withconfidenceInterim Results 2024
Interim results for the six months ended 30 June 2024 – FINANCIAL INFORMATION

Shaping
our futureSanlam Interim Results 2024

Sanlam Interim Results 2024

Financial and strategic review

Financial and strategic review

Contents

Basis of preparation
The Sanlam group’s condensed consolidated interim financial statements are prepared in accordance with IFRS®
Accounting Standards, IAS 34 – Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards
Council and the requirements of the Companies Act of South Africa, for the six months ended 30 June 2024. The
basis of presentation and accounting policies for the IFRS financial statements and shareholders’ fund information
are, in all material respects, consistent with those applied in the 2023 integrated report and annual financial
statements, except for the division of the retail affluent segment into Sanlam Risk and Savings and Glacier,collectively referred to in the Financial and strategic review as ‘affluent’. The financial and strategic review isprepared on a shareholders’ fund basis. The basis of accounting for the shareholders’ fund can be found on
pages 15 to 25.
All references to 2024 and 2023 relate to the six months period, unless otherwise stated.

Forward-looking statements
In this report, we make certain statements that are not historical facts and relate to analyses and otherinformation based on forecasts of future results not yet determinable, relating, among others, on the financial
results, to new business volumes and investment returns (including exchange-rate fluctuations). These statements
may also relate to our future prospects, developments and business strategies. These are forward-looking
statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as“believe”, “anticipate”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “expect” and “project” and similar
expressions are intended to identify such forward-looking statements but are not the exclusive means ofidentifying such statements. Forward-looking statements involve inherent risks and uncertainties and, if one ormore of these risks materialise, or should underlying assumptions prove incorrect, actual results may be very
different from those anticipated. Forward-looking statements apply only as of the date on which they are made,and Sanlam does not undertake any obligation to update or revise any of them, whether as a result of new
information, future events or otherwise. Any forward-looking information contained in this document has notbeen reviewed and reported on by Sanlam’s external auditors.

Constant currency information

Financial and strategic review
Capital deployment
4
Outlook5
Additional information
6
Line of business analysis
7
Shareholders’ fund information
14
Independent auditors’ review report on the shareholders’ fundinformation report of Sanlam Limited
15
Basis of accounting
26 Group equity value
40 Shareholders’ fund income statement
42 Notes to the shareholders’ fund information
Condensed consolidated interim financial statements
84 Salient features on the condensed consolidated interim
financial statements
86 Independent auditors’ review report on the condensed
consolidated interim financial statements
88 Accounting policies and basis of preparation
90 Condensed group statement of financial position
91
Condensed group statement of comprehensive income
92 Condensed group statement of changes in equity
94 Condensed group statement of cash flow
95 Notes to the condensed consolidated interim financial statements

The constant currency information included in this report has been presented to illustrate the impact of changes in
the South African rand exchange rates.
It is presented for illustrative purposes only and, because of its nature, may not fairly present the group’s financial
position, changes in equity, result of operations or cash flows. All references to constant currency information are
based on the translation of foreign currency results for the six months to 30 June 2024 at the weighted averageexchange rate for the six months to 30 June 2023, which is also applied to the translation of comparative
information.
The major currencies contributing to the exchange rate movements are the British pound, United States dollar,
Botswana pula, Indian rupee, Moroccan dirham, Angolan kwanza, Nigerian naira and the Egyptian pound.
Foreign currency/
South African rand
(ZAR)

UnitedKingdom

USA

Botswana

India

MoroccoAngolaNigeriaEgypt

31/12/2023
30/06/2024

23,31
23,08

18,29
18,26

1,37
1,35

0,22
0,22

1,86
1,84

0,02
0,02

0,02
0,01

0,60
0,38

Rand strengthening(1,0%)(0,2%)(1,5%)(1,0%)(1,4%)(3,4%)(42,1%)(36,1%)

22,42

18,20

1,38

0,22

1,79

0,03

0,04

0,60

23,69

18,73

1,37

0,23

1,87

0,02

0,01

0,47

5,7%

2,9%

(0,6%)

1,6%

4,6%(34,3%)(62,2%)(20,7%)

Average first six
months 2023
Average six months
2024(Strengthening)/
weakening1Sanlam Interim Results 2024

Sanlam Interim Results 2024

Financial and strategic review

Financial and strategic review

Financial and strategic review

Sanlam achieves robust operating performance across the group in the first halfof 2024, enabling continued delivery on its strategy
Earnings and cash
generation
Net result from financial
services (NRFFS)1+14% (+19% per share)
Cash NRFFS2

GrowthValue creation

Capital strength andallocation

Life insurance new
business volumes(PVNBP)4

Return on group equity
value (RoGEV)Group solvency cover
ratio

9,2% for half year

166%

Adjusted RoGEV5

Discretionary capital
deployed+14%+15% (+20% per share)

Life insurance net value of
new business (VNB)

10,7% for half year

Net operational earnings3+10%Life insurance net new
business margin+8% (+12% per share)
Diluted EPS

+23%
1
2

3
4
5

Net client cash flows(NCCF)

R24 billion

2,73%

R1,3 billion
Discretionary capitalbalanceR3,8 billion

A measure of operating performance of the Sanlam group that is better aligned to cash earnings that drive dividend distribution.
Cash NRFFS represents NRFFS as adjusted for the reversal of specific non-cash items: amortisation of capitalised IT projects and
IFRS 17 specific and other non-cash adjustments.
NRFFS including investment return and project expenses.
On a present value of new business premiums basis.
Adjusted RoGEV excludes the impact of actual investment return relative to long-term assumptions, interest rate changes andother one-off effects not under managements control, tax changes and currency exchange rate movements.

Overview
The consistent implementation of our strategy in the last four years, which centres on enhancing organic growth
while complementing this with strategic corporate activity, continues to yield positive results. The strategic choice
to concentrate our efforts on fortifying our South Africa operations through leveraging our substantial scale andcompetitive edge, alongside focusing on Pan-Africa and Asia where we already have robust market positions in
rapidly growing economies, continues to position our business favourably for long-term growth and value creation
for all stakeholders.

Building on our track record of consistent performance
The group’s key metric for value creation, adjusted RoGEV, was 10,7% for the six-month period, above the six-monthhurdle rate of 7,5%. The performance was underpinned by:Ì Life insurance (covered) business: robust new business and positive risk, working capital and credit spreadexperience.
Ì Non-life (non-covered) business: higher valuation of the Indian credit business (Shriram Finance Limited) due
to improved performance and outlook, strong operating results from Santam, and cost efficiencies in theSouth Africa asset management operations.
The group’s earnings momentum continued, growing NRFFS by 14% to a new high of over R7 billion for the first halfof the year. This reflects strong trading performances across our businesses, the advantages of our scale andmarket positions, diversification by geography and line of business, and our continued focus on costs andefficiency. The impacts from currency translation were not significant on group earnings and new business.

Cash NRFFS
New business volumes
Life insurance new business volumes (PVNBP)Net client cash flows

2% change% change(actual) (constant currency)
15%
7%
14%
111%

General insurance reported a 16% rise in NRFFS, highlighted by a particularly robust performance in South Africa(Santam) where effective management actions and lower attritional losses offset the impact of continued adverse
weather-related claims. Santam reported a 34% increase in NRFFS and grew its conventional insurance businessnet earned premiums by 7% with good contributions from most businesses. The Pan-Africa operations recorded
improved NRFFS supported by higher investment return margin on insurance funds. Asia continued its rapid
growth trajectory showing 32% growth in net earned premiums propelled by significant growth in India. Asia’s
NRFFS was, however, dampened by the non-repeat of positive modelling changes impact in 2023 in India.
Investment management performance was satisfactory with 10% growth in NRFFS and net client cash inflows of
R4,1 billion for the six-month period, from outflows of R4,8 billion in the prior period. NRFFS growth was supported
by a strong improvement in the international operations due to improved cost management and a steady
performance from the asset management operations in South Africa. The improvement in net client cash flows
emanated from strong inflows in South Africa wealth management, the international and the Pan-Africa operations.

+ >100%Group metric

Our life insurance and health operations grew NRFFS by 14%, new business volumes by 14% on a PVNBP basis, andvalue of new business by 10%. South Africa’s contribution to NRFFS was satisfactory, benefiting from favourable
risk experience and overall book growth, with new business volumes remaining stellar and maintaining healthy
margins. Our Pan-Africa operations performed very well over the period, with significant earnings growth on theback of cost savings, strong risk experience, overall book growth and higher asset-based fee income. Asia’s new
business volume growth remained strong at more than 50%, although earnings and new business margins were
impacted by investment in growing distribution to capture the growth opportunity in India, as well as weakerperformance in Malaysia.

The group’s credit and structuring operations recorded growth in NRFFS of 9% as double-digit growth in India andNamibia was dampened by underperformance in other Africa regions.

Diversified insurer with strong organic growth, supported by corporate activity
Our distinctive business model, which represents a significant competitive advantage, played a crucial role inachieving these positive outcomes. Our portfolio is diversified across South Africa, Pan-Africa and Asia, where wehave market-leading positions and tangible opportunities to capture the growth opportunity. We look after a wide
range of customer needs across insurance, investments and credit, supported by financial planning and advice.
These multiple lines of business and geographies give Sanlam’s earnings resilience and provide holistic, integrated
solutions to our customers.
In addition to organic growth, the group has invested in and is seeing the benefits of our structural growth activity.
The BrightRock and Capital Legacy transactions closed in 2023 and both have contributed to the group’s
performance. Capital Legacy’s product range has been actively sold into the Sanlam client base and these products
have been well received by the Sanlam distribution. This business contributed 4% to group VNB. The Absa andAlexforbes retail investment platform businesses, both acquired in 2023, have contributed 5% to the group’s new
business volumes.
The final step of the Absa asset management business integration into Sanlam’s investment operations took placewith the merger of the Absa Fund Managers platform into the Sanlam Collective Investments platform in March
2024. The realisation of synergy benefits from the integration resulted in an uplift to group GEV.
Afrocentric continues to experience challenging trading conditions and margin pressure from increased competitionand lower pricing in the pharmaceuticals business, as well as higher investment required in the administration
business. Sanlam remains confident of the value that Afrocentric will add to the Sanlam group in the long run,particularly through its contribution to our holistic and integrated product offering. The new leadership team at
Afrocentric has transitioned into their roles with a renewed commitment to enhance performance. As a result ofrecent underperformance relative to business plans, the Afrocentric GEV was impaired by R910 million.
The SanlamAllianz joint venture (JV) integration is progressing well, with the focus continuing on operational
synergies. First regulatory approvals were received in Côte d’Ivoire, Senegal, Ghana and Cameroon and in-country
mergers are completed.

16%
7%
16%
115%

3

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Financial and strategic review

Financial and strategic review

Financial and strategic review continued
Capital deployment over the period

Assupol transaction receives Competition Tribunal approval

The group’s discretionary capital balance rose to R3,8 billion at 30 June 2024, up from R2,7 billion at the end of
December 2023. This increase stems from funds generated from the sale of a portion of our direct stake in Shriram
Finance Limited (SFL) and net investment return. The total was partially offset by an outlay of R1,3 billion associatedwith the offer to buy out minority shareholders in Sanlam Maroc S.A, as part of the broader SanlamAllianz
transaction, alongside other smaller activities.

In February 2024, the group announced the intention to acquire the South African mass market focused insurer
Assupol Holdings (Assupol) for R6,5 billion, pending approval from regulators and Assupol shareholders. This
proposal received Assupol shareholder support on 17 April 2024. The transaction received Competition Tribunal
approval on 22 August 2024 and is subject to an employment related condition. Remaining regulatory approvals
are expected imminently.

Transactions that strengthen our positions in our core regions: South Africa, Pan-Africa and Asia
In April 2024, the group announced the intention to increase its effective economic shareholding to more than 50%
in the group’s India insurance businesses, Shriram Life Insurance and Shriram General Insurance. This transaction
would increase the group’s exposure to the fast-growing Indian insurance sector. The transaction is conditional on
regulatory approvals being received in India, which is expected to take some time. The consideration payable would
be funded using the net proceeds from disposal of part of the group’s shareholding in SFL (currently held in
discretionary capital) and an additional cash consideration of R2,0 billion.
In June 2024, the group announced the intention to acquire 60% of the insurance business of Multichoice group.
The transaction offers significant cross-sell opportunities into Multichoice’s extensive client base across thecontinent, utilising a differentiated distribution and premium collection model. The upfront cash consideration for
the transaction is R1,2 billion, with an additional growth-based cash earn-out of up to a maximum of R1,5 billion by
31 December 2026. Completion of the transaction is targeted for the fourth quarter of 2024, subject to regulatory
approval.
The transactions are expected to be financed by discretionary capital, supplemented by short-term bridging
finance and debt finance. Presently, the group carries low debt levels and has ample funding capacity for theseventures. The increase in short-term financing will not impact the group’s dividend capacity.
On 26 June 2024, Sanlam repurchased around 86 million ordinary shares held in treasury by its wholly owned
subsidiary, SU BEE Investments SPV (RF) Proprietary Limited (SU BEE SPV). These shares were subsequently
cancelled and delisted. As stated in the announcement to shareholders on 28 March 2024 regarding the specificrepurchase of Sanlam shares, there was no additional outlay of funds by Sanlam since the full proceeds from thesale of the Sanlam shares by SU BEE SPV were used to partially settle the obligations of the holding company of
SU BEE SPV in terms of preference shares owned by other entities in the Sanlam group.

Events post reporting period
Sanlam Life issues subordinated debt
On 8 August 2024, Sanlam Life issued subordinated debt to the amount of R2 billion at favourable terms.

Contribution of Sanlam’s Namibian assets to SanlamAllianz
As indicated in the announcement to shareholders on 4 May 2022, the initial shareholding split of SanlamAllianz
was 60% and 40% to Sanlam and Allianz SE (Allianz) respectively, subject to certain post-closing adjustments, andexcluded Sanlam’s holdings in Namibia which were to be contributed at a later stage. Post-closing adjustments
relating to movements in net asset value and corporate actions between initial agreement and transaction
conclusion resulted in a final shareholding split of 59,6% and 40,4% to Sanlam and Allianz respectively.
Shareholders and noteholders are notified that Sanlam integrated its Namibian holdings into SanlamAllianz at an
initial valuation of R6,2 billion, subject to post-closing adjustments. To maintain the shareholding distribution of
SanlamAllianz at 59,6% for Sanlam and 40,4% for Allianz, Sanlam will subscribe for additional shares in
SanlamAllianz, representing 59,6% of the valuation, and receive a cash consideration of R2,5 billion from
SanlamAllianz, representing 40,4% of the valuation. SanlamAllianz intends to finance this payment using a capitalraise through a share issue to Allianz for cash. This transaction is subject to post-closing adjustments and obtaining
necessary regulatory approvals and is anticipated to take effect in September 2024.
Allianz retains the option to raise its stake in SanlamAllianz to 49,0% within six months of the completion of the
Namibia transaction.

Acquisition of 25% shareholding in African Rainbow Capital Financial Services Holdings
On 2 September 2024 Sanlam Limited announced Sanlam Life Insurance Limited’s’ intention to acquire a 25%
interest in African Rainbow Capital Financial Services Holdings Proprietary (ARC FSH). All the conditions precedent
to the transaction have been fulfilled and the transaction became unconditional, and was implemented according
to its terms, with an effective date of 2 September 2024. The transaction was partially funded through a cash
consideration of R2,4 billion and an asset-for-share transaction of R1,5 billion for the 25% interest Sanlam Life
Insurance Limited has in ARC Financial Services Investments Proprietary Limited (ARC FSI). The transaction is anatural extension of Sanlam’s existing interest in ARC FSI. Sanlam will continue to explore ways to collaborate
strategically with ARC FSH and its portfolio investments to enhance competition and to assist Sanlam in providing
holistic and integrated product offerings to its clients. Sanlam Life Insurance Limited’s 25% shareholding in ARC
FSH shall be treated as an investment in an associate.

Confidence in Sanlam’s outlook

In South Africa, the retail mass segment has seen an improvement in persistency trends since the second quarterof 2024, with fewer policy cancellations and lapses recorded in the individual life business. Management’s focus on
improving persistency in this segment will continue. The affluent segment has maintained stable persistency.
The conclusion of the Capitec funeral JV at the end of October 2024, is expected to result in a reinsurance
recapture fee of R1,9 billion (gross of tax) being paid to Sanlam’s retail mass business in November 2024. While
International Financial Reporting Standards (IFRS) requires that the group recognise part of this recapture fee inattributable earnings at the half year, consistent with shareholders’ fund reporting, this amount will not berecognised in NRFFS until the cash payment is received in November 2024. The conclusion of this JV will reduce
full year VNB and new business volume trends.
Sanlam is prepared for the implementation of the ‘two-pot’ retirement fund legislation 6 in South Africa, allowing
members access to a portion of their accumulated retirement fund savings before retirement. The group expects amodest outflow of assets from retirement funds in the short-term but for improved asset accumulation in the longterm through increased preservation. The group does not expect a material impact on 2024 earnings from this
implementation.
The proposed acquisition of Assupol, will require focus and attention within the South Africa life insurance
operations, with limited to no disruption to operational results.
We remain committed to supporting, and benefiting from, an improved growth rate for the South African economy
and continue to support initiatives to improve energy supply and logistics, reduce crime and corruption and tocreate and increase employment.
In our Pan‑Africa operations, SanlamAllianz’s businesses are focused on integration and realising synergies. We
remain positive about the growth prospects for the African countries in which we operate, despite the short-term
challenges posed by sustained high interest rates and inflation in many countries, as well as continued pressure on
currency exchange rates. The continued diversification of this portfolio is expected to provide some buffer to theregional performance volatility.
In Asia, we are very positive about the prospects of our Indian operations, with continued momentum in theeconomy and the expansion of distribution channels in the Shriram insurance businesses.
With our strong momentum and continued investment in the business, we have confidence in the group’s overall
performance for the remainder of 2024. The earnings growth rate in the first half of the year is however slightly
ahead of our full year expectations. The group expects NRFFS for the second half of the year to be at a similar levelto the first half, excluding the Capitec reinsurance recapture fee.
We remain concerned about the risks posed by global geopolitics and the risks of a global recession as the global
economy brings inflation under control while managing high levels of government debt. However, the group’sbalance sheet remains strong and able to withstand macro shocks. The group’s earnings remain sensitive tosignificant moves in global investment market levels.

6

4

The Two-Pot Retirement System enables members of a retirement fund to access a small portion of their retirement savings,
for emergency purposes, before they retire. Most members’ retirement savings will remain “preserved,” until the member retires.
It divides members’ benefits into two separate pots: a savings pot and a retirement pot. This will start from 1 September 2024.

5

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Financial and strategic review

Financial and strategic review

Financial and strategic review continued
Additional information

Sanlam at a glance

Key performance indicators
For the six months ended 30 June
Earnings
Shareholders’ fund information
Net result from financial services
Cash net result from financial services
Net operational earnings
Headline earnings
Weighted average number of shares
Adjusted weighted number of shares
Net result from financial services per share
Cash net result from financial services per share
Net operational earnings per share
Headline earnings per share
Diluted headline earnings per share
IFRS information
Basic profit attributable to shareholders per share
Diluted profit attributable to shareholders per share

Group line of business and geographic footprint
Unit

2024

2023

Δ

Life insurance and healthSouth Africa
Ì Sanlam Life and Savings– Risk and Savings8– Glacier8– SA Retail Mass
– Sanlam Corporate
Ì Sanlam Specialised
Finance (SanFin)

General insurance

Investment management

South Africa
Ì SantamSouth Africa
Ì Sanlam Investments
Management
Ì Wealth management
Ì International

Credit and structuring
South Africa
Ì Sanlam Personal LoansÌ Sanlam Specialised
Finance (SanFin)

R million
R million
R million
R million
millionmillion
cents
cents
cents
cents
cents

7 056
7 181
8 087
9 838
2 108
2 116
333
339
382
473
467

6 177
6 256
7 486
6 902
2 068
2 204
280
284
340
339
334

14%
15%
8%
43%
2%
(4%)
19%
20%
12%
40%
40%

cents
cents

478
471

389
383

23%
23%

R million
R million

203 992
23 972190 793
11 357

7%
111%

Line of business analysis

R million
R million%
R million

51 044
1 394
2,73
10 57044 751
1 265
2,83
7 465

14%
10%

In this analysis, all reference to South Africa includes Sanlam Life and Savings, Sanlam Investment Group andSantam. Pan-Africa refers to the Sanlam Emerging Markets (SEM) operations in Africa outside of South Africa(SanlamAllianz) and includes Namibia, while Asia refers to our operations in India and Malaysia.

42%

SanlamAllianz impact on Sanlam group reporting

R million
R million

23 6679 254

24 039
8 698

(2%)
6%

R million
R million

143 129
4 148

134 317(4 806)

7%
186%

Group equity value
Group equity value7
Group equity value per share7
Return on group equity value per share
Adjusted return on group equity value per share

R million
cents
%
%

155 270
7 341
9,3
10,7

149 904
7 086
12,0
8,5

Solvency cover
Sanlam Group7
Sanlam Life Insurance Limited7
Sanlam Life Insurance Limited covered business7

%
%
%

166
246
170

170
245
170

Business volumes
Total new business volumes
Total net client cash flows
Life insurance
New business volumes (PVNBP)
Value of new covered businessNew covered business margin
Life insurance net client cash flows
General insurance
New business volumes
Net client cash flows
Investment management
New business volumes
Net client cash flows

7

6

Comparative figures on 31 December 2023.

Pan-Africa
Ì SanlamAllianz
AsiaÌ IndiaÌ Malaysia

Pan-Africa
Ì SanlamAllianz

Pan-Africa
Ì SanlamAllianz

AsiaÌ India

Pan-Africa
Ì SanlamAllianz
Ì Namibia
Asia
Ì IndiaÌ Malaysia
8

Retail affluent segment split into Risk and Savings and Glacier, collectively referred to as ‘affluent’.

The SanlamAllianz JV became effective 1 October 2023 resulting in the JV being equity accounted. Prior to this the
Sanlam Pan-Africa businesses were consolidated and as a result, the first six months of 2024 is not comparable tothe first six months of 2023.
For the six-month period to 30 June 2023, SEM consisted of Sanlam Pan Africa (SPA) including Namibia and Asia.
All the assets of Sanlam Pan Africa (SPA), except the Namibian assets, were contributed to SanlamAllianz. From
1 October 2023 the SEM cluster consisted of SanlamAllianz, Namibia as a standalone business and Asia as
illustrated below:
2023
Jan

2024
Feb

SEM cluster

Mar

Apr

May

Jun

Jul

Ì Sanlam Pan-Africa (SPA), including Namibia
Ì IndiaÌ Malaysia

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

SEM cluster

Ì SanlamAllianz JV
Ì Namibia
Ì Asia (India and Malaysia)

Considering the materiality of the SanlamAllianz joint venture to the Sanlam group and due to the non-comparabilityof the portfolio between 2024 and 2023, an analysis of the performance of SanlamAllianz on a pro forma basis isincluded on page 9.

7

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Financial and strategic review

Financial and strategic review

Financial and strategic review continued
Life insurance and health

NRFFS for life insurance and health increased by 14%, driven by good performance from life insurance and anincreased shareholding in Afrocentric in the health portfolio.
NRFFS for life insurance increased by 13% supported by 6% growth in South Africa and more than doubling in
Pan-Africa, dampened by lower earnings in Asia.
South Africa benefited from favourable risk experience, premium growth and a larger book size.
Pan-Africa benefited from cost saving initiatives, favourable risk experience, particularly in Namibia and Morocco,with Morocco further benefiting from a recovery in investment markets, while Botswana also recorded strong
performance.
In the Asia market, India maintained performance consistent with that of 2023, balancing sustained growth in its
book and enhanced investment income, against the costs associated with expanding distribution to bolster
continued robust new business sales. Malaysia however, experienced a downturn in earnings due to a challenging
claims environment in the health portfolio as well as elevated expenses, partly due to regulatory changes.
NRFFS in the health portfolio increased by 83% due to the rise in Afrocentric ownership, which increased from
28,0% to 59,8% in May 2023. Afrocentric is however still navigating challenging trading conditions. The newleadership at Afrocentric are prioritising performance enhancement which necessitates a short-term rise inoperational expenses due to essential business improvement investments.
Life insurance new business volumes increased by 15% (14% on a present value of new business premiums (PVNBP)
basis) with good growth recorded across all regions. South Africa saw a 17% increase (15% on a PVNBP basis) withgood support from all businesses. Retail mass experienced 10% growth (11% on PVNBP basis) with the Capitec
business providing strong support to individual life. The individual life business, also in this entry level segment,
experienced moderate growth despite steps taken by management to reduce policy churn. In affluent, growth insingle premiums was driven by improved international sales and continued strong guaranteed annuity sales.
Although recurring premiums were subdued, we continue to see market share gains in individual underwritten life.
Corporate single premiums benefited from annuities and guaranteed investment sales, although recurring premium
growth was also muted due to timing between securing and receipting new business.
In the Pan-Africa portfolio, comparison with 2023 is impacted by the structural change in the portfolio post
implementation of the SanlamAllianz transaction. The portfolio however recorded good performance acrossmost countries. Of the larger contributors, Botswana and Namibia recorded strong annuity and group risk sales,
which was further augmented by growth in annuity and unit linked business sales in Morocco, Nigeria, as well as
unit-linked business in Egypt.
The 58% growth in Asia is a result of substantial volume increases in India through Shriram ecosystem distribution
channels as well as implementing new external distribution partnerships. This was augmented by increased sales
through group and agency channels in Malaysia.
Group net VNB increased by 10%, with South Africa growing by 9%, propelled by improved performance in both
affluent and corporate. The retail mass business maintained its prior year levels, as enhancements in product mix
and increased business volumes were balanced by the impacts of persistency basis changes madein December 2023.
Pan-Africa VNB contribution increased by 25%, supported by good new business volume growth across theportfolio as well as a shift to higher margin product sales in Namibia.
Asia’s VNB contribution was in line with prior year, with growth impacted by costs of establishing new distribution
channels in India and a shift to lower margin sales in Malaysia.
Group net VNB margin of 2,73% was recorded, with South Africa at 2,34%, Pan-Africa at 5,34% and Asia delivering
4,15%.
Life insurance net client cash flows increased by 42% to R10,6 billion. The higher net inflows were due to stronger
performance in South Africa and Asia, benefiting from robust new business inflows. Pan-Africa benefited from theinclusion of Egypt into the portfolio, along with strong contributions from most regions.

General insurance

NRFFS increased by 16% supported by strong performance from Africa.
South Africa (Santam) recorded a 34% increase in NRFFS, achieving a strong underwriting performance despite
continued weather-related claims across South Africa during the period. The underwriting margin improved to 6,5%(2023: 3,8%) for its conventional insurance operations. Benefits are being realised from the corrective underwriting
actions implemented over the past 18 months, augmented by lower attritional loss experience in the second quarter.
The investment return on insurance funds margin of 2,3% of net earned premium was in line with 2023.
Shareholders and note holders should consult Santam’s interim results published on 29 August 2024 for further
details (https://www.santam.co.za/about-us/investor-relations/).

8

Pan-Africa earnings growth was supported by an improved investment return on insurance funds margin. The
business recorded a net insurance margin of 11,3% with good performance recorded in SanlamAllianz Re, Morocco
and Egypt, which was dampened by weaker results in Kenya and Côte d’Ivoire.
In Asia, the NRFFS decreased slightly due to the non-repeat of positive modelling changes impact in 2023, which
offset improvements in underwriting experience. Malaysia benefited from improved experience in the motor book.
New business volumes (net earned premiums) decreased by 2% impacted by structural changes in the Pan-Africa
portfolio.
In South Africa, Santam saw its conventional insurance business net earned premiums grow by 7%, with mostbusiness units contributing to the growth.
In the Pan-Africa portfolio, volume comparison with 2023 is impacted by the structural change in the portfolio. The
portfolio however recorded strong contributions from SanlamAllianz Re and Egypt, as well as stronger growth inmotor and commercial sales in Morocco. Net earned premiums growth was dampened by underperformance inAngola, Côte d’Ivoire and Kenya.
Asia enjoyed a 32% rise primarily fuelled by agency and Shriram group channels across all product lines in India.

Investment management

NRFFS increased by 10%, supported by improved performance in the international asset management operations.
South Africa recorded growth of 4% despite lower private equity carry fees in the alternatives business and lower
performance fees in the active asset manager. The business benefited from improved base fee income and realisingfurther expense efficiencies. Wealth business performance remained steady while the international businessrecorded a 32% rise due to equity fee income growth and effective cost management of the wound-up UK wealthmanagement business.
Pan-Africa recorded improved growth having benefited from higher market-related fee income and book growth.
New business volumes increased by 7% to R143 billion, with good growth from South Africa, supported by the retailplatform and asset management businesses, as well as strong international inflows, translating into a strong
rebound in net client cash flows to R4,1 billion. The international business delivered a recovery from 2023 outflows
to achieve net inflows of R910 million in 2024.
In South Africa, there was R2,6 billion in net inflows, relative to R967 million in 2023. Growth was driven by wealthmanagement, which attracted significant structured product inflows in the first half of the year. Asset managementin South Africa experienced good growth through Multi-Manager and Satrix contributions. Our Pan-Africa
operations benefited from strong inflows in Botswana and Kenya.

Credit and structuring

NRFFS increased by 9% with India showing 16% growth from higher advances and improved collections. South
Africa recorded a 10% increase. Higher structured transaction fee income, lower loan write-offs and higher earnings
from a larger stake in Sanlam Personal Loans was dampened by investments in technology and muted credit bookgrowth. Pan-Africa’s 25% decrease is attributed to higher loan write-offs and elevated operating costs.

