Wrap Text
Operational update for the three months ended 31 March 2026
Sanlam Limited Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa)
(Registration number 1959/001562/06) (Registration No. 1998/021121/06)
("Sanlam", "Sanlam Group" or "the group") ("Sanlam Life")
JSE Share code: SLM Bond Issuer Code: BISLI
A2X share code: SLM LEI: 378900E10332DF012A23
NSX share code: SLA
ISIN: ZAE000070660
Operational update for the three months ended 31 March 2026
Sanlam delivered strong operational momentum and experienced resilient client activity in the first
quarter of 2026. Strong new business volume growth, exceptional net client cash flows and good
persistency across the group reflected the benefits of its diversified business model and continued
execution of its strategy to accelerate quality growth.
During the quarter, the operating environment became increasingly volatile as conflict escalated in the
Middle East, which contributed to higher energy prices, elevated interest rates and weaker equity market
performance across several of the group's key markets. Severe weather-related events across parts of
Southern Africa and Pan-Africa resulted in elevated catastrophe claims in the group's general insurance
operations.
Against this backdrop, the group maintained strong capital levels, delivered positive operating profit
growth and continued to execute key strategic transactions. These include the completion of the Ninety
One transaction and increased ownership in the Shriram insurance businesses in India.
Key features of the group's operating performance in the first quarter are summarised below.
For the period ended 31 March 2026 1
Organic growth
New business volumes increase 29%
Net client cash flows R38,6 billion
Earnings
Operating profit increase 8%
Capital strength
Discretionary capital R3,2 billion
Note: Unless otherwise stated, all commentary relates to the three months ended 31 March 2026 compared to the three
months ended 31 March 2025. Growth rates are normalised and provided on a comparable (constant currency and consistent
group structure) basis. Absolute amounts are presented on an actual basis.
Strategic update
The group's strategic aspiration to accelerate quality growth leverages its diversified platform to
deliver long-term growth in high-potential emerging markets. Execution is prioritised, focusing on five
growth vectors: winning as 'one Sanlam' in South Africa; building a solutions-led asset manager focused
on emerging markets; unlocking the Pan-African insurance frontier; scaling the Shriram financial
services ecosystem in India; and building an international specialist capability via Lloyds.
In South Africa, the Assupol integration is progressing well, with over 115 retail branches now
operational, on track to reach 200 by year-end. With the Ninety One transaction completed in both the
United Kingdom and South Africa, Sanlam's effective economic interest has risen to approximately 9,1%
on a dual listed basis, excluding minority interests. Work continues to prepare for the launch of banking
services in the South African market, in partnership with GoTyme, subject to pending regulatory
approval.
In the Pan-Africa reinsurance business, good progress has been made in strengthening controls. This
remains a key focus for management alongside the completion of the Morocco integration.
In India, the group concluded the acquisition of additional interests in Shriram Life and Shriram General
Insurance, further strengthening its position in the fast-growing Indian insurance market. Mitsubishi UFJ
Financial Group (MUFG) completed its capital injection of USD 4,2 billion into Shriram Finance Limited
1
In constant currency with adjustments for corporate activity, in line with the basis of normalisation.
(SFL) on 8 April 2026. This investment materially enhances SFL's capital base and supports its ability
to accelerate growth across its core business segments.
The Santam 1918 Syndicate is operating successfully, with recruitment momentum deepening
underwriting and actuarial capabilities. The Syndicate is expected to drive strong premium growth for
the remainder of the year and is forecast to deliver an operational loss of approximately R300 million in
2026, depending on the timing and scale of new business.
The group's migration of computing to the cloud is progressing according to plan and its drive to
embed AI throughout in its processes to drive efficiency is well under way.
These strategic developments are expected to support medium-term earnings growth through new
income streams, improved client retention and lower operating costs, aligning performance with the
group's 2030 targets.
Discretionary capital and corporate activity
The group's discretionary capital decreased from R8,1 billion at 31 December 2025 to R3,2 billion at
31 March 2026, due to the acquisition of additional interests in the India insurance operations for a
combined consideration of R4,8 billion.
The South Africa leg of the Ninety One transaction was completed on 2 February 2026, increasing
Sanlam's effective economic interest in Ninety One to approximately 9,1% on a dual-listed company
basis, excluding minority interests.
On 10 February 2026, the acquisition of additional interests in Shriram General Insurance Company
(SGIC) became effective, increasing Sanlam's effective economic holding from 40,25% to 50,99%. The
Shriram Life Insurance Company (SLIC) transaction became effective on 6 March 2026, increasing
Sanlam's effective holding from 41,83% to 53,7%. Total consideration for both transactions amounted
to R3,7 billion.
