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SANLAM INTERIM RESULTS 2009 Cluster Reviews 1
RETAIL CLUSTER
SANLAM INTERIM RESULTS 2009 Cluster Reviews 3
Sanlam Personal Finance
Who we are
We provide clients in the middle, affluent and self-
employed markets in South Africa and Namibia with a
comprehensive range of appropriate and competitive
financial services solutions designed to facilitate their
long-term wealth creation, protection and niche financing
needs.
Engineering these solutions around client needs and
delivering the solutions through credible financial advice
enables us to grow SPF on a sustainable basis, thereby
maximising shareholder value while building long-term
relationships with our clients.
We achieve this through our people – we foster a culture of
passion for our clients and place great emphasis on
diversity and innovation. At SPF we strive to be an
employer of choice.
SPF provides the following financial services and advice to
clients in the middle, affluent, and self-employed and
professional markets:
Client protection
– Life insurance, short-term insurance and medical
cover
Providing for retirement
Providing for non-retirement savings needs
– Endowments, savings accounts and fixed deposits
Protecting and growing wealth
– Linked investment solutions
Managing assets in retirement
– Flexible investment-linked annuities
– Guaranteed annuities
Ensuring transfer of wealth between generations
– Estate and trust services
Transactional requirements
– Debit card
Financing and credit needs
– Home solutions
– Personal loans
Our competitive advantage is our established client centric
strategy, which is driven by focused market segmentation
and diversification of our financial services solutions, as
well as our extensive distribution footprint.
4 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Personal Finance
continued
Sanlam Personal Finance
R million 1H09 %∆
Net operating profit 691 2
New business flows
– SA recurring 487 (13)
– SA single 9 727 (12)
– Non-SA 4 486 5
PVNB premiums* 7 488 (7)
VNB* 135 (16)
Margin* 1,80% vs 1,98%
Annualised ROGEV 5,6%
* Excludes non-life business
Group Profile and Shareholding Structure
South African operations %
Middle market and self-employed focus
Sanlam Individual Life division 100 Life insurance
Sanlam Home Loans 50 Home loan joint venture with Absa
Multi Data 100 Electronic money transfer
Sanlam Trust 100 Estate and trust services
Sanlam Liquid (1)
100 Debit card and savings facility
Anglo African Finance 65 Niche trade and bridge finance
Sanlam Health Management 100 Medical scheme services
Sanlam Linked Investments 100 Linked product provider
Affluent market focus
Glacier(2) 100 Financial services for affluent market
(1)
Previously a joint venture with Sanlam Collective Investments. From 2009 it is wholly-owned.
(2)
Glacier will also source solutions from the middle market and self-employed operations above.
Non-South African operations %
Sanlam Namibia Holdings (SNH) 54 Financial services in Namibia
Sanlam Life Namibia 100 Closed fund business in Namibia
SANLAM INTERIM RESULTS 2009 Cluster Reviews 5
Sanlam Personal Finance
continued
Analysis of Operating Profit (per Profit Source)
June 2009 June 2008
R million R million
Admin income 131 147
Risk income 248 194
Market Related income 514 554
Net interest income (working capital & loan business) 216 238
Other 298 316
Operating profit before tax & minorities 892 895
Tax & minorities (201) (217)
Operating profit after tax & minorities 691 678
Admin Ratio 35,9% 35,1%
Analysis of Operating Profit (per Business Unit)
June 2009 June 2008
R million R million
SA Life 736 736
SA Non-life 107 106
Glacier 60 61