Pro forma operational performance of SanlamAllianz
The pro forma financial information, including the assumptions on which it is based and the financial informationfrom which it has been prepared, is the responsibility of the directors. It has been prepared for illustrative purposes
only, to provide information on how SanlamAllianz may have affected Sanlam’s financial position and financial
performance for the six months ended 30 June 2024, had the effective date occurred on 1 January 2023 forstatement of profit or loss purposes. The pro forma financial information has not been reviewed or reported on
by Sanlam’s external auditors.
On a pro forma basis, comparing 100% of SanlamAllianz (including Namibia) for 2024 and 2023:

Performance on key metrics relative to targets in constant currency

Ì Life insurance new business volumes grew above the 12% – 15% medium-term target range at 24% (8% in actual
currency, largely impacted by Egypt and Nigeria currency devaluations).

Ì Life value of new business grew above the 15% – 20% medium-term target range at 36% (13% in actual currency,
due to Egypt and Nigeria currency devaluations).

Ì General insurance net earned premium growth below the 12% – 15% medium-term target range at 9% (5% in
actual currency, mainly due to underperformance in Angola, Côte d’Ivoire and Kenya).

Ì Net insurance ratio within the 10% – 15% target range at 11,5%.
Ì NRFFS increased by 58% (41% in actual currency), well above the 15% – 20% medium-term target range.

9Sanlam Interim Results 2024

Sanlam Interim Results 2024

Financial and strategic review

Financial and strategic review

Financial and strategic review continued

Group equity value

Reconciliation of IFRS and shareholders’ fund (SHF) NRFFSGroup equity value amounted to R155,3 billion or 7,341 cents per share at 30 June 2024, with RoGEV of 9,2% andadjusted RoGEV of 10,7%, both above the hurdle rate of 7,5%. On a per share basis, actual RoGEV was 9,3% andadjusted RoGEV was 10,7%.

Analysis of RoGEVIn April 2024, the regulatory approval of the termination of the Capitec funeral cover JV agreement in the retailmass business triggered the accelerated profit recognition of the reinsurance recapture fee. This fee has been
excluded from the NRFFS in shareholders’ fund reporting, being a non-cash earnings figure. When the cash isreceived in November 2024, this amount will be reflected in NRFFS of the retail mass business.

Return on group equity value (%)

10,7% per share

12

2,2

10,7
9,2

2,7
8
6

9,3% per share

(0,3)

10

The main difference between the two earnings metrics is the exclusion of investment return on shareholder capitaland shareholder-specific adjustments in NRFFS. SHF adjustments for the six months ended 30 June 2024 include
excess investment returns absorbed by the asset mismatch reserve and the acceleration of profit recognition
required under IFRS of the Capitec funeral cover JV reinsurance recapture fee.

(1,5)

Half-year
group hurdle of 7,5%

0,9
5,2

R million for the six months ended 30 June

2024

2023

Δ

Attributable earnings
Adjustments
Net investment return
SHF adjustments
Net other earnings9

9 932(2 876)(1 212)(1 898)234

7 916(1 739)(1 538)
(158)
(43)

25%

Net result from financial services

7 056

6 177

14%

9

4
2

Includes SHF line items below net operational earnings including shareholders’ fund adjustments, net amortisation of value ofbusiness acquired and other intangibles, net equity-accounted earnings, net profit on disposal of subsidiaries and associatedcompanies and fund transfers, excluding specific shareholders’ fund adjustments.

Board changes

0
Expected
returnIncrease

VNB

Decrease

Operatingexperiencevariances andassumptionchanges

Santamoperational
returnNAV expected
return andother earnings

Adjusted
RoGEV

Currencytransaction
impactActualRoGEVMr Temba Mvusi was appointed as independent non-executive director to the board of Sanlam and Sanlam Lifeeffective 7 March 2024, and chair of the board from 1 April 2024. Mr Mvusi succeeded Mr Elias Masilela, who
stepped down as chair of the board on 31 March 2024. Mr Masilela remains an independent non-executive directorof the board. The appointment of Mr Mvusi as an independent non-executive director was done in accordance with
Sanlam’s Policy for Selection and (Re)-Appointment of directors.

Total

The key drivers of RoGEV were as follows:Ì VNB contributed 0,9%, benefiting from satisfactory levels of new business volumes, with the South Africa affluent
and corporate businesses, as well as Namibia and various other entities in Africa, contributing to the strong
performance.
Ì Operating experience variances and assumption changes together contributed 2,7% (0,5% from experiencevariances and 2,2% from assumption changes).
Ì Negative currency translation from the rand strengthening against most of the exposed currencies, with the mostsignificant impact from the Egyptian pound and the Indian rupee exposure.

Operating experience variancesÌ Positive risk experience variance of R538 million on covered business (2023: positive R630 million) with a strong
contribution from South Africa.

Ì Persistency experience variances improved, albeit still slightly negative (2024: negative R40 million, 2023:

negative R647 million). In South Africa, basis strengthening in December 2023 in the retail mass business resulted
in improved variance recorded. The retail mass individual life business has shown benefits of management actions
implemented in the second quarter of 2024; however, experience has weakened on the Capitec and entry-levelgroup businesses over the six-month period. Persistency experience remained positive in the affluent businesswhile Pan-Africa recorded improved persistency experience and Asia recording slight negative experience in
Malaysia.
Ì Higher positive credit spread and working capital profits due to increased margin income in the credit portfolio
and the impact of high interest rates on working capital.
Ì Slight negative experience variances in the non‑covered business mainly due to lower net fund inflows than
expected in South Africa asset management and lower-than-expected premium growth in Pan-Africa generalinsurance.

Operating assumption changes

Ì The non-covered business operations recorded strong positive assumption changes of R3,3 billion mainly due
to higher loan book growth and improved growth outlook in India, with a positive contribution from synergy
benefits in South Africa asset management. This was partly offset by the write-down in Afrocentric.
Ì Positive contribution from Santam due to return on capital outperformance against its target over the period.

10

11

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Contents
14

Independent auditors’ review report on the shareholders’ fundinformation report of Sanlam Limited

15
16
17
21

Basis of accounting
Group equity value
Shareholders’ fund at net asset value, income statement,
related information
Basis of accounting – embedded value of covered business

26
29
31
32
38

Group equity value
Analysis of group equity value by line of businessChange in group equity value
Return on group equity value
Analysis of group equity value earnings
Analysis of shareholders’ fund at net asset value

40
42

Shareholders’ fund income statement
Geographic analysis by line of business

42
43
44
46
47
50
52
58
77
78
79
79
79
80

Notes to the shareholders’ fund information
Cash earnings
Net movement in specific shareholders’ fund reserve
Value of new covered business
Covered business sensitivity analysis
Economic assumptions – covered business
Value of non-covered operations sensitivity analysis
Business volumes
Cluster information
Equity-accounted earnings included in result from financial
services before tax
Normalised diluted earnings per share
Value per share
Present value of holding company expenses
Share transactions
Reconciliation of group statement of comprehensive income toshareholders’ fund income statement

Shareholders’ fundinformation
13

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Independent auditors’ review report on theshareholders’ fund information reportof Sanlam Limited

Basis of accounting – shareholders’ fundinformation

To the directors of Sanlam Limited

The purpose of this section is to provide additional information to users of the group shareholders’ fund in a format
that corresponds to that used by management in evaluating the performance of the group and is additional
information to the Sanlam condensed consolidated interim financial statements prepared in terms of IFRS®
Accounting Standards, IAS 34 – Interim Financial Reporting.

Introduction

We have reviewed the shareholders’ fund information report of Sanlam Limited for the six months ended
30 June 2024, as set out on pages 15 to 81. The shareholders’ fund information report is prepared for the purposeof providing additional information to users in respect of the group shareholders’ fund in a format that corresponds
to that used by management in evaluating the performance of the group and is information to the condensed
consolidated interim financial statements. Our responsibility is to express a conclusion on this shareholders’ fundinformation report based on our review.

Directors’ responsibility for the shareholders’ fund information report.

The directors of Sanlam Limited are responsible for the preparation and presentation of the shareholders’ fundinformation report in accordance with the basis set out in the section “basis of accounting – shareholders’ fundinformation” to the shareholders’ fund information report and for determining that the basis of preparation is
acceptable in the circumstances.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of financial
information consists of making inquiries, primarily of persons responsible for financial and accounting matters, andapplying analytical and other review procedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the shareholders’ fundinformation is not prepared, in all material respects, in accordance with the basis set out in the section “basis ofaccounting – shareholders’ fund information” to the shareholders’ fund information report.

Basis of accounting and restriction of use

Without modifying our conclusion, we draw attention to the section “Basis of accounting – shareholders’ fundinformation” to the shareholders’ information report, which describes the basis of accounting. The shareholders’fund information report is prepared to provide additional information to users in respect of the Group shareholders’fund in a format that corresponds to that used by management in evaluating the performance of the Group and isadditional information to the condensed consolidated interim financial statements. As a result, the shareholders’fund information report may not be suitable for another purpose. Our report is intended solely for the directors of
Sanlam Limited and should not be used by any other parties.

KPMG Inc.

PricewaterhouseCoopers Inc.

Director: Pierre Fourie
Registered Auditor
4 Christiaan Barnard Street
Cape Town City Centre
Cape Town

Director: Alsue du Preez
Registered Auditor
5 Silo Square
V&A Waterfront
Cape Town

4 September 2024

4 September 2024

14

It includes analysis of the group shareholders’ fund consolidated financial position and results in a similar format
to that used by the group for internal management purposes. The group condensed consolidated interim financial
statements are prepared in accordance with IFRS and include the consolidated results and financial position of boththe shareholder and policyholder activities. The IFRS financial statements also do not distinguish between theshareholders’ operational and investment activities, which are separate areas of management focus and an
important distinction in evaluating the Sanlam group’s financial performance. Information is presented in thissection to provide shareholders’ fund information to users of Sanlam’s financial information.
The group also discloses group equity value (GEV) information in accordance with the requirements of Actuarial
Practice Note (APN 107). The group’s key strategic objective is to maximise returns to shareholders. GEV has been
identified by management as the primary measure of value and return on GEV (RoGEV) is used by the group as themain performance measure to evaluate the success of its strategies toward sustainable value creation in excess of
its cost of capital. For the purpose of internal monitoring, the directors make use of GEV to reflect the performanceof the group. This is considered to provide meaningful basis of reporting the underlying value of the group’s
operations and the related performance drivers. This basis explicitly allows for the impact of uncertainty in future
investment returns and is consistent with the group’s operational management structure.
The shareholders’ fund information also includes the embedded value of covered business (EV), change in EV andvalue of new business.

Basis of accounting – shareholders’ fund information

The basis of accounting and accounting policies in respect of the financial information of the shareholders’ fund are
the same as those set out in the financial statements, apart from the specific items described under separate
headings. Management considers this basis of accounting applied for the shareholders’ fund information to besuitable for the intended users of this financial information. The shareholders’ fund information is prepared on agoing concern basis.
The application of the basis of accounting of the shareholders’ fund information is also consistent with that appliedin the prior year apart from the following:Ì The Sanlam Life and Savings (SLS) is one cluster from 2024 onwards and will be presented as such. The prioryears reflected the three clusters within SLS.
Ì The Sanlam Emerging Markets (SEM) cluster includes the following and is presented as such:– For the period to 30 June 2023, SEM consisted of Sanlam Pan-Africa (SPA) including Namibia, Sanlam Allianz
and Asia (India and Malaysia). All of the assets of SPA, except the Namibian assets, were contributed to the
SanlamAllianz JV. From 1 October 2023, the SEM cluster consists of the SanlamAllianz JV, Namibia as astandalone business and Asia as illustrated below:
2023
Jan – Sept
SEM cluster2023
Oct – Dec

2024
Full year
SEM cluster

Sanlam Pan-Africa including
Namibia
India
Malaysia

SanlamAllianz JV
Namibia
Asia (India and Malaysia)

SanlamAllianz JV
Namibia
Asia (India and Malaysia)– The SanlamAllianz JV transaction involved multiple African geographies with multiple regulatory requirements.
The integration of the businesses, including financial reporting, could only commence after the effective dateand is progressing well. As a consequence, Sanlam can only disclose summarised information until theprocesses are fully aligned over the next twelve months to allow reporting at the detailed level that iscustomary for Sanlam’s disclosure. We anticipate that the detailed disclosures will be available when results forthe financial year ending 31 December 2024 will be reported. This will also allow for a longer period to establish
meaningful trends.
– In the financial commentary provided on page 2, all references to Pan-Africa refer to the Sanlam Emerging
Markets operations in Africa outside of South Africa (SanlamAllianz) and including Namibia. Commentary
relating to 2024 and 2023 refers to the six months to June, unless otherwise indicated. As a result, the
Pan-Africa results reported in 2024 reflect six months of Namibia as a standalone (as this business is not yet
part of the JV), and Sanlam’s effective share of SanlamAllianz.

15

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Basis of accounting – shareholders’ fundinformation continued
Group equity value

GEV is the aggregate of:Ì The embedded value of covered business, which comprises the required capital supporting these operations(also referred to as adjusted net worth) and their net value of in-force business;
Ì The fair value of other group operations based on longer-term assumptions, which includes the investment
management, capital markets, general insurance and the non-covered wealth management operations of thegroup; andÌ The fair value of discretionary and other capital. Discretionary capital represents management’s assessment of
capital in excess of that required for current operations of the group. Such capital may be used to fund future
operations and acquisitions or be returned to shareholders.
GEV is calculated by adjusting the shareholders’ fund at net asset value with the following:Ì Adjustments in respect of covered business:– Elimination of goodwill and other intangible assets in respect of investment contracts are measured under
IFRS 9 Financial Instruments, as these assets are replaced by the value of the in-force book.
– Elimination of some insurance contract assets recognised in terms of IFRS 17 Insurance Contracts, as theseassets are included in the calculation of the value of the in-force book.
– Elimination of the asset mismatch reserve and other specific shareholders’ fund reserves held as part of thecapital allocated to contracts measured under IFRS 17 and IFRS 9, as these reserves are included in thecalculation of the value of the in-force book.
– Adding the value of the in-force book.
Ì Adjustments in respect of non-covered operations:– Adding the fair value adjustment for other operations, comprising the difference between the fair value ofthese operations and the corresponding net asset value included in the shareholders’ fund at net asset value.
– Adjustments to net worth, including allowance for the present value of holding company expenses.
Although being a measure of value, GEV is not equivalent to the economic value of the group as the embedded
value of covered business does not allow for the value of future new business. An economic value may be derived
by adding to the GEV an estimate of the value of the future sales of new covered business, often calculated as amultiple of the value of new covered business written during the past year.
The GEV is inherently based on estimates and assumptions set out in this basis of preparation and also as disclosed
under critical accounting estimates and judgements in the condensed consolidated interim financial statements.
It is reasonably possible that outcomes in future financial years will be different to the current assumptions andestimates, possibly significantly, impacting on the reported GEV. Accordingly, sensitivity analyses are provided forchanges from the base estimates and assumptions (refer to note 5 for covered operations and note 6 fornon‑covered operations).

Fair value of businesses included in GEVFair values for listed businesses are determined by using stock exchange prices or directors’ valuations and forunlisted businesses by using directors’ valuations. Where directors’ valuations are used for listed businesses, thelisted values of these businesses are disclosed for information purposes.
The valuation of businesses is based on generally accepted and applied investment valuation techniques, but issubject to judgement to allow for perceived risks. Estimates and assumptions are an integral part of businessvaluations and as such have an impact on the amounts reported. Management applies judgement in determining
the appropriate valuation technique to be used. In addition, in applying the valuation techniques, judgement isutilised in setting assumptions of future events and experience and, where applicable, risk-adjusted discount rates.
Estimates and judgements are regularly updated to reflect latest experience. Actual outcomes in future financial
years may differ from current estimates and assumptions, possibly significantly, which could require a material
adjustment to the business valuations.
The appropriateness of the valuations is regularly tested through the group’s approval framework, in terms of which
the valuations of investments is reviewed and recommended for approval by the audit, actuarial and financecommittee of the board by the Sanlam Non-Listed Asset Controlling Body.
Businesses may comprise legal entities or components of legal entities as determined by the directors.

16

Adjustments to net worth

Present value of corporate expenses

GEV is determined by deducting the present value of corporate expenses, by applying a multiple to the after-tax
corporate expenses. This adjustment is made as the embedded value of covered business and the fair value of othergroup operations do not allow for an allocation of corporate expenses.

Share incentive schemes granted on subsidiaries’ own shares

Where group subsidiaries grant share incentives to staff on the entities’ own shares, the fair value of theoutstanding incentives at period end is deducted in determining GEV. The expected cost of future grants in respectof these incentive schemes is allowed for in the calculation of the value of in-force covered business and the fairvalue of other group operations as appropriate.

Share incentive schemes granted on Sanlam shares

Long-term incentives granted by the group on Sanlam shares are accounted for as dilutive instruments. The GEV isaccordingly not adjusted for the fair value of these outstanding shares, but the number of issued shares used to
calculate GEV per share is adjusted for the dilutionary effect of the outstanding instruments at period end. The
expected cost of future grants in respect of these incentive schemes is allowed for in the calculation of the value of
in-force covered business and the fair value of other group operations.

Change in group equity value

The change in GEV consists of the embedded value earnings from covered business, earnings from other group
operations on a fair value basis and earnings on discretionary and other capital and capital transactions withshareholders.

Return on group equity value

The RoGEV is equal to the change in GEV during the reporting period, after adjustment for dividends paid andchanges in issued share capital, as a percentage of GEV at the beginning of the period, adjusted for changes inissued share capital during the year.

Shareholders’ fund at net asset value, income statement and related information
The analysis of the shareholders’ fund at net asset value and the related shareholders’ fund income statement
reflect the consolidated financial position and earnings of the shareholders’ fund, based on accounting policies
consistent with those contained in the Sanlam financial statements, apart from the ones discussed below.

Basis of consolidation

The shareholders’ funds of group companies are consolidated in the analysis of the Sanlam group shareholders’fund at net asset value. The policyholders’ and outside shareholders’ interests in these companies are treated as
non-controlling shareholders’ interest on consolidation.
The analysis of the shareholders’ fund at net asset value is consistent with the group’s operational management
structure.

Consolidation reserve

A consolidation reserve is created as part of shareholders’ equity in the group statement of financial position for
the IFRS accounting mismatches outlined below that are regarded as non-economical in management’s view. The
consolidation reserve is not recognised in the shareholders’ fund at net asset value. The fund transfers between theshareholders’ and policyholders’ fund relating to movements in the consolidation reserve are commensurately also
not recognised in the shareholders’ fund’s normalised attributable earnings.
Ì In terms of IFRS, deferred tax assets are recognised in respect of assessed tax losses in policyholder funds, which
increases the group’s equity value, whereas the policy liabilities are not increased correspondingly. This leads toan artificial mismatch, with a consequential impact on the group’s shareholders’ fund and earnings.
Ì The consolidation of the broad-based black economic empowerment special purpose vehicle (B-BBEE SPVGroup) to which 111 349 000 shares were issued in March 2019, was treated similarly and was also recognised in
the consolidation reserve and fund transfers respectively up to 30 June 2023.
At 30 June 2023, the B-BBEE SPV Group was not consolidated in the shareholders’ fund as it was 50% funded byexternal parties and therefore no value was recognised for shareholders reporting. Following the A-preference
share acquisition in August 2023, entities in the Sanlam group owns both the A-preference shares and the
B-preference shares. As at 30 June 2024, the B-BBEE SPV Group is consolidated and includes the repurchase andcancellation of the Sanlam shares during June 2024.

17

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Basis of accounting – shareholders’ fundinformation continued
Specific shareholders fund reserves
Asset mismatch reserve

An asset mismatch reserve is created in the group statement of financial position for investment variances
emanating from insurance and investment contracts measured under IFRS 17 and IFRS 9 respectively. Although thegroup follows a policy of matching insurance and investment contract cash flows on a duration-matched basis,complete matching is not possible for all lines of business given unique product features and/or the availability ofmatching assets. This results in mismatch profits or losses being recognised in earnings as changes in themeasurement of insurance and investment contract liabilities and the underlying matching assets will not fully
offset. In addition, investments in corporate credit instruments measured at fair value also result in earnings
volatility due to movements in market spreads and credit default provisions. The difference between the assumed
and actual investment return earned on asset classes is another source of mismatch profits and losses. Changes in
the cost of investment guarantees is another source of earnings volatility, with these variances being mainly driven
by economic impacts such as changes in equity market levels, interest rates and equity volatility. Excess claims
related to the payment of investment guarantees and/or any capital injections due to shortfalls arising frominadequate funding levels, will be recognised as losses in earnings. Changes in the estimates of the future cost ofinvestment guarantees are absorbed by the CSM and deferred over the lifetime of the insurance contracts,
impacting the:Ì amount of the CSM recognised in net result from financial services in the current reporting period; andÌ the amounts of the CSM expected to be recognised in net result from financial services in future reporting
periods.
The asset mismatch reserve is utilised to absorb the earnings volatility described above, supporting the group’s
strategic objective of increasing dividends to shareholders by between 2% and 4% in real terms over a three-year
rolling basis.
The asset mismatch reserve is recognised in the shareholders’ fund at net asset value. Movements in the asset
mismatch reserve are recognised in a separate line item in the shareholders’ fund’s income statement, outside ofnet operational earnings with corresponding adjustments to net result from financial services. The adjustments
related to insurance contracts are included in the following line items in net result from financial services:Ì insurance revenue for the effect of changes in the cost of investment guarantees on CSM recognition amounts if
the mismatch profits or losses are outside a specific range;
Ì insurance service expenses for excess claims/capital injections due to shortfalls related to investment guarantees
if the mismatch profits or losses are outside a specific range; andÌ insurance investment result for other investment mismatch profits or losses as covered below.
The asset mismatch reserve is increased or reduced for insurance contracts by allowing for the following:Ì economic mismatch profits or losses due to duration mismatching of the assets backing the fulfilment cash flows
and CSM;Ì investment variances arising from actual investment returns on the assets backing the liabilities being different
from those expected, including the risk-free rate component of corporate credit exposures;Ì movements in credit spreads and default provisions relating to corporate credit exposures;
Ì mismatch profits or losses due to changes in the cost of investment guarantees for insurance contracts measured
under the variable fee approach (VFA); andÌ net investment return earned on the assets backing the asset mismatch reserve.
For insurance contracts measured under the VFA, the investment variances described above are only adjusted forin the asset mismatch reserve if they arise from holding assets not related to the underlying items.
The asset mismatch reserve is increased or reduced for investment contracts in SLS by allowing for economic
mismatch profits or losses and investment variances (as described above) specifically related to the assets backing
the contract cash flows for vesting bonuses and tax credits.
The asset mismatch reserve is recycled (released) to net result from financial services in insurance investment result
based on the reserve balance at the end of the previous month/quarter and a rate of release of approximately 10%
per annum, which considers:Ì the expected volatility of the items that will be transferred to the asset mismatch reserve driven by the underlying
asset mix and the general economic environment that the relevant business operates in;Ì the prevailing interest rate environment and the underlying asset mix, and therefore the expected growth in theasset mismatch reserve from the investment returns on the backing assets (before allowing for the release in theasset mismatch reserve);
Ì the mix and duration of the insurance business (for example, general insurance business relative to life insurance
business); andÌ the projected solvency cover level compared to target ranges based on a specified release pattern.

18

Other shareholders’ fund reserves

Other shareholders’ fund reserves were created on transition to IFRS 17 for specific future events such as
pandemics and digital transformation (future-fit) projects related to insurance business, as well as the recognitionof shareholders’ fund reserves backed by some insurance contract assets (ie, negative insurance liabilities). Theseshareholders’ fund reserves are held in addition to the insurance liabilities.
Similar to the asset mismatch reserve above, other shareholders’ fund reserves are recognised in the shareholders’fund at net asset value. Movements in these reserves are recognised in a separate line item in the shareholders’ fundincome statement, outside of net operational earnings with a corresponding adjustment to net result from financial
services. The adjustments related to insurance contracts are included in the following line items in net result fromfinancial services:
Ì Insurance service expenses for adjustments related to pandemic events;
Ì Other expenses relating to insurance operations for adjustments related to future-fit project expenses; andÌ Insurance investment result for adjustments related to insurance contract asset economic impacts.
The future release pattern of the reserves for future project expenses is consistent with the related expenses
incurred over time. These reserves will also absorb excess claims in a future pandemic. The purpose of thesereserves is therefore to manage volatility in cash earnings available for dividend distribution.
Reserves in respect of future-fit projects originated on transition to IFRS 17 where specific policyholder reserves
were released to equity and investment return on the assets backing this reserve will also be used to fund theseproject expenses. This reserve is used to absorb costs directly expensed in the income statement and expenses
capitalised to manage the impact on dividend volatility. The utilisation of this reserve is presented in theshareholders’ fund income statement by reducing the related expenses included in net result from financial
services, with a corresponding adjustment in net movement in other shareholders’ fund reserves (outside ofoperational earnings), resulting in a decrease in the reserve. Future-fit expenses capitalised are also funded fromthis reserve to manage the impact on dividend distribution.
Sanlam re-established a pandemic reserve in 2022, presented as a reduction in net result from financial services
with a corresponding increase in the net movement in other shareholders’ fund reserves (outside of operational
earnings), with a zero impact on attributable earnings. The utilisation of this reserve is presented in theshareholders’ fund income statement on a similar basis, resulting in a decrease in the reserve. Investment returns
on the assets backing the pandemic reserves will be released to net result from financial services over time.
The other shareholders’ fund reserves are increased or reduced by the changes in the backing insurance contract
assets. The economic impacts on these insurance contract assets are adjusted for in net result from financial
services, including the unwind/accretion of interest on the negative insurance liabilities and the impact of economic
assumption changes. Other non-cash changes in these insurance contract assets are adjusted for in cash net result
from financial services.

Accounting mismatch

For insurance contracts measured under the General Measurement Model (GMM) in terms of IFRS 17, changes in
estimates of the fulfilment cash flows related to future service (eg, changes due to non-financial assumptionchanges) are reflected in the CSM. However, these changes are measured at the locked-in interest rates that wereapplied at the initial recognition date of each group of insurance contracts, which results in a mismatch between the
movements in the fulfilment cash flows (at current interest rates) and the adjustments to the CSM (at locked-ininterest rates). These accounting mismatches are removed from net result from financial services in insurance
investment result with a corresponding adjustment to other shareholders’ fund reserves outside of operational
earnings.

Target shares

Strategic diversification activities between SEM and Santam consist of the investment in target shares issued by
SEM to Santam and vice versa. These shares give the holder the right to participate in the growth of the underlying
short-term insurance investments. For purposes of the group’s shareholders’ fund income statement, the total
return on these short-term insurance investments are therefore split between SEM and Santam, after considerationof the respective non-controlling interests.

Segregated funds

Sanlam also manages and administers assets in terms of third-party mandates, which are for the account of and at
the risk of the clients. As these are not the assets of the Sanlam group, they are not recognised in the Sanlam groupstatement of financial position in terms of IFRS and are also excluded from the shareholders’ fund at net asset value
and fair value. Fund flows relating to segregated funds are however included in the notes to the shareholders’ fundinformation to reflect all fund flows relating to the group’s assets under management.

19

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Basis of accounting – shareholders’ fundinformation continued
Net result from financial services

Net result from financial services is a measure of operating performance of the Sanlam group that is better aligned
to cash earnings that drive dividend distribution. Investment return on assets held in the capital portfolio are
excluded from net result from financial services. The specific shareholders’ fund adjustments described above areincluded in net result from financial services to reflect earnings that are closely aligned to cash earnings for
dividend distribution:
Ì Asset mismatch reserve movements; andÌ Other shareholders’ fund reserve movements related to:– Pandemic events;– Future-fit project expenses;– Insurance contract asset economic impacts; and– Accounting mismatch impacts related to locked-in interest rates in terms of IFRS 17 as described above.
The following shareholders’ fund adjustments have net zero impact on net result from financial services:Ì The CSM is accreted with interest based on locked-in interest rates for GMM products. The difference between
accreting interest on the CSM at locked-in interest rates and current interest rates is shifted from the insurance
investment result to insurance revenue with net zero impact on net result from financial services. Insurance
revenue in the shareholders’ fund income statement therefore presents CSM recognition amounts at current
interest rates.
Further adjustments are made to net result from financial services to remove remaining components of non-cash
related earnings. These adjustments will not be presented in the shareholders’ fund income statement and arebeing disclosed in a note which shows the reconciliation between net result from financial services and cash
earnings (see note 1 on page 42 for further details).

Shareholders’ fund adjustments in the income statement

New businessIn the case of long-term insurance business, the annualised value of all new policies (insurance and investment
contracts) that have been issued during the financial year according to the group’s embedded value assumptions
and have not subsequently been refunded, is regarded as new business.
All segregated fund inflows (excluding those related to assets under administration), inflows to collective investment
schemes and short-term insurance premiums (also called net earned premiums) are regarded as new business.
New business includes the group’s share of new business written by strategic operational associates and joint ventures.

Payments to clients
Payments to clients includes policy benefits paid in respect of life and general insurance and investment policy
contracts, which are recognised in the financial statements. It also includes withdrawals from collective investment
schemes and non-life insurance linked-products as well as outflows of segregated funds, which are not otherwise
recognised in the financial statements as they relate to funds held on behalf of and at the risk of client withdrawals
of non-annuity funds under administration are excluded. Transfers between the various types of business, otherthan those resulting from a specific client instruction, are eliminated.
Payments to clients include the group’s effective share of payments to clients by strategic operational associates
and joint ventures.

Basis of accounting and presentation – embedded value of covered business

The group’s embedded value of covered business information is prepared in accordance with APN107, the guidancenote on embedded value financial disclosures of South African long-term insurers issued by the Actuarial Society ofSouth Africa (Actuarial Society). Covered business represents the group’s long-term insurance business for which
the value of new and in-force contracts is attributable to shareholders.

