Sanlam flagged late last week that it expects an increase of up to 123% in its interim earnings due to the business performing well and boosted by life and general insurance.
In its trading statement for the six months ended 30 June 2022, the group said it expected headline earnings to increase by between 113% and 123% to between 331 cents and 347 cents.
Sanlam said it recorded a strong performance for the reported period, with all clusters and lines of business performing well.
“The main items contributing to the growth in net result from financial services are: life insurance benefited from positive risk experience, increased asset-based fee income, and improved performance from the credit portfolio backing life insurance liabilities.
“General insurance benefited from improved underwriting performance and higher investment return on insurance funds, and credit and structuring benefited from stronger performance from the Indian operations,” it said.
Sanlam said the higher expected percentage increase in net operational earnings relative to net result from financial services was due to higher investment returns on the shareholder capital portfolio, included in net operational earnings.
“The main contributors to the higher level of growth in Heps and diluted Heps relative to net operational earnings were non-economic accounting mismatch profits and losses recognised in terms of IFRS (International Financial Reporting Standards), lower amortisation of value of business acquired as well as adjustments emanating from the implementation of IFRS 17,” it said. – IOL News
Leave a Reply