Sanlam, Africa’s leading insurer partially owned by South African billionaire Patrice Motsepe, announced a robust financial performance at the close of its 2023 fiscal year, with profits soaring beyond the $730-million mark.
The company’s recently published annual report disclosed that its profit for the 2023 fiscal year surged by 13.7 percent, climbing from R11.96 billion ($642.1 million) in 2022 to R13.6 billion ($730.1 million). This notable increase was attributed to strong risk experiences in life insurance businesses and favorable investment returns.
Sanlam’s resilience: CEO Paul Hanratty applauds 18% growth amidst unprecedented challenges
Sanlam CEO Paul Hanratty, a notable figure in South Africa’s business landscape, lauded the company’s robust delivery in the face of extraordinary challenges during the past fiscal year.
Hanratty emphasized the significance of the 18 percent growth in key earnings metrics, net result from financial services, and cash net result from financial services. The company also recorded a notable 11.1-percent growth in dividends, reflecting a resilient response to adversities, including the pandemic, political unrest, and natural disasters.
The recently published annual report revealed a 13.7-percent rise in profit, rising from R11.96 billion ($642.1 million) in 2022 to R13.6 billion ($730.1 million) in 2023.Â
Sanlam’s retained earnings climbed from R68.44 billion to R71.15 billion, while shareholders’ fund rose from R84.58 billion ($4.54 billion) to R88.53 billion ($4.75 billion).
Despite the double-digit profit surge, total assets experienced a marginal decline from R998.15 billion ($53.58 billion) to R990.45 billion ($53.16 billion), with total equity decreasing from R98.96 billion ($5.31 billion) to R96.9 billion ($5.2 billion).
Sanlam’s dedication to investors: Exceeding expectations with R4 ($0.214) dividend payout
In keeping with its tradition of rewarding shareholders, the Sanlam board declared a normal cash dividend of R4 ($0.214) per share, exceeding the R3.6 ($0.193) paid in 2023. This commitment to rewarding shareholders further underscores Sanlam’s dedication to providing value to its investors.
Sanlam, partially owned by South African billionaire Patrice Motsepe, with a market capitalization of R161.58 billion ($8.67 billion), stands as a testament to resilience and success in the African financial services sector.
Motsepe, holding a 7.8-percent stake in the company, continues to play a pivotal role as the vice chairman through his investment vehicle, Ubuntu-Botho Investments.