Sanlam’s dividend policy is supported by sustainable operating performance. Consequently, net result fromfinancial services is adjusted for short-term market volatility (eg, as a result of investment variances), accounting
mismatches because of adjusting the CSM at locked-in rates, and other amounts as specified in the sections below.
These adjustments are reversed in the shareholders’ fund income statement outside of operational earnings to havea zero impact on the IFRS income statement. Additional disclosures are provided on page 42 on the specificshareholders’ fund income statement adjustments.

The embedded value results of the group’s covered business are included in the shareholders’ information as it
forms an integral part of GEV and the information used by management in evaluating the performance of thegroup. The embedded value of covered business does not include the contribution to GEV relating to other group
operations or discretionary and other capital, which are included separately in the analysis of GEV.

Equity-accounted earnings

Covered business

Equity-accounted earnings are presented in the shareholders’ fund income statement based on the allocation of thegroup’s investments in associates and joint ventures between operating and non-operating entities:
Ì At 30 June 2024, operating associates and joint ventures include investments in strategic operational businesses,
namely SanlamAllianz, Shriram Finance Limited (including the group’s direct interest in Shriram Transport
Finance Company), Shriram General Insurance and Shriram Life Insurance direct investments, African Rainbow
Capital Financial Services Investments and Pacific & Orient. The equity‑accounted operating earnings andinvestment return on capital from operating associates and joint ventures are included in the net result fromfinancial services and net investment return respectively.
Ì Non-operating associates and joint ventures include investments held as part of the group’s balanced investment
portfolio. The Santam group’s equity-accounted investments are the main non-operating associates and joint
ventures. The group’s share of earnings from these entities are reflected as equity-accounted earnings.

Normalised earnings per share

As discussed under the policy note for ‘Consolidation reserve’ above, the IFRS prescribed accounting treatment of
the B-BBEE SPV up to 30 June 2023 creates a small artificial accounting mismatch with a consequential impact on
the group’s IFRS earnings. However, the group calculates normalised diluted earnings per share (a non-IFRS
measure) to eliminate fund transfers relating to the B-BBEE SPV. This is, in the group’s opinion, a better
representation of the earnings attributable to the group’s shareholders.

Fund flows

The notes to the shareholders’ fund information also provide information in respect of fund flows relating to thegroup’s assets under management. These fund flows have been prepared in terms of the following bases:

Funds received from clients
Funds received from clients includes single and recurring life and general insurance premium income frominsurance and investment policy contracts, which are recognised in the financial statements. It also includes
contributions to collective investment schemes and non-life insurance linked-products as well as inflows ofsegregated funds, which are not otherwise recognised in the financial statements as they are funds held on behalfof and at the risk of clients. Funds received in respect of non-annuity assets under administration are excluded fromfunds received from clients. Transfers between the various types of business, other than those resulting from a
specific client instruction, are eliminated. Funds received from clients include the group’s effective share of funds
received from clients by strategic operational associates and joint ventures.

20

The basis of presentation for the embedded value of covered business is consistent with that applied in the 2023
financial statements.
Covered business includes all material long-term insurance business that is recognised in the Sanlam group financial
statements. This business includes individual stable bonus, linked and market-related business, group stable bonus
business, annuity business and other non-participating business written by Sanlam Risk and Savings, Glacier,
Sanlam Retail Mass, Sanlam Corporate and Sanlam Emerging Markets.

Acquisitions, disposals and other movements

The embedded value of covered business results are prepared taking cognisance of changes in the group’s
effective shareholding in covered business operations.

Methodology

Embedded value of covered business
The embedded value of covered business is a measure of the consolidated value of shareholders’ interests in the
covered business, excluding any value that may be attributed to future new business. It is calculated on an after-tax
basis taking into account current legislation and known future changes.
The embedded value of covered business comprises the following components:
Ì Adjusted net worth; andÌ The net value of in-force business.

Adjusted net worth

Adjusted net worth comprises the required capital supporting the covered business and is equal to the net value of
assets allocated to covered business that does not back policy liabilities, asset mismatch reserves or othershareholders’ fund reserves (refer to page 26).
The required capital allocated to covered business reflects the level of capital considered sufficient to support thecovered business, allowing for an assessment of the market, credit, insurance and operational risks inherent in theunderlying products, subject to a minimum level of the local statutory solvency requirement for each business.

21

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Basis of accounting – shareholders’ fundinformation continued
For South African insurance businesses (and businesses with similar regulatory regimes) the level of required capitalfor covered business is set to ensure that own funds attributable to in-force covered business maintains a solvency
cover ratio within a specific range, eg, between 150% and 200% for Sanlam Life, over the next 10 years. The
minimum end of the targeted cover range is set such that Sanlam Life’s covered business is expected to be able toabsorb a combined economic shock, a pandemic/catastrophe shock, and an operational risk event without
breaching 100% of regulatory SCR cover. A similar methodology was followed to set ranges for the other South
African life insurers.

Ì For employee benefits, increases in business from new schemes or new benefits on existing schemes are included

The capital allocated to covered business is funded from a balanced investment portfolio, comprising investmentsin equities, hedged equities, fixed-interest securities, cash and subordinated debt funding. The subordinated debt
funding liability is matched by ring-fenced bonds and other liquid assets held as part of the balanced investment
portfolio.

Profitability of new covered business is measured by the ratio of the net value of new business to the present valueof new business premiums (PVNBP). The PVNBP is defined as new single premiums plus the discounted value,
using a risk-adjusted discount rate, of expected future premiums on new recurring premium business. The
premiums used for the calculation of PVNBP are based on the life insurance new business premiums disclosed innote 7 on page 52, excluding white label new business.

Transfers are made to or from adjusted net worth on an annual basis for the following:Ì Transfers of net operating profit. These transfers relate to dividends paid from covered business in terms of thegroup’s internal dividend policy to fund the dividend payable to Sanlam Limited shareholders; andÌ Transfers to or from the balanced investment portfolio. Any capital in the portfolio that is in excess of therequirements of the covered business is transferred to discretionary capital in terms of the group’s capitalmanagement framework.

Net value of in-force business

The net value of in-force business (PVIF) consists of the present value of future shareholder profits from in-force
covered business (PVFP), after allowance for the cost of required capital supporting the covered business.

Present value of future shareholder profits from in-force covered business

The policy liabilities are valued based on IFRS 17 for life insurance contracts and IFRS 9 for investment contracts. The
adjusted net worth incorporates certain adjustments from the shareholders’ fund at net asset value as outlined above.
The policy liabilities include profit margins, which can be expected to emerge as profits in future. For insurance
contracts measured under the GMM and VFA, these profit margins mainly comprise of the CSM and the risk
adjustment for non-financial risk. The assets backing the asset mismatch reserves can be expected to emerge as
profits in the future, excluding the portion of the assets earmarked to absorb variances in the cost of investment
guarantees. This investment guarantee surplus included in the asset mismatch reserves will absorb the variances inthe estimates of the future cost of investment guarantees as described on page 18, where relevant. If the estimates ofthe future cost of investment guarantees are higher than expected, therefore reducing the CSM and PVIF, the PVIF on
the asset mismatch reserves will be increased to offset this variance by reducing the investment guarantee surplus(and vice versa if the estimates of the future cost of investment guarantees are lower than expected). The investment
returns on the assets backing the pandemic reserves can also be expected to emerge as profit. The othershareholders’ reserves backed by some insurance contract assets is another source of expected profits expected toemerge in future as these negative liabilities unwind over the lifetime of the contracts. For investment contracts
measured under IFRS 9, future fund-based charges less expenses will emerge as profit margins. The discounted value,
using a risk-adjusted discount rate, placed on these expected future profits, after taxation, is the PVIF.

and new members or salary-related increases under existing schemes are excluded and form part of the in-force
value;
Ì Annuities purchased by retirement fund members using in-fund options are treated as new business;Ì Renewable recurring premiums under group insurance contracts are treated as in-force business; andÌ Assumptions are consistent with those used for the calculation of the value of in-force covered business at theend of the period.

Risk discount rates and allowance for risk
In accordance with the actuarial guidance, the underlying risks within the covered business are allowed for within
the embedded value calculations through a combination of the following:Ì Explicit allowances within the projected shareholder cash flows;Ì The level of required capital and the impact on cost of required capital; andÌ The risk discount rates, intended to cover all residual risks not allowed for elsewhere in the valuation.
The risk margins are set using a top-down approach based on Sanlam Limited’s weighted average cost of capital(WACC), which is calculated based on a gross risk-free interest rate, an assumed equity risk premium, a market
assessed risk factor (beta), and an allowance for subordinated debt on a market value basis. The beta provides anassessment of the market’s view of the effect of all types of risk on the group’s operations, including operationaland other non-economic risk.
To derive the risk discount rate assumptions for covered business, an adjusted WACC is calculated to exclude thenon-covered group operations included in Sanlam Limited’s WACC and to allow for future new covered business.
The covered business operations of the group use risk margins of between 2,5% and 7,0% and the local grossrisk-free rate at the valuation date.

Minimum investment guarantees to policyholders
An investment guarantee reserve is included in the reserving basis for policy liabilities, which makes explicit
allowance for the best estimate cost of all material investment guarantees. A stochastic modelling approach is used
to provide for the possible cost of minimum investment return guarantees on insurance contracts, where relevant.
These reserves are determined on a consistent basis in accordance with actuarial guidance from the Actuarial
Society (APN110). No further deduction from the embedded value of covered business is therefore required.

Share incentive schemes
The embedded value of covered business assumes the payment of long-term incentives in the future and allows forthe expected cost of future grants within the value of in-force covered business and value of new business.

The PVFP excludes the cost of required capital, which is separately disclosed.

Sensitivity analysis

Cost of required capital

Sensitivities are determined at the risk discount rates used to determine the base values, unless stated otherwise.
For each of the sensitivities, all other assumptions are left unchanged. The different sensitivities do not imply thatthey have a similar chance of occurring.

A charge is deducted from the embedded value of covered business for the cost of required capital supporting thegroup’s existing covered business. The cost is the difference between the carrying value of the required capital at
the valuation date and the discounted value, using a risk-adjusted discount rate, of the projected releases of thecapital allowing for the assumed after-tax investment return on the assets deemed to back the required capital overthe life of the in-force business.

Value of new business

The risk discount rate appropriate to an investor will depend on the investor’s own requirements, tax position andperception of the risk associated with the realisation of the future profits from the covered business. The disclosed
sensitivities to changes in the risk discount rate provide an indication of the impact of changes in the applied risk
discount rate.

The value of new business is calculated as the discounted value, at point of sale, using a risk-adjusted discount rate,of the projected stream of after-tax profits for new covered business issued during the financial period underreview. The value of new business is also reduced by the cost of required capital for new covered business.

Risk premiums relating to mortality and morbidity are assumed to be increased consistent with mortality andmorbidity experience respectively, where appropriate.

In determining the value of new business:
Ì A policy is only taken into account if at least one premium, that is not subsequently refunded, is recognised in thefinancial statements;
Ì Premium increases that have been allowed for in the value of in-force covered business are not counted again as
new business at inception;
Ì Increases in recurring premiums associated with indexation arrangements are not included, but instead allowed
for in the value of in-force covered business;
Ì The expected value of future premium increases resulting from premium indexation on the new recurring
premium business written during the financial period under review is included in the value of new business;
Ì Continuations of individual policies and deferrals of retirement annuity policies after the maturity dates in thecontract are treated as new business if they have been included in policy benefit payments at their respective
maturity dates;

Changes in the embedded value of covered business, as well as the PVNBP, of foreign operations are converted toSouth African rand at the weighted average exchange rates for the financial year, except where the averageexchange rate is not representative of the timing of specific changes in the embedded value of covered business,in which instances the exchange rate on transaction date is used. The closing rate is used for the conversion of theembedded value of covered business at the end of the financial year.

22

Foreign currencies

23

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Basis of accounting – shareholders’ fundinformation continued
Assumptions

Best estimate assumptions
The embedded value calculation is based on best estimate assumptions. The assumptions are reviewed actively andchanged when evidence exists that material changes in the expected future experience are reasonably certain. The
best estimate assumptions are also used as basis for the statutory valuation method.
It is reasonably possible that outcomes in future financial years will be different to these current best estimate
assumptions, possibly significantly, impacting on the reported embedded value of covered business. Accordingly,
sensitivity analyses are provided for the value of in-force and value of new business.

Economic assumptions
The assumed investment return on assets supporting the policy liabilities and required capital is based on theassumed long-term asset mix for these funds.
Inflation assumptions for unit cost, policy premium indexation and employee benefits salary inflation are based on
an assumed long-term gap relative to fixed-interest securities, however term-dependent inflation assumptions areused where market observable data is available.

Earnings from covered business

The embedded value earnings from covered business for the period are equal to the change in embedded value,
after adjustment for any transfers to or from discretionary capital, and are analysed into the following main
components:

Value of new business

The value of new business is calculated at point of sale using assumptions applicable at the end of the reporting
period.

Net earnings from existing covered business
Expected return on value of covered business

The expected return on value of covered business comprises the expected return on the starting value of in-force
covered business and the accumulation of value of new business from point of sale to the valuation date.

Operating experience variances

Future rates of bonuses for stable bonus business and participating annuities are set at levels that are supportableby the assets backing the respective product asset funds at each valuation date.

The calculation of embedded values is based on assumptions regarding future experiences including
discontinuance rates (how long policies will stay in force), risk (mortality and morbidity) and future expenses.
Actual experience may differ from these assumptions. The impact of the difference between actual and assumed
experience for the period is reported as operating experience variances.

Assets backing required capital

Operating assumption changes

The assumed composition of the assets backing the required capital is consistent with Sanlam’s practice and withthe assumed long-term asset distribution used to calculate the statutory capital requirements and internal required
capital assessments of the group’s covered business.

Operating assumption changes consist of the impact of changes in assumptions at the end of the reporting period(compared to those used at the end of the previous reporting period) for operating experience, excluding economicor taxation assumptions. It also includes model refinements where relevant.

Demographic assumptions

Expected investment return on adjusted net worth

Future mortality, morbidity and discontinuance rates are based on recent experience, adjusted for expected future
trends where appropriate. Future mortality rates also include an allowance for the impact of future pandemics.

The expected investment return on adjusted net worth attributable to shareholders is calculated using the future
investment return assumed at the start of the reporting period.

HIV/Aids

The total embedded value earnings from covered business include two further main items:

Allowance is made, where appropriate, for the impact of expected HIV/Aids-related claims, using models developedby the Actuarial Society, adjusted for Sanlam’s practice and product design.

Economic assumption changes

Expense assumptions
Future expense assumptions reflect the expected level of expenses required to manage the in-force coveredbusiness, including investment in systems required to support that business, and allow for future inflation. The rateof inflation is higher for business written on legacy systems. The allocation between acquisition and maintenanceexpenses is based on functional cost analyses and reflects actual expenses incurred in 2023. Expense assumptions
include those expenses deemed to be not directly attributable to the fulfilment of insurance contracts under
IFRS 17.

Investment management fees
Future investment expenses are based on the current scale of fees payable by the group’s life insurance businesses
to the relevant asset managers. To the extent that this scale of fees includes profit margins for Sanlam Investment
Group, these margins are not included in the value of in-force covered business and value of new business, as they
are incorporated in the valuation of the Sanlam Investment Group businesses at fair value.

The impact of changes in external economic conditions, including the effect that changes in interest rates have onrisk discount rates and future investment return and inflation assumptions, on the embedded value of coveredbusiness.

Investment variances
Investment variances – value of in-force
The impact on the value of in-force business caused by differences between the actual investment return earned onpolicyholder fund assets during the reporting period and the expected return based on the economic assumptions
used at the start of the reporting period.

Investment variances – investment return on adjusted net worth
Investment return variances caused by differences between the actual investment return earned on shareholders’fund assets during the reporting period and the expected return based on economic assumptions used at the startof the reporting period.

Taxation
Projected taxation is based on the current tax basis that applies in each country.
Allowance has been made for the impact of capital gains tax on investments in South Africa, assuming a five-yearroll-over period.

24

25

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Group equity value

Group equity value

R million
Sanlam Life and Savings
Covered business(1)
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate

Notes
8.1.4

Non-covered business
Glacier
Sanlam Personal Loans
Sanlam Corporate: Afrocentric and other
Other operations
Sanlam Emerging Markets
Covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Non-covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
SEM other operations
Sanlam Investment Group
Covered business
Non-covered business
Sanlam Investments(2)Wealth Management
International
Sanlam Specialised Finance
SantamDiscretionary capital
Other capitalPresent value of holding company
expenses

8.2.2.4

8.3.4

Value of in-force/fair value adjustment

Adjusted net asset value

Elimination of
specific shareholders’fund reserves

Elimination of goodwill

Shareholders’ fundat net asset value

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

58 10750 91411 71725 1807 815
6 202

57 69249 85211 601
24 8927 443
5 916

48 22546 16010 28223 6347 130
5 114

47 66445 14010 14323 414
6 755
4 828

9 882
4 754
1 435
1 546
685
1 088

10 028
4 712
1 458
1 478
688
1 088

(14 648)(14 648)(6 343)(8 305)——(12 732)(12 732)(5 378)(7 354)——(1 084)(1 084)
(76)
(519)
(270)
(219)

(1 067)(1 067)
(76)
(494)
(270)
(227)

25 61420 4867 854
10 370955
1 307

23 82718 511
6 912
9 326
958
1 315

7 193
3 322
2 080
1 363
428

7 840
3 136
2 066
2 278
360

2 065
2 723
(441)
(615)
398

2 524
2 577
(124)
(179)
250

5 128
599
2 521
1 978
30

5 316
559
2 190
2 457
110

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

5 128
599
2 521
1 978
30

5 316
559
2 190
2 457
110

51 206
10 509
4 722
3 102
1 659
1 026
40 69718 7771 456
21 767271(1 574)47 157
10 151
4 710
2 785
1 552
1 104
37 00616 901
1 524
19 756299(1 474)16 908
4 618
1 436
1 987
800
395
12 2901 820
52
10 441(23)—

11 823
4 239
1 389
1 675
747
428
7 584
(96)
(82)
7 791
(29)
—

34 298
5 891
3 286
1 115
859
631
28 40716 957
1 404
11 326294(1 574)35 334
5 912
3 321
1 110
805
676
29 42216 997
1 606
11 965328(1 474)(1 178)(1 178)
(713)
(465)
—
—
—
—
—
—
—
—

(1 171)(1 171)
(736)
(435)
—
—
—
—
—
—
—
—

(877)
(877)
(352)
—
(329)
(196)
—
—
—
—
—
—

(1 319)(1 319)
(791)
—
(332)
(196)
—
—
—
—
—
—

36 353
7 946
4 351
1 580
1 188
827
28 40716 957
1 404
11 326294(1 574)37 824
8 402
4 848
1 545
1 137
872
29 42216 997
1 606
11 965328(1 474)14 366
1 367
12 999
3 764
3 762
3 595
1 878

13 4661 314
12 152
3 293
3 424
3 640
1 795

8 477
(729)
9 206
807
3 529
3 147
1 723

7 897
(782)
8 679
1 165
3 202
2 704
1 608

5 889
2 096
3 793
2 957
233
448
155

5 569
2 096
3 473
2 128
222
936
187

—
—
—
—
—
—
—

—
—
—
—
—
—
—

—
—
—
—
—
—
—

—
—
—
—
—
—
—

5 889
2 096
3 793
2 957
233
448
155

5 569
2 096
3 473
2 128
222
936
187

22 0853 825
8 366

19 4332 710
12 11715 502——13 200
—
—

6 583
3 825
8 366

6 233
2 710
12 117

—
—
—

—
—
—

—
—
(1 197)——(1 197)

6 583
3 825
9 563

6 233
2 710
13 314(2 685)(2 671)(2 685)(2 671)

—

—

—

—

—

—

—

—

155 270

149 904

86 42777 91368 84371 991(15 826)(13 903)(3 158)(3 583)87 82789 47762 79082 97461 31776 43150 04939 06348 59731 987

12 74143 911

12 72044 444(15 826)—(13 903)—(1 961)—(2 386)—30 52843 91129 00944 444

Group operations
Discretionary, other capital and PV ofholding company expenses

145 764

137 748

89 11280 58456 65257 164(15 826)(13 903)(1 961)(2 386)74 43973 4539 506

12 156(2 685)(2 671)

12 19114 827——(1 197)(1 197)

13 38816 024

Group equity value

155 270

149 904

86 42777 91368 84371 991(15 826)(13 903)(3 158)(3 583)87 82789 477

73,41

70,86

41,53

42,29

12

Group equity value
Covered business
Non-covered business

Value per share
(1)
(2)

4
6.1

11

Excludes subordinated debt funding of Sanlam Life.
Includes Sanlam 66% share of the third-party asset management business of R4 376 million (31 December 2023: R3 684 million).

26

27

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Analysis of group equity value by line of businessChange in group equity value
for the six months ended 30 June 2024 (reviewed)

Total

Life business

General insurance

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

South Africa
Pan-Africa
Other International

100 651
26 19128 42898 95924 45326 49252 2817 824
2 685

51 1667 495
2 656

22 08519 0684 201

19 43317 161
3 662

Total

155 270

149 904

62 79061 31745 35440 256

R million

Investment management

Credit and structuring

Administration and health

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

South Africa
Pan-Africa
Other International

8 131
797
3 705

7 266
726
3 781

3 489
1 786
17 8373 359
1 826
16 393

4 867
131
—

5 586
106
—

Total

12 633

11 77323 11221 578

4 998

5 692

R million

Discretionary capitaland other
Reviewed
30 June2024

Audited31 December
2023

South Africa(1)Pan-Africa(1)9 798(3 415)12 149(2 861)

Total

6 383

9 288

R million(1)

Prior year corporate costs relating to Sanlam Allianz has been transferred to Pan Africa in line with current year.

28

GEV at the
beginning of
the period

Earnings

Net capital
investment

Dividend
paid

GEV at theend of theperiodSanlam Life and Savings
Covered business
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Non-covered business
Glacier
Sanlam Personal Loans
Other operations
Sanlam Corporate: Afrocentricand other

57 69249 85211 601
24 892
7 443
5 916
7 840
3 136
2 066
360

3 820
4 482
1 122
1 740
859
761
(662)
244
3
47

(221)
(221)
(88)
(69)
(27)
(37)
—
—
—
—

(3 184)(3 199)(918)(1 383)
(460)
(438)
15
(58)
11
21

58 10750 91411 71725 180
7 815
6 202
7 193
3 322
2 080
428

2 278

(956)

—

41

1 363

Sanlam Emerging Markets
Covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Non-covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
SEM other operations

47 157
10 151
4 710
2 785
1 552
1 104
37 00616 901
1 524
19 756299(1 474)

5 714
510
(16)
488
116
(78)
5 204
455
30
4 794
(28)
(47)

(953)
429
422
(10)
47
(30)
(1 382)1 272—(2 654)
—
—

(712)
(581)
(394)
(161)
(56)
30
(131)
149
(98)
(129)
—
(53)

51 206
10 509
4 722
3 102
1 659
1 026
40 69718 7771 456
21 767271(1 574)

Sanlam Investment Group
Covered business
Non-covered business
Sanlam Investments
Wealth Management
International
Sanlam Specialised Finance

13 4661 314
12 152
3 293
3 424
3 640
1 795

1 599
297
1 302
527
451
134
190

(220)
(67)
(153)
—
—
(153)
—

(479)
(177)
(302)
(56)
(113)
(26)
(107)

14 366
1 367
12 999
3 764
3 762
3 595
1 878

SantamDiscretionary capital
Other capitalPresent value of holding company
expenses
Intergroup dividends

19 4332 710
12 117

3 266
(65)
(541)

—
1 180
5 106

(614)
—
(8 316)22 0853 825
8 366(2 671)
—

(14)
—

—
(4 989)—4 989(2 685)—

Group equity value

149 904

13 779(97)(8 316)155 270

Covered business
Non-covered business

61 31776 431

5 289
9 110

141
(1 535)(3 957)(1 032)62 79082 974

Group operations
Discretionary and other capitalIntergroup dividends

137 748
12 156—

14 399(620)—(1 394)6 286(4 989)(4 989)(8 316)4 989

145 764
9 506—

Group equity value

149 904

13 779(97)(8 316)155 270

R million

29

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Change in group equity value continued

Return on group equity value

for the six months ended 30 June 2023 (reviewed)

GEV at the
beginning of
the period

Earnings

Net capital
investment

Dividend
paid

GEV at theend of theperiodSanlam Life and Savings
Covered business
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Non-covered business
Glacier
Sanlam Personal Loans
Other operations
Sanlam Corporate

54 41549 386
11 68226 416
5 447
5 841
5 029
2 647
1 219
297
866

3 214
2 943
531
(1 770)
2 992
1 190
271
262
49
47
(87)

1 836
126
(34)
527
(284)
(83)
1 710
—
—
160
1 550

(3 187)(2 994)(748)(1 352)
(444)
(450)
(193)
(154)
(67)
(22)
50

56 27849 461
11 431
23 821
7 711
6 498
6 817
2 755
1 201
482
2 379

Sanlam Emerging Markets
Covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Non-covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
SEM other operations

42 302
9 025
4 626
2 151
1 203
1 045
33 27718 702
1 472
14 200300(1 397)

6 685
935
665
(85)
297
58
5 750
1 780
112
3 912
(5)
(49)

320
247
(409)
633
(2)
25
73
73
—
—
—
—

(820)
(441)
(275)
(106)
(56)
(4)
(379)
(36)
(162)
(153)
—
(28)

48 487
9 766
4 607
2 593
1 442
1 124
38 72120 5191 422
17 959295(1 474)

Sanlam Investment Group
Covered business
Non-covered business
Sanlam Investments
Wealth Management
International
Sanlam Specialised Finance

13 752
1 747
12 005
3 137
3 138
4 201
1 529

1 885
349
1 536
327
555
405
249

(84)
(116)
32
32
—
—
—

(679)
(195)
(484)
(78)
(143)
(128)
(135)

14 8741 785
13 089
3 418
3 550
4 478
1 643

SantamDiscretionary capital
Other capitalPresent value of holding company
expenses
Intergroup dividends

17 3915 274
10 170

2 780
83
1 249

—
(2 173)
115

(573)
—
(7 870)19 598
3 184
3 664(2 528)
—

(13)
—

—
(5 259)—5 259(2 541)—

Group equity value

140 776

15 883(5 245)(7 870)143 544

Covered business
Non-covered business

60 15867 7024 227
10 337257
1 815(3 630)(1 629)61 01278 225

Group operations
Discretionary and other capitalIntergroup dividends

127 860
12 916—

14 564
1 319
—

2 072
(2 058)(5 259)(5 259)(7 870)5 259

139 237
4 307—

Group equity value

140 776

15 883(5 245)(7 870)143 544

R million30

Six months reviewed
30 June30 June
2024
2023

%

12 months
audited31 December
2023

Sanlam Life and Savings
Covered business
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Non-covered business
Glacier
Sanlam Personal Loans
Other operations
Sanlam Corporate: Afrocentric and other

6,6
9,0
9,7
7,0
11,5
12,9
(8,4)
7,8
0,1
13,1
(42,0)

5,9
6,0
4,5
(6,7)
54,9
20,4
5,0
9,9
4,0
12,5
(7,7)

14,8
14,4
13,5
1,0
62,4
32,4
18,1
25,8
31,7
30,7
(5,7)

Sanlam Emerging Markets
Covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Non-covered business
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
SEM other operations

11,8
5,0
(0,3)
17,5
7,5
(7,1)
13,7
2,5
2,0
24,3
(9,4)
3,2

15,8
10,4
14,4
(4,0)
24,7
5,6
17,3
9,8
7,6
27,5
(1,7)
3,5

15,8
12,4
3,7
17,7
36,8
11,7
16,8
(5,5)
9,1
46,3
(0,3)
7,2

Sanlam Investment Group
Covered business
Non-covered business
Sanlam Investments
Wealth Management
International
Sanlam Specialised Finance

11,9
22,6
10,8
16,0
13,2
3,8
10,6

13,7
20,0
12,8
10,1
17,7
9,8
16,3

15,3
46,4
10,7
14,2
17,0
(6,4)
37,3

SantamDiscretionary capital and other

16,8
(5,5)

16,0
10,5

23,9
7,9

Group equity value(1)

9,2

11,3

15,7

Covered business
Non-covered business

8,6
11,8

7,0
15,2

15,1
17,6

Group operations
Discretionary and other capital

10,4
(5,5)

11,4
10,5

16,4
7,9

Group equity value

9,2

11,3

15,7

RoGEV per share
Sanlam group hurdle rate

9,3
7,5

12,0
7,5

16,7
15,5

(1)

Refer to the financial and strategic review on page 2 for adjusted RoGEV information.

