Despite this difficult environment, the group's 2020 results remained strong, with life premiums growing by 4% and non-life by 3%. At the same time, the investment activity increased by 37%.
In addition to more than satisfactory results in a time of global health crisis, the group has allocated significant technical and financial resources to support its clients, partners and other solidarity funds.
This solidarity has played out through:
- Exemption of insurance premiums payments for its clients,
- Financial support to intermediaries,
- A 2.25 billion ZAR(153 million USD) aid to employment support funds,
- Payment of 1 billion ZAR (68 million USD) to its customers in the hotel and leisure sector,
- The setting up of a provision of 3 billion ZAR (205 million USD) to face possible business interruption claims,
- A 1 billion ZAR (68 million USD) grant to various organizations and communities in Africa.
Read also | Sanlam: clusters businesses [4]
Sanlam Group in 2020
- the leading insurance company in the South African life and non-life market,
- the largest African group in terms of market capitalization, non-bank financial services. It is also the largest group in terms of geographical presence in Africa,
- top-ranking subsidiaries in life and non-life insurance in several African markets,
- a workforce of 147 541 employees in 44 countries, up from 105 000 in 2019,
- revenues of 310.875 billion ZAR (21.212 billion USD) against 249.323 billion ZAR (17.732 billion USD) in 2019,
- a net income of 8.382 billion ZAR (572 million USD) against 9.674 billion ZAR (688 million USD) in 2019,
- a shareholders' equity worth 64.712 billion ZAR (4.412 billion USD),
- a solvency ratio of 191% against 211% in 2019, - assets amounting to 943.796 billion ZAR (64.395 billion USD),
- a Standard & Poors’ rating of A+ for Sanlam Ltd and AAA for Sanlam Life Insurance.
Read also | Sanlam Group: Establishment, development and expansion [5]
Sanlam Group: main technical and financial indicators
Figures in billions2016 | 2017 | 2018 | 2019 | 2020 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | |
Turnover | 233.178 | 17.052 | 221.172 | 17.862 | 223.029 | 15.44 | 249.323 | 17.732 | 310.875 | 21.212 |
Shareholder’s equity | 53.39 | 3.904 | 57.42 | 4.637 | 69.506 | 4.812 | 67.317 | 4.788 | 64.712 | 4.415 |
Net result | 7.969 | 0.583 | 8.549 | 0.69 | 8.89 | 0.615 | 9.674 | 0.688 | 8.382 | 0.572 |
Net assets | 672.559 | 49.184 | 733.583 | 59.244 | 815.576 | 56.462 | 900.229 | 64.024 | 943.796 | 64.395 |
(1) Evolution in local currency
Sanlam Group’s turnover by type of activity
Nearly 69% of 2020 Sanlam’s revenue comes from the investment business. Insurance premiums account for only 31% of the group's revenues. The latter are up two points compared to 2016.
The insurance business is dominated by life class of business, which accounted for 58% of the total insurance revenues in 2020. The life business’ share in the group’s portfolio has declined significantly compared to 2016 when it accounted for 65% of insurance business.
The increase in non-life underwriting is explained by the acquisition of Saham Finances [6], which is mainly focused on property damage risks.
Figures in billions2016 | 2017 | 2018 | 2019 | 2020 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | |
Life insurance activity | 43.599 | 3.188 | 44.615 | 3.603 | 53.815 | 3.726 | 53.927 | 3.835 | 56.111 | 3.828 |
Non-life insurance activity | 23.839 | 1.743 | 27.557 | 2.226 | 32.685 | 2.263 | 39.831 | 2.833 | 41.139 | 2.807 |
Investment activity | 165.74 | 12.121 | 149 | 12.033 | 136.529 | 9.452 | 155.565 | 11.064 | 213.625 | 14.576 |
Group total | 233.178 | 17.052 | 221.172 | 17.862 | 223.029 | 15.441 | 249.323 | 17.732 | 310.875 | 21.211 |
Sanlam’s life insurance activity
Life insurance recorded a premium volume of 56.111 billion ZAR (3.828 billion USD) in 2020, that is, 18% of the group's total business. Sanlam Life and Savings, Sanlam Emerging Markets, Sanlam UK, Sanlam Employee Benefits are among the most active entities in this line of business.
Figures in billions2016 | 2017 | 2018 | 2019 | 2020 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | |
Turnover (2) | 43.599 | 3.188 | 44.615 | 3.603 | 53.815 | 3.726 | 53.927 | 3.835 | 56.111 | 3.828 |
Net result | 4.609 | 0.337 | 5.293 | 0.427 | 5.117 | 0.354 | 5.301 | 0.377 | 5.014 | 0.342 |
(1) Evolution in local currency
(2) Including SA Retail Affluent, SA Retail Mass and Sanlam Corporate (Sanlam Health and Sanlam Employee Benefits)
Sanlam’s non-life insurance activity
In 2020, non-life insurance contributed 13% of the Group's revenues. The turnover is mainly underwritten by two entities: Santam with 24.660 billion ZAR (1.683 billion USD) of premiums* and Sanlam Emerging Markets with 16.479 billion ZAR (1.124 billion USD) of which 12.601 billion ZAR (860 million USD) are contributed by Sanlam Pan-Africa.
In original currency, the growth of the non-life insurance is 72% between 2016 and 2020.
* Earned premiums
Figures in billions2016 | 2017 | 2018 | 2019 | 2020 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | |
Turnover (2) | 23.839 | 1.743 | 27.557 | 2.226 | 32.685 | 2.263 | 39.831 | 2.833 | 41.139 | 2.807 |
Net result | - | - | 2.535 | 0.205 | 2.855 | 0.198 | 3.718 | 0.264 | 2.667 | 0.182 |
(1) Evolution in local currency
(2) Including Santam and Sanlam Emerging Markets' non-life business
Sanlam’s investment activity
The investment business is Sanlam's main source of revenue, accounting alone for nearly 69% of the group's revenue in 2020.
It is noteworthy that, over the last five years that is, from 2016 to 2020, the 29% growth rate of the investment activity is significantly lower than that achieved by the insurance business, which stands at 44%.
Figures in billions2016 | 2017 | 2018 | 2019 | 2020 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | ZAR | USD | |
Turnover | 157.901 | 11.547 | 149 | 12.033 | 136.529 | 9.452 | 155.565 | 11.064 | 213.625 | 14.576 |
Net result | - | - | 0.721 | 0.058 | 0.918 | 0.064 | 0.655 | 0.047 | 0.701 | 0.048 |
(1) Evolution in local currency
Exchange rate as at 31/12/2020: 1 ZAR = 0.06823 USD ; 31/12/2019 : 1 ZAR = 0.07112 USD ; at 31/12/2018 : 1 ZAR = 0.06923 USD ; at 31/12/2017 : 1 ZAR = 0.08076 USD ; at 31/12/2016 : 1 ZAR = 0.07313 USD