On 30 March 2026, Sanlam completed the acquisition of the 14,7% stake in SLIC from Piramal Finance
Limited for a consideration of R1,1 billion. This increased Sanlam's overall economic interest in SLIC to
68,4%.
The MUFG acquisition of a 20% interest in Shriram Finance Limited (SFL) was completed on 8 April
2026, resulting in the dilution of Sanlam's effective shareholding from 9,53% to 7,62%.
In Pan-Africa, final regulatory approvals for the integration of the Morocco entities are expected in mid-
2026, with integration expected to be completed in the first quarter of 2027.
Earnings
Underlying earnings reflected elevated catastrophe claims, strategic investment spend and temporary
market impacts during the quarter. Excluding these effects, core client activity, asset-based revenues
and operational trends remained supportive.
Operating profit Change 2
Actual operating profit 2%
- Prior period adjustment for currency and restructuring of
(6%)
group earnings
- Comparable first quarter 2026 8%
Comparable operating profit
By line of business
Life insurance and health 3 57%
General insurance 4 (61%)
Investment management 7%
Credit and structuring 8%
To enable comparability with 2026, 2025 operating profit was adjusted down by 6%, reflecting changes
to the group structure over the past 12 months and a stronger rand. Of this adjustment, rand strength
contributed 3,2%, the sale of the Sanlam active asset management business to Ninety One contributed
0,6%, with the balance reflecting the lower earnings profile of the India insurance businesses relative
to SanlamAllianz. The group's equity stake in Ninety One does not contribute to operating profit,
although dividends received from this stake will be available for dividend distribution.
On a comparable basis to 2025, operating profit increased by 8% in the first quarter of 2026, compared
to a 2% increase on an actual reported basis. This included a positive investment variance arising from
asset liability management of R467 million compared to negative R67 million in the prior period. Positive
investment variances resulted from higher bond yields and the narrowing of long-dated (R2053/R2048)
bond spreads, which were partially offset by negative investment variances from weaker equity market
performance in Morocco general insurance and wider credit spreads in the credit portfolio.
Earnings growth was achieved across the life insurance, asset management and credit and structuring
businesses. However, extreme adverse weather conditions across Africa reduced earnings and
underwriting profits at Santam and SanlamAllianz. Despite these impacts, Santam's underwriting
margin remained above the midpoint of its target range. Underwriting margins at SanlamAllianz were
below target range during the period.
Life insurance and health earnings increased on the back of favourable mortality experience, higher
asset-based fee income in South Africa and good premium growth and expense efficiencies in the
Pan-Africa portfolio. This was partly offset by regulatory impacts and continued investment in open
market sales channels in India. Earnings were further negatively impacted by the widening of the credit
spreads in the credit portfolio backing life insurance liabilities, which resulted in mark-to-market losses.
Investment variances boosted operating profits considerably during the period.
General insurance earnings growth was adversely impacted by elevated weather-related and large
loss claims. In Santam, these included flooding in the northern parts of South Africa and wildfires in the
Western Cape, which together amounted to R195 million net of reinsurance (Sanlam's share after tax
and non-controlling interests). Despite this, Santam's underwriting margin remained above the midpoint
of the 5% to 10% target range. Pan-Africa earnings were affected by large losses including natural
catastrophes (floods in Morocco and a cyclone in Madagascar). Pan-Africa earnings were further
impacted by weaker investment returns on insurance funds, following a decline in the Moroccan equity
market. India earnings grew by 33% on a comparable basis, underpinned by favourable claims
experience and cost efficiency.
Investment management earnings increased due to higher asset-based fee income from elevated
assets under management in the first quarter. The Ninety One transaction was successfully
implemented without loss of assets under management, and management is on track to address the
associated residual stranded costs. The equity stake in Ninety One does not impact operating profit.
2
Percentage increase / (decrease) for the three months ended 31 March 2026 relative to the three months ended 31 March 2025.
3
+5% excluding investment variances.
4
-37% excluding investment variances.
Pan-Africa earnings grew by 59% on a comparable basis, benefiting from higher retail-flow fee income
in Kenya and Namibia.
Credit and structuring earnings growth benefited from continued strong loan book growth and an
improved net interest margin in India. This was partly offset by a weaker performance in South Africa,
reflecting a high base of structuring activity in the prior period and increased technology investments
associated with moving onto the GoTyme technology stack. In Pan-Africa, earnings growth was muted
due to constrained operating conditions in Botswana.