Other 47 45
Non-SA 49 53
Operating profit before tax & minorities 892 895
6 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Personal Finance
continued
Administration Costs (Rm)
1 100 1062
First Half Second Half
1023
1 000 961
937
906 905 897
900 882
859
846
818 808
800 787 779
757
700
600
500
2002 2003 2004 2005 2006 2007 2008 2009*
* Excludes the costs associated with new ventures of R55m (Sanlam Healthcare Management and Sanlam Home Solutions)
Administration Cost Ratio (%)
50%
45% 44,1
42,1
40%
38,4 38,1
36,8
35,6 35,3
34,6
35%
30%
2002 2003 2004 2005 2006 2007 2008 1H2009*
*Admin ratio excludes new ventures (Sanlam Healthcare Management and Sanlam Home Solutions)
SANLAM INTERIM RESULTS 2009 Cluster Reviews 7
Sanlam Personal Finance
continued
Persistency: Number of Lapses, Surrenders & Fully Paid-Up Policies as % of In Force
5,0 4,8
First Half Second Half First Half Second Half
4,2 4,2
3,9 4,0 3,9 3,9
4,0 3,8 3,7 3,8
3,6 3,6
3,4
3,0
2,0
1,0
0,0
2003 2004 2005 2006 2007 2008 2009
SA Surrender Benefits Paid (Rm)
2 600
2 419 First Half Second Half
2 378
2 400
2 213
2 200 2 104
2 000 1 963 1 962
1 823 1 790 1 777
1 800 1 707 1 678
1 668
1 600 1 535
1 374 1 367
1 400
1 200
1 000
500
2002 2003 2004 2005 2006 2007 2008 2009
Total Benefits Paid (SA)
June 2009 June 2008
R million R million
Total life benefits 8 804 9 351
Death & disability benefits 1 015 985
Maturity benefits 4 166 4 757
Life & term annuities 1 762 1 625
Surrenders 1 777 1 962
Other 84 22
Non-life benefits (linked) 3 951 4 440
Total benefits paid 12 755 13 791
8 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Personal Finance
continued
SA New Recurring Premiums (%)
70%
Advisor Other Brokers Direct and other ABSA Brokers
60%
53.6 54.0 54.9
51.9 52.2 53.0
50%
40% 36.1 36.6
32.9
30.5 31.5 31.2
30%
20%
13.3
11.7 11.9
10% 7.5 8.6
7.2
5.3
2.8 3.5 3.6 3.0 3.2
0%
2004 2005 2006 2007 2008 1H2009
SA Single Premiums (life & non-life) (%)
70%
Advisor Other Brokers Direct and other ABSA Brokers
60%
51,3
50% 45,4
42,6 41,7 42,5
40,0 41,3 41,0 41,5 40,8
38,5 38,7
40%
30%
20%
11,5
9,4 8,0 8,7 9,0 8,5 9,8
10% 6,9 6,0 6,9 6,2
3,8
0%
2004 2005 2006 2007 2008 1H2009
SA Total Premiums (life & non-life) (%)
70%
Advisor Other Brokers Direct and other ABSA Brokers
60%
49,9
50%
43,6 42,2 42,1 42,7 44,1 41,8 42,0
39,6 40,4 40,0
40% 38,0
30%
20%
11,6
8,8 8,0 8,5 9,0 9,6
10% 8,2
6,6 6,6 6,6 5,9
4,2
0%
2004 2005 2006 2007 2008 1H2009
SANLAM INTERIM RESULTS 2009 Cluster Reviews 9
Sanlam Personal Finance
continued
SA New Business Recurring Premiums (Rm)
700
First Half Second Half
613 609
600 544 556
523
487
458
500 417 430 422
413
388 375
400
300
200
0
2003 2004 2005 2006 2007 2008 2009
SA Single Premiums (life vs non-life) (Rm)
6 000 5686
Life Non-Life
5315
5118
5 000 4609
4449
4 000 3823 3871
3563
3186
3029
3 000 2903
2735
2572
2 000
1608
1 000
0
1H2003 1H2004 1H2005 1H2006 1H2007 1H2008 1H2009
SANLAM INTERIM RESULTS 2009 Cluster Reviews 11
Sanlam Developing Markets
Who we are
Sanlam Developing Markets (SDM) provides affordable
financial services solutions to the entry-level market in
South Africa and all market segments in other developing
markets where Sanlam has established a presence,
namely Botswana, Kenya, Tanzania, Zambia, Ghana and
India.
In the three years since our launch, the emphasis has
been on establishing a diverse mix of operations across the
African continent and in India with the aim of ensuring
sustainable delivery and growth across the various
businesses that make up SDM.
Our client-centric approach is aimed at protecting and
growing the financial interests of our clients across all our
markets by providing superior financial solutions.
