Sanlam, backed by Patrice Motsepe, posts $636-million profit in H1 2024

Feyisayo Ajayi -
Key Points
  • Sanlam's profit surged by 16.7% in H1 2024, reaching R11.32 billion ($636 million), driven by robust operating performance. 
  • Sanlam’s new business volumes reached R204 billion ($11.47 billion) in H1 2024, reflecting growing market share and product demand.
  • Total assets expanded to R1.02 trillion ($57.56 billion), with net client cash flows more than doubling to R24 billion ($1.35 billion).

Sanlam, Africa’s leading insurer, partially owned by South African billionaire Patrice Motsepe, reported a robust financial performance for the first half of 2024, with profits soaring to R11.32 billion ($636 million), a 16.74-percent increase from R9.70 billion ($544.78 million) in H1 2023.

The company’s growth was driven by strong gains in its insurance revenue, which climbed from R41.9 billion ($2.37 billion) to R47.74 billion ($2.7 billion), fueled by solid life insurance performance and an increased shareholding in Afrocentric in its health portfolio.

Sanlam boosts South African operations

Paul Hanratty, Sanlam CEO, highlighted the success of the company’s strategic focus on strengthening its South African operations while expanding in Pan-Africa and Asia. “Our focus on leveraging our significant scale in South Africa and expanding into key growth markets continues to position our business favorably for long-term growth and value creation for all stakeholders,” Hanratty said.

Sanlam’s new business volumes for H1 2024 reached R204 billion ($11.47 billion), a reflection of the insurer's growing market share and strong demand for its products. Life insurance sales jumped 15 percent, and net client cash flows more than doubled to R24 billion ($1.35 billion), underscoring Sanlam’s capacity to gather assets.

Total assets expanded by 3.41 percent, reaching R1.02 trillion ($57.56 billion), while total equity increased marginally by 0.75 percent, growing from R96.91 billion ($5.45 billion) to R97.64 billion ($5.49 billion).

Patrice Motsepe’s influence fuels Sanlam’s vision

Patrice Motsepe, who holds a 7.8-percent stake in Sanlam through his investment vehicle Ubuntu-Botho Investments, remains a key figure in the company’s leadership as vice chairman. His influence continues to shape Sanlam’s long-term growth strategy, particularly its drive to consolidate leadership in Africa’s rapidly growing insurance and financial services sectors.

Sanlam’s focus on key markets, including South Africa, the broader African continent, and parts of Asia, is positioning it for continued success. Its ability to generate strong profits and sustain growth across its insurance and financial services divisions highlights its resilience in navigating economic fluctuations while capitalizing on emerging opportunities.