Business

South Africa’s largest insurer as you know it is changing

Luke Fraser

 ·4 Sep 2025

South Africa’s biggest insurer, Sanlam, has made many deals in the first six months of the year, with the group’s earnings taking a hit amid significant shifts and changes in its operations.

In its interim results, Sanlam broke down operational and strategic developments, which included several local and international deals. 

The deals encompass several distinct businesses within the broader group and include: 

• The transfer of NMS Insurance Limited to Santam,
• Selling part of  SanlamAllianz,
• Deals in India for Shriram Wealth and Asset Management,
• Transfer of its asset management to Ninety One,
• Santam is receiving approval from the Lloyd’s Council to expand in the UK,
• Sanlam and TymeBank partnering to offer personal loans, and
• The integration of Assupol 

Looking at the specifics of these deals, the group is selling 60% of NMS Insurance Limited from Sanlam Life for R925 million. Sanlam Life had just bought the  NMS Insurance Limited business from Multichoice. 

The group also saw international insurance giant Allianz acquire 8.59% in SanlamAllianz for an initial cash consideration of R4.5 billion. 

This resulted in a final shareholding split in SanlamAllianz of 51% Sanlam and 49% Allianz. 

In India, Sanlam also completed its subscription for additional shares in Shriram Wealth, increasing its economic shareholding from 26% to 49,7%.

The group also received all the required approvals to increase its effective economic shareholding in Shriram Asset Management Company from 16.3% to 35.5%. 

The deals in India required a combined capital outlay of R700 million, which was funded from discretionary capital. 

Moreover, the group is also looking to transfer its active management business to South Africa’s largest asset manager, Ninety One. 

In June, the UK Component of the Ninety One transaction was completed, with Sanlam Investments UK Limited’s active asset management business transferred to Ninety One UK Limited. 

The South African leg of the transaction is anticipated to be completed this year.

Events post the reporting period included Santam receiving approval by the Lloyd’s Council to launch a Santam syndicate, allowing the short-term insurer access to the UK insurance and reinsurance markets. 

The move aims to improve Santam’s international growth and diversification ambition.

Moreover, the Competition Tribunal unconditionally approved the credit joint venture between Sanlam Personal Loans and Tymebank.

The move, which will require approval from the Prudential Authority, will see the parties partner to offer unsecured personal loans. 

Sanlam and TymeBank Limited have entered into an agreement, which will result in the establishment of a joint venture (JVCo) focused on unsecured personal loans with an embedded credit life offering.

The group noted that its discretionary capital on 30 June 2025 was R9.2 billion, roughly R5 billion of which is ring-fenced for  Shriram insurance transactions, which remain subject to regulatory approvals. 

The group noted that it is making progress on integrating life insurer Assupol, which it recently acquired for R6.5 billion. 

“Sanlam has progressed well in consolidating the Assupol advisor force into the Sanlam advisor force as well as consolidating support functions,” it said. 

“Key performance trends for Assupol continue to improve, with increasing agent productivity and new business volumes, improvements in persistency, as well as realisation of early expense synergies.” 

Financials 

Looking at the group’s financials, the group received a net result from financial services (NRFFS) of R8.1 billion, 14% higher than in 2024. 

NRFFS benefited from strong contributions from general insurance, life insurance and credit and structuring. 

Headline earnings per share decreased by 2%, while attributable earnings per share increased by 3%.

The group said the lower growth relative to net operational earnings was due to the 2024 results benefiting from higher favourable investment variances and partial recognition of the non-cash Capitec reinsurance recapture fee.

Sanlam previously provided funeral cover for Capitec customers, but the bank started underwriting its policies. 

Attributable earnings per share were also impacted by lower gains from the disposal of subsidiaries and associates relative to 2024.

That said, group net business volumes increased by 7% to R218 billion, and benefited from increased investment management and general insurance inflows in South Africa.

Net client cash flows more than doubled to R48.5 billion, primarily due to the South Africa investment management operations. 

The group said that both asset management and retail investment platform business performed strongly, while there was strong growth in life and general insurance net inflows.