The success of SDM can largely be ascribed to our
approach of partnering with reputable and established
operations in developing markets where potential for
growth has been identified. Our preference for
partnerships rather than outright acquisitions has enabled
us to allocate our capital resources and expertise to
support these partnerships by strengthening their
operational base and distribution channels to enable
further growth.
Our competitive advantage remains a team that is
committed to implement and deliver simple but focused
strategies and plans, underpinned by a strong Sanlam
brand, distribution network and claims management skills.
12 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Developing Markets
continued
Sanlam Developing Markets
R million 1H09 %∆
Net operating profit 85 9
New business flows*
– SA recurring
370 5
– Non-SA 681 24
PVNB premiums 2 814 21
VNB 136 20
Margin 4,83% vs 4,85%
Annualised ROGEV 6,4%
*Excludes white labels and non-core businesses
Group Profile and Shareholding Structure
South Africa Rest of Africa Other international
Sanlam Sky Botswana Life Shriram Life India
(100%) (54%) (26%)
Channel Life Pan Africa Life Kenya
(100%)(i) (50%)
Safrican ELAC Ghana
(85%) (49%)
African Life Tanzania
(65%)
African Life Zambia
(70%)
Alfinanz (100%) – Application Service Provider
(i)
Actual holding of 99.98% (still a small component of minority interests)
SANLAM INTERIM RESULTS 2009 Cluster Reviews 13
Sanlam Developing Markets
continued
Operating Profit for the Six Months Ended 30 June 2009
June 2009 June 2008
Operating Operating Operating Operating
profit profit profit after tax profit after tax
before tax Tax after tax Minorities & minorities & minorities
R million R million R million R million R million R million
RSA 50 (1) 49 (1) 48 34
Africa 97 (19) 78 (36) 42 46
Other International * (5) - (5) - (5) (2)
Total 142 (20) 122 (37) 85 78
* Sanlam’s share only
New Business Recurring Premiums for the Six Months Ended 30 June 2009
June June
* Other 2009 2008
RSA Africa International Total Total
R million R million R million R million R million
Brokers 147 42 - 189 185
Agents 115 123 58 296 229
Bancassurance - 18 - 18 1
Direct 5 12 - 17 45
Other** 103 - - 103 79
Total New business 370 195 58 623 539
* Sanlam’s share only
** Group risk & Group benefits
New Business Single Premiums for the Six Months Ended 30 June 2009
June June
* Other 2009 2008
RSA Africa International Total Total
R million R million R million R million R million
Brokers 258 33 - 291 162
Agents - 7 18 25 101
Bancassurance - 124 - 124 84
Direct - - - - -
Other** 7 246 - 253 328
Total New business 265 410 18 693 675
* Sanlam’s share only
** Brokers-Annuity (BIHL) & Group benefits
SANLAM INTERIM RESULTS 2009 Cluster Reviews 15
Sanlam UK
Who we are
In June last year, Sanlam announced the reorganisation of
its interests in the United Kingdom, to be consolidated
within a single holding company, Sanlam UK Limited, in
2009
The Sanlam UK cluster therefore consists of subsidiary
companies Merchant Investors (100% owned), Principal
(90% owned) and Buckles (60% owned). The portfolio is
further complemented by Sanlam’s minority holdings in
Intrinsic, Nucleus and the Punter Southall Group. The
minority interests were previously part of Sanlam
Independent Financial Services, which has been phased
out as a business unit of the Sanlam Group.
The aim of consolidating our interests in the UK is to
ensure the co-ordinated development of our growing
portfolio of financial services businesses operating in
distribution, product packaging, administration and asset
management services. In addition, this initiative will
position Sanlam to further develop quality intermediary
relationships in a changing retail financial services
landscape in the UK.
Sanlam UK is about creating a framework that will enable
each of our businesses to thrive through the linking of
business opportunities, sharing of knowledge and
experience, and having access to the necessary capital for
growth, as opposed to being an additional operating entity
with centralised costs.
Our competitive advantage lies in our “newcomer” status
– there is no historical conduct that prohibits us from
taking a fresh partnering approach to the Independent
Financial Adviser (IFA) market in the UK and no material
legacy business that could lead to conflicts or vested
interests.