31

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Analysis of group equity value earnings
Covered business(1)Total

Gross value of in-force

Cost of capital

Adjusted net asset value

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Operational earnings
Value of new life insurance business(2)Unwinding of discount rate
Expected profit
Operating experience variances
Risk experience
Persistency
Maintenance expenses
Working capital management
Credit spreads
Other
Operating assumption changes
Risk experience
Persistency
Maintenance expenses
Modelling changes and other

6 163
1 394
3 585
—
1 223
538
(40)
(52)
281
235
261
(39)
(7)
(6)
(100)
74

4 774
1 265
3 370
—
332
630
(647)
(111)
236
195
29
(193)
(20)
(65)
(39)
(69)

1 738
2 882
3 564
(4 517)
353
102
10
(4)
—
—
245
(544)
(19)
(13)
(118)
(394)

1 255
2 473
3 269
(4 278)
(199)
122
(441)
—
—
—
120
(10)
(12)
(46)
(51)
99

296
(166)
21
—
43
(18)
91
(1)
—
—
(29)
398
1
5
—
392

(112)
(128)
101
—
(14)
12
(26)
(1)
—
—
1
(71)
(1)
(3)
(2)
(65)

4 129
(1 322)
—
4 517
827
454
(141)
(47)
281
235
45
107
11
2
18
76

3 631
(1 080)
—
4 278
545
496
(180)
(110)
236
195
(92)
(112)
(7)
(16)
14
(103)

10 025
2 853
6 864
—
1 272
1 480
(810)
(208)
508
443
(141)
(964)
124
(837)
(421)
170

Net investment return
Expected return on adjusted net asset value
Investment variances on adjusted net asset value
Valuation and economic basis

(125)
551
(676)
(668)

670
583
87
280

—
—
—
(638)

—
—
—
267

—
—
—
142

—
—
—
14

(125)
551
(676)
(172)

670
583
87
(1)

1 030
1 106
(76)
435

Investment variances on in-force businessEconomic assumption changes
Investment yields
Long-term asset mix assumptions and otherForeign currency translation differences

(56)
(381)
(385)
4
(231)

174
(52)
(52)
—
158

102
(368)
(368)
—
(372)

197
(88)
(88)
—
158

(3)
4
—
4
141

(21)
35
35
—
—

(155)
(17)
(17)
—
—

(2)
1
1
—
—

339
128
128
—
(32)

Change in tax basis
IFRS 17 and related tax changes
Loss on disposal of subsidiaries and associatedcompanies
Goodwill from business
Net project expenses

2——(1 486)2——(1 206)

—
—

—
(280)

—
—

—
—

—
(1 452)

—
(82)
(1)

—
—
(11)

—
(82)
—

—
—
—

—
—
—

—
—
—

—
—
(1)

—
—
(11)

(958)
—
(19)

R million

GEV earnings: covered business
Acquired value of in-force
Transfers from/(to) other group operations
Transfers from covered business
Embedded value of covered business at the
beginning of the year

5 289
327
—
(4 143)

4 227
395
—
(3 768)

1 020
144
(121)
—

316
394
—
—

438
(29)
—
—

(378)
(11)
—
—

3 831
212
121
(4 143)4 289
12—(3 768)

9 061
2 259
(2 000)(8 161)61 31760 15852 50950 018(3 912)(3 640)12 72013 78060 158Embedded value of covered business at theend of the year

62 79061 01253 55250 728(3 503)(4 029)12 741

14 31361 317(1)(2)

Refer to note 8 for a detailed analysis per cluster.
Refer to note 3 for additional information.

Covered business per cluster
Total

Gross value of in-force

Cost of capital

Adjusted net asset value

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Sanlam Life and Savings
Sanlam Emerging Markets
Sanlam Investment Group50 91410 5091 367

49 4619 766
1 785

47 7035 748
101

45 2875 417
24(1 543)(1 130)(830)(1 905)(1 181)
(943)

4 754
5 891
2 096

6 079
5 530
2 704

49 85210 151
1 314

Sanlam group

62 79061 01253 55250 728(3 503)(4 029)12 741

14 31361 317

R million

32

33

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Analysis of group equity value earnings continued
Non-covered business
Total

Sanlam Life and Savings

Sanlam Allianz including
Namibia

Sanlam Investment
Group

Asia

SantamTotal

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Earnings from operations valued at listed share prices
Earnings from operations valued at net asset value
Earnings from operations valued based on discounted
cash flows

3 266
(264)

2 780
118

—
—

—
—

—
(485)

—
(169)

—
170

—
178

—
51

—
109

3 266
—

2 780
—

4 158
131

6 108

7 439

(662)

271

916

2 012

4 603

3 729

1 251

1 427

—

—

7 821

Unwinding of discount rate
Operating experience and investment variances(1)General insurance
Investment management
Credit and banking
Administration, health and other

4 217
(548)
94
(236)
(70)
(336)

3 618
(410)
(323)
(368)
225
56

734
(448)
—
—
(112)
(336)

480
40
—
—
(16)
56

1 285
17
(2)
31
(12)
—

1 302
(227)
(291)
52
12
—

1 235
150
96
—
54
—

964
197
(32)
—
229
—

963
(267)
—
(267)
—
—

872
(420)
—
(420)
—
—

—
—
—
—
—
—

—
—
—
—
—
—

7 577
712
707
(713)
797
(79)

Operating assumption changes(2)General insurance
Investment management
Credit and banking
Administration, health and other
Economic assumption changes
Change in tax basis
Impact of corporate activity
Foreign currency translation differences

3 344
320
551
3 350
(877)
462
—
(346)
(1 021)

434
(183)
382
346
(111)
156
—
—
3 641

(948)
—
—
(71)
(877)
—
—
—
—

(142)
—
—
(31)
(111)
(107)
—
—
—

101
202
4
(105)
—
(99)
—
311
(699)

(304)
(151)
(9)
(144)
—
(293)
—
—
1 534

3 644
118
—
3 526
—
544
—
(657)
(313)

489
(32)
—
521
—
461
—
—
1 618

547
—
547
—
—
17
—
—
(9)

391
—
391
—
—
95
—
—
489

—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

2 504
369
222
1 756
157
(2 684)(38)(1 985)
1 735

GEV earnings: non-covered operations

9 110

10 337

(662)

271

431

1 843

4 773

3 907

1 302

1 536

3 266

2 780

12 110R million

Total

R million(1)

Operating experience and investment variances
General insurance business
Risk experience
Premium income
Investment return
Maintenance expenses
Other
Investment management
Credit business
Administration, health and other(2)

Operating assumption changes
General insurance business
Risk experience
Premium income
Maintenance expenses
Modelling and other assumption changes
Investment management
Credit business
IncomeBad debts
Other
Administration, health and other

34

Sanlam Life and Savings

Sanlam Allianz including
Namibia

Asia

Sanlam Investment Group

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

(548)
94
54
(99)
8
(15)
146
(236)
(70)
(336)

(410)
(323)
103
46
11
(77)
(406)
(368)
225
56

(448)
—
—
—
—
—
—
—
(112)
(336)

40
—
—
—
—
—
—
—
(16)
56

17
(2)
40
(138)
14
(15)
97
31
(12)
—

(227)
(291)
106
82
26
(77)
(428)
52
12
—

150
96
14
39
(6)
—
49
—
54
—

197
(32)
(3)
(36)
(15)
—
22
—
229
—

(267)
—
—
—
—
—
—
(267)
—
—

(420)
—
—
—
—
—
—
(420)
—
—

712
707
101
994
99
326
(813)
(713)
784
(66)

3 344
320
150
(318)
546
(58)
551
3 350
4 166
(761)
(55)
(877)

434
(183)
(74)
(6)
(119)
16
382
346
485
(104)
(35)
(111)

(948)
—
—
—
—
—
—
(71)
(15)
12
(68)
(877)

(142)
—
—
—
—
—
—
(31)
(29)
(13)
11
(111)

101
202
142
(499)
546
13
4
(105)
(10)
(24)
(71)
—

(304)
(151)
(51)
(18)
(119)
37
(9)
(144)
(118)
(4)
(22)
—

3 644
118
8
181
—
(71)
—
3 526
4 191
(749)
84
—

489
(32)
(23)
12
—
(21)
—
521
632
(87)
(24)
—

547
—
—
—
—
—
547
—
—
—
—
—

391
—
—
—
—
—
391
—
—
—
—
—

2 504
369
1 886
(1 247)
(715)
445
222
1 756
2 404
(713)
65
157

35

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Analysis of group equity value earnings continued
Discretionary and other capital

Reconciliation of group equity value earnings
Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Investment return and other(1)B-BBEE SPV impairment reversal
Corporate expenses
Net group office expenses
Change in present value of holding company expenses
Share-based payment transactions

(786)
—
(61)
(47)
(14)
227

176
948
(67)
(54)
(13)
262

510
948
(611)
(468)
(143)
95

GEV earnings: discretionary and other capital

(620)

1 319

942

R million(1)

Includes losses on treasury shares and other corporate related items.

36

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

6 831

9 731

13 845

9 913

9 567

16 557

(249)
(570)
227
(11)
(2 479)

2 510
(213)
261
(777)
(1 617)

2 071
(326)
421
(2 388)(2 490)Fair value adjustments
Change in fair value adjustments: non-life
Earnings from covered business: value of in-force
Adjustments to net worth
Present value of holding company expenses
Movement in book value of treasury shares: non-life subsidiaries
Change in goodwill/value of business acquired less value of
in-force acquired and change in shareholder fund reserves

8 534
7 076
1 458
(1 586)
(14)
(68)

5 241
5 303
(62)
911
(13)
(136)

7 219
6 957
262
1 049
(143)
(137)

(1 504)

1 060

1 329

Group equity value earnings

13 77915 88322 113

R million
Earnings (excluding fund transfers)
Normalised attributable earnings per shareholders’ fundincome statement
Earnings recognised directly in equity
Foreign currency translation differences
Net cost of treasury shares delivered
Share-based payments
Change in ownership of subsidiaries
Other comprehensive income and other37

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Analysis of shareholders’ fund at net asset value

Sanlam Life(1)Sanlam Emerging Markets(2)Sanlam Investment Group

SantamGroup office

Consolidation entries

Shareholders’ fundat net asset value

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

AssetsGoodwill
Equipment
Rights-of-use assets
Owner-occupied properties
Intangible assets
Contract costs for investment management services
Insurance contract assets
Reinsurance contract assets
Deferred tax
Investments
Investment properties
Associated companies
Joint ventures
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities
Trading account assets
Advances to customers
Non-current assets reclassified as held for sale
Working capital assets
Trade and other receivables
Taxation
Cash and cash equivalents

2 295
904
434
818
2 631
2 393
67
—
470
33 876
417
2 781
—
3 965
12 870824
12 409
610
168
4 108
—
10 520
5 661
92
4 767

2 797
841
487
817
2 757
2 422
—
—
548
30 205
898
1 424
—
1 544
12 235
647
8 217
5 240
229
4 065
—
15 178
8 320
53
6 805

14
34
7
—
6
3
—
—
15
42 342
6
16 511
23 782
143
1 755
6
36
103
208
—
1 792
3 034
1 876
401
757

14
36
16
—
6
4
—
—
15
42 9388
17 24223 782
143
1 558
4
37
164
211
—
1 893
2 832
1 421
412
999

1 890
89
61
157
401
—
—
—
299
4 226
—
415
204
60
522
—
2 895
130
17 195——15 650
8 640
6
7 004

1 942
100
60
156
447
—
—
—
283
4 325
—
450
203
82
565
27
2 732
266
16 167——
12 429
8 292
19
4 118

960
190
638
—
411
—
288
7 666
326
36 726
—
1 607
—
1 902
24 281
316
5 749
2 871
—
—
—
9 575
4 443
489
4 643

955
573
637
1
120
—
408
9 361
162
32 344
—
1 524
—
2 857
20 816
296
2 786
4 065
—
—
—
10 425
6 051
474
3 900

—
—
—
—
—
—
—
—
—
3 899
—
—
—
—
3 899
—
—
—
—
—
—
2 165
1 905
41
219

—
—
—
—
—
—
—
—
—
4 030
—
—
—
—
4 030
—
—
—
—
—
—
1 819
1 607
39
173

1 197
—
—
—
—
—
—
—
(61)
(4 570)
—
(919)
—
718
(4 489)—120—(3 117)
—
—
(681)
(611)
—
(70)

1 197
—
—
—
—
—
—
—
(55)
(4 513)
—
(866)
—
792
(4 558)—119—(2 863)
—
—
(309)
(969)
—
660

6 356
1 217
1 140
975
3 449
2 396
355
7 666
1 049
116 499423
20 39523 9866 788
38 8381 146
21 2093 714
14 4544 108
1 792
40 263
21 914
1 029
17 320

6 905
1 550
1 200
974
3 330
2 426
408
9 361
953
109 329906
19 77423 9855 418
34 646974
13 8919 735
13 7444 065
1 893
42 37424 722997
16 655

Total assets

58 68460 34647 45547 96539 96835 90956 78054 986

6 064

5 849

(7 232)(6 543)201 719

198 512Equity and liabilities
Shareholders’ fundNon-controlling interest
Total equity
Insurance contract liabilities
Reinsurance contract liabilities
Term financeLease liabilities
Structured transactions liabilities
Deferred tax
Trading account liabilities
Non-current liabilities reclassified as held for sale
Collateral guarantee contracts
Working capital liabilities
Trade and other payables
Provisions
Taxation

36 857
1 052
37 909
—
—
8 217
537
424
5 413
—
19
—
6 165
4 362
39
1 764

37 9941 081
39 075
—
—
8 220
604
205
5 056
—
13
—
7 173
6 140
40
993

39 0813 769
42 850
—
—
1 300
8
—
54
117
250
—
2 876
2 826
—
50

40 1793 623
43 802
—
—
1 300
18
—
53
118
259
—
2 415
2 353
—
62

6 884
1 022
7 906
—
—
995
84
35
90
22 527
—
—
8 331
7 641
1
689

6 742
1 134
7 876
—
—
995
85
1
55
18 392
—
—
8 505
7 788
1
716

6 583
4 735
11 31833 001
2 952
3 058
813
—
1 116
835
—
114
3 573
3 315
171
87

6 233
4 222
10 45532 722
2 889
3 053
824
7
1 088
690
—
113
3 145
2 937
126
82

2 711
—
2 711
—
—
3 350
—
—
—
—
—
—
3
—
3
—

2 475
—
2 475
—
—
3 350
—
—
—
—
—
—
24
21
3
—

(4 289)(1 914)(6 203)——(3 164)
—
—
—
(373)
—
—
2 508
2 362
19
127

(4 146)(1 764)(5 910)——(3 178)
—
—
—
(66)
—
—
2 611
2 554
18
39

87 8278 664
96 49133 001
2 952
13 756
1 442
459
6 673
23 106269
114
23 45620 506233
2 717

89 4778 296
97 77332 7222 889
13 740
1 531
213
6 252
19 134272
113
23 87321 793188
1 892

Total equity and liabilities

58 68460 34647 45547 96539 96835 90956 78054 986

6 064

5 849

(7 232)(6 543)201 719

198 512Analysis of shareholders’ fund
Covered business
Other operations
Discretionary and other capital

20 486
5 128
11 24318 5115 316
14 1677 946
28 4072 728

8 402
29 422
2 355

2 096
3 793
995

2 096
3 473
1 173

—
6 583
—

—
6 233
—

—
—
2 711

—
—
2 475

—
—
(4 289)——(4 146)30 52843 91113 38829 00944 44416 024

Shareholders’ fund at net asset value
Consolidation reserve

36 857547

37 994564

39 08187

40 179
87

6 884
—

6 742
—

6 583
—

6 233
—

2 711
—

2 475
—

(4 289)263(4 146)(1 598)87 827897

89 477(947)

Shareholders’ fund per group statement of financial position
on page 90

37 40438 55839 16840 266

6 884

6 742

6 583

6 233

2 711

2 475

(4 026)(5 744)88 72488 530R million(1)(2)

Includes the operations of Sanlam Life and Savings and discretionary capital held by Sanlam Life.
Includes discretionary capital held by Sanlam Emerging Markets.

38

39

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Shareholders’ fund income statement

Sanlam Life and Savings

Sanlam Investment
Group

Sanlam Emerging Markets
SanlamAllianz(1)Namibia

SantamGroup office and other

Total

Total

Asia

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Result from life insurance operations
Insurance revenue
Insurance service expenses
Income or expense from reinsurance contracts
Insurance investment result
Other expenses relating to insurance operations

3 485
21 055(17 747)
(125)
490
(188)

3 415
18 714(14 997)
(332)
178
(148)

—
—
—
—
—
—

694
5 737
(5 146)
(207)
310
—

353
975
(785)
(27)
197
(7)

207
986
(757)
(48)
34
(8)

4
956
(899)
33
(86)
—

39
655
(709)
2
91
—

190
10
(238)
—
418
—

251
53
(259)
—
457
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

4 032
22 996(19 669)
(119)
1 019
(195)

4 606
26 145(21 868)
(585)
1 070
(156)

9 098
48 237(39 669)(1 107)
2 410
(773)

Result from general insurance operations
Insurance revenue
Insurance service expenses
Income or expense from reinsurance contracts
Insurance investment result
Other expenses relating to insurance operations

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

774
11 577(8 856)(1 991)
44
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

1 771
24 634(18 987)(3 734)
148
(290)

1 031
22 492(17 248)(4 102)
245
(356)

—
—
—
—
—
—

—
—
—
—
—
—

1 771
24 634(18 987)(3 734)
148
(290)

1 805
34 069(26 104)(6 093)
289
(356)

3 224
63 914(50 712)(10 351)
633(260)

Result from other operations
Revenue
Net other income(2)Sales remuneration
Administration costs

1 148
7 959
(35)
(543)
(6 233)

971
4 023
112
(480)
(2 684)

1 429
—
1 429
—
—

(113)
403
381
(89)
(808)

46
67
129
(43)
(107)

82
112
136
(55)
(111)

1 625
7
1 662
—
(44)

1 493
—
1 518
—
(25)

1 001
3 115
88
(35)
(2 167)

893
2 965
61
(7)
(2 126)

96
—
96
—
—

180
—
180
—
—

(123)
215
(58)
—
(280)

(270)
199
(203)
—
(266)

5 222
11 3633 311(621)(8 831)

3 236
7 702
2 185
(631)
(6 020)7 408
19 1954 999(1 186)(15 600)

Result from financial services before tax
Tax on result from financial services
Non-controlling interest

4 633(1 258)(41)

4 386(1 211)
9

1 429
(392)
(160)

1 355
(603)
(226)

399
(40)
(90)

289
(43)
(41)

1 629
(458)
(44)

1 532
(386)
(103)

1 191
(286)
(134)

1 144
(282)
(132)

1 867
(416)
(726)

1 211
(302)
(366)

(123)
31
45

(270)
59
157

11 025(2 819)(1 150)9 647(2 768)(702)

19 730(5 312)(2 039)Net result from financial services
Net investment income
Net investment surpluses
Project expenses

3 334
303
(2)
(13)

3 184
215
69
(49)

877
366
210
(95)

526
23
509
(72)

269
8
7
—

205
38
8
—

1 127
(16)
133
(30)

1 043
13
17
—

771
35
23
(6)

730
62
72
(27)

725
47
218
—

543
160
206
(4)

(47)
(120)
—
(37)

(54)
146
—
(77)

7 056
623
589
(181)

6 177
657
881
(229)

12 379
1 136
984
(610)

Net operational earnings
Shareholders’ fund adjustments
Net amortisation of value of business acquired andother intangibles
Impairments
Net equity-accounted earnings
Net profit on disposal of subsidiaries and associatedcompanies

3 622
1 740

3 419
(59)

1 358
185

986
277

284
(8)

251
63

1 214
(19)

1 073
(123)

823
—

837
—

990
—

905
—

(204)
—

15
—

8 087
1 898

7 486
158

13 889
1 776

(44)
(488)
—

(9)
(8)
(7)

—
(25)
(267)

—
(253)
(3)

—
—
—

—
—
—

—
—
—

—
—
—

(34)
—
—

(31)
—
—

(28)
—
24

(17)
—
28

—
—
—

—
948
—

(106)
(513)
(243)

(57)
687
18

(112)
623
45

3

(134)

—

1 310

—

—

793

—

(6)

14

—

85

—

—

790

1 275

336

Normalised attributable earnings
Fund transfers

4 833
(17)

3 202
(184)

1 251
—

2 317
(18)

276
—

314
—

1 988
—

950
—

783
(1)

820
—

986
7

1 001
(5)

(204)
30

963
(1 444)

9 913
19

9 567
(1 651)

16 557(2 079)Attributable earnings per group statement ofcomprehensive income

4 816

3 018

1 251

2 299

276

314

1 988

950

782

820

993

996

(174)

(481)

9 932

7 916

14 478

Diluted earnings per share
Weighted average number of shares fornormalised earnings per share (million)
Net result from financial services (cents)

157,5

144,5

41,4

23,9

12,7

9,3

53,3

47,3

36,4

33,1

34,3

24,6

(2,2)

(2,5)

2 116,4333,42 203,7280,2

2 158,1573,6

R million

Comparative information is the former SPA (excluding Namibia) prior to the merger with Allianz to form part of the Sanlam Allianz
merger, refer to page 62 for additional information.
(2)
Net other income includes equity-accounted earnings from strategic investments in associates and joint venture as
disclosed in note 9.
(1)

40

41

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Net results from financial services
Geographic analysis per line of business(1)Life business

Investment
management

General insurance

Credit and structuring

Administrationand healthCorporate expenses
and other

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

South Africa
Pan-Africa
Other International
Asia
Developed Markets

3 350
553
26
26
—

3 158
268
60
60
—

725
569
153
153
—

543
545
158
158
—

359
44
128
—
128

344
40
97
—
97

137
105
876
876
—

125
140
757
757
—

131
—
—
—
—

190
—
—
—
—

(47)
(125)
72
72
—

(54)
(262)
68
68
—

4 655
1 146
1 255
1 127
128

4 306
731
1 140
1 043
97

8 456
1 463
2 460
2 226
234

Net results from financial services

3 929

3 486

1 447

1 246

531

481

1 118

1 022

131

190

(100)

(248)

7 056

6 177

12 3795 062(1 133)

3 454
32

1 583
(136)

1 285
(39)

531
—

481
—

1 118
—

1 022
—

131
—

190
—

(100)
—

(248)
—

8 325
(1 269)6 184(7)13 674(1 295)

(44)
(47)
(62)
(980)

88
(143)
76
11

—
—
(136)
—

—
—
(39)
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

(44)
(47)
(198)
(980)

88
(143)
37
11

(178)
(597)
(326)
(194)

3 929

3 486

1 447

1 246

531

481

1 118

1 022

131

190

(100)

(248)

7 056

6 177

12 379R million

Net results from financial services
before SHF adjustments
SHF adjustments
Impact of adjusting the CSM at
locked‑in interest rates
Insurance contracts economic impact
Asset mismatch reserve movements
Other adjustments(2)Net results from financial services
after SHF adjustments(1)(2)

Refer to note 8 for an analysis per cluster.
Includes the non-cash earnings impact in respect of Capitec recapture fee recognition of R875 million.

Notes to the shareholders’ fund information

2

Net movement in specific shareholders’ fund reserves
Reviewed
30 June2024

Audited31 December
2023

Balance at the beginning of the period
Included in net results from financial services:
Asset mismatch and other shareholder fund reserves profit/(loss)
adjustments recognised during the period
Asset mismatch reserves released during the period
Recognised in net investment return
Recognised directly in statement of changes in equity
Cash flow movements not in the income statement

14 5781 269

11 735
1 295

1 550
(281)
629
(24)
(7)

1 984
(689)
481
1 033
34

Balance at the end of the period
Consisting of:

16 445

14 578Asset mismatch reserve
Life business
General insurance
Future-fit project expense reserve
Pandemic reserve
Reserves backed by insurance contract assets
Capitec recapture allowance (1)
Other

6 965
6 346
619
1 660
660
6 997
875
6 122

6 203
5 528
675
1 660
660
5 866
—
5 866

163

189

R million

1

Cash earnings
Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Net result from financial services before shareholders’fund adjustments
Shareholders’ fund adjustments

8 325(1 269)6 184(7)13 674(1 295)

Net result from financial services
Amortisation of capitalised IT projects
IFRS 17 specific and other non-cash adjustments

7 056
118
7

6 177
62
17

12 379142(123)

Cash net result from financial services
Project expenses not included in net results fromfinancial services
Project expenses per shareholders’ fund income statement
Funded from discretionary capital

7 181

6 256

12 398

(166)
(181)
15

(154)
(229)
75

(339)
(610)
271

Cash generated

7 015

6 102

12 059R million

Other reserves(1)

42

The termination of the group’s funeral joint venture with Capitec (31 October 2024) accelerated the recognition of the
CSM for services provided in the period (refer to note 2.2.2 on page 100). This resulted in insurance contract assets being
recognised for the Capitec portfolio of insurance contracts. A shareholders’ fund reserve of R875 million has been
established backed by these insurance contract assets, with a corresponding adjustment to net result from financial
services to remove the non-cash earnings associated with the partial recognition of the recapture fee in the groupstatement of comprehensive income. This shareholders’ fund reserve will not be required for the 2024 financial year-end.

43

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
3

Value of new covered business
Total

Sanlam Life and Savings

Sanlam Emerging Markets
SanlamAllianz

Namibia

Asia

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Value of new covered business (at point of sale)
Gross value of new covered business
Cost of capital

1 575
(69)

1 600
(169)

986
21

1 005
(74)

157
(30)

242
(45)

226
(16)

150
(12)

206
(44)

203
(38)

Value of new covered business

1 506

1 431

1 007

931

127

197

210

138

162

165

Value of new business attributable to
Shareholders’ fundNon-controlling interest

1 394
112

1 265
166

1 007
—

928
3

127
—

126
71

132
78

82
56

128
34

129
36

Value of new covered business

1 506

1 431

1 007

931

127

197

210

138

162

165

52 3982,87%

47 4993,01%

43 111
2,34%

37 520
2,48%

3 378
3,76%

5 395
3,65%

2 030
10,34%

1 629
8,47%

3 879
4,18%

2 955
5,58%

51 0442,73%

44 751
2,83%

43 111
2,34%

37 430
2,48%

3 378
3,76%

3 889
3,24%

1 473
8,96%

1 171
7,00%

3 082
4,15%

2 261
5,71%

3,7

3,7

4,3

4,2

2,3

2,3

5,0

4,9

3,1

3,5

R million

Analysis of new business profitability

Before non-controlling interest
Present value of new business premiums
New business margin

After non-controlling interest
Present value of new business premiums
New business margin
Capitalisation factor – recurring premiums

Geographical analysis
Value of new coveredbusiness

Present value of new
business premiums

New business margin

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Before non-controlling interest
South Africa
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Pan-Africa – excluding South Africa
Asia

1 007
376
163
404
64
337
162

931
376
147
388
20
335
165

43 1116 899
7 039
22 543
6 630
5 408
3 879

37 5206 224
6 488
19 447
5 361
7 024
2 955

2,34%
5,45%
2,32%
1,79%
0,97%
6,23%
4,18%

2,48%
6,04%
2,27%
2,00%
0,37%
4,77%
5,58%

Total

1 506

1 431

52 39847 499

2,87%

3,01%

After non-controlling interest
South Africa
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Pan-Africa – excluding South Africa
Asia

1 007
376
163
404
64
259
128

928
376
144
388
20
208
129

43 1116 899
7 039
22 543
6 630
4 851
3 082

37 4306 224
6 398
19 447
5 361
5 060
2 261

2,34%
5,45%
2,32%
1,79%
0,97%
5,34%
4,15%

2,48%
6,04%
2,25%
2,00%
0,37%
4,11%
5,71%

Total

1 394

1 265

51 04444 751

2,73%

2,83%

R million

44

45

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
4

Covered business sensitivity analysis
Gross value of in-force
business

R million
Value of in-force
covered businesssensitivity analysis
Base value
Risk discount rateincrease by 1%
Gross value of
in-force businessprofileYear 1 – 5Year 1
Year 2
Year 3
Year 4
Year 5
Year 6 – 10
Year 11 – 20
Year 20+46

Net value of
in-force businessChange from base value %Reviewed
Audited Reviewed
Audited Reviewed
Audited Reviewed
Audited30 June 31 December
30 June 31 December
30 June 31 December
30 June 31 December
2024
2023
2024
2023
2024
2023
2024
2023

53 55252 509(3 503)(3 912)50 04948 59751 01450 274(3 859)(4 270)47 15546 004

62%
18%
15%
12%
9%
8%
22%
13%
3%

61%
18%
14%
12%
9%
8%
22%
14%
3%

Gross value of
new businessR million

Cost of capital

(6)

(5)

5

Economic assumptions – covered business

5.1

Gross investment return, risk discount rate and inflation
Reviewed
30 June2024

Audited31 December
2023

Sanlam Life (1)Point used on the relevant yield curve
Fixed-interest securities
Equities
Offshore investments
Hedged equity
Property
Cash
Inflation rate (1)Risk discount rate

9 year
11,8
15,3
14,3
10,8
12,8
10,8
9,8
14,3

9 year
11,6
15,1
14,1
10,6
12,6
10,6
9,6
14,1

Sanlam Developing Markets(2)Point used on the relevant yield curve
Fixed-interest securities
Equities and offshore investments
Hedged equities
Property
Cash
Inflation rate
Risk discount rate

5 year
10,2
13,7
9,2
11,2
9,2
8,2
12,7

5 year
9,8
13,3
8,8
10,8
8,8
7,8
12,3

%

Expense inflation of CPI curve+1,5% (capped at 10%) plus an additional 13% is assumed for retail business administered on
old platforms.
(2)
Excludes the Sanlam Life products written on the SDM's licences.
(1)

Cost of capital

Net valueof new businessChange frombase value %Reviewed
Audited Reviewed
Audited Reviewed
Audited Reviewed
Audited30 June 31 December
30 June 31 December
30 June 31 December
30 June 31 December
2024
2023
2024
2023
2024
2023
2024
2023

Value of new
covered businesssensitivity analysis
Base value

1 560

3 108

(166)

(255)

1 394

2 853

Risk discountrate increase
by 1%

1 426

2 843

(174)

(274)

1 252

2 569

Illiquidity premiums
Investment returns on non-participating, individual risk and inflation-linked annuities, as well as guarantee
plans include assumed illiquidity premiums due to matching assets being held to maturity.
Assumed illiquidity premiums generally amount to between 25bps and 70bps (2023: 25bps and 70bps) for
non-participating annuities, between 0bps and 70bps (2023: 0bps and 70bps) for individual risk business,
between 25bps and 75bps (2023: 25bps to 75bps) for inflation-linked annuities and capped at 120bps(2023: 120bps), reflecting both illiquidity premiums and credit risk premium for guarantee plans.

