Sanlam Insurance Manages to Grow New Business

June 9 - One of South Africa's leading insurance companies, Sanlam, noted that it was pleased with the fact that it managed to grow new business volumes by an impressive 9%, despite the fact that market conditions had weakened across the board.

"Looking ahead, the challenging macroeconomic and volatile financial market conditions are likely to place pressure on growth in the group," said Johan van Zyl, Chief Executive at Sanlam. "However, owing to the increased diversity of the group as well as its strong capital position, Sanlam is now in a better position to face these challenges."

In line with the 0.1% drop of the life insurance index, share prices for the company fell 0.47% this week - trading at R19.21 per share. Compared to the same period last year, investment returns were hit by a weaker stock market.

One of Sanlam Insurance's main business strategies this year was to buy back shares from the market. All in all, 62 million Sanlam shares were bought as treasury shares - amounting to 2.7% of issued capital totaling R1.25 billion.

Different sectors within the company performed at varying levels. Single life premiums rose 43% according to Sanlam Personal Finance, while Sanlam Developing markets reported that new South African recurring premiums were up 16%. Non South African business flows showed a strong growth of 28%.

Sanlam Insurance, one of the oldest insurance companies in South Africa, is listed on the Johannesburg Stock Exchange and offers life insurance for individuals, as well as personal financial products and services. 95% of Santam's insurance policies are sold via brokers.