Effect of
                                                               Effect of                                       a 1%          a 1%        
                                                                    a 10%    Effect of                     increase      decrease                     
                                                                increase         a 10%                           in            in         
                                                Carrying(1)           in      decrease     Carrying(2)     discount      discount                                  
        R million                                   amount         value      in value         amount          rate          rate                     
        Six months - Reviewed 30 June 2013                                                                                                                                              
        Equities and similar securities              2 670           267          (267)            97             -             -   
        Debentures, insurance policies,      
	preference shares and other loans                -             -             -            166             2            (2)  
        Financial assets                             2 670           267          (267)           263             2            (2)  
        Investment contract liabilities                712            71           (71)             -             -             -   
        Term finance                                   118            12           (12)             -             -             -   
        Financial liabilities                          830            83           (83)             -             -             -   
        Full year - Audited 31 December 2012                                                                                                                                                                                                           
        Equities and similar securities              2 212           221          (221)           144             1            (1)  
        Debentures, insurance policies,      
        preference shares and other loans                -             -             -            163             2            (2)  
        Financial assets                             2 212           221          (221)           307             3            (3)  
        Investment contract liabilities                652            65           (65)             -             -             -   
        Term finance                                    97            10           (10)             -             -             -   
        Financial liabilities                          749            75           (75)             -             -             -   
        (1) Represents mainly private equity investments valued on earnings multiple, with sensitivities based on                                                                               
            full valuation.                                                                                                                                               
        (2) Represents mainly private equity investments valued on a discounted cash flow basis, with sensitivities                                                                             
            based on changes in the discount rate.                                                                                                                        

  6.    RESTATEMENTS                                                                          
        Statement of financial position                                                       
                                                              31 December 2012
                                                                   Reclassifi-                      
                                                                     cation of                  
                                                     Previously     investment                             
                                                       reported        funds(1)    Restated                 
        R million                                       Audited       Reviewed     Reviewed                                                                                    
        Assets                                                                                
        Investments                                     314 792         41 924      356 716   
        Properties                                       17 678            694       18 372   
        Equities and similar securities                 202 952          3 251      206 203   
        Debentures, insurance policies,                     
        preference shares and other loans                37 726         26 952       64 678                                     
        Cash, deposits and similar securities            56 436         11 027       67 463   
        Working capital assets: Trade and                   
        other receivables                                31 241          4 765       36 006                                     
                                                        346 033         46 689      392 722   
        Liabilities                                                                           
        External investors in consolidated funds         19 596         18 790       38 386   
        Derivative liabilities                              610         15 897       16 507   
        Working capital liabilities: Trade and              
        other payables                                   34 823         12 002       46 825                                     
                                                         55 029         46 689      101 718   
                                                                                              
        Statement of comprehensive income                                                                                                                               
                                                                  30 June 2012
                                                                   Reclassifi-                      
                                                                     cation of                  
                                                     Previously     investment                             
                                                       reported        funds(1)    Restated                 
        R million                                      Reviewed       Reviewed     Reviewed                           
        Net income                                       19 241            256       19 497   
        Investment income                                 9 171            675        9 846   
        Investment surpluses                             10 780            308       11 088   
        Change in fair value of external                     
        investors liability                               (710)          (727)      (1 437)                                    
        Expenses                                         (5 597)          (256)      (5 853)  
        Administration costs                             (4 953)          (229)      (5 182)  
        Finance cost: other                                (163)           (18)        (181)  
        Taxation: policyholders fund                      (481)            (9)        (490)                                                                                     
        (1) The application of IFRS 10 has led to certain investments in investment funds being reclassified between 
	    investment categories and various income and expense items. Refer to the accounting policy section above for 
            a detailed explanation.                                          

Administration
Group secretary 
Sana-Ullah Bray

Sanlam Limited
Incorparated in South Africa 
Registered office 
2 Strand Road, Bellville 7530
South Africa
Telephone +27 (0)21 947 9111
Fax +27 (0)21 947 3670

Postal address 
PO Box 1, Sanlamhof 7532
South Africa

Sponsor 
Deutsche Securities (SA) (Pty) Limited

Transfer secretaries 
Computershare Investor Services (Pty) Limited
(Registration number: 2004/003647/07)
70 Marshall Street, Johannesburg 2001
South Africa
PO Box 61051, Marshalltown 2107
South Africa
Telephone +27 (0)11 373 0000
Fax +27 (0)11 688 5200

Internet address
http://www.sanlam.co.za

Board of directors
DK Smith (Chairman), PT Motsepe (Deputy Chairman), J van Zyl(1) (Group Chief Executive), MMM Bakane-Tuoane, AD Botha,
R Bradshaw(2)(4), A Duggal(3), MV Moosa, JP Möller(1), P Mthethwa, TI Mvusi(1), SA Nkosi, P Rademeyer, Y Ramiah(1), 
RV Simelane, CG Swanepoel, ZB Swanepoel, PL Zim
I Plenderleith(2) retired on 4 September 2013
(1) Executive 
(2) British citizen
(3) Indian citizen, appointed 15 January 2013
(4) Appointed 7 August 2013
  
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