Sanlam profit up despite slower operational earnings growth

Sanlam’s net result from financial services (NRFFS) rose 20% to R15.9 billion on a like-for-like basis, supported by higher fee income and solid underwriting performance across key businesses.

The group announced its results for the year ended 31 December 2025 on Thursday.

Read: Sanlam flags lower earnings as investment variances weigh

Sanlam stock traded at R92.64 around 11am, 2.9% lower than the previous day.

Headline earnings declined by 18%, mainly due to corporate transactions and structural changes implemented during 2024 and 2025, as well as lower investment returns in shareholder funds after the rand strengthened during 2025.

Read the Sens here.

Investment performance was also affected by negative variances stemming from an imbalance in the market for long-dated South African government bonds, resulting in an unrealised loss of R967 million before tax.

These effects were partly offset by gains from the SanlamAllianz portfolio – supported by a strong Moroccan equity market – as well as positive investment variances related to Assupol.

Asset-based fee income improved in the South African and pan-African life businesses, while underwriting results were positive in the group’s South African and Indian general insurance operations.

These gains were partly offset by higher claims in the group’s pan-African general insurance operations.

Record new business

The group posted a record R496 billion in new business volumes during the year, up 22% on an equivalent basis from 2024.

Net client cash flows more than doubled to R127 billion, supported by robust life insurance inflows, strong living annuity sales and improved client retention.

Group CEO Paul Hanratty notes the results reflected both strong financial performance and operational execution across the group.

“Record new business, robust cash flows and strong profit growth were once again possible because of the dedication and focus of our people on clients across the group’s operations,” he says.

Sanlam declared a dividend of 485 cents per share, up from 445 cents previously, supported by strong cash flows and balance sheet resilience.

The group says its solvency position remained strong and within the targeted range as at 31 December 2025.

Read:
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Strategic progress

Operationally, Sanlam continued to advance several strategic initiatives during the year.

The group completed key steps in its transaction with Ninety One, leaving Sanlam with a roughly 12.5% holding in the asset manager on a dual-listed basis.

The integration of Assupol into the group’s South African operations progressed, with all agents now transitioned to Sanlam and improvements in productivity and policy persistency recorded.

The SanlamAllianz partnership expanded further after Allianz increased its stake to 49%, with integration across 10 of the 11 countries now complete. The group also streamlined its African footprint by exiting Zimbabwe, Niger, and its Zambian general insurance business.

In India, Sanlam strengthened its position within the Shriram Financial Services ecosystem by increasing stakes across several businesses, with effective holdings in Shriram General Insurance Company and Shriram Life Insurance Company exceeding 50% by early 2026.

Outlook

Sanlam says it enters 2026 with strong momentum, expecting continued new business growth led by faster expansion in India through Shriram Finance Limited, while improving economic conditions in South Africa should support local operations.

Over the medium term, the group expects strategic investments, operational improvements and completed projects to strengthen earnings and cash generation, gradually lifting return on equity.

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