(10)

(10)

47

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
5

Economic assumptions – covered business continued

5.2

Asset mix of the assets supporting adjusted net asset value – covered business
Fixed-interest securities %Equities %Hedged equities %Property %Cash %

Total %

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Required capitalSouth Africa(1)Namibia
Africa – excluding South Africa and Namibia
Shriram Life Insurance (India)
MCIS (Malaysia)

6 885
1 115
1 761
824
747

6 825
1 109
1 821
616
798

Total required capitalFree surplus

11 332
1 409

11 169
1 551

Adjusted net asset value

12 741

12 720(1)

5.3

R million
Reviewed
Audited30 June 31 December
2024
2023

—
14
73
100
68

4
22
2
—
19

4
25
2
—
17

86
—
—
—
—

87
—
—
—
—

—
—
9
—
—

—
—
10
—
—

10
63
16
—
14

9
61
15
—
15

100
100
100
100
100

100
100
100
100
100

At 30 June 2024 asset mix backing the Sanlam Life required capital is 99% hedged (31 December 2023: 98%).

Assumed long-term expected return on required capital
Gross %

Sanlam Life
Sanlam Developing Markets
Sanlam Namibia
Sanlam Namibia Holdings
Shriram Life Insurance (India)
MCIS (Malaysia)

48

—
15
73
100
67

Net %

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

10,8
10,1
12,8
10,9
6,6
4,4

10,6
9,7
12,6
10,5
7,6
4,4

9,1
7,9
11,5
9,5
5,6
4,1

8,9
7,5
11,3
9,2
6,5
4,1

49

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
6

Value of non-covered operations sensitivity analysis

6.1

Valuation methodology

6.2

Sensitivity analysis: businesses valued at discounted cash flows

Total
Reviewed
30 June2024

Audited31 December
2023

Listed share price – Santam
Discounted cash flows
Sanlam Life and Savings
Glacier
Sanlam Personal Loans
Sanlam Corporate
Other operations
Sanlam Emerging Markets
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia

22 08559 636
7 193
3 322
2 080
1 363
428
40 186
17 574
1 370
20 971271

19 43355 743
7 840
3 136
2 066
2 278
360
36 387
16 9101 320
17 858299

Sanlam Investment Group
Sanlam Investments
Wealth Management
International
Sanlam Specialised Finance

12 257
3 576
3 762
3 431
1 488

11 516
3 211
3 424
3 476
1 405

Net asset value
Sanlam Investment Group
Sanlam Emerging Markets

1 253
742
511

1 255
636
619

Total

82 97476 431

R million

R million
Sanlam Life and Savings
Glacier
Sanlam Personal Loans
Sanlam Corporate
Other operations
Sanlam Emerging
Markets
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Sanlam Investment
Group
Sanlam Investments(1)Wealth Management
International
Sanlam Specialised
Finance

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

7 193
3 322
2 080
1 363
428

7 840
3 136
2 066
2 278
360

6 673
3 068
1 936
1 253
416

7 252
2 890
1 983
2 095
284

7 384
3 421
2 125
1 406
432

8 049
3 238
2 095
2 348
368

40 186
17 574
1 370
20 971271

36 387
16 9101 320
17 858299

35 52916 4591 244
17 555271

32 27915 523
1 207
15 302247

43 95318 330
1 433
23 919271

39 98118 2271 377
20 058319

12 257
3 576
3 762
3 431

11 516
3 211
3 424
3 476

11 238
3 295
3 437
3 121

10 578
2 995
3 120
3 158

12 706
3 680
3 909
3 591

11 964
3 298
3 570
3 652

1 488

1 405

1 385

1 305

1 526

1 444

59 63655 74353 44050 10964 04359 994

16,1%

16,1%

2 — 7%

2 — 7%

Equities andproperties -10%

Sanlam Life and Savings
Glacier
Sanlam Personal Loans
Sanlam Corporate
Other operations
Sanlam Emerging
Markets
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Sanlam Investment
Group
Sanlam Investments(1)Wealth Management
International
Sanlam Specialised
Finance(1)

Perpetuity growthrate +1%

Reviewed
30 June2024

Weighted averageassumption

R million

50

Risk discountrate +1%

Base value

Risk discountrate -1%

Rand exchange rate
depreciation +10%

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

6 802
2 931
2 080
1 363
428

7 552
2 848
2 066
2 278
360

7 797
3 618
2 245
1 491
443

8 460
3 424
2 161
2 488
387

7 193
3 322
2 080
1 363
428

7 840
3 136
2 066
2 278
360

40 186
17 574
1 370
20 971271

36 387
16 9101 320
17 858299

46 56019 112
1 520
25 657271

42 32619 166
1 455
21 345360

44 03619 300
1 370
23 068298

39 87418 581
1 320
19 644329

10 929
3 098
3 569
2 872

10 234
2 829
3 200
2 905

13 476
3 908
4 149
3 811

12 638
3 463
3 787
3 868

12 636
3 610
3 773
3 765

11 902
3 242
3 438
3 817

1 390

1 300

1 608

1 520

1 488

1 405

57 91754 17367 83363 42463 86559 616

Includes third-party asset management business based on the following main assumptions:— Weighted average discount rate: 19,5% (December 2023: 19,3%)— Weighted average perpetuity growth rate: 5,0% (December 2023: 5,0%)51

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
7

Business volumes

7.1

Analysis of new business and total funds received
Life business(1)General insurance

Investment business(2)

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Sanlam Life and Savings
Sanlam Risk and Savings
RecurringSingleGlacier: Single
SA Retail Mass: Recurring
Sanlam Corporate
RecurringSingleSanlam Emerging Markets
Sanlam Allianz
RecurringSingleNamibia
RecurringSingleAsia: India
RecurringSingleAsia: Malaysia
RecurringSingleSanlam Investment Group
Investment Management SA
Wealth Management
International
Santam

31 611
1 749
1 022
727
22 199
2 256
5 407
219
5 188
5 585
2 666
1 201
1 465
1 194
209
985
964
588
376
761
446
315
—
—
—
—
—

26 926
1 708
1 050
658
19 180
2 045
3 993
252
3 741
5 511
3 461
1 459
2 002
961
171
790
653
384
269
436
352
84
—
—
—
—
—

—
—
—
—
—
—
—
—
—
7 649
6 364
6 364
—
—
—
—
1 146
1 146
—
139
139
—
—
—
—
—
16 018

—
—
—
—
—
—
—
—
—
9 662
8 690
8 690
—
—
—
—
851
851
—
121
121
—
—
—
—
—
14 37733 44665
560
29 059
—
4 322
232
4 090
7 972
6 183
—
6 183
1 789
—
1 789
—
—
—
—
—
—
101 71186 009
6 633
9 069
—

28 42465
956
24 053
—
4 306
95
4 211
8 961
7 099
—
7 099
1 862
—
1 862
—
—
—
—
—
—
96 93284 063
5 466
7 403
—

65 057
1 814
1 027
787
51 258
2 256
9 729
451
9 278
21 20615 213
7 565
7 648
2 983
209
2 774
2 110
1 734
376
900
585
315
101 71186 0096 633
9 069
16 01855 350
1 773
1 059
714
43 233
2 045
8 299
347
7 952
24 13419 25010 149
9 101
2 823
171
2 652
1 504
1 235
269
557
473
84
96 93284 0635 466
7 403
14 377125 496
3 396
2 134
1 262
91 6344 417
26 049886
25 16348 44038 63317 90420 729
5 312
342
4 970
3 330
2 811
519
1 165
867
298
192 947
164 919
11 11516 91329 707

Total new business

37 19632 437

23 66724 039143 129

134 317

203 992

190 793

396 590

Recurring premiums on existing funds:
Sanlam Life and Savings
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Sanlam Emerging Markets
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia

19 325
5 788
8 455
130
4 952
5 154
2 511
800
987
856

18 454
5 184
8 177
113
4 980
5 028
2 675
729
828
796

—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—

2 888
—
74
—
2 814
—
—
—
—
—

2 396
—
70
—
2 326
—
—
—
—
—

22 213
5 788
8 529
130
7 766
5 154
2 511
800
987
856

20 850
5 184
8 247
113
7 306
5 028
2 675
729
828
796

41 60310 43216 736(222)
14 657
9 509
4 849
1 534
1 406
1 720

Total funds received

61 67555 91923 66724 039146 017136 713231 359

216 671447 702

R million

Life business relates to business written under a life licence that is included in the calculation of embedded value ofcovered business.
(2)
Includes life licence and investment business. Life licence business relates to investment products provided by meansof a policy where there is very little or no insurance risk excluded from the calculation of embedded value ofcovered business.
(1)

52

53

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
7

Business volumes continued

7.2

Analysis of payments to clients
Life business(1)General insurance

Investment business(2)

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Sanlam Life and Savings
SA Retail Mass
Surrenders
Other
Sanlam Risk and Savings
Surrenders
Other
Glacier
Surrenders
Other
Sanlam Corporate
Surrenders
Other
Sanlam Emerging Markets
SanlamAllianz
Surrenders
Other
Namibia
Surrenders
Other
Asia: India
Surrenders
Other
Asia: Malaysia
Surrenders
Other
Sanlam Investment Group
Investment Management SA
Wealth Management
International
Santam44 240
4 719
243
4 476
11 087736
10 35117 4244 976
12 44811 010
1 874
9 136
6 865
3 033
—
3 033
1 863
92
1 771
510
101
409
1 459
365
1 094
—
—
—
—
—

41 223
3 994
253
3 741
10 989791
10 19816 525
5 026
11 499
9 715
1 976
7 739
7 231
4 022
706
3 316
1 494
96
1 398
400
77
323
1 315
368
947
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—
—
—
4 552
3 764
—
3 764
—
—
—
689
—
689
99
—
99
—
—
—
—
9 861

—
—
—
—
—
—
—
—
—
—
—
—
—
5 850
5 243
—
5 243
—
—
—
521
—
521
86
—
86
—
—
—
—
9 491

35 787
—
—
—
148
—
148
29 826—29 826
5 813
1 534
4 279
7 356
5 005
—
5 005
2 351
—
2 351
—
—
—
—
—
—
98 72686 072
4 495
8 159
—

29 755
—
—
—
171
—
171
23 203—23 203
6 381
1 216
5 165
10 834
8 055
—
8 055
2 779
—
2 779
—
—
—
—
—
—
100 930
84 5235 104
11 303—80 027
4 719
243
4 476
11 235736
10 49947 2504 976
42 27416 8233 408
13 41518 77311 802—11 802
4 214
92
4 122
1 199
101
1 098
1 558
365
1 193
98 72686 072
4 495
8 159
9 861

70 978
3 994
253
3 741
11 160791
10 36939 7285 026
34 702
16 096
3 192
12 90423 91517 320706
16 614
4 273
96
4 177
921
77
844
1 401
368
1 033
100 930
84 5235 104
11 3039 491

150 703
8 322
513
7 809
22 365
1 598
20 76785 881
11 66774 21434 1356 068
28 06747 22333 346
1 099
32 247
8 939
187
8 752
2 019
159
1 860
2 919
914
2 005
194 362
161 004
9 371
23 98719 742

Total payments to clients

51 10548 45414 41315 341

141 869

141 519207 387

205 314412 030

R million

Life business relates to business written under a life licence that is included in the calculation of embedded value ofcovered business.
(2)
Includes life licence and investment business. Life licence business relates to investment products provided by meansof a policy where there is very little or no insurance risk excluded from the calculation of embedded value ofcovered business.
(1)

54

55

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
7

Business volumes continued

7.3

Analysis of net inflow/(outflow) of funds
Life business(1)General insurance

Investment business(2)

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Sanlam Life and Savings
SA Retail Mass
Sanlam Risk and Savings
Glacier
Sanlam Corporate
Sanlam Emerging Markets
SanlamAllianz
Namibia
Asia: India
Asia: Malaysia
Sanlam Investment Group
Investment Management SA
Wealth Management
International
Santam

6 696
3 325
(883)
4 905
(651)
3 874
2 144
131
1 441
158
—
—
—
—
—

4 157
3 235
(1 104)
2 768
(742)
3 308
2 114
196
1 081
(83)
—
—
—
—
—

—
—
—
—
—
3 097
2 600
—
457
40
—
—
—
—
6 157

—
—
—
—
—
3 812
3 447
—
330
35
—
—
—
—
4 886

547
—
(9)
(767)
1 323
616
1 178
(562)
—
—
2 985
(63)
2 138
910
—

1 065
—
(36)
850
251
(1 873)
(956)
(917)
—
—
(3 998)(460)362(3 900)
—

7 243
3 325
(892)
4 138
672
7 587
5 922
(431)
1 898
198
2 985
(63)
2 138
910
6 157

5 222
3 235
(1 140)
3 618
(491)
5 247
4 605
(721)
1 411
(48)
(3 998)(460)362(3 900)4 886

16 3966 527(2 233)5 531
6 571
10 726
10 136(2 093)2 717(34)(1 415)3 915
1 744(7 074)
9 965

Total net fund inflows/(outflows)

10 570

7 465

9 254

8 698

4 148

(4 806)23 97211 35735 672

R million

Life business relates to business written under a life licence that is included in the calculation of embedded value ofcovered business.
(2)
Includes life licence and investment business. Life licence business relates to investment products provided by meansof a policy where there is very little or no insurance risk excluded from the calculation of embedded value ofcovered business.
(1)

56

57

Sanlam Life and Savings

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SLS

8Cluster information

8.1

Sanlam Life and Savings

8.1.1 Analysis of earnings
Life business

Credit and structuring

Administration and health

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Net result from financial services(1)Risk and Savings (2)GlacierOther
SA Retail Mass
Sanlam Corporate
Net investment return
Net other earnings(3)Net profit on disposal of subsidiaries,
associated companies and joint ventures

3 173
1 390
464
58
823
438
175
1 728

2 963
1 260
456
49
748
450
248
(89)

30
—
—
30
—
—
—
—

31
—
—
31
—
—
—
—

131
10
140
(94)
—
75
126
(533)

190
7
121
21
—
41
36
(44)

3 334
1 400
604
(6)
823
513
301
1 195

3 184
1 267
577
101
748
491
284
(133)

6 612
2 721
1 054
252
1 553
1 032
692
1 082

3

—

—

—

—

(133)

3

(133)

845

Normalised attributable earnings

5 079

3 122

30

31

(276)

49

4 833

3 202

9 231

R million

For life business, this includes non-cash items (eg amortisation of project expenses, impacts related to insurance contract
assets) and will therefore not reconcile to embedded value adjusted net asset earnings which only includes cash earnings.
(2)
Risk and savings was previously disclosed as recurring premium.
(3)
The termination of the group’s funeral joint venture with Capitec (31 October 2024) accelerated the recognition of the
CSM for services provided in the period (refer to note 2.2.2 on page 100). This resulted in insurance contract assets being
recognised for the Capitec portfolio of insurance contracts. A shareholders’ fund reserve of R875 million has been
established backed by these insurance contract assets, with a corresponding adjustment to net result from financial
services to remove the non-cash earnings associated with the partial recognition of the recapture fee in the groupstatement of comprehensive income. This does not impact IFRS reporting earnings.
(1)

8.1.2 Assets under management
SA Retail Mass

Risk and Savings

Glacier

Sanlam Corporate

Total

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Life business
Investment operations

4 888
—

4 963
—

172 389
1 803

169 811
1 756

316 784
394 326

297 518376 200

170 796—

160 529—664 857
396 129632 821377 956

Total assets under management

4 888

4 963

174 192

171 567

711 110673 718170 796

160 529

1 060 986

1 010 777

R million

8.1.3 Credit business
Gross size of loan book

R million
Sanlam Personal Loans

58

Interest margin

Administration cost
as % of net interest

Bad debt ratio

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

5 221

5 163

15,7%

15,4%

6,6%

6,4%

43,1%

42,2%

59

Sanlam Life and Savings

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SLS

8Cluster information continued

8.1

Sanlam Life and Savings continued

8.1.4 Analysis of change in GEV – covered businessTotal

R million
Operational earnings
Value of new life insurance business
Unwinding of discount rate
Expected profit
Operating experience variances
Risk experience
Persistency
Maintenance expenses
Working capital management
Other
Operating assumption changes
Risk experience
Persistency
Maintenance expenses
Modelling changes and other
Net investment return
Expected return on adjusted net asset value
Investment variances on adjusted net
asset value
Valuation and economic basis
Investment variances on in-force businessEconomic assumption changes
IFRS 17 and related tax changes
Profit on disposal of subsidiaries andassociated companies
Goodwill from business

60

Gross value of in-force

Cost of capital

Adjusted net asset value

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

4 915
1 007
3 146
—
901
574
(57)
(44)
240
188
(139)
—
(1)
(87)
(51)

4 156
928
2 913
—
317
560
(412)
(66)
196
39
(2)
—
—
4
(6)

1 478
2 176
3 133
(3 849)
358
90
23
—
—
245
(340)
—
(1)
(101)
(238)

1 181
1 951
2 887
(3 709)
(80)
84
(284)
—
—
120
132
—
—
(4)
136

117
(84)
13
—
18
(19)
61
—
—
(24)
170
—
—
—
170

(35)
(63)
26
—
10
3
2
—
—
5
(8)
—
—
—
(8)

3 320
(1 085)
—
3 849
525
503
(141)
(44)
240
(33)
31
—
—
14
17

3 010
(960)
—
3 709
387
473
(130)
(66)
196
(86)
(126)
—
—
8
(134)

8 273
2 153
6 022
—
729
1 406
(796)
(153)
387
(115)
(631)
192
(704)
(325)
206

175
192

246
249

—
—

—
—

—
—

—
—

175
192

246
249

452
528

(17)
(584)
(127)
(457)
—

(3)
(167)
(29)
(138)
(1 292)

—
(474)
(7)
(467)
—

—
(145)
(2)
(143)
(1 278)

—
11
3
8
—

—
(6)
(8)
2
(14)

(17)
(121)
(123)
2
—

(3)
(16)
(19)
3
—

(76)
72
(4)
76
(1 292)

—
(24)

—
—

—
(24)

—
—

—
—

—
—

—
—

—
—

(372)
—

GEV earnings: covered business
Acquired value of in-force
Transfers from/(to) other group operations
Transfers from covered business
Embedded value of covered business at the
beginning of the period

4 482
40
—
(3 460)

2 943
395
—
(3 263)

980
34
(121)
—

(242)
394
—
—

128
(1)
—
—

(55)
(11)
—
—

3 374
7
121
(3 460)3 240
12—(3 263)

7 133
1 482
(1 392)(6 757)49 85249 38646 81045 135(1 670)(1 839)

4 712

6 090

49 386

Embedded value of covered business at theend of the period

50 91449 46147 70345 287(1 543)(1 905)

4 754

6 079

49 85261

Sanlam Emerging Markets

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SEM

8

Cluster information continued

8.2

Sanlam Emerging Markets

8.2.1 Analysis of net result from financial services and investment return
Life business

General insurance

Investment management

Credit and structuring

Corporate and other

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Sanlam Pan-Africa
SanlamAllianz
Namibia
Asia

393
160
26

155
113
60

569
—
153

545
—
158

33
11
—

31
9
—

7
98
876

57
83
757

(125)
—
72

(262)
—
68

877
269
1 127

526
205
1 043

939
495
2 166

Net result from financial services

579

328

722

703

44

40

981

897

(53)

(194)

2 273

1 774

3 600

Sanlam Pan-Africa
SanlamAllianz
Namibia
Asia

287
15
25

159
45
32

278
—
153

540
—
12

21
—
—

18
—
—

—
—
7

1
1
3

(10)
—
(68)

(186)
—
(17)

576
15
117

532
46
30

175
66
193

Net investment return

327

236

431

552

21

18

7

5

(78)

(203)

708

608

434

R million

8.2.2 Analysis of Sanlam Pan-Africa key performance indicators
8.2.2.1 Analysis of general insurance and reinsurance

Gross written premiums

R million

Underwriting result

Claims ratio (%)

Net insurance
result (%)

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

18 32814 65515 01213 500

677

638

60,2%

60,2%

6,4%

7,3%

4,9%

2,2%

11,3%

9,5%

Sanlam Allianz (100%)(1)(1)

Insurance revenue

Investment returnon insurance
funds margin (%)

Underwriting
margin (%)

June 2023 does not include any results from the SanlamAllianz JV.

8.2.2.2 Assets under management – Associates, Joint Ventures and Subsidiaries
SanlamAllianz

Namibia

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Life business
Investment operations

61 760111 645

63 583111 487

7 903
30 8025 679
29 685

Total assets under management

173 405

175 070

38 70535 364

R million

8.2.2.3 Credit and structuring – Namibia
Size of loan books(Sanlam share)

R million
Capricorn Investment Holdings

62

Net interest margin

Administration cost as %of net interest margin

Bad debt ratio

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

11 73811 181

6,7%

6,4%

0,9%

0,7%

89,7%

89,8%

63

Sanlam Emerging Markets

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SEM

8

Cluster information continued

8.2

Sanlam Emerging Markets continued

8.2.2 Analysis of Sanlam Pan-Africa key performance indicators continued
8.2.2.4 Analysis of change in GEV – covered business
Total

Cost of capital

Adjusted net asset value

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Operational earnings
Value of new life insurance business
Unwinding of discount rate
Expected profit
Operating experience variances
Risk experience
Persistency
Maintenance expenses
Working capital management
Credit spread
Other
Operating assumption changes
Risk experience
Persistency
Maintenance expenses
Modelling changes and other

947
259
348
—
176
(14)
52
10
41
2
85
164
(8)
1
(15)
186

328
208
366
—
(107)
83
(182)
(41)
40
—
(7)
(139)
(4)
(40)
(41)
(54)

194
362
342
(381)
13
7
5
1
—
—
—
(142)
(8)
(3)
(14)
(117)

13
296
317
(390)
(92)
30
(124)
—
—
—
2
(118)
(3)
(31)
(43)
(41)

235
(48)
6
—
29
—
32
(1)
—
—
(2)
248
—
4
—
244

(31)
(36)
49
—
(1)
4
—
(1)
—
—
(4)
(43)
(1)
—
(2)
(40)

518
(55)
—
381
134
(21)
15
10
41
2
87
58
—
—
(1)
59

346
(52)
—
390
(14)
49
(58)
(40)
40
—
(5)
22
—
(9)
4
27

Net investment return
Expected return on adjusted net asset value
Investment variances on adjusted net asset value
Valuation and economic basis
Investment variances on in-force businessEconomic assumption changes
Investment yields
Long-term asset mix assumptions and otherForeign currency translation differences

(360)
252
(612)
(59)
47
101
97
4
(207)

172
179
(7)
283
180
29
29
—
74

—
—
—
(227)
12
102
102
—
(341)

—
—
—
258
165
36
36
—
57

—
—
—
131
(6)
3
(1)
4
134

—
—
—
(10)
(13)
(14)
(14)
—
17

(360)
252
(612)
37
41
(4)
(4)
—
—

172
179
(7)
35
28
7
7
—
—

Change in tax basis
IFRS 17 and related tax changes
Goodwill from business
Net project expenses

2
—
(58)
—

—
(194)
—
(9)

2
—
(58)
—

—
72
—
—

—
—
—
—

—
(266)
—
—

—
—
—
—

—
—
—
(9)

GEV earnings: covered business
Acquired value of in-force
Transfers from covered business
Embedded value of covered business at the beginning of the period

472
287
(430)
7 495

580
—
(157)
6 777

(89)
110
—
4 222

343
—
—
3 749

366
(28)
—
(1 158)

(307)
—
—
(626)

195
205
(430)
4 431

544
—
(157)
3 654

Embedded value of covered business at the end of the period

7 824

7 200

4 243

4 092

(820)

(933)

4 401

4 041

R million

64

Value of in-force

65Sanlam Emerging Markets

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SEM

8

Cluster information continued

8.2

Sanlam Emerging Markets continued

8.2.3.3 Insurance activities
Analysis of net result from financial services (Shriram General Insurance) (100%)

8.2.3 Analysis of India key performance indicators

Net result from financial services

R million

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

56
159
876
89

56
168
757
68

97
337
1 573
141

1 180

1 049

2 148

Life business
General insurance
Credit and structuring
Corporate and otherTotal net result from financial services(1)On 28 March 2024 the indirect shareholding of Shriram Finance Limited (SFL) changed from 8,18% to 9,13% and the
direct shareholding of SFL changed from 2,01% to 0,41%. Size of loanbook (Sanlam share) is calculated on the newshareholding. The credit and structuring net result from financial services includes three months results on newshareholding and three months results on the old shareholding.

Size of loan books(Sanlam share)66

Net interest margin

Reviewed
Audited Reviewed
Audited30 June 31 December
30 June 31 December
2024
2023
2024
2023

47 062

2 580
(72)
613

Net insurance result (100%)(1)

666

541

Sanlam share of the after-tax net insurance result(before shareholders’ fund adjustments)
Shareholders’ fund adjustments
IFRS 17 adjustments

203
19
15

218
112
(40)

Net result from financial services per SHF IS

237

290

Reviewed
30 June2024

Reviewed
30 June2023(4,5%)
27,9%(5,7%)
31,6%(1)

The net insurance result is based on local results as per local accounting standards.

Ratios (Shriram General Insurance)
Underwriting margin
Investment return on insurance funds margin

8.2.3.2 Credit and structuring

ShriramFinance
Limited

3 885
(127)
793

Gross written premium
Underwriting result
Investment return on insurance funds

8.2.3.1 Analysis of net results from financial services

R million

Reviewed
30 June2023

R million

India is reported with a three month lag(1)

Reviewed
30 June2024

47 1919,0%8,9%

Bad debt ratio

Administration cost as %of net interest margin

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

2,7%

2,8%

29,1%

30,0%

67

Sanlam Emerging Markets

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SEM

8

Cluster information continued

8.2

Sanlam Emerging Markets continued

8.2.3 Analysis of India key performance indicators continued
8.2.3.4 Analysis of change in GEV (Asia) – covered business
Total

Cost of capital

Adjusted net asset value

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Operational earnings
Value of new life insurance business
Unwinding of discount rate
Expected profit
Operating experience variances
Risk experience
Persistency
Maintenance expenses
Other
Operating assumption changes
Risk experience
Persistency
Maintenance expenses
Modelling changes and other

54
128
85
—
(84)
(22)
(35)
(18)
(9)
(75)
1
(6)
2
(72)

128
129
91
—
(73)
(13)
(53)
(4)
(3)
(19)
(16)
(25)
(2)
24

68
344
86
(283)
(18)
5
(18)
(5)
—
(61)
(11)
(9)
(3)
(38)

61
226
65
(179)
(27)
8
(33)
—
(2)
(24)
(9)
(15)
(4)
4

(68)
(34)
(1)
—
(1)
1
(2)
—
—
(32)
1
1
—
(34)

(13)
(29)
26
—
(23)
5
(28)
—
—
13
—
(3)
—
16

54
(182)
—
283
(65)
(28)
(15)
(13)
(9)
18
11
2
5
—

80
(68)
—
179
(23)
(26)
8
(4)
(1)
(8)
(7)
(7)
2
4

Net investment return
Expected return on adjusted net asset value
Investment variances on adjusted net asset value
Valuation and economic basis
Investment variances on in-force businessEconomic assumption changes
Foreign currency translation differences
Net project expenses

(7)
24
(31)
(8)
34
(18)
(24)
(1)

136
38
98
93
1
8
84
(2)

—
—
—
13
47
(3)
(31)
—

—
—
—
132
12
19
101
—

—
—
—
7
—
—
7
—

—
—
—
(19)
—
(2)
(17)
—

(7)
24
(31)
(28)
(13)
(15)
—
(1)

136
38
98
(20)
(11)
(9)
—
(2)

GEV earnings: covered businessTransfers from covered business
Embedded value of covered business at the beginning of the period

38
(9)
2 656

355
(37)
2 248

81
—
1 424

193
—
1 132

(61)
—
(249)

(32)
—
(216)

18
(9)
1 481

194
(37)
1 332

Embedded value of covered business at the end of the period

2 685

2 566

1 505

1 325

(310)

(248)

1 490

1 489

R million

68

Value of in-force

Reviewed
30 June2024

69

Sanlam Investment Group

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SIG

8

Cluster information continued

8.3

Sanlam Investment Group

8.3.1 Analysis of earnings

R million
Result from life insurance
contracts
Result from other operations
Revenue(1)Net other income
Sales remuneration
Administration costs(1)Gross result from financial
services before performance fees
Performance fees

Wealth management

International

SanFinCorporate services

Consolidation

Total

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

—
486
1 646
73
—
(1 233)

—
456
1 544
44
—
(1 132)

—
198
722
—
—
(524)

—
200
705
—
—
(505)

—
146
417
15
(35)
(251)

—
132
465
17
(7)
(343)

190
187
340
—
—
(153)

252
129
260
—
—
(131)

—
(19)
—
—
—
(19)

—
(35)
—
—
—
(35)

—
—
(13)
—
—
13

—
—
(20)
—
—
20

190
998
3 112
88
(35)
(2 167)

252
882
2 954
61
(7)
(2 126)

509
1 864
6 195
198
(11)
(4 518)

485
2

456
8

198
1

200
2

146
—

132
—

377
—

381
—

(19)
—

(35)
—

—
—

—
—

1 187
3

1 134
10

2 373
47

Gross result from financial
services
Tax on result from financial
services
Non-controlling interest

487

464

199

202

146

132

377

381

(19)

(35)

—

—

1 190

1 144

2 420

(127)
(134)

(113)
(132)

(53)
—

(54)
—

(18)
—

(35)
—

(93)
—

(92)
—

5
—

12
—

—
—

—
—

(286)
(134)

(282)
(132)

(577)
(261)

Net result from financial
services
Life business
Investment management
Credit and structuring
Net investment return
Life business
Investment management
Project expenses

227
—
227
—
(24)
—
(24)
(6)

219
—
219
—
(34)
—
(34)
(27)

146
—
146
—
4
—
4
—

148
—
148
—
(1)
—
(1)
—

128
—
128
—
(2)
—
(2)
—

97
—
97
—
81
—
81
—

284
177
—
107
67
67
—
—

289
195
—
94
124
124
—
—

(14)
—
(14)
—
13
—
13
—

(23)
—
(23)
—
(36)
—
(36)
—

—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—

771
177
487
107
58
67
(9)
(6)

730
195
441
94
134
124
10
(27)

1 582
435
908
239
240
200
40
(59)

197
(4)

158
(5)

150
(11)

147
(9)

126
(6)

178
(5)

351
—

413
—

(1)
(13)

(59)
(12)

—
—

—
—

823
(34)

837
(31)

1 763
(64)

—
—

—
—

—
—

—
—

—
—

14
—

—
—

—
—

(6)
—

—
—

—
—

—
—

(6)
—

14
—

15
(23)

193

153

139

138

120

187

351

413

(20)

(71)

—

—

783

820

1 691

Net operational earnings
Amortisation of intangible assets
Profit on disposal of subsidiaries
and associates
Impairments and other
Normalised attributableearnings(1)

70

Sanlam investments

Revenue and administration costs on page 40 include performance fees and the related administration costs.

