Wrap Text
Operational update and trading statement for the year ended 31 December 2025
Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
JSE Share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
("Sanlam", "Sanlam Group" or "the group")
Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23
("Sanlam Life")
Operational update and trading statement for the year ended 31 December 2025
Operational update: strong growth and operating results
Sanlam's 2025 results reflect a year of strong operational execution and strategic delivery aligned with
the objectives communicated during our 2025 Capital Markets Day. We continue to deliver strong growth
and operating performance amid a turbulent macroeconomic backdrop, marked by heightened
geopolitical tension, market uncertainty and currency volatility. The group's performance demonstrates
our ability to navigate complexity, capitalise on emerging opportunities and maintain financial strength,
positioning us to deliver sustainable value for our shareholders.
Over the past five years, we have consolidated our platforms and strengthened our operating model
across key markets, making the business more scalable and resilient. Changes to our reporting
framework to better reflect our strategy have been communicated and will become effective for the
financial year commencing 1 January 2026. To capture the evolution in our business and provide
comparability through the transition, we have presented key metrics below on both an actual reported
and normalised basis. The normalisation adjustments1 are predominantly driven by adjustments related
to corporate activity in 2024 and 2025, as well as constant currency and other one-off adjustments.
The table below provides both the expected actual and normalised results for the year ended
31 December 2025 to allow like-for-like comparability.
Expected increase/(decrease) on comparative
period (%)
Metric Actual Normalised1,2
Group new business volumes 18 22
Life new business volumes3 10 17
Net client cashflows >100 >100
Value of new business ("VNB") -21 -11
Discretionary capital change (R million) 3 940 3 940
Net result from financial services ("NRFFS")4,5 -5 to 5 15 to 25
1
These include the cessation of the Capitec partnership, which resulted in a one-off reinsurance recapture fee in 2024, as well as the integration of our Namibian
holdings into the SanlamAllianz joint venture and the partial disposal of our direct stake in Shriram Finance Limited during 2024. Both transactions generated
significant profits on the disposal of subsidiaries and associates during 2024. The 2025 results were impacted by Sanlam reducing its interest in the SanlamAllianz
joint venture from 59.59% to 51%.
2
In 2024 constant currency with adjustments for corporate activity and other one-off items.
3
On a present value of new business premium basis.
4
A measure of Sanlam group's operating performance aligned with the cash earnings that drive dividend distribution.
5
Effective 1 January 2026, NRFFS will be replaced with operating profit, and net operational earnings with adjusted headline earnings.
Expected increase/(decrease) on comparative
period (%)
Metric Actual Normalised1,2
Life and health -5 to 5 20 to 30
General insurance 10 to 20 10 to 20
Investment management 0 to 10 10 to 20
Credit and structuring 0 to 10 10 to 20
Net operational earnings6 -15 to -5 0 to 10
The increase in group new business volumes marks a record annual performance for the group. This
was driven by strong flows into our South African asset management operations and solid contributions
across both life and general insurance. Life insurance new business growth benefited from robust
performance in Sanlam corporate, market-linked/living annuity and risk sales, partly offset by lower life
annuity sales following the decline in bond yields. General insurance new business volumes benefited
from double-digit growth in the South Africa and India businesses, while in Pan-Africa, sales were by
impacted by weaker corporate volumes.
Net client cash flows more than doubled, with strong contributions across all lines of business.
The decrease in VNB was largely driven by a shift in product mix in South Africa, as clients continued to
favour market-linked/living annuities over life annuities. This was compounded by development costs
associated with establishing new distribution channels in India as well as by the cessation of the Capitec
partnership and disposal of the Namibia operations to SanlamAllianz in 2024.
Discretionary capital increased by R4?billion following the partial sale of our stake in the SanlamAllianz
joint venture, reflecting a disciplined decision to crystallise cash upfront while deliberately trading off a
portion of future earnings to enhance balance-sheet flexibility and fund growth.
The group delivered strong underlying operational performance for the year, with positive contributions
from the general insurance, investment management, and credit and structuring businesses. However,
life and health NRFFS growth was muted, as the 2024 base benefited from a non?recurring reinsurance
recapture fee following the cessation of the funeral insurance partnership between Sanlam and Capitec.
Excluding this one-off item, the life and health business delivered strong underlying growth, supported
by favourable mortality experience, improved persistency and higher asset-based fee income.
Underwriting experience was positive across the group's South Africa and India general insurance
operations, supported by lower claims, partly offset by higher claims in the Pan-African general insurance
operations.
Net operational earnings were impacted by a strengthening rand and resultant foreign exchange losses,
higher finance costs relating to the Assupol transaction, which were incurred for a full year rather than
three months in 2024, as well as increased project related expenditure associated with corporate activity
and modernising legacy systems.