Investment return on shareholders' fund capital declined relative to the prior period as weaker
market conditions weighed on performance, driven mainly by higher interest rates that affected bonds
and equity market weakness, particularly in Morocco. Investment returns were further impacted by
adverse unrealised mark-to-market movements on the group's investment in Ninety One following the
close of the transaction, as well as losses on the Indian rupee hedge for the India insurance
transactions. The latter expired at unfavourable exchange rates on the conclusion of the Indian
transactions in the first quarter. The losses on the Indian rupee hedge were offset by a lower rand
purchase price for the transactions.
Adjusted headline earnings were lower than the prior period, reflecting lower investment returns on
shareholder capital as well as weather-related claims.
The change in the value of the Ninety One stake between transaction signing and closing does not
impact adjusted headline earnings.
Capital
The group's capital position remains strong, with the solvency cover within target ranges and a solid
liquidity position. This will support resilience through the current volatile operating environment and
continued strategy execution.
New business volumes
The group's strategy to accelerate quality growth supported good underlying organic new business
growth in the first quarter. Life insurance and investment management delivered strong new business
flows, with more modest growth seen in general insurance. In India, Shriram Finance Limited recorded
good credit book growth of 15%. Life insurance new business premiums were 13% higher, with strong
contributions across the South Africa and Pan-Africa portfolios.
The continued shift in South Africa toward capital-light savings and investment products accelerated
during the quarter, supporting strong cash generation, lower balance sheet strain and improved long-
term capital efficiency. While this moderated reported value of new covered business (VNB) margins in
the short term, the group believes the evolving business mix improves long-term shareholder returns.
Net client cash flows were up 45% to a pleasing R38,6 billion.
Change 5
Total new business volumes 29%
Total net client cash inflows 45%
Present value of new business premiums (PVNBP) 13%
Value of new covered business (VNB) (22%)
VNB margin 1,5%
Total new business volumes increased by 29% compared to the prior period on a comparable basis,
driven by strong asset management inflows into the restructured asset management business, higher discretionary
savings and partnership sales in Glacier, and robust life insurance sales in South Africa
and Pan-Africa.
5
Percentage increase / (decrease) for the three months ended 31 March 2026 relative to the three months ended 31 March 2025.
In constant currency with adjustments for corporate activity, in line with the basis of normalisation.
Life new business volumes increased by 13%, supported by strong performances across South
Africa and Pan-Africa. Growth remained particularly strong in corporate, retail affluent savings and
market-linked annuity business.
The quarter reflected a continued shift in client demand toward capital-light savings and investment
solutions, particularly market-linked annuities. While this moderates the group's reported VNB margin
to 1,5%, it supports lower capital intensity, strong cash generation and greater balance sheet flexibility
over time. In addition, the first quarter largely has front-ended costs which put further strain on VNB
margins. The future asset management profits that arise on the sale of market-linked annuities are not
included in the VNB margin as these profits arise within the asset management business.
Management has implemented targeted initiatives to optimise product and channel mix, which are
expected to support an improvement in VNB momentum over the remainder of the year. While VNB
margins are anticipated to remain constrained in the first half of 2026, the group expects a progressive
recovery by year-end.
Increased Pan-Africa new business volumes were driven by single premium unit-linked business in
Morocco, in addition to deposit administration and credit life business flows in Kenya. Pan-Africa
delivered an encouraging 20% increase in VNB (on a comparable basis), reflecting higher volumes and
continued focus on higher-margin risk products.
India continued the strong growth trajectory on retail new business volumes but recorded muted growth
following the loss of a large group credit life scheme. However, India recorded negative VNB for the
period due to regulatory impacts, lower group credit life volumes and continued investment in retail
channel growth, which we are confident will support stronger growth over the medium term.
General insurance net earned premiums grew by 4% (on a comparable basis), with notable
contributions from South Africa and India. Santam recorded muted growth in the conventional
insurance business, reflecting the impact of softer gross written premium growth in specialist lines in
the second half of 2025 and a once-off positive base effect in 2025 in Santam Re relating to the
partnership business. India grew by 16% (on a comparable basis) on the back of strong third-party
motor business. In the Pan-Africa portfolio, new business growth was impacted by tighter underwriting
requirements implemented towards the end of 2025.
