Page 205 - SHB 2021 Issue 4

Group Annual Results for the six months
ended 30 June 2021

Net fund infl ows
Earnings Return on Group Equity Value per share
R38 billion (R33 billion in 2020) 3.9%
Net result from fi nancial services
 16% Net value of new convered business Adjusted Return on Group Equity Value per share
 94% to R1.3 billion 6.1%
Net operational earnings
 33% Net new convered business margin
2,82% (2,06% in 220) Capital management

New business Discretionary capital at 30 June 2021
Group Equity Value R537 million
Net business volumes
 12% to R176 billion Group Equity Value per share Sanlam Group SAM cover ratio
R58,48 175% (December 2020: 186%)
SALIENT RESULTS SHAREHOLDERS’ FUND INCOME STATEMENT
for the six months ended 30 June 2021 (reviewed) 2021 2020 % for the six months ended 30 June 2021 (reviewed) 2021 2020
R’m R’m
SANLAM GROUP
Earnings RESULT FROM FINANCIAL SERVICES BEFORE TAX 7 794 6 078
Net result from fi nancial services R million 4 529 3 898 16% Tax on result from fi nancial services (2 259) (1 641)
Net operational earnings R million 4 679 3 511 33% Result from fi nancial services after tax 5 535 4 437
Headline earnings R million 4 003 3 893 3% Non-controlling interests (1 006) (539)
Weighted average number of shares million 2 091,6 2 095,8
(1)
Adj. weighted ave. number of shares million 2 229,6 2 233,9 Non-controlling interests (1 006) (539)
(1)
Net result from fi nancial services per share cents 203,1 174,5 16% Net result from fi nancial services 4 529 3 898
Net operational earnings per share cents 209,9 157,2 34%
Diluted headline earnings per share cents 191,4 185,8 3% Net investment income 315 528
Business volumes Net investment surpluses (68) (803)
New business volumes R million 176 426 157 480 12% Project Expenses (97) (112)
Net fund infl ows/net client cash fl ows R million 37 814 33 413 13% Net operational earnings 4 679 3 511
Net new covered business Net amortisation of value of business acquired
Value of new covered business R million 1 289 666 94% and other intangibles (301) (410)
Covered business PVNBP R million 45 672 32 403 41% Equity participation costs (1) (1)
(2)
New covered business margin % 2,82 2,06 Net non-operational equity-accounted earnings (6) 16
(3)
Group Equity Value Net profi t/(loss) on disposal or subsidiaries and
Group Equity Value R million 130 218 131 812 associated companies 8 216
(4)
(4)
Group Equity Value per share cents 5 848 5 920 Impairments 57 (7 647)
Return on Group Equity Value per share % 3,9 (4,6)
(5)
(6)
Adj. ROGEV per share % 6,1 (0,9) Normalised attributable earnings 4 436 (4 315)
(1)
SOLVENCY COVER Fund transfers (720) 786
Sanlam Group % 175 186 Attributable earnings per Group statement
(4)
Sanlam Life Insurance Limited % 232 257 of comprehensive income 3 716 (3 529)
(4)
Sanlam Life Insurance Limited Note
covered business (4) (7) % 195 197 (1) Comparatives for December 2020 results have been adjusted for hyperinfl ation. Refer to note 13.2 on page 101.
Notes
(1) Weighted average number of shares excludes Sanlam shares held directly or indirectly through consolidated investment funds in SANLAM GROUP EARNINGS
policyholder portfolios, as well as Sanlam shares held by the Group’s broad-based black economic empowerment special purposes vehicle
(B-BBEE SPV) that is consolidated in terms of International Financial Reporting Standards (IFRS). These shares are treated as shares in 4 529 4 436
issue for purposes of adjusted weighted average number of shares in issue, which is the base to determine net result from fi nancial services 3 878
per share and net operational earnings per share. Diluted headline earnings per share is based on the weighted average number of shares.
(2) PVNBP = present value of new business premiums and is equal to the present value of new recurring premiums, at the relevant risk
discount rate for each business, plus single premiums.
(3) New covered business margin = value of new covered business as a percentage of PVNBP.
(4) Comparative fi gures at 31 December 2020. The reported Sanlam Group solvency position at 31 December 2020 of 191% has been restated
to 186% to refl ect the Prudential Authority’s revised methodology in the treatment of certain Sanlam Emerging Markets entities in the
calculation of Group solvency that was applied retrospectively.
(5) Growth in Group Equity Value per share (with dividends paid, capital movements and cost of treasury shares acquired reversed) as a
percentage of Group Equity Value per share at the beginning of the year.
(6) Adjusted Return on Group Equity Value equals Return on Group Equity Value excluding investment market and currency volatility, changes
in interest rates and other factors outside of management’s control.
(7) Excludes investments in subsidiaries and associated companies, discretionary capital, cash accumulated for dividend payments and the net
asset value of non-covered operations.
(4 315)
NEW BUSINESS VOLUMES Net result from fi nancial services Normalised attributable earnings
for the six months ended 30 June 2021 (reviewed) 2021 2020 2021 2020
R’m R’m %
Sanlam Life and Savings 54 305 35 051 55% NET RESULT FROM FINANCIAL SERVICES
Sanlam Emerging Markets 22 674 21 890 4% for the six months ended 30 June 2021 (reviewed) 2021 2020 %

R’m
R’m

Sanlam Investment Group 86 258 88 617 (3%)
Santam 13 189 11 922 11% Sanlam Life and Savings 2 086 2 357 (11%)
Sanlam Emerging Markets 1 313 985 33%
Total 176 426 157 480 12%
Sanlam Investment Group 610 127 >100%
Life insurance 35 686 23 740 50% Santam 621 396 57%
Investment business 119 799 113 309 6%
General Insurance 20 941 20 431 2% Group offi ce and other (101) 33 (>100%)

Total 176 426 157 480 12% Net result from fi nancial services 4 529 3 898 16%

JSE R&E book IR2021 v20211024.indd 1 29.10.2021 17:01:31