Sanlam: Little earnings growth hurts shares

SANLAM, the South African insurance firm, reported little earnings growth for the first 10 months of the year, saying its investment returns were significantly weaker than a year earlier, which sent its shares sharply lower. It also said yesterday that the state-owned pension fund, the Public Investment Corporation, withdrew R10 billion from its funds during the period. Diluted headline earnings a share rose by 4 percent. A year ago, earnings increased by 35 percent. “Overall investment market returns during the first 10 months of 2014 were significantly weaker than the comparable period in 2013, dampening growth in headline earnings per share,” Sanlam said. It said it booked new business of R150bn, a 17 percent increase from a year ago. Its shares were down 4.48 percent to close at R71 on the JSE yesterday. – Reuters