To view the PDF file, sign up for a MySharenet subscription.

SANLAM LIMITED - Sanlam trading statement for the financial year ended 31 December 2023

Release Date: 29/02/2024 14:21
Code(s): SLM SLI8 SLI9 SLI7 SLI5 SLI6     PDF:  
Wrap Text
Sanlam trading statement for the financial year ended 31 December 2023

Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
("Sanlam", "or "the group")
JSE Share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660

Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
("Sanlam Life")
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23

Sanlam trading statement for the financial year ended 31 December 2023

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 2023. 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 3.4(b) of the Listings Requirements of the JSE Limited ("JSE"). Sanlam's 2023 financial results will be
released on the Stock Exchange News Service ("SENS") of the JSE on Thursday, 7 March 2024.

The group applied the International Financial Reporting Standard ("IFRS") 17 Insurance Contracts standard from
1 January 2023 and has restated 2022 numbers for comparative purposes in accordance with the applicable
standard as indicated below. After allowing for specific shareholders' fund adjustments, the restated 2022 IFRS 17
based numbers are not materially different to the reported IFRS 4 based numbers. The ranges provided in this
trading statement are relative to the IFRS 17 results for the comparative period.
The group expects the following earnings ranges for the year ended 31 December 2023:

                                                                                                     12 months to 31 December
 Metric                                                                                                                                                          Pre-
                                                                               Post-implementation of IFRS 17                                              implementation
                                                                                                                                                             of IFRS 17
                                                                            2023                           2023                      2022                       2022
                                                                         Expected                       Expected                    Actual                     Actual
                                                                        increase on                       range                   (cents per                 (cents per
                                                                        comparative                     (cents per                  share)                     share)
                                                                         period (%)                       share)
 Net result from financial services per                                   15 to 25                      545 to 592                     474                           461
 share ("NRFFS")(1)
 Cash NRFFS per share(2)                                                    15 to 25                    545 to 592                     474                           456
 Net operational earnings per share(1)                                      23 to 33                    616 to 666                     501                           477
 Headline earnings per share                                                43 to 53                    676 to 723                     473                           454
 Diluted HEPS                                                               44 to 54                    671 to 718                     466                           447
 Earnings per Share ("EPS")                                                 12 to 22                    670 to 730                     598                           579
 Diluted EPS                                                                12 to 22                    661 to 720                     590                           571
    (1)   The 2023 earnings and the restated earnings for the comparable period in 2022 are based on the IFRS 17 accounting standard, after allowing for Sanlam specific shareholder
          fund adjustments.
    (2)   Cash NRFFS represents NRFFS adjusted for specific non-cash items: amortisation of intangible assets, changes in insurance contract assets (i.e. negative liabilities) and other
          non-cash items.

Growth in NRFFS was strong across all lines of business supported by:

    •     Strong risk experience in the life insurance business.
    •     Higher investment market levels and overall book growth supporting asset-based revenue in the life and
          investment management lines of business, as well as good investment returns on insurance funds in the
          general insurance businesses.
    •     Improved performance from the credit portfolio backing life insurance liabilities.
    •     Higher loan advances in the India operations positively impacting the credit and structuring earnings.

The higher expected percentage increase in net operational earnings is due to higher investment returns on the
shareholder capital portfolio, which also supported the growth in headline earnings.
The increase in EPS and diluted EPS is due to strong operational performance, partly dampened by lower
accounting profit on disposal of operations.

Cash NRFFS provides a better representation of the business earnings.

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.

For all investor relations queries please contact:

Sanlam Investor Relations
Tel: +27 21 947 8455

Cape Town, 29 February 2024

Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited

Debt Sponsor to Sanlam Life Insurance Limited
Rand Merchant Bank, a division of FirstRand Bank Limited

Date: 29-02-2024 02:21:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story