We also have the potential to move faster than other
players to capture and benefit from current and emerging
opportunities, since we are backed by the Sanlam Group
and its resources and because the basic building blocks
are already in place.
16 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam UK
continued
Sanlam UK
R million 1H09 %∆
Net operating profit 13 (65)
New business flows
– Life insurance 451 (44)
– Investment 504 –
PVNB premiums 463 (45)
VNB – –
Margin 0,00 % vs 0,36%
Annualised ROGEV (14,3%)
Group profile and shareholding structure
Investment Shareholding Description
Merchant Investors 100% Bristol-based niche player in the affluent life
and specialist pension markets
Principal 89% Leading independent investment management
company specialising in discretionary portfolio
management
Buckles 60% Largest independent financial adviser practice
based in Wales
Nucleus 42,5% Linked investment product platform controlled
by independent financial advisers
Intrinsic 28% Multi-tied financial intermediary business
consisting of financial planning and mortgage
advisory divisions
Punter Southall Group 26% UK-based financial services advisory group
SANLAM INTERIM RESULTS 2009 Cluster Reviews 17
Sanlam UK
continued
Key performance measurements – 30 June 2009
Total
controlled Total -
entities1 associates2 Sanlam UK Total
Funds under Management (£bn) 2009 2,3 1,6 3,9
2008 1,6 1,4 3,0
Funds under Administration (£bn) 2009 0,0 0,3 0,3
2008 0,0 0,1 0,1
Number of Advisers 2009 48 1 654 1 702
2008 42 1 502 1 544
Flows
- New business (£m) 2009 70 250 320
2008 54 262 316
- Total (£m) 2009 92 250 342
2008 75 262 337
- Net flows (£m) 2009 (8) 79 71
2008 8 93 101
- VNB (Life Insurance) (£m) 2009 0,0 0,0 0,0
2008 0,3 0,0 0,3
Operating Profit (£m) 2009 1,5 (0,1) (0,4) 1,0
2008 1,7 0,7 0 2,4
(1)
Total controlled entities comprise of Merchant Investors (100%), Principal (89%) and Buckles (60%)
(2)
Total associates comprise of Punter Southall Group (26%), Intrinsic (28%) and Nucleus (42.5%)
19 Cluster Reviews SANLAM INTERIM RESULTS 2009
INSTITUTIONAL CLUSTER
SANLAM INTERIM RESULTS 2009 Cluster Reviews 21
Sanlam Investments
Who we are
Sanlam Investments is one of the core clusters within the
Sanlam Group and consists of 15 businesses working
collaboratively to offer individual and institutional clients
access to a comprehensive range of specialised investment
and risk management expertise spanning local and
international asset management, private equity, hedge
funds, employee benefits, property investments and more.
Each business within the Sanlam Investments cluster
functions as an entrepreneurial entity with a shared focus
on delivering leading performance and exceptional client
service. We achieve this by instilling passionate ownership
as an intrinsic value among our employees.
We are based in South Africa, with a strong presence in
sub-Saharan Africa and footprints in the United Kingdom,
Europe, Australia and India. Our diverse client base
includes retirement funds, corporations, financial
institutions, individual investors, trade unions, non-
governmental organisations, governments and their
agencies.
Sanlam Investments’ competitive advantage lies in its
ability to cultivate a unique entrepreneurial culture within
the stability and structures of a big group. For this reason,
we are able to attract talented and innovative individuals to
establish investment-related businesses within the cluster.
Our core value of passionate ownership encourages people
to run their business as if it is their own, while we offer
support in the form of essential shared services such as
finance, HR, IT, marketing, compliance and legal services.
Moreover, being within the cluster gives the business
access to capital for innovative ideas as well as a ready
support network and the advantages of cross-selling.
22 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Investments
continued
Sanlam Investments
R million 1H09 %∆
Net operating profit 264 (8)
New business flows
– SA: Segregated 7 920 24
– SA: Other 15 580 3
– Non-SA 1 908 28
Net flows 2 590 —
FUM (R billion) 403 (1)
Annualised ROGEV 8,3 —
Profile of Sanlam Investments
Sanlam Investment One of the largest investment managers in South Africa as measured by assets under management,
Management (SIM) SIM manages financial assets for individual, institutional, retail and corporate clients and offers
investment strategies in vehicles ranging from collective investments to institutional portfolios.