71

Sanlam Investment Group

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SIG

8

Cluster information continued

8.3

Sanlam Investment Group continued

8.3.2 Assets under management
Assets under management

Fee income

Administration cost

Reviewed
30 June2024
R million

Audited31 December
2023
R million

Reviewed
30 June2024%

Audited31 December
2023%

Reviewed
30 June2024%

Audited31 December
2023%

992 084
135 226
153 739(31 540)962 767
127 129
159 481(33 793)

0,35
1,10
0,38

0,36
1,18
0,51

0,22
0,80
0,19

0,25
0,86
0,33

Asset management operations
Covered business SanFin

1 249 509
79 553

1 215 584
70 452

Assets under management

1 329 062

1 286 036

Sanlam Investments(1)Wealth Management
International(2)Intra-cluster eliminations

(1)
(2)

Includes Sanlam assets of R220 billion (2023: R207 billion).
Includes Sanlam assets of R69 billion (2023: R77 billion).

8.3.3 Asset mix of assets under management
R million

72

Fixed interest

Equities

Offshore

Properties

Cash

Total

Reviewed 30 June 2024
Sanlam Investments
Wealth Management
International
Intra-cluster consolidation

250 953——369 988
61 738—159 368
70 206
153 739

32 214——179 5613 282—

992 084
135 226
153 739(31 540)

Assets under management – asset management operations

250 953431 726

383 31332 214

182 843

1 249 509

Audited 31 December 2023
Sanlam Investments
Wealth Management
International
Intra-cluster consolidation

253 556——

365 81758 906—145 962
64 074
159 481

31 843——165 5894 149—

962 767
127 129
159 481(33 793)

Assets under management – asset management operations

253 556424 723369 51731 843169 738

1 215 584

73

Sanlam Investment Group

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
SIG

8

Cluster information continued

8.3

Sanlam Investment Group continued

8.3.4 Analysis of change in GEV – covered business
Total

Cost of capital

Adjusted net asset value

Total

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

247
6
—
230
233
(3)
11

162
—
—
195
195
—
(33)

(2)
3
(4)
—
—
—
(1)

—
—
—
—
—
—
—

12
3
—
(3)
—
(3)
12

(33)
—
—
—
—
—
(33)

237
—
4
233
233
—
—

195
—
—
195
195
—
—

495
(3)
—
436
433
3
62

Net investment return

67

116

—

—

—

—

67

83

117

—

—

—

—

83

116
117

200

Expected return on adjusted net asset value
Investment variances on adjusted net
asset value
Valuation and economic basis

(16)
(17)

(1)
71

—
50

—
22

—
(7)

—
49

(16)
(60)

(1)
—

(39)
115

Investment variances on in-force businessEconomic assumption changes

(10)
(7)

22
49

50
—

22
—

—
(7)

—
49

(60)
—

—
—

52
63

GEV earnings: covered businessTransfers to other covered business Group
operations
Transfers from covered business
Embedded value of covered businessat the beginning of the period

297

349

48

22

5

16

244

311

810

—
(244)

—
(311)

—
—

—
—

—
—

—
—

—
(244)

—
(311)

(608)
(635)

1 314

1 747

53

2

(835)

(959)

2 096

2 704

1 747

Embedded value of covered businessat the end of the period

1 367

1 785

101

24

(830)

(943)

2 096

2 704

1 314

R million
Operational earnings
Unwinding of discount rate
Expected profit
Operating experience variances
Credit spread
Other
Operating assumption changes

74

Gross value of in-force

239

75

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

SantamSNTGO

8Cluster information continued

8.4

Santam8.5

Group office analysis of earnings
Corporate expenses
and other

8.4.1 Insurance activities

R million

Gross written premium
Reviewed
Reviewed
30 June30 June
2024
2023

Motor
Property
Engineering
Liability
Transportation
Accident and health
Guarantee
Other

8 190
7 407
1 143
1 091
770
347
6
130

7 787
6 622
1 030
911
757
397
23
130

852
(209)
244
131
(16)
32
1
(14)

93
(312)
162
374
104
94
3
41

Total: conventional insurance

19 08417 657

1 021

559

Reviewed
30 June2024

Reviewed
30 June
2023

15,9%
62,3%
6,5%
2,3%

15,8%
66,0%
3,8%
2,2%

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

Conventional insurance
Insurance revenue
Gross written premiumLess: unearned premium and experience adjustments

19 10719 08423

17 56617 657(91)

36 89537 368(473)

Net earned premiums
Net claims incurred
Net commission
Management expenses

15 395(9 595)(2 392)(2 387)

14 377(9 491)(2 070)(2 257)29 335(19 420)(4 049)(4 816)

Underwriting result: conventional insurance
Investment return on insurance funds

1 021
359

559
319

1 050
759

Net insurance result
Net other income
Alternative risk(2)OtherStrategic participations
Saham
SEM target shares

1 380
391
312
79
96
—
96

878
153
174
(21)
180
65
115

1 809
361
443
(82)
207
82
125

Gross result from financial services
Tax and non-controlling interest

1 867(1 142)

1 211
(668)

2 377
(1 324)

Net result from financial services

725

543

1 053

Ratios(1)Administration cost ratio
Claims ratio
Underwriting margin
Investment return on insurance funds margin

R million

(1)
(2)

76

Underwriting result
Reviewed
Reviewed
30 June30 June2024
2023

R million

Total

Total

Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed
30 June30 June30 June30 June30 June30 June
2024
2023
2024
2023
2024
2023

Audited31 December
2023

Result from other operations
Revenue
Net other income
Administration costs

(65)
215
—
(280)

(67)
199
—
(266)

(58)
—
(58)
—

(203)
—
(203)
—

(123)
215
(58)
(280)

(270)
199
(203)
(266)

(684)
229
(42)
(871)

Results from financial services
Tax on result from financial
services
Non-controlling interest

(65)

(67)

(58)

(203)

(123)

(270)

(684)

18
—

13
—

13
45

46
157

31
45

59
157

193
23

Net result from financial
services
Net investment income
Project expenses

(47)
(120)
(37)

(54)
146
(77)

—
—
—

—
—
—

(47)
(120)
(37)

(54)
146
(77)

(468)
367
(340)

Net operational earnings
Impairment reversal(2)

(204)
—

15
948

—
—

—
—

(204)
—

15
948

(441)
948

Normalised attributableearnings

(204)

963

—

—

(204)

963

507

(1)
(2)

9

Consolidation(1)Includes the consolidation entries relating to SEM target shares and Saham Finances included within the Santam results.
An impairment reversal of R948 million in respect of the Broad-Based Black Economic Empowerment Special Purpose
Vehicle (B-BBEE SPV) was recognised in 2023.

Equity-accounted earnings included in result from financial services before tax
R million
Equity-accounted earnings included in result from financial services
before tax:
Sanlam Life and Savings
Sanlam Personal Loans
Capital Legacy Solutions
Sanlam Corporate – Afrocentric
Sanlam Emerging Markets
SanlamAllianz
Namibia
Asia
Shriram Capital Private Limited
Shriram Finance Limited
Shriram General Insurance Limited
Shriram Life Insurance Limited
Pacific & Orient
Sanlam Investment Group
SantamTotal

Reviewed
30 June2024

Audited31 December
2023

8
—
8
—
3 220
1 429
129
1 662
1 325
139
175
37
(14)

180
105
—
75
4 322
1 061
233
3 028
2 241
416
330
64
(23)

101
45

174
165

3 374

4 841

Ratios are calculated as a percentage of net earned premiums for the conventional business.
Includes operating income and expenses relating to ART business and other operating income and expenses not related
to underwriting results.

77

Group office

Notes to the shareholders’ fund information continued

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
10

11

Normalised diluted earnings per share
Cents
Normalised diluted earnings per share:
Net result from financial services
Net operational earnings
Profit attributable to shareholders’ fund

Reviewed
30 June2024

Reviewed
30 June2023

Audited31 December
2023

333,4
382,1
468,4

280,3
339,7
434,1

573,6
643,6
767,2

Net operational earnings

Adjusted number of shares:
Weighted average number of shares for diluted earnings
per share (refer note 5 on page 128 of the Sanlam condensed
consolidated interim financial statements)
Add: Weighted average Sanlam shares held by policyholders
and B-BBEE SPV(1)Adjusted weighted average number of shares fornormalised diluted earnings per share(1)

78

Reviewed
30 June2024

Audited31 December
2023

87 827155 270

89 477149 904

MillionMillionNumber of shares for value per share
Number of ordinary shares in issue
Shares held by subsidiaries in shareholders’ fund
Outstanding shares in respect of Sanlam Limited long-term incentive schemes

2 117,1(31,3)
29,2

2 202,9(116,1)28,8

Adjusted number of shares for value per share

2 115,02 115,6

R million
Net asset value per share is calculated on the group shareholders’ fundat net asset value
Equity value per share is calculated based on the group equity value

R million
Analysis of operational earnings (refer shareholders’ fundincome statement on page 40):
Net result from financial services
Net operational earnings
Normalised profit attributable to shareholders’ fundReconciliation of operational earnings:
Headline earnings per note 5 on page 128 of the Sanlam
condensed consolidated interim financial statements
Add/(Less):
Fund transfers
B-BEE SPV impairment reversal
Shareholders’ fund adjustments
Net equity-accounted earnings
Net amortisation of value of business acquired andother intangibles

Value per share

7 056
8 087
9 913

6 177
7 486
9 567

12 37913 88916 5579 838(1 751)(19)—(1 898)
60

6 902
584
1 651
(948)
(158)
(18)

14 467
(578)
2 079
(948)
(1 776)
(45)

106

57

112

8 087

7 486

13 889Sanlam shareholders granted specific approval under special resolution number 3 adopted at the last annual
general meetings to repurchase Sanlam shares from its wholly owned subsidiary (SU BEE Investment).

MillionMillionMillionA cumulative 85,7 million ordinary shares were repurchased on 26 June 2024.

12

Present value of holding company expenses
The present value of holding company expenses has been calculated by applying a multiple of 7,6(31 December 2023: 7,8) to the after tax recurring corporate expenses.

13

Share transactions

13.1

Shares repurchased and issued

13.2 Shares cancelled
In June 2024, 85,7 million treasury shares were cancelled.
2 108,1

2 068,4

2 089,3

8,3

135,3

68,8

2 116,4

2 203,7

2 158,1

13.3 Shares issued
Following the cancellation of treasury shares, the issued share capital of the company now comprises
2 117,1 million ordinary shares of 1 cent each.

For more information refer to note 13.

79

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Shareholders' fund information

Shareholders' fund information

Notes to the shareholders’ fund information continued
14

Reconciliation between group statement of comprehensive income
and shareholders’ fund income statement
Reviewed 30 June 2024

R million

Total
Shareholders’shareholders’ Shareholders’
fund
IFRS total(1)fund(2)
activities adjustments
(A)
(B)
(C)
(D)

Reviewed and re-presented 30 June 2023
Policyholder
IFRS
activities(3) adjustments(4)
(E)
(F)

Total
Shareholders’shareholders’ Shareholders’fund Policyholder
IFRS
IFRS total(1)fund(2)
activities adjustments
activities(3) adjustments(4)
(A)
(B)
(C)
(D)
(E)
(F)

Result from insurance operations
Result from insurance contracts
Insurance service result
Insurance revenue
Insurance service expenses
Income or expense from reinsurance contracts
Insurance investment result
Other expenses relating to insurance operations

6 496
7 259
6 367
47 741(37 834)(3 540)
892
(763)

5 803
6 288
5 121
47 630(38 656)(3 853)
1 167
(485)

7 319
7 910
6 317
48 826(38 656)(3 853)
1 593
(591)

(1 516)(1 622)(1 196)(1 196)
—
—
(426)
106

—
—
—
—
—
—
—
—

693
971
1 246
111
822
313
(275)
(278)

3 723
4 226
4 356
41 900(33 490)(4 054)
(130)
(503)

6 411
6 923
5 564
60 214(47 972)(6 678)
1 359
(512)

6 705
7 217
5 517
60 167(47 972)(6 678)
1 700
(512)

(294)
(294)
47
47
—
—
(341)
—

—
—
—
—
—
—
—
—

(2 688)(2 697)(1 208)(18 314)
14 4822 624(1 489)
9Result from other operations
Revenue
Investment income
Investment surpluses
Finance cost – margin businessChange in fair value of investment contract liabilities
Change in fair value of external investors’ liabilities
Net other income
Sales remuneration
Administration costs
Shareholders’ fund adjustments
Impairments
Net impairment losses on financial and contract assets
Other impairments
Project expenses
Net profit on disposal of subsidiaries and associatedcompanies
Amortisation of intangibles

7 081
11 03315 196
11 052(209)(27 123)
7 625
—
(578)
(9 915)
—
(485)
(6)
(479)
—

7 090
11 363
914
954
—
—
—
3 311
(621)
(8 831)
1 898
(513)
—
(513)
(181)

7 924
11 363
1 155
1 547
—
—
—
3 311
(621)
(8 831)
—
(513)
—
(513)
(181)

(834)
—
(241)
(593)
—
—
—
—
—
—
1 898
—
—
—
—

1 072
472
9 639
9 275
—
(27 745)
10 138
—
—
(707)
—
—
—
—
—

(1 081)
(802)
4 643
823
(209)
622
(2 513)(3 311)43(377)(1 898)
28
(6)
34
181

4 593
7 146
11 93138 075(186)(40 517)(5 178)—(488)(6 190)
—
(22)
(1)
(21)
—

5 954
7 702
1 062
1 656
—
—
—
2 185
(631)
(6 020)
158
687
—
687
—

6 012
7 702
1 250
1 526
—
—
—
2 185
(631)
(6 020)
—
687
—
687
—

(58)
—
(188)
130
—
—
—
—
—
—
158
—
—
—
—

1 093
17
8 205
37 941—(41 514)(3 225)
—
—
(331)
—
—
—
—
—

(2 454)(573)
2 664(1 522)(186)997(1 953)(2 185)
143
161
(158)
(709)
(1)
(708)
—

—
(322)

790
(106)

790
(106)

—
—

—
—

(790)
(216)

—
(119)

—
(57)

—
(57)

—
—

—
—

—
(62)

Net operating result
Equity-accounted earnings
Finance cost – other12 7702 935(609)

14 781(243)—

15 233
75
—

(452)
(318)
—

1 072
—
—

(3 083)
3 178
(609)

8 175
940
(470)

13 15318—

13 347
18
—

(194)
—
—

1 093
—
—

(6 071)
922(470)

Profit before tax
Taxation
Shareholders’ fund
Policyholders’ fundProfit from the year from discontinued operations

15 096(4 210)(3 024)(1 186)435

14 538(3 209)(3 209)——15 308(3 979)(3 979)
—
—

(770)
770
770
—
—

1 072
(1 072)—(1 072)
—

(514)
71
185
(114)
435

8 645
(3 586)(2 091)(1 495)4 639

13 171(3 224)(3 224)——13 365(3 418)(3 418)
—
—

(194)
194
194
—
—

1 093
(1 093)—(1 093)—(5 619)
731
1 133
(402)
4 639

Profit for the period
Attributable to:Shareholders’ fundProfit from continuing operations
Profit from discontinued operations
Non-controlling interest

11 321

11 32911 329

—

—

(8)

9 698

9 947

9 947

—

—

(249)

9 932
9 636
296
1 389

9 913
9 913
—
1 416

—
—
—
—

—
—
—
—

—
—
—
—

19
(277)
296
(27)

7 916
4 596
3 320
1 782

8 331
8331
—
1 616

—
—
—
—

—
—
—
—

—
—
—
—

(415)
(3 735)3 320
166

11 321

11 329

—

—

—

(8)

9 698

9 947

—

—

—

(249)

IFRS total (A) = (B)+(E)+(F)Total shareholders’ fund (B) = (C)+(D)(3)
Policyholder activities relate to the inclusion of policyholders’ after-tax investment return in respect of investment
contracts, and the allocation thereof to policy liabilities, in the group statement of comprehensive income.
(4)
IFRS adjustments relate to amounts that have been set off in the shareholders’ fund income statement that is not
permitted in terms of IFRS and fund transfers.
(1)

(2)

80

81

Sanlam Interim Results 2024

Sanlam Interim Results 2024
Condensed consolidated interim
financial statements

Condensed consolidated interim financial statements
Contents
Salient features on the condensed consolidated interim financial
statements
84 Earnings performance
85 Per share metrics
Condensed consolidated interim financial statements
86 Independent auditors’ review report on the condensed consolidated
interim financial statements
88 Accounting policies and basis of preparation
90 Condensed group statement of financial position
91
Condensed group statement of comprehensive income
92 Condensed group statement of changes in equity
94 Condensed group statement of cash flow
Notes to the condensed consolidated interim financial statements
95 Insurance and reinsurance contracts
96 Insurance contract carrying amount
114 Reinsurance contract carrying amount
127 Investment contracts
128 Earnings per share
130 Reconciliation of segmental information
132 Revenue
134 Financial assets and financial liabilities
136 Notes to the statement of cash flow
138 Critical accounting estimates and judgements
147 Commitments and contingencies
148 Related parties
148 Business combinations
149 Disposal groups, discontinued operations and assets classified
as held for sale
156 Fair value disclosures
166 Restatements
166 Subsequent events

Condensed
consolidated interim
financial statements
83

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Salient features on the condensed consolidated
interim financial statements
Earnings performance
The group achieved a robust operating performance reflecting strong trading performances across our businesses
and across all lines of business, with notable growth from life insurance and general insurance operations.
Corporate activity continues to impact the comparability of results.

Result from insurance operations (life and general insurance)
Strong growth of 74% in 1H2024 compared to 1H2023 mainly driven by the partial recognition of the Capitec
recapture fee of R1,2 billion (gross of tax) following regulatory approval in April 2024 of the termination of theCapitec agreement, much higher insurance investment result due to the positive impact of changes in interest rates
as well as a strong increase in result from general insurance at Santam where effective management actions andlower attritional losses offset the impact of continued adverse weather-related claims. The result from insurance
operations excludes discontinued operations and the insurance businesses held by Sanlam’s strategic joint venture(SanlamAllianz) and associates (India, Pacific and Orient) as the results are equity-accounted in the statement ofcomprehensive income.

Results from other operations (health, investments and administration)
Increase of 54% (R2,5 billion) in 1H2024 compared to 1H2023 mainly due to:Ì R1,2 billion profit on partial sale of direct shareholding in Shriram Finance Limited;Ì R158 million increase in Glacier’s life investments due to fixed returns;
Ì R183 million increase in Sanlam Risk and Savings’ Individual life business mainly due to Capital Legacy reinsurance
arrangement; andÌ Afrocentric and Sanlam Personal Loans contributing R368 million and R103 million respectively to otheroperations which was included in equity-accounted earnings previously.

Overall profit for the period
Attributable earnings from continuing and discontinued operations are aligned to shareholders' fund attributableearnings, reflecting the strong growth in businesses over the half year.

Other comprehensive income (OCI)
The movement in OCI is mostly attributable to the impact of the devaluation of the Egyptian Pound within the
SanlamAllianz JV.

Per share metrics
The rise in earnings per share (EPS) from continuing and diluted EPS is attributed to robust operating results which
was partially reduced by a lower accounting gain from the disposal of businesses in 2024 relative to 2023.
The decrease in EPS from discontinued operations is due to only Namibia being included for 1H2024, compared to
1H2023 including the SPA entities disposed of to the SanlamAllianz JV.
During H1 2024, the following share transactions occurred:Ì In June 2024 Sanlam repurchased 85,8 million ordinary shares from its wholly owned subsidiary, the B-BBEE SPV
at a repurchase price of R72,97 per share.
Ì The 85,8 million shares were subsequently cancelled at the same price.
The net effect of the above was that Sanlam Limited issued shares decreased from 2 202,9 to 2 117,1 at 30 June 2024.
Refer the EPS note 5 on page 128 for additional information.

Total gross assets impaired and amortisation
The current year income statement impairment relates mainly to Afrocentric (R499 million) due to underperformancein the business. The prior year includes the net impairment reversal mainly due to B-BBEE SPV impairment reversal(R948 million), partially offset by the impairment of aYo (R240 million) driven by the devaluation of the Nigerian Naira(45%) to which a significant component of aYo’s valuation is exposed to.
Overall increase of R203 million of amortisation of intangible assets with main contributors being Afrocentric that is
consolidated for the full term in 1H2024 compared to one month in 1H2023:

Equity accounted earnings
The R2 billion increase in 1H2024 compared to 1H2023 is mainly due to the SanlamAllianz joint venture (JV) being
equity-accounted in 2024 (Sanlam Pan-Africa (SPA) was fully consolidated in the prior year) as well as the growth in
the India business as mentioned below in profit before tax from continuing operations.

Profit before tax

Ì From continuing activities

The strong growth in the net operating result was augmented by strong growth in Sanlam’s equity-accounted
strategic associates and joint ventures. The credit business in India contributed strongly on the back of higher
loan book growth, improvement in the quality of the credit book as well as higher net interest margins. The
SanlamAllianz JV distorts comparisons with prior year due to classification as discontinued operations in 2023.

Ì From discontinued activities

Profit from discontinued operations includes only Namibia in the current year. Prior year included Namibia as wellas the SPA entities included in Sanlam Emerging Markets that now form part of the SanlamAllianz JV. Prior year
also included profit on sale of subsidiaries (LIA) and associates (Botswana) of R1,6 billion.

84

85

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Independent auditors' review report on thecondensed consolidated interim financial
statements
To the shareholders of Sanlam Limited
We have reviewed the condensed consolidated interim financial statements of Sanlam Limited, set out on pages 88
to 166, which comprise the condensed group statement of financial position as at 30 June 2024 and the condensed
group statements of comprehensive income, condensed group changes in equity and condensed group statementof cash flows for the six months then ended, and notes to the condensed consolidated interim financial statements
including a summary of material accounting policies.

Directors’ responsibility for the interim financial statements
The directors are responsible for the preparation and presentation of these interim financial statements inaccordance with the IFRS® Accounting Standard (IAS) 34 Interim Financial Reporting, the SAICA Financial
Reporting Guides, as issued by the Accounting Practices Committee and Financial Pronouncements as issued by
Financial Reporting Standards Council and the requirements of the Companies Act of South Africa, and for suchinternal control as the directors determine is necessary to enable the preparation of interim financial statementsthat are free from material misstatement, whether due to fraud or error.

Scope of review
Our responsibility is to express a conclusion on these interim financial statements. We conducted our review inaccordance with International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial
Information Performed by the Independent Auditor of the Entity. ISRE 2410 requires us to conclude whether
anything has come to our attention that causes us to believe that the interim financial statements are not preparedin all material respects in accordance with the applicable financial reporting framework. This standard also requires
us to comply with relevant ethical requirements.

The procedures performed in a review are substantially less than and differ in nature from those performed in anaudit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit
opinion on these financial statements.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed
consolidated interim financial statements of Sanlam Limited for the six months ended 30 June 2024 are notprepared, in all material respects, in accordance with the IFRS® Accounting Standard (IAS) 34 Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act
of South Africa.

KPMG Inc.

PricewaterhouseCoopers Inc.

Director: Pierre Fourie
Registered Auditor
4 Christiaan Barnard Street
Cape Town City Centre
Cape Town

Director: Alsue du Preez
Registered Auditor
5 Silo Square
V&A Waterfront
Cape Town

4 September 2024

4 September 2024

A review of interim financial statements in accordance with ISRE 2410 is a limited assurance engagement. We
perform procedures, primarily consisting of making inquiries of management and others within the entity, as
appropriate, and applying analytical procedures, and evaluate the evidence obtained.

86

87

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Accounting policies and basis of preparation
The preparation of the group’s reviewed condensed consolidated interim financial statements was supervised by
the Group Finance Director, AM Mukhuba CA(SA).
The condensed consolidated interim financial statements are prepared in accordance with IFRS® AccountingStandards, IAS 34 – Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council and therequirements of the Companies Act of South Africa.
The accounting policies and basis of preparation for the condensed consolidated interim financial statements are in
all material respects consistent with those applied in the 2023 annual report apart from the adoption of theamendments to IFRSs at the beginning of the 2024 financial year.
The following new or revised IFRSs and interpretations have been applied in the 2024 financial period, and do nothave a material impact on the results:
Ì Effective 1 January 2024:– Non-current Liabilities with Covenants (Amendments to IAS 1)– Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)– Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
The following new or revised IFRSs and interpretations, effective in future years and not early adopted, may have an
impact on future results:
Ì Effective 1 January 2025:– Lack of Exchangeability (Amendments to IAS 21)
Ì Effective 1 January 2026:– Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 7 and IFRS 9)– Annual Improvements to IFRS Accounting Standards (Amendments to IFRS 1, IFRS 7 and IFRS 9, IFRS 10 and
IAS 7)
Ì Effective 1 January 2027:– Presentation and Disclosure in Financial Statements (IFRS 18)– Subsidiaries without Public Accountability: Disclosures (IFRS 19)
In August 2020, the International Accounting Standards Board (IASB®) published “phase 2” amendments
introducing several changes applicable during the effective transition to the new benchmark interest rates. Interest
rate benchmark reform – Phase 2 (Amendments to IFRS 4, IFRS 7, IFRS 9, IFRS 16 and IAS 39) became effective on
1 January 2021. The amendments allow for changes in the contractual cash flows of financial instruments resulting
from the Interbank Offered Rates (IBOR) reform to be treated as a simple reset of their variable interest rate,
provided, however, that such changes are made on an economically equivalent basis. The South African Revenue
Bank (SARB) has indicated its intention to move away from the Johannesburg Interbank Average Rate (JIBAR) andto create an alternative reference rate for South Africa, namely the South African Overnight Index Average(ZARONIA). The transition from JIBAR to ZARONIA in South Africa is expected in 2025 – 2026. The impact on thegroup is still being assessed.

Under IFRS 18, effective from 1 January 2027 the presentation of results on the statement of comprehensive income
as well as the notes to the financial statements will change. There is a requirement to restate comparatives, however
the group's profit for the year will not change. Presentational changes include the disclosure of certain “non-GAAP”
measures – management performance measures (MPMs) which will form part of the audited financial statements –as well guidance on aggregation and disaggregation of subtotals and line items in the primary financial statements.
The group is in the process of assessing the impact of the amendments, particularly with respect to the collation of
additional information needed to meet the new disclosure requirements.
In May 2024 the IASB issued IFRS 19 which seeks to simplify the reporting systems and processes for companies
without public accountability. This will be a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:
Ì it does not have public accountability; andÌ it has an ultimate or intermediate parent that produces consolidated financial statements which are available forpublic use that comply with IFRS Accounting Standards.
This standard will be applicable at a subsidiary level (if eligible) with no impact on the group financial statements.
The group does not expect other amendments to standards issued by the IASB, but not yet effective, to have amaterial impact.

Use of estimates, assumptions and judgements
The preparation of the condensed consolidated interim financial statements necessitates the use of estimates,
assumptions and judgements. These estimates and assumptions affect items reported in the group statement offinancial position and group statement of comprehensive income, as well as contingent liabilities.
Although estimates are based on management’s best knowledge and judgement of current facts as at thestatement of financial position date, the actual outcome may differ from these estimates. Refer to note 10 of thecondensed consolidated interim financial statements for further information on significant changes since theprevious reporting period in terms of critical estimates and judgements and note 11 of the condensed consolidated
interim financial statements for information on contingencies.

External review
The jointly appointed auditors, KPMG Incorporated and PwC Incorporated, reviewed the condensed consolidated
interim financial statements of the group as at 30 June 2024. These reviews were conducted in accordance with
International Standards on Review Engagements 2410, “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity”. Copies of the unqualified joint review reports of KPMG Incorporated and PwC
Incorporated are presented on pages 86 and 87.

In 2021, the Organisation for Economic Co-operation and Development released the Global Anti-Base Erosion
Model Rules (GloBE Rules), which rules introduce a global minimum tax of 15% in all jurisdictions in which a
multi‑national group with consolidated revenue exceeding €75 million, operates. In his budget speech on
21 February 2024, the Minister of Finance in South Africa announced that government proposes to introduce two
measures (an income inclusion rule and a domestic minimum top-up tax rule) to give effect to the GloBE Rules inSouth Africa with effect from 1 January 2024. The draft legislation to give effect to the GloBE Rules in South Africa
was published for comment on 21 February 2024 and has not been enacted as at 30 June 2024. The group isanalysing the GloBE Rules as well as the draft South African legislation to ensure that the required processes will bein place to enable compliance when these rules become operational in South Africa and elsewhere.