Actual reported group net client cash inflows increased by 92% to over R38,6 billion compared to prior
period, mainly due to strong investment management and life insurance net inflows. Investment
management recorded robust net inflows, particularly into the indexation (via Satrix) and wealth
management businesses in South Africa, while life insurance delivered 11% growth with strong
contributions from South Africa and Pan-Africa.
Outlook
The group expects resilient cash generation to continue throughout the year, with traction across its
growth vectors supporting long-term underlying organic growth.
While the external operating environment is expected to remain volatile over the remainder of 2026, the
group enters the period from a position of strength, supported by resilient client activity, strong
capitalisation, diversified earnings streams and disciplined risk management.
Management is taking targeted actions to mitigate the near-term pressures caused by weather-related
claims in the general insurance business: improving business mix, managing claims experience,
optimising costs and using AI and procurement initiatives to reduce delivery costs. Earnings momentum
is expected to strengthen as weather-related claims normalise and these actions gain traction,
supporting full-year earnings and dividend guidance.
The group's lower VNB margin in the first quarter reflects the significant shift in South Africa business
mix and negative VNB in India. The group expects a higher proportion of risk business in South Africa
and gradual improvement in India as product redesign and repricing take effect, supporting margin
recovery over the year. While overall performance remains resilient, the group is cautious about
persistency in the second half of the year.
The completion of the capital injection into Shriram Finance in April 2026 is expected to dampen short-
term earnings growth until the new capital is deployed, but it should support strong medium-term growth
across the Shriram ecosystem. Santam's investment in Syndicate 1918 at Lloyd's will continue to weigh
on earnings in 2026 but is expected to support long-term growth from international business.
Investment in banking and rewards integration, together with the group-wide migration to the cloud, will
continue to put pressure on near-term earnings. However, over the medium-term these initiatives are
expected to support growth in the South African retail market.
The group's strong balance sheet, solvency position and asset-liability management approach provide
resilience in volatile conditions. Management remains focused on disciplined cost control and strong
operational delivery.
Sanlam remains confident in the long-term growth opportunities across its core markets and continues
to expect to deliver on the 2026 full-year earnings and dividend guidance communicated at the 2025
annual results announcement, supported by a strong balance sheet and robust liquidity position. This
notwithstanding, the outlook for the remainder of the year remains subject to uncertainty relating to
economic conditions, market volatility, and the potential impact of adverse weather and other external
events.
The information in this operational update has not been reviewed or reported on by Sanlam's external auditors. Shareholders are
advised that this is not a trading statement as per paragraph 3.4(b) of the JSE Limited Listings Requirements.
Conference call
Paul Hanratty, group CEO, will host a conference call for shareholders, analysts, and the media at 17h30 South African time (UTC+2)
on 21 May 2026.
Those wishing to participate in the conference call should navigate to: https://www.diamondpass.net/3989564
Registered participants will receive their dial-in number on registration. Recorded playback will be available until 27 May 2026.
Access code for recorded playback: 48505#
South Africa 010 500 4108
USA and Canada 1 412 317 0088
UK 0 203 608 8021
Australia 073 911 1378
Other countries +27 10 500 4108
Cape Town
21 May 2026
Equity sponsor: The Standard Bank of South Africa Limited
Debt sponsor: The Standard Bank of South Africa Limited
NSX sponsor: Simonis Storm Securities (Pty) Ltd
Disclaimer
In this document, Sanlam Ltd ("SLM" or "Sanlam"), its subsidiaries and, where applicable, its joint ventures and associates are referred
to as "we", "us", "our", "Sanlam" and the "group".
Forward-looking statements
In this document, we make certain statements that are not historical facts and relate to analyses and other information based on
forecasts of future results not yet determinable, relating, amongst others, to financial results, to new business volumes, investment
returns (including exchange rate fluctuations) and actuarial assumptions. These statements may also relate to our prospects,
developments, and business strategies. These are forward-looking statements as defined in the United States Private Securities
Litigation Reform Act of 1995. Words such as "believe", "anticipate", "intend", "seek", "will", "plan", "could", "may", "expect" and "project"
and similar expressions are intended to identify such forward-looking statements but are not the exclusive means of identifying such
statements. Forward-looking statements involve inherent risks and uncertainties and, if one or more of these risks materialise, or
should underlying assumptions prove incorrect, actual results may be very different from those anticipated. Forward-looking
statements apply only as of the date on which they are made, and Sanlam does not undertake any obligation to update or revise any
of them, whether as a result of new information, future events or otherwise. Any forward-looking information contained in this document
has not been reviewed and reported on by Sanlam's external auditors.
Date: 21-05-2026 02:00:00
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