- Sanlams net inflows doubled to R40 billion 2.2 billion despite R2.5 billion 137 million in withdrawals under the new two-pot retirement system.
- The group posted 15 growth in key earnings and 12 higher life insurance sales, supported by South Africa and Asia.
- Sanlam expanded globally with a stake in Indias Shriram Group, targeting long-term growth in high-potential markets.
Sanlam, a leading financial services group listed on the Johannesburg Stock Exchange and partly owned by South African billionaire Patrice Motsepe, reported a significant rise in net client cash inflows to R40 billion 2.2 billion for the nine months ending Sept. 30, 2024. This figure more than doubles the inflows recorded in the same period last year, demonstrating the companys resilience amid regulatory changes introduced by South Africas new two-pot retirement system.
The two-pot system, which came into effect on Sept. 1, 2024, allows retirement fund members to withdraw one-third of their savings through a savings pot while preserving the remaining two-thirds for retirement. In its first month, this policy triggered withdrawals of R2.5 billion 137 million from retirement funds, with R1.5 billion 82 million withdrawn by over 78,000 members.
Despite the anticipated ongoing outflows from retirement funds, Sanlams robust financial performance highlights its ability to withstand these challenges and deliver sustained growth.
Strong operational and financial performanceDuring the nine-month period, Sanlam posted double-digit growth across key operational metrics. The Net Result from Financial Services NRFFS, a crucial measure of operational earnings, rose by 15 percent, while net operational earnings increased by 17 percent, supported by improved investment returns on shareholder capital.
The group also achieved a 12 percent increase in new life insurance business volumes, driven by strong single-premium growth in South Africa and contributions from its operations in Asia.