88

89

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Condensed group statementof financial position

Condensed group statementof comprehensive income

as atfor the six months ended 30 June

R million

Note

Reviewed
30 June2024

Audited31 December
2023

ASSETS
6 342
1 196
1 132
1 016
3 450
2 793
10 06812 1151 593
867 1528 088
43 851
171 997269 330
31 685
307 145
35 05614 1134 108
46 98652 13919 772986
3 476
27 905

6 906
1 535
1 189
1 015
3 331
2 822
9 478
14 5301 619
827 3097 913
44 473
159 385
249 372
26 114301 949
38 10313 5544 065
47 21355 88620 014954
9 089
25 8291 024 203

990 452

Capital and reserves
Share capital and premium
Treasury shares
Other reserves
Retained earnings

12 525(1 942)
12 58765 55413 033(6 658)11 00771 148

Shareholders’ fundNon-controlling interest

88 7248 912

88 5308 375

97 636
203 9245 664
510 769
13 756
5 358
8 398
1 434
11 17875 6099 307
23 38939 795113
31 62928 762233
2 634

96 905
193 3745 686
488 501
14 936
5 358
9 578
1 519
12 28776 4688 768
19 56739 403112
32 92630 800188
1 938

1 024 203

990 452

Goodwill
Equipment
Right-of-use assets
Owner-occupied properties
Intangible assets
Contract costs for investment management services
Insurance contract assets
Reinsurance contract assets
Deferred tax
Investments
Investment properties
Investment in associates and joint ventures
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities
Trading account assets
Advances to customers
Non-current assets reclassified as held for sale
Working capital assets
Trade and other receivables
Taxation
Short-term investments
Cash and cash equivalents

10.1

1 and 2
1 and 3

8
8
8
8
8
8

8
8
8 and 9.4

Total assets

EQUITY AND LIABILITIES

Total equity
Insurance contract liabilities
Reinsurance contract liabilities
Investment contract liabilities
Term financeMargin business
Other interest-bearing liabilities
Lease liabilities
Structured transactions liabilities
External investors in consolidated funds
Deferred tax
Trading account liabilities
Non-current liabilities reclassified as held for sale
Collateral guarantee contracts
Working capital liabilities
Trade and other payables
Provisions
Taxation
Total equity and liabilities

1 and 2
1 and 34 and 8
8

8
8
8

8

Reviewed
2024

Reviewed andre-presented(¹)
2023

Result from insurance operations
Result from insurance contracts
Insurance service result
Insurance revenue
Insurance service expenses
Expense from reinsurance contracts
Insurance investment result
Insurance finance expense
Reinsurance finance income
Investment income on assets held in respect of insurance contracts
Investment surpluses on assets held in respect of insurance contracts

6 496
7 259
6 367
47 741(37 834)(3 540)892(10 897)
17
6 970
4 802

3 723
4 226
4 356
41 900(33 490)(4 054)(130)(6 701)
341
4 072
2 158

Other expenses relating to insurance operations
Result from other operations
Revenue
Investment income
Investment surpluses
Finance cost – margin businessChange in fair value of external investors’ liabilities
Change in fair value of investment contract liabilities
Sales remuneration
Administration costs
Impairments
Amortisation of intangibles

(763)
7 081
11 03315 196
11 052(209)
7 625(27 123)(578)(9 915)
(485)
(322)

(503)
4 593
7 146
11 93138 075(186)(5 178)(40 517)(488)(6 190)(22)(119)

Net operating result
Equity-accounted earnings
Finance cost – other12 770
2 935
(609)

8 175
940
(470)

Profit before tax from continuing operations
Taxation
Shareholders’ fund
Policyholders’ fund

15 096(4 210)(3 024)(1 186)

8 645(3 586)(2 091)(1 495)

Profit for the period from continuing operations
Profit for the period from discontinued operations

10 886
435

5 059
4 639

Profit for the period
Other comprehensive (loss)/income: to be recycled through profit orloss in subsequent periods
Movement in foreign currency translation reserve
Other comprehensive loss of equity-accounted investments
Movement in cash flow hedge
Other comprehensive income/(loss): not to be recycled through profit
or loss in subsequent periods
Employee benefits remeasurement gain/(loss)

11 321

9 698

(286)
(2 515)—2 943(1 380)
(123)

71

(94)

Comprehensive income for the period

8 591

11 04410 886
9 636
1 250
435
296
139
8 591
7 239
1 352

5 059
4 596
463
4 639
3 320
1 319
11 044
8 884
2 160

5
5

478,0
471,0

388,6
382,7

5
5

463,5
457,1

225,6
222,2

R million

Allocation of comprehensive income:
Profit for the period from continuing operations
Shareholders’ fundNon-controlling interest
Profit for the period from discontinued operations
Shareholders’ fundNon-controlling interest
Comprehensive income for the period
Shareholders’ fundNon-controlling interest
Earnings attributable to shareholders of the company (cents):
Profit for the period:
Basic earnings per share
Diluted earnings per share
Earnings attributable to shareholders (cents) of continuing operations:
Profit for the period from continuing operations:
Basic earnings per share from continuing operations
Diluted earnings per share from continuing operations
(1)

90

Note

7

Prior period re-presented due to the inclusion of Namibia into the discontinued operations. Refer to note 14 for additional
information.

91

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Condensed group statementof changes in equity
for the six months ended 30 June
Foreigncurrencytranslation
reserve

Retainedearnings

SharecapitalSharepremium

TreasurysharesNondistributablereserve

Total:
equityholders

Noncontrollinginterest

Total
equityBalance at 1 January 2023
Comprehensive income
Profit for the period
Other comprehensive (loss)/income
Other comprehensive (loss)/income: to berecycled through profit or loss in subsequent
periods
Movement in foreign currency translation
reserve(1)Other comprehensive loss of equity-accounted
investments
Movement in cash flow hedge
Other comprehensive loss: not to be recycled
through profit or loss in subsequent periods
Employee benefits remeasurement loss

22
—
—
—

12 762———(2 888)
—
—
—

9 972
(150)
—
(150)

572
2 510
—
2 510

68 5626 524
7 916(1 392)89 002
8 884
7 916
968

(4 178)———84 824
8 884
7 916
968

14 342
2 160
1 782
378

99 166
11 044
9 698
1 346

—

—

—

—

2 510

—

2 510

—

2 510

433

2 943

—
—

—
—

—
—

—
(76)

—
—

(1 380)—(1 380)(76)——(1 380)
(76)

—
(47)

(1 380)
(123)

—

—

—

(74)

—

(12)

(86)

—

(86)

(8)

(94)

Shares cancelled
Shares issued
Net (acquisition)/disposal of treasury shares(3)Share-based payments
Transfer to/(from) non-distributable reserve
Transfer (from)/to consolidation reserve
Dividends paid(4)Acquisitions, disposals and other movements
in interests

—
—
—
—
—
—
—

(185)
435
—
—
—
—
—

1 869
—
(952)
—
—
(4 811)
—

—
—
—
—
10
—
—

—
—
—
—
—
—
—

(1 684)
—
(265)
261
(10)
1 135
(7 420)—435(1 217)261—(3 676)(7 420)

—
—
—
—
—
3 676
—

—
435
(1 217)261——(7 420)

—
—
(84)
21
—
—
(1 030)—435(1 301)282——(8 450)

—

—

—

(102)

(2)

(673)

(777)

—

(777)

505

(272)

Balance at 30 June 2023

22

13 012(6 782)

9 730

3 080

66 43085 492(502)

84 990

15 914100 904

Balance at 1 January 2024
Comprehensive income
Profit for the period
Other comprehensive (loss)/income
Other comprehensive loss: to be recycled throughprofit or loss in subsequent periods
Movement in foreign currency translation reserve
Other comprehensive loss of equity‑accounted
investments
Other comprehensive gain: not to be recycled
through profit or loss in subsequent periods
Employee benefits remeasurement gain

22
—
—
—

13 011———(6 658)
—
—
—

9 414
—
—
—

2 542
(249)
—
(249)

71 1487 488
9 932(2 444)89 4797 239
9 932(2 693)

(949)
—
—
—

88 5307 239
9 932(2 693)

8 375
1 352
1 389
(37)

96 9058 591
11 321(2 730)

—

—

—

—

(249)

—

(249)

—

(249)

(37)

(286)

—

—

—

—

—

(2 515)(2 515)—(2 515)—(2 515)

—

—

—

—

—

71

71

—

71

—

71

Shares cancelled
Net (acquisition)/disposal of treasury shares(3)Share-based payments
Transfer (from)/to consolidation reserve
Dividends paid(4)Acquisitions, disposals and other movements
in interests

(1)
—
—
—
—

(507)
—
—
—
—

5 110
(394)
—
—
—

—
—
—
—
—

—
—
—
—
—

(4 619)
(369)
227
(11)
(8 316)

(17)
(763)
227
(11)
(8 316)

—
1 835
—
11
—

(17)
1 072
227
—
(8 316)

—
(42)
22
—
(741)

(17)
1 030
249
—
(9 057)

—

—

—

—

(17)

6

(11)

—

(11)

(54)

(65)

Balance at 30 June 2024

21

12 504(1 942)

9 414

2 276

65 55487 827897

88 7248 912

97 636

R million

(2)

(2)

Movement in foreign currency translation reserve include foreign currency translation reserve recycle from profit on disposalof LIA.
(2)
During June 2024, 86 million treasury shares were cancelled, following the unwinding of the SPV structure. Refer to note 12 foradditional information. In June 2023, 31 million treasury shares were cancelled, pursuant to the General Authorities. Following thetransactions, the issued share capital of the company now comprises 2 117 million ordinary shares of 1 cent each.
(1)

92

Subtotal:
equity Consolidation
holders
reserve

Comprises movement in initial cost of shares held by subsidiaries (excluding policyholder funds) and the share incentive trust.
Net acquisition of treasury shares comprises an acquisition of R488 million (2023: R1 301 million) and a disposal of R1 518 million
in 2024 (2023: R0 million).
(4)
A dividend of 400 cents per share (2023: 360 cents per share) was declared in 2024 in respect of the 2023 earnings. Based on
the number of shares in issue on declaration date, the total dividend is R8,7 billion. Dividends paid included in the statement ofchanges in equity excludes treasury share dividends.
(3)93Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Condensed group statementof cash flow

Notes to the condensed consolidated interim
financial statements

for the six months ended 30 June

R million
Cash flow from operating activities
Cash utilised in operations
Interest and preference share dividends received
Interest paid
Dividends received
Dividends paid
Taxation paid
Cash flow from investment activities
Payments made for the acquisition of equipment
Proceeds in respect of the sale of equipment
Payments made for the acquisition of owner-occupied properties
Proceeds in respect of the disposal of owner-occupied properties
Acquisition of subsidiaries and associated companies
Disposal of subsidiaries and associated companies
Payments made for the acquisition of intangible assets
Proceeds in respect of the sale of intangible assets
Cash flow from financing activities
Shares repurchased
Disposal of treasury shares
Acquisition of treasury shares
Acquisition of non-controlling interest
Term finance raised
Term finance repaid
Lease liabilities repaid

Note
9.1

9.2
9.3

Net increase/(decrease) in cash and cash equivalents
Net foreign exchange difference
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

94

9.4

Reviewed
2024

Reviewed
2023

662(4 561)13 368(1 165)4 951(8 884)(3 047)
1 399
(274)
77
(6)
—
(1 518)
3 235
(137)
22
(470)
(17)
1 518
(488)
(45)
—
(1 231)(207)(2 188)(3 527)
7 715
(728)
5 580
(8 453)(2 775)(1 002)
(261)
73
(17)
58
(914)
421
(384)
22
(1 036)——(1 301)
(400)
1 344
(520)
(159)

1 591
(45)
28 254(4 226)
1 508
49 23429 80046 5161

Insurance and reinsurance contracts
Summary of net carrying amountLife insurance
R million
Reviewed – 30 June 2024
Net insurance contract carrying
amountInsurance contract liabilities
Insurance contract assets
Net reinsurance contract carrying
amountReinsurance contract liabilities
Reinsurance contract assets

Note

Total

Risk
business

Savings
business

Generalinsurance

2.1
2.1

193 856
203 924(10 068)

96 134105 847(9 713)65 07665 076—32 64633 001
(355)

3.1
3.1

(6 451)
5 664(12 115)(1 737)2 712(4 449)———(4 714)2 952(7 666)

187 405

94 39765 07627 9322.1
2.1

183 896
193 374(9 478)86 40095 470(9 070)65 18265 182—32 31432 722
(408)

3.1
3.1

(8 844)5 686(14 530)(2 372)2 797(5 169)———(6 472)2 889(9 361)175 052

84 02865 18225 842

Net carrying amount
Audited – 31 December 2023
Net insurance contract carrying
amountInsurance contract liabilities
Insurance contract assets
Net reinsurance contract carrying
amountReinsurance contract liabilities
Reinsurance contract assets
Net carrying amount95

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount

2.1

Analysis of net insurance contract carrying amountAnalysis per line of business and valuation method
Liability for remaining coverage

R million

Contractual
servicemarginSubtotalBest
Risk
estimate adjustmentof futurefor noncash flows financial risk

Total

Excludingloss
component

Losscomponent

Note

Total

Subtotal(1)2.2

96 13411 17884 95665 07665 07632 64631 993653

80 221(471)
80 69264 08064 08014 45313 800653

45 392—45 39259 50859 508
612
—
612

8 117
—
8 117
309
309
1
—
1

27 183—27 183
4 263
4 263
40
—
40

15 913
11 649
4 264
996
996
18 19318 193—15 361
11 202
4 159
992
992
16 70416 704
—

552
447
105
4
4
1 489
1 489
—

80 221(471)
80 69264 08064 08014 45313 800653

79 612(471)
80 08364 08064 08014 45313 800
653

609
—
609
—
—
—
—
—

Net insurance contract carrying amount

193 856

158 754

105 5128 427

31 48635 10233 0572 045

158 754

158 145609

Premium allocation approach
General model
Variable fee approach

43 17185 60965 07613 32981 34564 080—46 00459 508

—
8 118
309

—
27 2234 263

29 842
4 264
996

27 906
4 159
992

1 936
105
4

13 32981 34564 08013 32980 736—609

64 080—Net insurance contract carrying amount

193 856

158 754

105 5128 427

31 48635 10233 0572 045

158 754

158 145

609

Insurance contract liability balances
Insurance contract asset balances

203 924(10 068)

170 486(11 732)

123 792(18 280)

5 958
2 469

26 821
4 665

33 4381 664

31 420
1 637

2 018
27

170 486(11 732)

169 918(11 773)

568
41

Net insurance contract carrying amount

193 856

158 754

105 5128 427

31 48635 10233 0572 045

158 754

158 145609

86 40010 78275 61865 18465 18432 31231 638674

70 891(685)
71 57664 19364 19312 80012 126674

37 500—37 50059 60359 603
632
—
632

8 666
—
8 666
309
309
1
—
1

25 410—25 410
4 281
4 281
41
—
41

15 50911 467
4 042
991
991
19 51219 512—14 97811 037
3 941
987
987
17 90117 901
—

531
430
101
4
4
1 611
1 611
—

70 891(685)
71 57664 19364 19312 80012 126674

70 353(685)
71 03864 19364 19312 80012 126
674

538
—
538
—
—
—
—
—

Net insurance contract carrying amount

183 896

147 884

97 7358 976

29 73236 01233 8662 146

147 884

147 346

538

Premium allocation approach(1)General model
Variable fee approach

42 42076 29265 18411 44172 25064 193—38 13259 603

—
8 667
309

—
25 451
4 281

30 9794 042
991

28 938
3 941
987

2 041
101
4

11 44172 25064 19311 44171 71264 193—538—

Net insurance contract carrying amount

183 896

147 884

97 7358 976

29 73236 01233 8662 146

147 884

147 346

538

Insurance contract liability balances
Insurance contract asset balances

193 374(9 478)158 970(11 086)

114 104(16 369)

6 631
2 345

26 1163 616

34 404
1 608

32 295
1 571

2 109
37

158 970(11 086)

158 412(11 066)

558(20)

Net insurance contract carrying amount

183 896

147 884

97 7358 976

29 73236 01233 8662 146

147 884

147 346

538

Reviewed – 30 June 2024
Life insurance – Risk businessPremium allocation approach(1)General modelLife insurance – Savings business
Variable fee approach
General insurance
Premium allocation approach(1)General model

(1)

2.3
2.4

(1)

Audited – 31 December 2023
Life insurance – Risk businessPremium allocation approach(1)General modelLife insurance – Savings business
Variable fee approach
General insurance
Premium allocation approach(1)General model

96

Best
Risk
estimate adjustmentof futurefor noncash flows financial risk

Analysis of liability for remaining
coverage

Incurred claims(1)

2.2

2.3
2.4

Only the incurred claims and the subtotal of liability for remaining coverage sections would be applicable to the premium
allocation approach.

97

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.2

Reconciliation of net carrying amount: Life insurance – Risk business2.2.1 Premium allocation approach
Reconciliation per valuation component
Reviewed – 30 June 2024
Liability for remaining
coverage98

Audited – 31 December 2023
Liability for remaining
coverage

Incurred claims
Best
Risk
estimate adjustmentof futurefor noncash flows financial risk

Incurred claims
Best
Risk
estimate adjustmentof futurefor noncash flows financial risk

R million

Total

Excludingloss
component

Recognised in statement of comprehensive income
Recognised in insurance revenue
Recognised in insurance service expenses
Claims incurred during the period/year (excluding
investment component)
Changes in incurred claims related to past service
Increase and reversal of losses on onerous
contracts
Insurance acquisition cash flows expensed
Insurance finance income or (expenses)
Cash flow
Premiums received during the period/year
Incurred claims – investment components
Claims paid during the period/year
Insurance acquisition cash flows paid

(1 771)(6 954)4 807(6 725)(6 954)
218

(14)
—
(14)

4 968
—
4 603

5 023
—
4 673

(55)
—
(70)

(3 386)(15 804)
11 809(14 580)(15 804)
1 211

4
—
4

11 190—10 59411 186—
10 616

4
—
(22)

4 879
(276)

—
—

—
—

4 879
(276)

4 946
(273)

(67)
(3)

10 444
150

—
—

—
—

10 444150

10 450
166

(6)
(16)

(14)
218
376
2 425
7 540
—
(4 897)
(218)

—
218
11
7 300
7 540
(22)
—
(218)

(14)
—
—
—
—
—
—
—

—
—
365
(4 875)—22(4 897)———350(4 875)—22(4 897)
—

—
—
15
—
—
—
—
—

4
1 211
609
4 814
16 125—(10 100)(1 211)—1 211
13
14 89216 125(22)—(1 211)

4
—
—
—
—
—
—
—

—
—
596
(10 078)—22(10 100)———570(10 078)—22(10 100)
—

—
—
26
—
—
—
—
—

Net movement for the period/year
Recognised in other comprehensive income –foreign currency translation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the period/year

654

575

(14)

93

148

(55)

1 428

312

4

1 112

1 108

4

(5)
(253)
10 782

(7)
(354)
(685)

—
14
—

2
87
11 467—17
11 037

2
70
430

(4)
(1 229)10 587

(20)
(168)
(809)

—
(10)
6

16
(1 051)
11 3908(838)
10 759

8
(213)
631

Balance at the end of the period/year

11 178(471)—

11 64911 202447

10 782(685)—

11 467

11 037430

Losscomponent

Subtotal

Total

Excludingloss
component

Losscomponent

Subtotal

99

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.2

Reconciliation of net carrying amount: Life insurance – Risk business continued

2.2.2 General model
Reconciliation per valuation component
Liability forremainingcoverageContractual service margin

R million
Reviewed – 30 June 2024
Non-onerous contracts recognised during the period(2)Recognised in statement of comprehensive income
Recognised in insurance revenue(3)Expected incurred claims excluding investment components
Expected administration and other expenses
Release of risk adjustment for risk expired
Recognition of contractual service margin for services
provided(4)Premium experience adjustments related to current service
and other amounts
Amounts related to income tax that are specificallychargeable to the policyholder
Recognised in insurance service expenses(3)Claims incurred during the period (excluding investment
component)
Expected incurred claims excluding investment components
Experience adjustment
Changes in incurred claims related to past service(5)Initial loss on onerous contracts recognised during
the period(2)Increase and reversal of losses on onerous contracts(2)Insurance finance income or (expenses) – impact of
unwinding discount rates and financial assumption changes
Changes in estimates recognised in contractual service
margin(2) (6)Cash flow
Premiums received during the period
Incurred claims – investment components
Claims paid during the period(7)Insurance acquisition cash flows paid

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Other(1)

Total

Excludingloss
component

Losscomponent

Incurredclaims—109(18 172)(13 229)(1 046)(938)(3 923)2 831(13 531)(13 229)(1 046)
—

1 127
(323)
(938)
—
—
(938)

2 796
(2 399)(3 703)
—
—
—

—
(415)
(906)
—
—
—

2 796
(1 984)(2 797)
—
—
—

—
109
(18 172)(13 229)(1 046)(938)—(12 494)(18 113)(13 188)(1 032)
(934)

—
70
(59)
(41)
(14)
(4)

—
12 533————(3 703)——(3 703)(906)(2 797)(3 703)(3 703)

—

—

756

756

—

—

—

—

756

756

—

—

(12)
12 554(12)
12 481

—
73

—
—

—
—

—
—

(12)
12 554

(12)
—

—
90

—
12 46412 53113 229(698)(67)

12 53113 229
(698)
(70)

—
—
—
3

—
—
—
—

—
—
—
—

—
—
—
—

12 53113 229
(698)
(67)

—
—
—
—

—
—
—
—

12 53113 229
(698)
(67)

92
(2)

36
(16)

56
14

—
—

—
—

—
—

92
(2)

—
—

92
(2)

—
—

5 727

3 881

542

1 304

491

813

5 727

5 619

39

69

—
10 26424 933—(12 249)(2 420)(220)
10 26424 933—(12 249)(2 420)(1 321)
—
—
—
—
—

1 541
—
—
—
—
—

290
—
—
—
—
—

1 251
—
—
—
—
—

—
10 26424 933—(12 249)(2 420)—22 13224 933(381)—(2 420)

—
—
—
—
—
—

—
(11 868)—381(12 249)—

Net movement for the period
Recognised in other comprehensive income – foreign
currency translation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the period

10 373

8 952

(517)

1 938

(125)

2 063

10 373

9 638

70

665

(4)
(1 031)75 618(3)(839)
41 441

—
(28)
8 767

(1)
(164)
25 410(5)(37)
10 2814(127)
15 129(4)(1 031)75 618(3)(590)
71 038

—
1
538

(1)
(442)
4 042

Balance at the end of the period

84 95649 551

8 222

27 18310 11417 06984 95680 083609

4 264

Other covers amounts for insurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Relates to future service. Line items without a superscript relate to current service.
(3)
Line items do not align to the statement of comprehensive income due to the offsetting effect of the reallocation ofpremium relating to insurance acquisition cash flows and allocations to loss component presented in insurance revenue
and insurance service expenses in the statement of comprehensive income but not included in these reconciliations, aswell as administration and other expenses attributable to insurance contracts presented in insurance service expenses inthe statement of comprehensive income but not included in these reconciliations.
(4)
The termination of the group’s funeral joint venture with Capitec (31 October 2024) resulted in the coverage units being
updated to reflect the reduction in expected coverage. This resulted in an increase in the contractual service margin
(1)

100

Subtotal

Fair valuetransition
approach(CSM) recognised as income in insurance revenue of approximately R1,2 billion (gross of tax), representing partial
recognition of the recapture fee.
(5)
Relates to past service. Line items without a superscript relate to current service.
(6)
The Capitec termination has also resulted in the contractual service margin being adjusted to reflect the recapture fee
included in the best estimates of future cash flows and the risk adjustment for non-financial risk and the release offulfilment cash flows that are no longer expected to occur after 31 October 2024. This resulted in an increase in the CSM
of approximately R1,1 billion, with a corresponding reduction in the fulfilment cash flows.
(7)
The repayments of investment components in the period are included in this line item with the investment components
incurred being shown separately in the line item above (presented as a net zero impact on the movement in the period).

101

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.2

Reconciliation of net carrying amount: Life insurance – Risk business continued

2.2.2 General model continued
Reconciliation per valuation component continued
Liability forremainingcoverageContractual service margin

R million
Audited – 31 December 2023
Non-onerous contracts recognised during the year(2)Recognised in statement of comprehensive income
Recognised in insurance revenue(3)Expected incurred claims excluding investment
components
Expected administration and other expenses
Release of risk adjustment for risk expired
Recognition of contractual service margin for services
provided
Premium experience adjustments related to current service
and other amounts
Amounts related to income tax that are specificallychargeable to the policyholder
Recognised in insurance service expenses(3)Claims incurred during the period (excluding investment
component)
Expected incurred claims excluding investment
components
Experience adjustment
Changes in incurred claims related to past service(4)Initial loss on onerous contracts recognised during
the year(2)Increase and reversal of losses on onerous contracts(2)Insurance finance income or (expenses) – impact of
unwinding discount rates and financial assumption changes
Changes in estimates recognised in contractual service
margin(2)Cash flow
Premiums received during the year
Incurred claims – investment components
Claims paid during the year(5)Insurance acquisition cash flows paid

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Other(1)

Total

Excludingloss
component

Losscomponent

Incurredclaims—(5 609)(33 459)(7 173)(2 235)(27 060)

2 079
(915)
(1 474)5 094(2 459)(4 925)—(898)(1 953)5 094(1 561)(2 972)—(5 609)(33 459)—(29 013)(33 332)

—
555
(127)

—
22 849—(25 878)(2 126)(1 474)(25 878)(2 126)———(1 474)

—
—
—

—
—
—

—
—
—

(25 878)(2 126)(1 474)(25 805)(2 077)(1 469)

(73)
(49)
(5)

—
—
—

(4 925)——(4 925)(1 953)(2 972)(4 925)(4 925)

—

—

973

973

—

—

—

—

973

973

—

—

(29)
23 276(29)
23 230

—
46

—
—

—
—

—
—

(29)
23 276

(29)
(85)

—
612

—
22 74922 64922 649————22 649(85)—

22 73425 793(3 144)15

25 793(3 144)
74

—
—
(59)

—
—
—

—
—
—

—
—
—

25 793(3 144)
15

(85)
—
—

—
—
—

25 878(3 144)
15

219
393

137
370

82
23

—
—

—
—

—
—

219
393

—
—

219
393

—
—

4 574

1 595

513

2 466

1 055

1 411

4 574

4 404

70

100

—
17 19948 320—(25 607)(5 514)(127)
17 19948 320—(25 607)(5 514)

656
—
—
—
—
—

(529)
—
—
—
—
—

(323)
—
—
—
—
—

(206)
—
—
—
—
—

—
17 19948 320—(25 607)(5 514)—41 27048 320(1 536)—(5 514)

—
—
—
—
—
—

—
(24 071)—
1 536(25 607)—

Net movement for the year
Recognised in other comprehensive income – foreign
currency translation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the year

11 590

7 664

1 820

2 106

(1 221)

3 327

11 590

12 257555(1 222)—(6 087)70 1152(3 541)37 316

—
(610)
7 557

(2)
(1 936)25 24229(464)
11 937(31)(1 472)13 305—(6 087)70 11515(5 593)64 359

(17)
(178)
178

2
(316)
5 578

Balance at the end of the year

75 61841 4418 767

25 41010 28115 12975 61871 038538

4 042

Other covers amounts for insurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Relates to future service. Line items without a superscript relate to current service.
(3)
Line items do not align to the statement of comprehensive income due to the offsetting effect of the reallocation ofpremium relating to insurance acquisition cash flows and allocations to loss component presented in insurance revenue
and insurance service expenses in the statement of comprehensive income but not included in these reconciliations, as
(1)

102

Subtotal

Fair valuetransition
approachwell as administration and other expenses attributable to insurance contracts presented in insurance service expenses inthe statement of comprehensive income but not included in these reconciliations.
(4)
Relates to past service. Line items without a superscript relate to current service.
(5)
The repayments of investment components in the year are included in this line item with the investment components
incurred being shown separately in the line item above (presented as a net zero impact on the movement in the year).

