Salient Features

KEY FEATURES


Earnings


  • Net result from financial services per share in line with 2007
  • Core earnings per share up 1%
  • Normalised headline earnings per share decreased by 59%
  • Diluted headline earnings per share decreased by 40%
  • Dividend per share up 5% to 98 cents per share


Business volumes


  • Total new business volumes down 2% to R100 billion
  • Value of new covered business up 23% to R698 million
  • New covered business margin of 2,68%, up from 2,37%
  • Net fund inflows of R9,1 billion


Group Equity Value


  • Group Equity Value per share of R22,13
  • Return on Group Equity Value per share of -1,7%

 



Capital management


  • 117 million shares bought back during 2008 for R2,2 billion
  • Discretionary capital of R2,1 billion at 31 December 2008

  • Sanlam Life CAR cover of 2,7 times




SALIENT RESULTS
 


for the year ended 31 December 2008
   2008
 2007
 Δ
SANLAM LIMITED GROUP Earnings:
  


Net result from financial services per share 
 cents 133,8
 133,3
 0%
Core earnings per share (1)
cents 184,8
 182,4
 1%
Normalised headline earnings per share (2)
cents 93,9
 228,7
 -59%
Diluted headline earnings per share
cents 132,2
 220,8
 -40%
Net result from financial services 
 R million 2 802
 3 029
 -7%
Core earnings (1)
R million 3 870
 4 146
 -7%
Normalised headline earnings (2)
 R million 1 966
 5 199
 -62%
Headline earnings
R million 2 702
 4 833
 -44%
Group administration cost ratio (3)
 % 28,4
 27,8
Group operating margin (4)
 % 18,4 20,8
Gross business volumes:
  


New business volumes 
 R million 100 136
 102 004
 -2%
Net fund flows 
 R million 9 122 11 363
New covered business
  


   Value of new covered business 
 R million 698
 567
 23%
   Covered business PVNBP (5)
 R million 26 033
 23 886
 9%
   New covered business margin (6)
 % 2,68
 2,37
Group Equity Value:
  


Group Equity Value
R million 45 238
 51 293
 -12%
Group Equity Value per share 
 cents 2 213
 2 350
 -6%
Return on Group Equity Value per share (7)
 % -1,7
 18,8

 


SANLAM LIFE INSURANCE LIMITED
  


Shareholders' fund
R million 34 419 37 933
Capital Adequacy Requirement (CAR)
R million 8 075
 7 525
CAR covered by prudential capital
times 2,7
 3,5



Notes

(1)     Core earnings = net result from financial services and net investment income (including dividends  

         received from non-operating associates).

(2)     Normalised headline earnings = core earnings, net investment surpluses, secondary tax on companies  

         and equity-accounted headline earnings less dividends received from non-operating associates, but

         excluding fund transfers. Headline earnings include fund transfers.

(3)     Administration costs as a percentage of income after sales remuneration.
(4)     Result from financial services as a percentage of income after sales remuneration.

(5)     PVNBP = present value of new business premiums and is equal to the present value of new recurring

         premiums plus single premiums.

(6)     New covered business margin = value of new covered business as a percentage of PVNBP.

(7)     Growth in Group Equity Value per share (with dividends paid, capital movements and cost of treasury

         shares acquired reversed) as a percentage of Group Equity Value per share at the beginning of the

         period.



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