As at 9 July 2026

Executive Summary

Key highlights

In this report, we review the FY25 results released in March 2026:

Financial results at a glance:

• Total insurance revenue grew by 10% from R93.5 billion in FY24 to R102.9 billion in FY25, reflecting expansion in both life and general insurance portfolios, supported by higher written premiums and record new business volumes across the group’s diversified operations.

• Results from insurance operations increased by 6% from R13.1 billion in FY24 to R13.8 billion in FY25, underpinned by strong underwriting performance in general insurance and favourable risk experience in the life book, evidencing robust technical margins and disciplined risk selection.

• Results from other operations declined by 21% from R14.0 billion in FY24 to R11.1 billion in the current period, with the change in fair value of liabilities more than offsetting the rise in investment surpluses during the period.

• Profit for the year decreased by 25% from R24.8 billion in FY24 to R18.7 billion in FY25, driven mainly by a change in fair value of liabilities from other operations and the absence of prior-year discontinued operations gains, rather than a broad weakening in core underwriting or fee-based operations.

• Total new business volumes remained strong, showing growth of 18% from R420.2 billion to R496.0 billion for FY25. The rise was supported by all business units as life insurance increased by 10%, general insurance improved by 12%, and investment management rose by 20%.

• GEV increased by 8% from R171.8 billion to R185.6 billion, bringing the GEV per share to R87.73.

• A normal cash dividend of 485 cents per share was declared for FY25, up from 445 cents in FY24, reflecting a 9% uplift and signalling confidence in SLM’s solvency position, capital generation, and ability to fund growth while maintaining attractive returns to policyholders and shareholders.

• 1Q26 trading update: SLM delivered strong momentum, with comparable operating profit expanding by 8%, bolstered by growth in life insurance, investment management, and credit businesses. New business volumes increased by 29%, while net client cash inflows rose 45% to R38.6 billion. General insurance earnings were impacted by elevated catastrophe claims.

Analyst thesis

Our recommendation is based on:

• Diversified insurance and wealth platform: Sanlam Limited (SLM) has a diversified earnings base across life insurance, wealth management, investment management, credit, and general insurance operations. Its broad South African franchise is complemented by exposure to Africa, India, and other international markets. This geographic and business diversification supports earnings resilience, recurring fee income, and long-term growth opportunities.

• Supportive operating environment and growth opportunities: Despite short-term inflationary pressures pushing rates higher, weaker equity markets, and market volatility, SLM is positioned to benefit from improving financial conditions over the longer term. Growth opportunities across Africa and India are supported by low insurance penetration, rising savings demand, and continued acquisition-led expansion.

• Strong capital generation and resilient profitability: SLM continues to deliver solid returns, underpinned by a diversified operating model, disciplined capital allocation, and a strong balance sheet. The group’s capital position supports sustainable dividends, strategic acquisitions, and continued investment in growth initiatives.

• SLM currently trades at a discount to our intrinsic value, suggesting the market is not fully reflecting the benefits of its diversified franchise, acquisition strategy, and long-term growth opportunities.