Johannesburg – Sanlam, South Africa’s biggest insurance company, closed stronger on the JSE as the market cheered the group’s strong operational performance for the four months ended April compared to a year earlier.
Among the highlights for the period was the 20% increase in new business volumes up 81% in the Value of Business, the more than double in net fund inflows, and the strong performance of the African General Insurance business.
The group said the current rate of new business growth had received a boost from improved savings due to Covid-19 pandemic shifting spending patterns.
“In due course we would expect this supportive situation to normalise and therefore expect the growth in new business volumes to moderate at some point,” said Sanlam.
Net results from financial services increased by 18% in the period under review compared to a year earlier on the improved equity and credit markets over the period, which offset the impact of weaker mortality experience in the South African life insurance business.
The group added that it was satisfied with Santam’s performance, as it started processing contingent business interruption claims in January. It added that the increase in the loss ratio weighed heavily on MiWay’s underwriting performance.
Group chief executive, Paul Hanratty, said the insurer was satisfied with the performance for the period under review.
“Our performance continues to demonstrate the passion of our workforce and the strength of the underlying operations, built on a foundation of a sound capital base, robust cash generation and a diversified growth profile,” said Hanratty.
Sanlam shares rose 4.18% to R64 a share.