SIM is grouped into six boutiques that share a common research platform. The boutiques are
Equities, Fixed Interest, Absolute Return, Liability Driven, Active Quants and Balanced Mandates.
Our structure ensures focus, a small-team culture and speedy decision-making so our clients get
access to our best thinking at all times.
Sanlam Collective The third largest manager of collective investment portfolios in South Africa, SCI offers a wide range
Investments (SCI) of retail, multi-managed, institutional and third-party collective investment funds.
Sanlam Employee Sanlam Employee Benefits specialises in the provision of risk, investment and fund administration
Benefits (SEB) services to institutions and retirement funds.
Sanlam Multi Manager An investment management advisory business, SMMI is dedicated to active multi-management.
International (SMMI)
Sanlam Private SPI is a private client portfolio management and stockbroking business, serving high net worth
Investments (SPI) individuals, charitable trusts and smaller institutions.
Sanlam Capital Markets (SCM) SCM is a provider of risk management and structured product solutions.
SIM Emerging A fund and investment management business, SIM-EM focuses on emerging markets, particularly
Markets (SIM-EM) in Africa and Asia. SIM-EM has offices in Namibia, Botswana, Nigeria, Kenya, Zambia and India.
Sanlam International SIIP actively seeks to form partnerships with investment teams in developed markets such as the
Investment Partners (SIIP) US, UK, Europe and Australasia and to work with them to build businesses which can capably
service their unique markets.
Sanlam Properties (SP) Sanlam Properties specialises in strategic property services, including portfolio management,
development, sales and listings.
Sanlam Asset Management – SAMI is an international investment management business based in Dublin, and manages funds
Ireland (SAMI) domiciled in Ireland for the Sanlam Group.
Sanlam Private Equity One of the largest private equity fund managers in South Africa, SPE offers both a direct and
(SPE) fund-of-funds investment programme. SPE also drives the Group’s BEE investment programme.
SIM Global SIM Global actively manages long-only international funds from South Africa for local and
international clients.
Octane A specialist alternative investment provider, focusing on hedge fund-of-funds, Octane is based in
Switzerland with offices in South Africa. Octane also incorporates Blue Ink, which specialises in
alternative investment strategies.
Sanlam Structured SSS offers derivative-based skills to the Investments cluster to enhance returns on portfolios and to
Solutions (SSS) improve the product offering to clients, such as derivative, tax and legal-based structured products.
Simeka Wholly owned by Sanlam Investments, Simeka is an employee benefits consulting company
operating independently within the larger Investments cluster.
SANLAM INTERIM RESULTS 2009 Cluster Reviews 23
Sanlam Investments
continued
Income Statement per Division
Total Total Total Total
Investment South African Rest of Africa International
Cluster operation operation operation
R million Jun Jun Jun Jun Jun Jun Jun Jun
2009 2008 2009 2008 2009 2008 2009 2008
Income 915 1 071 704 782 61 81 150 208
Operating expenses (422) (517) (313) (371) (42) (42) (67) (104)
Asset Management and
(134) (159) (130) (152) - - (4) (7)
distribution fees paid
Profit before tax &
359 395 261 259 19 39 79 97
performance fees
Net performance fees 11 26 3 23 - - 8 3
Profit before tax 370 421 264 282 19 39 87 100
Tax and minorities (106) (134) (73) (79) (16) (26) (17) (29)
Operating profit after tax 264 287 191 203 3 13 70 71
Assets under management
403 437 343 354 25 27 35 56
(R’ billion)
Split in Assets Under Management (Rbn)
June June December
2009 2008 2008
Wholesale 321,3 345,3 324,7
- Sanlam (SA assets) 165,6 168,8 161,1
- Sanlam (International assets) 31,6 49,1 37,3
- Segregated * 108,0 112,0 111,4
- Sanlam Properties 4,5 4,1 4,0
- Sanlam Collective Investments 11,6 11,3 10,9
Retail 81,5 92,2 84,0
- Sanlam Private Investments 34,4 44,3 37,6
- Sanlam Collective Investments 39,7 39,6 38,5
- Sanlam Multi Manager (Glacier) ** 7,4 8,3 7,9
Total AUM (Consolidated) 402,8 437,5 408,7`
* The assets of SIM Emerging Markets are included in this number.
