Sanlam, Africa’s top insurer partially controlled by South African billionaire Patrice Motsepe, reported a good financial performance for the first half of 2024, with profits jumping to R11.32 billion ($636 million), a 16.74% increase from R9.70 billion ($544.78 million) in H1 2023.
The company’s growth was driven by excellent gains in insurance revenue, which went from R41.9 billion ($2.37 billion) to R47.74 billion ($2.7 billion), owing to good life insurance performance and an expanded stake in Afrocentric in its health portfolio.
Sanlam CEO Paul Hanratty emphasized the success of the company’s strategy focus on improving its South African businesses while growing into Pan-Africa and Asia. “Our focus on leveraging our significant scale in South Africa and expanding into key growth markets continues to position our business favorably for long-term growth and value creation for all stakeholders,” according to Hanratty.
Sanlam’s new business volumes for H1 2024 totaled R204 billion ($11.47 billion), reflecting the insurer’s increasing market share and robust demand for its products. Life insurance sales increased 15%, while net client cash flows more than doubled to R24 billion ($1.35 billion), demonstrating Sanlam’s ability to amass assets.
Total assets climbed by 3.41 percent to R1.02 trillion ($57.56 billion), while total equity increased by 0.75 percent, rising from R96.91 billion ($5.45 billion) to R97.64 billion ($5.49 billion).
Patrice Motsepe, who owns a 7.8 percent share in Sanlam through his investment firm Ubuntu-Botho Investments, is still an important figure in the company’s leadership as vice chairman. His influence continues to shape Sanlam’s long-term growth strategy, notably its efforts to cement leadership in Africa’s rapidly expanding insurance and financial services industries.
Sanlam’s focus on significant markets, such as South Africa, the African continent, and sections of Asia, positions it for long-term success. Its ability to create excellent earnings and maintain growth across its insurance and financial services divisions demonstrates its capacity to weather economic downturns while capitalizing on new possibilities.
