SANLAM LIMITED - UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE
What this filing means
Sanlam's headline earnings per share of 396 cents is down 15% year-on-year but fell within the 372–418 cent range set by the 26 August trading statement. Comparable core earnings are expected to be up 1% in these unaudited interim results, as weather-related general insurance claims and rand strength offset strong new business volumes of R224 billion and net client cash flows of R78 billion. The dividend outlook is unchanged, and long-term value creation remains well above hurdle. The 20-day pre-announcement move was mildly negative at -2.1%, reflecting drift before publication, not positioning for this event — the guidance was explicit and recent, leaving limited room for surprise.
Sanlam made less headline profit than last year — 396 cents versus 465 cents — but in these unaudited interim results that number landed inside the range it promised on 26 August, so the shortfall is not a surprise. The underlying business is growing strongly in places: new money coming in is up sharply and cash flows improved. But bad weather claims in South Africa and parts of Africa, and a stronger rand cutting the translated value of earnings from India and Morocco, ate into the gains.
Bull case
- HEPS of 396c fell within the 372–418c range set by the 26 August trading statement, confirming guidance was met despite a 15% YoY decline in these unaudited interim results.
- New business volumes grew 22% to R224bn and net client cash flows rose 42% to R78bn on a comparable basis, evidencing strong underlying operating momentum.
- Dividend outlook unchanged and in line with medium-term target, underpinned by improved working capital and cash conversion.
- Annualised adjusted RoGEV per share of 15.5% sat well above the 6.1% hurdle rate, underscoring long-term value creation.
Bear case
- Adjusted headline earnings declined by 22% on a comparable basis, reflecting weaker equity markets, higher interest rates and adverse mark-to-market movements on the Ninety One investment.
- Weather-related catastrophe claims and weaker general insurance underwriting reduced sustainable core earnings growth from around 7% to 1%.
- The filing does not state a precise full-year 2026 HEPS range, only that earnings growth is expected to be below the medium-term target.
- These are unaudited interim results — all figures are preliminary and subject to audit.
- Basic EPS +29% (632c) vs HEPS -15% (396c). Filing explicitly states this divergence: EPS includes one-off gains from disposal of Sanlam Investments active asset manager and deemed disposal gain from Shriram Finance dilution; these are excluded from HEPS.
AI-generated summary by SENS-AI, based on the original JSE SENS filing.
SENS-AI conclusion
This is a confirmation print, not a re-rating event. The HEPS figure landed inside the range Sanlam guided on 26 August, and the guidance was explicit and recent, leaving limited room for surprise. The underlying story is genuinely two-tier: strong volumes and cash flows against weather-driven general insurance losses and investment-market weakness. The dividend outlook being unchanged is the most important forward signal. So what: the market still needs the full-year result to show whether weather claims normalise and whether the strong volume growth converts into earnings, not just cash flows.
The full-year 2026 result is where the market will test whether weather claims normalise and whether volume growth converts into core earnings.
Evidence from the filing
HEPS of 396c fell within the 372–418c range set by the 26 August trading statement, confirming guidance was met despite a 15% YoY decline in these unaudited interim results.
“Headline earnings per share [cents] 396 465 (15) (16)”
New business volumes grew 22% to R224bn and net client cash flows rose 42% to R78bn on a comparable basis, evidencing strong underlying operating momentum.
“Pleasingly, the underlying growth of the group's operating businesses was strong: new business volumes increased by 22% to R224 billion and net client cash flows increased by 42% to R78 billion”
Dividend outlook unchanged and in line with medium-term target, underpinned by improved working capital and cash conversion.
“Improved working capital and cash conversion are expected to support dividend capacity and offset the impact of weaker earnings, leaving the group's dividend outlook unchanged and in line with medium-term target.”
Annualised adjusted RoGEV per share of 15.5% sat well above the 6.1% hurdle rate, underscoring long-term value creation.
“Adjusted return on group equity value per share4 [%] 15,5 7,6”
Adjusted headline earnings declined by 22% on a comparable basis, reflecting weaker equity markets, higher interest rates and adverse mark-to-market movements on the Ninety One investment.
“Adjusted headline earnings declined by 22%, mainly due to lower shareholder investment returns relative to the prior period, reflecting weaker market conditions”
Weather-related catastrophe claims and weaker general insurance underwriting reduced sustainable core earnings growth from around 7% to 1%.
“This reduced sustainable core earnings growth from around 7% to 1%”
The filing does not state a precise full-year 2026 HEPS range, only that earnings growth is expected to be below the medium-term target.
“full-year earnings growth in 2026 is expected to be below the group's medium-term target”
These are unaudited interim results — all figures are preliminary and subject to audit.
“The condensed consolidated interim financial statements for the six months ended 30 June 2026, including comparatives for the six months ended 30 June 2025 where applicable, have not been audited or reviewed by the company's external auditors”
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