Sanlam Ltd reported core earnings growth of just 1% on a comparable basis for the six months ended June 30, 2026, a steep deceleration from the company’s estimated sustainable underlying growth rate of approximately 7%.
Weather-related and abnormal claims in the group’s African general insurance operations eroded earnings by about 8%, while investments in organic growth platforms weighed another 3 percentage points. Partially offsetting those headwinds, risk-adjusted non-financial risk liability hedging changes contributed roughly 5% to earnings.
Paul Hanratty, Sanlam’s group chief executive, acknowledged the result: "Core earnings grew by just 1% in the first half of 2026 on a comparable basis," adding that weather damage and abnormal claims in African general insurance absorbed around 8% of profits.
Operating profit fell 7.3%, dragged by market movements, project spending, and claims pressure. Adjusted return on equity came in at 18.4% annualized, above the five-year average of 17% but below the group’s longer-term target of surpassing 20% by 2030. Return on group equity value was 15.5% on an annualized basis.
New business volumes rose 22% on a comparable basis, with life insurance new business up 14%. Net client cash flows reached ZAR 78 billion. Life insurance core earnings totalled just below ZAR 5 billion. In asset management, core earnings surged 48%, supported by assets under management closing at roughly ZAR 1.3 trillion.
Santam, Sanlam’s general insurance subsidiary, absorbed just under ZAR 700 million in flood and wildfire claims net of reinsurance, partially offset by a ZAR 147 million general reserve release. Pan Africa general insurance net insurance margin slipped to 9%, below the targeted 10%–15% range. Santam Syndicate 1918 had written just under ZAR 500 million of gross premiums to date, tracking toward a full-year target of ZAR 1.3 billion.
On the capital front, discretionary capital was reduced from ZAR 8 billion to just over ZAR 2 billion after the group ring-fenced approximately ZAR 5 billion to increase its stake in Shriram Life and General Insurance in India. The reduction was partly supported by ZAR 2.4 billion in new subordinated debt issued earlier in the year. Hanratty noted the company had maintained dividend payments for 28 consecutive years and expected full-year 2026 dividend guidance to be met.
Abigail Mukhuba, group financial director, said: "The growth vector platforms have largely been built. Our emphasis now shifts to returns, cash conversion, and remittance discipline."
Sanlam shares fell 3.27% to ZAR 8,245 from a previous close of ZAR 8,522. The stock traded about 2.1% above its 52-week low of ZAR 8,072 and roughly 24% below its 52-week high of ZAR 10,847.