** The rest of Sanlam Multi Manager assets are included in Sanlam and Segregated assets.
24 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Investments
continued
Split of Operating Profit before Tax (South Africa and International) – 6 month periods ending 30 June
100%
16 27 32 47 33 28
80% 100
84
60%
73 72
68 67
40%
53
20%
SA
International
0%
1H2003 1H2004 1H2005 1H2006 1H2007 1H2008 1H2009
Net Fund Flows (Rbn) – excluding White Labels
8
6,6 6,7
6
5,4 5,3
4,5
4
3,1 3,1
2
0,3
0
2003 2004 2005 2006 2007 2008 H12008 H12009
Note: 2005 excludes PIC outflows of R6.0bn
2006 excludes PIC outflows of R21.6bn
SANLAM INTERIM RESULTS 2009 Cluster Reviews 25
Sanlam Employee Benefits
Who we are
Sanlam Employee Benefits (SEB) forms part of the Sanlam
Investments cluster and specialises in the provision of risk
and investment solutions as well as administration services
to institutions and retirement funds.
As a result of significant restructuring in 2007, SEB now
consists of four entrepreneurial divisions: Sanlam Group
Risk, Sanlam Structured Solutions, Sanlam Umbrella
Solutions and Coris Capital, our retirement fund
administration platform.
Our underlying philosophy is to be driven by the needs of
our clients. We therefore dedicate our time and resources
to creating employee benefit solutions that respond to our
clients’ needs on all levels. As such we are also a leading
provider of retirement fund membership information via
state-of-the-art systems.
Our vision is to be the leader in client-centric wealth
creation and protection by ensuring that retirement fund
members realise their life-long goal: having sufficient
resources enabling them to enjoy their retirement.
We offer our clients institutional investment products
(market-linked investments and smoothed bonus
portfolios), group life benefits, group disability benefits, cell
insurance schemes, retirement fund administration,
annuity solutions and an umbrella fund offering.
The SEB brand is associated with well-established and
highly rated retirement fund research. Our research
findings are presented annually at the SEB Benchmark
Symposium and are sought after by pension fund trustees,
principal officers, consultants as well as competitors.
This market research enables us to identify key trends in
the retirement fund industry, making it possible for us to
link our solutions closely to client needs.
26 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Employee Benefits
continued
Sanlam Employee Benefits
R million 1H09 %∆
Net operating profit 65 (22)
New business flows
– SA recurring 76 (7)
– SA single 66 (65)
PVNB premiums 704 (21)
VNB 5 (64)
Margin 0,71% vs 1,58%
Annualised ROGEV 6,8%
Group profile and shareholding structure
Investment Shareholding Description
Sanlam Employee Benefits (SEB) 100 Retirement fund business
Umbrella fund
Sanlam Umbrella Fund Administrators (SUFA) 100
administration (SME focus)
Sanlam Customised Insurance Limited (SCIL) 100 Cell captive insurer
Infinit Group Solutions 50,1 Distribution of diversified Group risk products
Retirement fund administration on
Coris Capital 62
outsourced basis
Analysis of Operating Profit
June 2009 June 2008
R million R million
Underwriting risk 75 68
Investment & other 57 74
Administration (40) (25)
Operating profit 92 117
SANLAM INTERIM RESULTS 2009 Cluster Reviews 27
Sanlam Capital Markets
Who we are
Sanlam Capital Markets (SCM) forms part of the Sanlam
Institutional Cluster and is a financial engineering business
that provides solutions for its clients through the use of
debt, equity and derivative instruments, and exploits
specific synergies within other businesses in the Sanlam
Group.
Sanlam Capital Markets consists of the following business
units:
Debt Structuring – debt origination, structuring and
portfolio management.
Equities – structured equity transactions, equity
trading, underwriting and stockbroking.
Market Activity – trading and structuring of equity and
interest rate derivative products and funding of SCM.
At SCM, people are the driving force of the business,
applying their skill and experience to design optimal
solutions for SCM’s clients while appropriately managing
the financial risks resulting from these transactions.
