In a trading statement for the four months to April, the group said yesterday that “pleasing” organic growth had put it on track for another good financial year but warned that the tough economic headwinds in South Africa, are likely to persist this year.
“Apart from Namibia, economic conditions in the other emerging markets where we operate are more conducive to growth. India, in particular, is expected to maintain strong economic growth with the renewed mandate provided to the governing party in the recent elections providing some policy certainty,” the group noted.
Sanlam’s affluent and high-net-worth client base had remained cautious in the run-up to the elections, and through the announcement of the new cabinet and any potential policy announcement.
At group level new business volumes of R72bn, were up 7percent on the first four months of the 2018 financial year (3percent in constant currency and excluding Saham Finances).
New business volumes at Sanlam Personal Finance declined by 9percent due to lower demand at Glacier.
Sanlam Emerging Markets reported new business growth of 34percent, which was 4percent lower in constant currency terms and excluding Saham Finance.
The Indian and Malaysian businesses achieved double-digit growth, with Malaysian life business finding particularly satisfactory traction.
Sanlam shares closed 0.66percent higher on the JSE yesterday at R75.19.