Sanlam ensures “no one is left behind” in 2021 results, says FD Abigail Mukhuba
Abigail explains that Sanlam’s focus on shared value creation has ensured consistent solid results.
Sanlam has paid mortality claims of R22 billion to its clients in 2021, which was one of the toughest periods in terms of the economic hardship caused by the health crisis brought on by Covid-19.
“During this time, Sanlam could play its part to show its commitment to the health and safety of its employees, clients and society, including the rollout of vaccines as the most effective long-term approach to tackling Covid-19,” explains FD Abigail Mukhuba.
She adds that the group’s focus on shared value creation has ensured it delivers solid results consistently, period after period.
“I’m proud of the strong financial performance despite the ongoing pandemic,” Abigail says. “The teams managed to restore operation performance to pre-pandemic levels and we exceeded targets on all key financial performance indicators.”
She further states that Sanlam gained market share in most lines of business in South Africa, strengthened key platforms to enhance future growth, and continued investment to grow its digital businesses and build digital ecosystems.
Sanlam’s new business volumes exceeded R350 billion for the first time, up 14 percent from 2020 and 43 percent higher than 2019. “This was mainly driven by a combination of higher savings levels in the markets where we operate, as well as the recovery in equity markets following the knocks of 2020,” Abigail says.
The Sanlam Pan Africa Life portfolio also increased new business volumes by 23 percent and Value New Business increased by 88 percent to over R450 million. Net client cash flows improved substantially despite the increase in mortality claims, supported by inflows into Sanlam Investments and Sanlam Glacier.
According to Abigail, the group divested from its UK operations outside of asset management, informed by its capital allocation framework and strategic intent to focus on Africa and India.
During the year, Sanlam also announced an InsurTech strategic alliance with mobile operator MTN to take the benefits of insurance and investment products to the African continent’s consumers. According to Abigail, this will significantly enhance the financial inclusion of clients that are currently not reached through traditional financial services providers.
“We are constantly looking at ways to improve and grow the business. Our strategy is premised on growing the business, and we see this growth happening mainly in South Africa, as well as the bigger African continent. We want to be an African Champion.”
She adds that Sanlam will achieve this through improving the digital experience of its customers and ensuring “no one is left behind”.