28 Cluster Reviews SANLAM INTERIM RESULTS 2009
Sanlam Capital Markets
continued
Sanlam Capital Markets
R million 1H09 %∆
Net operating profit 59 74
Total revenue 162 67
Cost to income ratio 62% vs 100%
Capital 450 13
Annualised ROGEV 28,4%
Analysis of Operating Profit
June June
2009 2008
R million R million
Total revenue 162 97
Capital 16 20
Equities 104 84
Debt 46 28
Market Activity (4) (35)
Total expenses (101) (97)
Income before taxation 61 0
Taxation (2) 34
Attributable income 59 34
Capital 450 400
Return on Equity 28,4% 17,7%
29 Cluster Reviews SANLAM INTERIM RESULTS 2009
SHORT-TERM INSURANCE CLUSTER
SANLAM INTERIM RESULTS 2009 Cluster Reviews 31
Santam Limited
Who we are
Santam is the largest short-term insurer in South Africa
with a market share exceeding 20% and a client list that
includes the majority of the top 100 companies listed on
the JSE Limited.
Santam is a well diversified group, providing insurance
cover on all classes of short-term insurance. On a
segmented basis, Santam’s business is made up of the
following segments:
Personal Lines 39%
Commercial Lines 47%
Alternative risk 14%
Following a successful 2008, Santam’s operational
excellence was again recognized by being voted the “Best
Personal, Commercial and Corporate Insurer of 2009” by
the Financial Intermediaries’ Association (FIA).
32 Cluster Reviews SANLAM INTERIM RESULTS 2009
Santam Limited
continued
Santam
R million 1H09 %∆
Net operating profit* 118 (37)
Gross written premium 7 291 7
New earned premiums 6 179 9
– Net claims ratio 72,9%
– Net acquisition ratio 25,6%
– Underwriting ratio 1,5%
Regulatory solvency 42%
Annualised ROGEV 22,1%
*Contribution to Sanlam’s net operating profit
Business Profile
% contribution to gross
Insurance classes written premium
Motor 40
Property 28
Alternative risk 14
Liability 7
Engineering 4
Transportation 3
Accident and health 3
Crop 1
Miscellaneous <1
Guarantee <1
Key Results
R million June 2009 June 2008 %∆
Gross written premium* 7 291 6 801 7
Underwriting result* 88 326 (73)
Investment return on insurance funds* 217 129 68
Net insurance result* 311 462 (33)
*Continuing operations only
SANLAM INTERIM RESULTS 2009 Cluster Reviews 33
Santam Limited
continued
Net operating profit for the six months ended 30 June 2009
2009 2008 %∆
Net earned premiums 6 179 5 694 9
Interest on working capital 217 129 68
Financial services income 6 396 5 823 10
Sales remuneration (940) (818) 15
Income after sales remuneration 5 456 5 005 9
Underwriting policy benefits (4 503) (3 936) 14
Administration costs (642) (607) 6
Result from financial services before tax 311 462 (33)
Tax on result from financial services (90) (109) (17)
Result from financial services after tax 221 353 (37)
Minority shareholders’ interest (103) (165) (38)
Net result from financial services 118 188 (37)
Key Ratios
June June
2009 2008
Ratios % %
Net claims ratio 72,9 69,2
Net acquisition cost ratio 25,6 25,1
Net underwriting ratio 1,5 5,7
Net insurance result margin on net earned premium 5,0 8,1
Solvency
Net asset value (NAV) Rm 4 266 3 970
NAV per share cps 3 525 3 525
Net written premium** Rm 12 229 11 307
Regulatory solvency % 42 40
34 Cluster Reviews SANLAM INTERIM RESULTS 2009
Santam Limited
continued
GWP per Insurance Class (%) – Continuing activities only
Motor
Property
Alternative Risk
Liability
Engineering
Crop
Transportation
Accident and health
Miscellaneous
Guarantee
Underwriting Surplus per Insurance Class (Rm) – Continuing activities only
300
June 2009 June 2008
200
100
0
(100)
(200)
(300)
(400)
Guarantee Miscellaneous Crop Transportation Accident Engineering Liability ART Property Motor
& health
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