Key indicators for the Sanlam Group

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.

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.

Sanlam Group: main technical and financial indicators

⁽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.

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.

⁽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

⁽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%.

⁽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