JSE-listed insurance giant Sanlam says its net results from financial services reached a new “historic high” and exceeded the R10 billion mark for the first time in its full-year ended 31 December 2022.

Releasing its latest results on Thursday, Sanlam reported growth of 8% “in its key earnings metric”. In line with this, the non-bank financial services group also upped its gross final dividend for the year by 8%.

It says net results from financial services increased to R10.19 billion in 2022, from R9.46 billion in the prior full year. The company’s adjusted Return on Group Equity Value (RoGEV) came in at 15.1%, above the business’ hurdle rate of 14.3%.

Difficult backdrop

“The group performed exceptionally well in 2022, against a difficult backdrop of significant volatility in global equity, credit and interest rate markets, surging inflation and catastrophic flooding in KwaZulu-Natal,” notes Sanlam in its results Sens statement.

In addition to the 8% net result from financial services increase, the group says life insurance increased by 25%, while its credit and structuring operations increased by 19%. Its investment management operations marginally decreased by 1%, but this was 18% higher if its disposed UK businesses are excluded.

“Our general insurance net result from financial services, however declined by 32%, impacted by a number of factors including significant claims inflation, adverse weather conditions as well as investment market volatility,” Sanlam notes in its Sens.

Sanlam is a major shareholder in JSE-listed short-term insurer Santam, which took a major hit last year from record flood claims in KwaZulu-Natal.

We are delighted with the group’s performance, the strength with which we have emerged from this period of extreme turbulence, and the strategic platform developed for future growth,” says Sanlam Group CEO, Paul Hanratty.

Sanlam reported headline earnings per share (Heps) growth of 3% for the year, from 438c to 454c. However, as a life insurer, its main earnings metric is the “net results from financial services” figure.

The 8% growth for FY2022 reflected in this metric, saw the group declaring a final gross cash dividend of 360c per share, compared to 334c per share in FY2021.