Sanlam, backed by Patrice Motsepe, posts $654 million profit in H1 2025 with rahim66

Sanlam, Africa’s largest insurer and partly owned by South African billionaire Patrice Motsepe, delivered a solid first-half performance in 2025, with profit climbing to $654 million. The gains were driven by steady contributions from life insurance, general insurance, and investment management.

Regional performance paints a mixed picture

The company’s report shows profit rising 6.9 percent to R11.64 billion ($654.1 million), up from R10.89 billion ($612 million) a year earlier. The performance, however, varied across regions. Life insurance revenue grew 3.7 percent to R21.84 billion ($1.23 billion), anchored by stable demand in its South African base.

Outside its home market, results were less encouraging. Pan-African revenue fell 2.3 percent to R975 million ($54.8 million), while income from Asia remained flat at R956 million ($53.8 million). General insurance added R241 million ($13.6 million), a clear improvement from no contribution in the same period last year.

Net operational earnings rose 15 percent to R9.3 billion ($522.87 million), lifted by stronger investment returns and improved financial services. The group’s net result from financial services (NRFFS) climbed 14 percent to R8.1 billion ($455.53 million), or 15 percent per share, with contributions from all regions. Cash NRFFS also grew 14 percent to R8.2 billion ($461.16 million), while NRFFS per share rose to R3.82 ($0.215) from R3.33 ($0.187) in 2024.

Not all measures moved in the same direction. Headline earnings slipped 1 percent to R9.71 billion ($545.65 million), with headline earnings per share down 2 percent at R4.65 ($0.262). Sanlam explained that this was due to lower investment variances and the absence of a once-off Capitec reinsurance recapture fee, which had boosted last year’s results.

Business flows and product performance

Sanlam recorded stronger business flows overall, with new business volumes up 7 percent to R217.8 billion ($12.26 billion). Net client cash flows more than doubled to R48.5 billion ($2.73 billion), helped by inflows into South Africa’s investment management arm, alongside gains in life and general insurance.

Life insurance new business held steady at R51.2 billion ($2.88 billion). However, the value of new covered business dropped 18 percent to R1.14 billion ($64.14 million), reflecting structural changes such as the sale of Sanlam Namibia and a reduced stake in SanlamAllianz. General insurance volumes climbed 15 percent to R27.1 billion ($1.53 billion), while investment management advanced 7 percent to R153.1 billion ($8.62 billion).

Motsepe’s influence and long-term outlook

Patrice Motsepe, who holds a 7.8 percent stake in Sanlam through Ubuntu-Botho Investments, continues to play a central role as the group’s vice chairman. His influence remains important to Sanlam’s long-term plans, particularly its ambition to strengthen its leadership across African insurance and financial services.

The insurer’s focus on South Africa, other African markets, and Asia provides a broad base for future growth. Its ability to generate consistent profits across different divisions highlights resilience in a challenging economic climate. By the end of June, Sanlam’s total assets had risen 5.79 percent to R1.2 trillion ($67.47 billion), while retained earnings inched up 1.02 percent to R78.57 billion ($4.42 billion) from R77.78 billion ($4.37 billion) a year earlier.

from Daily News on African Billionaires and UHNWIs https://ift.tt/4Vgp0hA

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