6
NRFFS including investment return after allowing for specific shareholders' fund adjustments and project expenses.
Trading statement for the financial year ended 31 December 2025
Shareholders (Sanlam Limited) and noteholders (Sanlam Life) are advised that Sanlam is in the process
of finalising its financial results for the year ended 31 December 2025. These results will be released on
the Stock Exchange News Service of the JSE Limited ("JSE") on Thursday, 12 March 2026.
This trading statement provides an indication of the expected ranges for headline earnings and earnings
attributable to equity holders of the group in accordance with paragraph 6.30 of the Listings Requirements
of the JSE Limited ("JSE"). Headline earnings and earnings per share are presented in accordance with
the JSE Listings Requirements and do not form the basis of the group's internal financial reporting. It
also includes the net result from financial services per share which is the primary metric used by
management to assess the group's operational performance.
The group expects the following earnings ranges for the year ended 31 December 2025:
12 months to 31 December
Metric 2024 2025
Actual Expected range Normalised7
increase/decrease expected
increase/decrease
(cents per (cents per (%) (%)
share) share)
Net result from financial services
730 694 to 767 -5 to 5 15 to 25
per share8
Net operational earnings per 877 745 to 833 -15 to -5 0 to 10
share9
Headline earnings per share 964 723 to 819 -25 to -15
("HEPS")
Diluted HEPS 952 714 to 809 -25 to -15
Earnings per Share ("EPS") 1 068 694 to 801 -35 to -25
Diluted EPS 1 054 685 to 790 -35 to -25
HEPS contracted largely due to the abovementioned corporate activity and structural changes in 2024
and 2025, as well as negative investment variances in 2025, primarily driven by unfavourable movements
at the long end of the yield curve relative to the strong gains recorded in 2024. The large positive
investment variances recognised in 2024, resulted from yield reductions in 2024 and an approach to
asset liability matching (ALM) suited to the previous IFRS 4 accounting regime. These investment
variances were crystallised in the first half of 2025 as the group's ALM approach transitioned to one
supporting the new IFRS 17 accounting standard. During the transition, yields rose in response to
"Liberation Day" and the investment gains of 2024 were only partially crystallised. In 2025 an anomaly in
yields on the longest dated South African government bonds emerged due to shortages in the longest
dated bonds. This further exacerbated negative investment variances in 2025, although these are
unrealised losses which are expected to unwind over time as market liquidity normalises in due course.
In addition to the HEPS impacts described above, EPS declined due to significantly lower disposal gains
from subsidiaries and associates compared to the prior year's elevated base.
7
Normalisation adjustments are predominantly driven by adjustments related to corporate activity in 2024 and 2025, as well as constant currency and other one-off
adjustments. These include the cessation of the Capitec partnership, which resulted in a one-off reinsurance recapture fee in 2024, as well as the integration of our
Namibian holdings into the SanlamAllianz joint venture and the partial disposal of our direct stake in Shriram Finance Limited during 2024. Both transactions
generated significant profits on the disposal of subsidiaries and associates during 2024. The 2025 results were impacted by Sanlam reducing its interest in the
SanlamAllianz joint venture from 59.59% to 51%.
8
Effective 1 January 2026, NRFFS will be replaced with operating profit, and net operational earnings with adjusted headline earnings.
9
NRFFS including investment return after allowing for specific shareholders' fund adjustments and project expenses.
As communicated previously, our new financial reporting framework will become effective for the financial
year commencing 1 January 2026. For the 12 March 2026 result announcement, the group will provide
indicative information under the new framework. To further enhance transparency for users, the group
will present results on both an actual reported and normalised basis, reflecting a like-for-like perimeter
for ease of reference.
The group's full audited annual financial statements and operating results for the year ended
31 December 2025 will be released on Thursday, 12 March 2026 via the Stock Exchange News Service
("SENS") of the JSE, followed by a live webcast at 15:00. Pre-registration for the webcast is required and
can be accessed using the following link: https://sanlamevents.formstack.com/forms/2025ar_inv
The financial information in this trading statement is the responsibility of the Sanlam board of directors
and has not been reviewed or reported on by the group's external auditors.
This announcement may contain information classified as pro forma financial information, which is the
responsibility of the Sanlam board of directors. Any pro forma financial information has been prepared
for illustrative purposes only and, because of its nature, may not fairly present the Group's financial
position, changes in equity, results of operations or cash flows. This information has not been reviewed
or reported on by the Group's external auditors.
For all investor relations queries please contact:
Sanlam Investor Relations
E-mail: ir@sanlam.co.za
Cape Town, 5 March 2026
Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited
Debt Sponsor to Sanlam Life Insurance Limited
The Standard Bank of South Africa Limited
Date: 05-03-2026 03:10:00
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