103

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.3

Reconciliation of net carrying amount: Life insurance – Savings business
Variable fee approach
Reconciliation per valuation component
Liability forremainingcoverageContractual service margin

R million
Reviewed – 30 June 2024
Non-onerous contracts recognised during the period(2)Recognised in statement of comprehensive income
Recognised in insurance revenue(3)Expected incurred claims excluding investment
components
Expected administration and other expenses
Release of risk adjustment for risk expired
Recognition of contractual service margin for services
provided
Premium experience adjustments related to current service
and other amounts
Amounts related to income tax that are specificallychargeable to the policyholder
Recognised in insurance service expenses(3)Claims incurred during the period (excluding investment
component)
Expected incurred claims excluding investment
components
Experience adjustment
Changes in incurred claims related to past service(4)Initial loss on onerous contracts recognised during
the period(2)Insurance finance income or (expenses) – fair value returns
on underlying items and finance amounts related toincurred claims(5)Changes in estimates recognised in contractual service
margin(3)Cash flow
Premiums received during the period
Incurred claims – investment components(6)Claims paid during the period
Insurance acquisition cash flows paid

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Other(1)

Total

Excludingloss
component

Losscomponent

Incurredclaims—
3 404(1 023)

(76)
3 858
(569)

19
(18)
(18)

57
(436)
(436)

—
(329)
(329)

57
(107)
(107)

—
3 404
(1 023)—3 218(1 023)

—
4
—

—
182
—

(136)
(340)
(18)

(136)
(340)
—

—
—
(18)

—
—
—

—
—
—

—
—
—

(136)
(340)
(18)

(136)
(340)
(18)

—
—
—

—
—
—

(436)

—

—

(436)

(329)

(107)

(436)

(436)

—

—

(18)

(18)

—

—

—

—

(18)

(18)

—

—

(75)
186

(75)
186

—
—

—
—

—
—

—
—

(75)
186

(75)
—

—
4

—
182

194

194

—

—

—

—

194

—

—

194

136
58
(12)

136
58
(12)

—
—
—

—
—
—

—
—
—

—
—
—

136
58
(12)

—
—
—

—
—
—

136
58
(12)

4

4

—

—

—

—

4

—

4

—

4 241

4 241

—

—

—

—

4 241

4 241

—

—

—
(3 892)3 291—(7 064)
(119)

(660)
(3 892)3 291—(7 064)
(119)

(6)
—
—
—
—
—

666
—
—
—
—
—

521
—
—
—
—
—

145
—
—
—
—
—

—
(3 892)3 291—(7 064)(119)—(3 669)3 291(6 841)
—
(119)

—
—
—
—
—
—

—
(223)
—
6 841
(7 064)—

Net movement for the period
Recognised in other comprehensive income – foreign
currency translation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the period

(488)

(770)

(5)

287

192

95

(488)

(451)

4

(41)

3
377
65 18411669
60 590

—
5
313

(8)
(297)
4 281

(8)
(312)
3 209

—
15
1 072

3
377
65 1843335
64 193

(1)
(3)
—

1
45
991

Balance at the end of the period

65 07660 500

313

4 263

3 081

1 182

65 07664 080—996

Other covers amounts for insurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Relates to future service. Line items without a superscript relate to current service.
(3)
Line items do not align to the statement of comprehensive income due to the offsetting effect of the reallocation ofpremium relating to insurance acquisition cash flows and allocations to loss component presented in insurance revenue
and insurance service expenses in the statement of comprehensive income but not included in these reconciliations, aswell as administration and other expenses attributable to insurance contracts presented in insurance service expenses inthe statement of comprehensive income but not included in these reconciliations.
(1)

104

Subtotal

Fair valuetransition
approach

Relates to past service. Line items without a superscript relate to current service.
Changes in the variable fee due to the effect of and changes in the time value of money and financial risks, including theeffect of financial guarantees, are related to future service. These impacts are therefore presented as changes in
estimates recognised in the contractual service margin and are excluded from the insurance finance income or expenses
line item.
(6)
The repayments of investment components in the period are included in this line item with the investment components
incurred being shown separately in the line item above (presented as a net zero impact on the movement in the period).
(4)

(5)

105

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.3

Reconciliation of net carrying amount: Life insurance – Savings business continued
Variable fee approach continued
Reconciliation per valuation component continued
Liability forremainingcoverageContractual service margin

R million
Audited – 31 December 2023
Non-onerous contracts recognised during the year(2)Recognised in statement of comprehensive income
Recognised in insurance revenue(3)Expected incurred claims excluding investment
components
Expected administration and other expenses
Release of risk adjustment for risk expired
Recognition of contractual service margin for services
provided
Premium experience adjustments related to current service
and other amounts
Amounts related to income tax that are specificallychargeable to the policyholder
Recognised in insurance service expenses(3)Claims incurred during the year (excluding investment
component)
Expected incurred claims excluding investment
components
Experience adjustment
Changes in incurred claims related to past service(4)Initial loss on onerous contracts recognised during the year(2)Increase and reversal of losses on onerous contracts(2)Insurance finance income or (expenses) – fair value returns
on underlying items and finance amounts related toincurred claims(5)Changes in estimates recognised in contractual service
margin(2)Cash flow
Premiums received during the year
Incurred claims – investment components(6)Claims paid during the year
Insurance acquisition cash flows paid

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Other(1)

Total

Excludingloss
component

Losscomponent

Incurredclaims

—6 294(2 930)

(332)
7 525
(1 699)

29
(128)
(128)

303
(1 103)(1 103)

—
(662)
(662)

303
(441)
(441)

—
6 294
(2 930)—5 807(2 930)

—
13
—

—
474
—

(299)
(859)
(128)

(299)
(859)
—

—
—
(128)

—
—
—

—
—
—

—
—
—

(299)
(859)
(128)

(299)
(859)
(128)

—
—
—

—
—
—

(1 103)——(1 103)

(662)

(441)

(1 103)(1 103)

—

—

(428)

(428)

—

—

—

—

(428)

(428)

—

—

(113)
475

(113)
475

—
—

—
—

—
—

—
—

(113)
475

(113)
—

—
13

—
462

323

323

—

—

—

—

323

—

—

323

299
24
139
7
6

299
24
139
7
6

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

299
24
139
7
6

—
—
—
—
—

—
—
—
7
6

299
24
139
—
—

8 749

8 749

—

—

—

—

8 749

8 737

—

12

—
(8 007)
11 146—(18 490)(663)(1 015)(8 007)
11 146—(18 490)
(663)

119
—
—
—
—
—

896
—
—
—
—
—

716
—
—
—
—
—

180
—
—
—
—
—

—
(8 007)
11 146—(18 490)(663)—(7 613)
11 146(18 096)
—
(663)

—
—
—
—
—
—

—
(394)
—
18 096(18 490)—

Net movement for the year
Recognised in other comprehensive income – foreign
currency translation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the year

(1 713)(1 829)

20

96

54

42

(1 713)(1 806)

13

80

518
(15 307)81 686496(14 555)
76 478

7
(212)
498

15
(540)
4 710

24
(328)
3 459

(9)
(212)
1 251

518
(15 307)81 686521(15 561)
81 039

—
(128)
115

(3)
382
532

Balance at the end of the year

65 18460 590

313

4 281

3 209

1 072

65 18464 193—991

Other covers amounts for insurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Relates to future service. Line items without a superscript relate to current service.
(3)
Line items do not align to the statement of comprehensive income due to the offsetting effect of the reallocation ofpremium relating to insurance acquisition cash flows and allocations to loss component presented in insurance revenue
and insurance service expenses in the statement of comprehensive income but not included in these reconciliations, aswell as administration and other expenses attributable to insurance contracts presented in insurance service expenses inthe statement of comprehensive income but not included in these reconciliations.
(1)

106

Subtotal

Fair valuetransition
approach

Relates to past service. Line items without a superscript relate to current service.
Changes in the variable fee due to the effect of and changes in the time value of money and financial risks, including theeffect of financial guarantees, are related to future service. These impacts are therefore presented as changes in
estimates recognised in the contractual service margin and are excluded from the insurance finance income or expenses
line item.
(6)
The repayments of investment components in the year are included in this line item with the investment components
incurred being shown separately in the line item above (presented as a net zero impact on the movement in the year).
(4)

(5)

107

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.4

Reconciliation of net carrying amount: General Insurance

2.4.1 Premium allocation approach
Reconciliation per valuation component
Reviewed – 30 June 2024
Liability forremainingcoverage

R million
Recognised in statement of comprehensive income
Recognised in insurance revenue
Recognised in insurance service expenses
Claims incurred during the period/year (excluding
investment component)
Changes in incurred claims related to past service
Insurance acquisition cash flows paid or amortised
Insurance finance income or (expenses)
Cash flow
Premiums received during the period/year
Incurred claims – investment components
Claims paid during the period/year
Insurance acquisition cash flows

108

Audited – 31 December 2023
Liability forremainingcoverage

Incurred claims

SubtotalBestestimateof future
cash flows

Risk
adjustment
for nonfinancial risk

(17 506)(21 158)
3 155

13 703—13 29813 825—13 46012 185
1 113
3 155
902
4 158
23 290—(15 780)(3 352)

—
—
3 155
497
19 18023 290(758)—(3 352)12 185
1 113—
405(15 022)—758(15 780)—

Total

Excludingloss
component(3 803)(21 158)
16 453

Incurred claims

SubtotalBestestimateof future
cash flows

Risk
adjustment
for nonfinancial risk

(51 247)(57 038)
5 251

42 302—41 25142 894—41 938

(592)
—
(687)

41 024
227
5 251
1 591
10 42556 772—(41 601)(4 746)

—
—
5 251
540
51 52156 772(505)—(4 746)41 024227—
1 051(41 096)—505(41 601)—40 110
1 828—
956(41 096)—505(41 601)—914(1 601)
—
95
—
—
—
—
—

Total

Excludingloss
component

(122)
—
(162)

(8 945)(57 038)
46 50211 3652 095—
365(15 022)—758(15 780)
—

820
(982)
—
40
—
—
—
—
—

Net movement for the period/year
Recognised in other comprehensive income – foreign
currency translation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the period/year

355

1 674

(1 319)(1 197)

(122)

1 480

274

1 206

1 798

(592)

—
—
31 638——12 126——19 512——17 901

—
—
1 611

(122)
(3 161)33 441——
11 852(122)(3 161)
21 589(122)(3 161)19 386——
2 203

Balance at the end of the period/year

31 99313 80018 19316 704

1 489

31 63812 12619 51217 901

1 611

109

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.4

Reconciliation of net carrying amount: General Insurance continued

2.4.2 General model
Reconciliation per valuation component
Liability forremainingcoverageContractual service margin

R million
Reviewed – 30 June 2024
Recognised in statement of comprehensive income
Recognised in insurance revenue(2)Expected incurred claims excluding investment components
Recognition of contractual service margin for services provided
Premium experience adjustments related to current service andother amounts
Recognised in insurance service expenses(2)Claims incurred during the period (excluding investment component)
Expected incurred claims excluding investment components(3)Best estimateof future
Total
cash flows

Subtotal

Other(1)

Total

Excludingloss
component

Incurredclaims

44
(48)
(57)
(3)

45
(45)
(57)
—

—
—
—
—

(1)
(3)
—
(3)

(1)
(3)
—
(3)

44
(48)
(57)
(3)

(13)
(48)
(57)
(3)

57
—
—
—

12
57
57
57

12
57
57
57

—
—
—
—

—
—
—
—

—
—
—
—

12
57
57
57

12
—
—
—

—
57
57
57

Insurance finance income or (expenses) – impact of unwinding discountrates and financial assumption changes
Cash flow
Claims paid during the period(4)Insurance acquisition cash flows paid

35
(65)
(57)
(8)

33
(65)
(57)
(8)

—
—
—
—

2
—
—
—

2
—
—
—

35
(65)
(57)
(8)

35
(8)
—
(8)

—
(57)
(57)
—

Net movement for the period
Balance at the beginning of the period

(21)
674

(20)
632

—
1

(1)
41

(1)
41

(21)
674

(21)
674

—
—

Balance at the end of the period

653

612

1

40

40

653

653

—

88
9
(5)

69
14
—

—
—
—

19
(5)
(5)

19
(5)
(5)

88
9
(5)

88
9
(5)

—
—
—

Audited – 31 December 2023
Recognised in statement of comprehensive income
Recognised in insurance revenue(2)Recognition of contractual service margin for services provided
Premium experience adjustments related to current service andother amounts
Insurance finance income or (expenses) – impact of unwinding discountrates and financial assumption changes
Cash flow
Incurred claims – investment components
Claims paid during the year(4)

14

14

—

—

—

14

14

—

79
(116)
—
(116)

55
(116)
—
(116)

—
—
—
—

24
—
—
—

24
—
—
—

79
(116)
—
(116)

79
(116)
(116)
—

—
—
116
(116)

Net movement for the year
Balance at the beginning of the year

(28)
702

(47)
679

—
1

19
22

19
22

(28)
702

(28)
702

—
—

Balance at the end of the year

674

632

1

41

41

674

674

—

Other covers amounts for insurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Line items do not align to the statement of comprehensive income due to the offsetting effect of the reallocation ofpremium relating to insurance acquisition cash flows and allocations to loss component presented in insurance revenue
and insurance service expenses in the statement of comprehensive income but not included in these reconciliations, aswell as administration and other expenses attributable to insurance contracts presented in insurance service expenses inthe statement of comprehensive income but not included in these reconciliations.
(1)

110

Risk
adjustment
for nonfinancial risk

Expected incurred claims excluding investment components approximate actual incurred claims excluding investment
component.
(4)
The repayments of investment components in the period are included in this line item with the investment components
incurred being shown separately in the line item above (presented as a net zero impact on the movement in the period).
(3)

111

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
2

Insurance contract carrying amount continued

2.5

Expected recognition of contractual service margin

General insuranceYears
R million

Analysis per line of business

Balance at the beginningof the period
Accretion of interest on liabilities
under the general model
Recognised in statement ofcomprehensive income

Years
<1

1–2

2–3

3–4

4–5

5 – 10>10

27 18323 71321 56319 92218 69917 62814 283

Balance at the end of the period

2 089

1 895

1 997

2 114

2 019

9 489

25 169Audited and re-presented –31 December 2023(1)(5 559)(4 045)(3 638)(3 337)(3 090)(12 834)(39 452)

23 71321 56319 92218 69917 62814 283—

Balance at the beginningof the year
Accretion of interest on liabilities
under the general model
Recognised in statement ofcomprehensive income

Reviewed – 30 June 2024
Balance at the beginningof the period
Accretion of interest on liabilities
under the general model
Recognised in statement ofcomprehensive income
Balance at the end of the period
Audited and re-presented –31 December 2023(1)Balance at the beginningof the year
Accretion of interest on liabilities
under the general model
Recognised in statement ofcomprehensive income
Balance at the end of the year

25 41022 90220 78018 936

17 74416 707

13 396

2 017

1 844

1 708

2 048

1 955

8 999

23 752(4 525)(3 966)(3 552)(3 240)(2 992)(12 310)(37 148)

22 90220 78018 936

17 74416 707

13 396

—

Years
<1

1–2

4 263

4 068

2–3

3–4

4–5

5 – 10>10

Reviewed – 30 June 2024
Balance at the beginningof the period
Allocation of investment return
to contracts under the variable
fee approach
Recognised in statement ofcomprehensive income
Balance at the end of the period

3 881

3 678

3 466

3 270

2 666

Balance at the end of the year

112

Balance at the end of the year

3–4

4–5

5 – 10

>10

40

39

35

31

25

18

—

3

3

4

3

3

3

—

(4)

(7)

(8)

(9)

(10)

(21)

—

39

35

31

25

18

—

—

41

37

33

29

23

16

—

3

3

4

3

3

4

—

(7)

(7)

(8)

(9)

(10)

(20)

—

37

33

29

23

16

—

—

Total
Years
R million
Balance at the beginningof the period
Accretion of interest on liabilities
under the general model
Allocation of investment return
to contracts under the variable
fee approach
Recognised in statement ofcomprehensive income

531

509

459

412

391

1 528

6 248

Balance at the end of the period

(726)

(696)

(662)

(624)

(587)

(2 132)(8 914)

4 068

3 881

3 678

3 466

3 270

2 666

—

Audited and re-presented –31 December 2023(1)Audited and re-presented –31 December 2023(1)Balance at the beginningof the year
Allocation of investment return
to contracts under the variable
fee approach
Recognised in statement ofcomprehensive income

2–3

<1

1–2

2–3

3–4

4–5

5 – 10>10

31 48627 82025 47923 63122 19020 916

16 949

2 092

1 898

2 001

2 117

2 022

9 492

25 169

531

509

459

412

391

1 528

6 248

(6 289)(4 748)(4 308)(3 970)(3 687)(14 987)(48 366)

27 82025 47923 63122 19020 916

16 949—29 73227 04324 75422 74721 35820 14416 354

2 020

1 847

1 712

2 051

1 958

9 003

23 752

540

526

501

435

421

1 745

8 870

Reviewed – 30 June 2024

Life insurance – Savings businessR million

1–2

Reviewed – 30 June 2024

Life insurance – Risk businessR million

<1

4 281

4 104

3 941

3 782

3 591

3 421

2 958

540

526

501

435

421

1 745

8 870

(717)

(689)

(660)

(626)

(591)

(2 208)(11 828)

4 104

3 941

3 782

3 591

3 421

2 958

—

Balance at the beginningof the year
Accretion of interest on liabilities
under the general model
Allocation of investment return
to contracts under the variable
fee approach
Recognised in statement ofcomprehensive income
Balance at the end of the year(1)

(5 249)(4 662)(4 220)(3 875)(3 593)(14 538)(48 976)

27 04324 75422 74721 35820 14416 354—

Prior year re-presented due the grouping of maturities 5 – 6 years, 6 – 7 years, 7 – 8 years, 8 – 9 years and 9 – 10 years in
a new maturity named 5 – 10 years. Maturities were grouped as it was not providing useful information to the reader.

113

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount

3.1

Analysis of net reinsurance contract carrying amountAnalysis per line of business and valuation method
Remaining coverage component

R million

Risk
adjustment
for nonfinancial risk

Contractual
servicemarginBest estimateof future
Subtotal
cash flows

Risk
adjustment
for nonfinancial risk

Note

Total

3.2

(1 737)(2 039)302(4 714)(6 179)
1 465

2 959
604
2 355
2 471
1 017
1 454

12 863—12 863
1 494
—
1 494

(2 197)—(2 197)(1)—(1)(8 311)—(8 311)
(39)
—
(39)

(4 696)(2 643)(2 053)(7 185)(7 196)11(4 573)(2 551)(2 022)(6 596)(6 607)
11

(123)
(92)
(31)
(589)
(589)
—

Net reinsurance contract carrying amount(6 451)5 430

14 357(2 198)(8 350)(11 881)(11 169)(712)

Premium allocation approach(1)General model(8 218)
1 767

1 621
3 809

—
14 357—(2 198)—(8 350)(9 839)(2 042)(9 158)(2 011)

(681)
(31)

Net reinsurance contract carrying amount(6 451)5 430

14 357(2 198)(8 350)(11 881)(11 169)(712)(12 115)
5 664

(843)
6 273

(461)
14 818(367)(1 831)343(8 693)(11 272)(609)(10 565)
(604)

(707)
(5)

(6 451)5 430

14 357(2 198)(8 350)(11 881)(11 169)(712)(2 373)(2 070)(303)(6 471)(7 951)
1 480

1 550
597
953
2 334
865
1 469

10 084—10 084
1 511
—
1 511

(1 942)—(1 942)(1)—(1)(7 189)—(7 189)
(41)
—
(41)

(3 923)(2 667)(1 256)(8 805)(8 816)11(3 801)(2 577)(1 224)(8 090)(8 101)
11

(122)
(90)
(32)
(715)
(715)
—

Net reinsurance contract carrying amount(8 844)3 884

11 595(1 943)(7 230)(12 728)(11 891)(837)

Premium allocation approach(1)General model(10 021)
1 177

1 462
2 422

—
11 595—(1 943)—(7 230)(11 483)(1 245)(10 678)(1 213)

(805)
(32)

Reviewed – 30 June 2024
Life insurance – Risk businessPremium allocation approach(1)General model
General insurance
Premium allocation approach(1)General model

3.3

Reinsurance contract assets
Reinsurance contract liabilities
Net reinsurance contract carrying amount
Audited – 31 December 2023
Life insurance – Risk businessPremium allocation approach(1)General model
General insurance
Premium allocation approach(1)General model

3.2

3.3

Net reinsurance contract carrying amount(8 844)3 884

11 595(1 943)(7 230)(12 728)(11 891)(837)

Reinsurance contract assets
Reinsurance contract liabilities(14 530)(2 370)

653

(826)

(1 761)(12 160)(11 323)

(837)

5 686

6 254

10 942(1 117)(5 469)

(568)

(568)

—

Net reinsurance contract carrying amount(8 844)3 884

11 595(1 943)(7 230)(12 728)(11 891)

(837)

(1)

114

Best estimateof future
Subtotal
cash flows

Incurred claims component

Only the incurred claims and the subtotal of remaining coverage component sections would be applicable to thepremium allocation approach.

115

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount continued

3.2

Reconciliation of net carrying amount: Life insurance – Risk business3.2.1 Premium allocation approach
Reconciliation per valuation component
Reviewed – 30 June 2024

Audited – 31 December 2023

Incurred claims component

R million
Recognised in statement ofcomprehensive income
Income or (expense) fromreinsurance contracts(1)Reinsurance expenses for the
portion of ceded premiums
recovered during the period/year
Claims incurred during the period/
year (excluding investment
components) recoverable fromreinsurance contracts
Changes in incurred claims related
to past service
Other income or (expenses) fromreinsurance contracts
Reinsurance finance income or(expense)
Cash flow
Premiums paid
Recoveries received underreinsurance contracts held
Incurred claims recoverable –investment components
Administration and other expenses

Best
Risk
estimate adjustmentof futurefor noncash flows financial risk

SubtotalBestestimateof future
cash flows

Risk
adjustment
for nonfinancial risk

1 813

(1 255)(1 259)

4

729

1 774

(1 045)(1 056)

11

—

1 766

1 766

—

—

—

(569)

(10)

(1 145)—(1 145)(1 143)

(2)

115

111

4

144

—

144

131

13

6

—

—

—

(36)

8

(44)

(44)

—

(96)
(15)
(652)

23
(741)
(652)

(119)
726
—

(114)
729
—

(5)
(3)
—

(171)
(709)
(1 178)39(1 300)(1 178)

(210)
591
—

(203)
591
—

(7)
—
—

637

—

637

640

(3)

431

—

431

431

—

—
—

(89)
—

89
—

89
—

—
—

—
38

(160)
38

160
—

160
—

—
—

41

(102)

143

157

(14)

(151)

513

(664)

(668)

4

(1)

2

(3)

(3)

—

5

(5)

10

11

(1)

Total

Remainingcoveragecomponent

Subtotal

56

639

(583)

(572)

152

616

(464)

610

610

(579)

Total

Remainingcoveragecomponent

(11)

558

(458)

(6)

—

—

—

(579)

115

—

6

Net movement for the period/year
Recognised in other comprehensive
income – foreign currency translationdifferences
Reclassified as non-current liabilities
held for sale
Balance at the beginning of theperiod/year

(9)

107

(116)

(128)

12

(108)

(324)

216

198

18

(2 070)597(2 667)(2 577)(90)(1 816)413(2 229)(2 118)(111)

Balance at the end of the period/year(2 039)604(2 643)(2 551)(92)(2 070)597(2 667)(2 577)

(90)

(1)

116

Incurred claims component

Reinsurance expenses are recognised similarly to insurance revenue, reflecting the portion of the premiums paid allocatedin profit or loss for services provided by reinsurers in the period, with the other amounts representing the net amounts(income) recoverable from reinsurers.

117

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount continued

3.2

Reconciliation of net carrying amount: Life insurance – Risk business continued

3.2.2 General model
Reconciliation per valuation component
Remaining coveragecomponent

Contractual service margin

R million
Reviewed – 30 June 2024
Contracts recognised during the period for future coverage
Recognised in statement of comprehensive income
Income or (expense) from reinsurance contracts(2)Recognition of contractual service margin for services
received
Release of risk adjustment for risk expired
Premium experience adjustments related to current service
and other amounts
Expected incurred claims (excluding investment
components) recoverable from reinsurance contracts
Claims experience adjustments related to current service
Changes in incurred claims related to past service(3)Loss recovery component recognised during the period for
future coverage(4)Changes in estimates which adjust the loss recovery
component(4)Allocation of loss recovery component(4)Reinsurance finance income or (expenses) – impact of
unwinding discount rates and financial assumption changes
Changes in estimates recognised in contractual service
margin(4)Cash flow
Premiums paid
Recoveries received under reinsurance contracts held
Administration and other expenses
Incurred claims recoverable – investment components

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Subtotal

Fair valuetransition
approach

Other(1)

Total

Excludingloss
recovery Loss recovery
component
component

Incurredclaimscomponent

—
969
930

2 041
291
(169)

(571)
306
413

(1 470)
372
686

—
8
10

(1 470)
364
676

—
969
930

—
4 163
4 124

—
13
7

—
(3 207)(3 201)

680
412

—
—

—
412

680
—

—
—

680
—

680
412

680
412

—
—

—
—

(102)

(102)

—

—

—

—

(102)

(102)

—

—

—
(92)
26

—
(92)
25

—
—
1

—
—
—

—
—
—

—
—
—

—
(92)
26

3 135
—
—

—
—
—

(3 135)
(92)
26

(9)

—

—

(9)

—

(9)

(9)

—

(9)

—

15
—

—
—

—
—

15
—

10
—

5
—

15
—

—
(1)

15
1

—
—

39

460

(107)

(314)

(2)

(312)

39

39

6

(6)

—
(441)
(3 117)
2 671
5
—

34
(441)
(3 117)
2 671
5
—

3
—
—
—
—
—

(37)
—
—
—
—
—

(18)
—
—
—
—
—

(19)
—
—
—
—
—

—
(441)
(3 117)
2 671
5
—

—
(3 014)(3 117)
—
5
98

—
—
—
—
—
—

—
2 573
—
2 671
—
(98)

Net movement for the period
Recognised in other comprehensive income – foreign currencytranslation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the period

528

1 925

(262)

(1 135)(10)(1 125)

528

1 149

13

(634)

1
76
(303)

1
55
8 860

—
8
(1 974)—13(7 189)

—
10
(60)

—
3
(7 129)

1
76
(303)

4
236
1 032

—
—
(79)

(3)
(160)
(1 256)

Balance at the end of the period

302

10 841(2 228)(8 311)(60)(8 251)

302

2 421

(66)

(2 053)

Other covers amounts for reinsurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Reinsurance expenses are recognised similarly to insurance revenue, reflecting the portion of the premiums paid
allocated in profit or loss for services provided by reinsurers in the period, ie net expenses recognised in the period fromreleasing the CSM/risk adjustment for the services received/risk expired, experience adjustments related to premiums
paid and the expected claims recoveries released from the remaining coverage component. The other amounts represent
the net amounts (income) recoverable from reinsurers.
(3)
Relates to past service. Line items without a superscript relate to current service.
(4)
Relates to future service. Line items without a superscript relate to current service.
(1)

118

119

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount continued

3.2

Reconciliation of net carrying amount: Life insurance – Risk business continued

3.2.2 General model continued
Reconciliation per valuation component continued
Remaining coveragecomponent

Contractual service margin

R million
Audited – 31 December 2023
Contracts recognised during the year for future coverage
Recognised in statement of comprehensive income
Income or (expense) from reinsurance contracts(2)Recognition of contractual service margin for services
received
Release of risk adjustment for risk expired
Premium experience adjustments related to current service
and other amounts
Expected incurred claims (excluding investment
components) recoverable from reinsurance contracts
Claims experience adjustments related to current service
Changes in incurred claims related to past service(3)Loss recovery component recognised during the year for
future coverage(4)Changes in estimates which adjust the loss recovery
component(4)Allocation of loss recovery component(4)Reinsurance finance income or (expenses) – impact of
unwinding discount rates and financial assumption changes
Changes in estimates recognised in contractual service
margin(4)Cash flow
Premiums paid
Recoveries received under reinsurance contracts held
Administration and other expenses
Incurred claims recoverable – investment components
Net movement for the year
Recognised in other comprehensive income – foreign currencytranslation differences
Reclassified as non-current liabilities held for sale
Balance at the beginning of the year
Balance at the end of the year

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Subtotal

Fair valuetransition
approach

Other(1)

Total

Excludingloss
recoverycomponent

Lossrecoverycomponent

Incurredclaimscomponent

—
2 420
2 154

3 018
1 129
280

(831)
313
518

(2 187)
978
1 356

—
1
4

(2 187)
977
1 352

—
2 420
2 154

—
8 635
8 464

—
(45)
(39)

—
(6 170)(6 271)

1 385
493

—
—

—
493

1 385
—

4
—

1 381
—

1 385
493

1 385
493

—
—

—
—

273

273

—

—

—

—

273

273

—

—

—
12
20

—
12
(5)

—
—
25

—
—
—

—
—
—

—
—
—

—
12
20

6 303
—
—

—
—
—

(6 303)
12
20

(7)

—

—

(7)

—

(7)

(7)

—

(7)

—

(22)
—

—
—

—
—

(22)
—

—
—

(22)
—

(22)
—

—
10

(22)
(10)

—
—

266

849

(205)

(378)

(3)

(375)

266

171

(6)

101

—
(1 023)(7 256)
6 248
(15)
—

2 009
(1 023)(7 256)
6 248
(15)
—

(338)
—
—
—
—
—

(1 671)
—
—
—
—
—

79
—
—
—
—
—

(1 750)
—
—
—
—
—

—
(1 023)(7 256)
6 248
(15)
—

—
(7 772)(7 256)
—
(15)
(501)

—
—
—
—
—
—

—
6 749
—
6 248
—
501

1 397

5 133

(856)

(2 880)80(2 960)

1 397

863

(45)

579

(3)
247
(1 944)

(5)
242
3 490

(1)
55
(1 172)

3(50)(4 262)

—
(33)
(107)

3
(17)
(4 155)(3)247(1 944)

—
(66)
235

(1)
8
(41)

(2)
305
(2 138)

(303)

8 860

(1 974)(7 189)(60)(7 129)

(303)

1 032

(79)

(1 256)

Other covers amounts for reinsurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Reinsurance expenses are recognised similarly to insurance revenue, reflecting the portion of the premiums paid
allocated in profit or loss for services provided by reinsurers in the period, ie net expenses recognised in the period fromreleasing the CSM/risk adjustment for the services received/risk expired, experience adjustments related to premiums
paid and the expected claims recoveries released from the remaining coverage component. The other amounts represent
the net amounts (income) recoverable from reinsurers.
(3)
Relates to past service. Line items without a superscript relate to current service.
(4)
Relates to future service. Line items without a superscript relate to current service.
(1)

120

121

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount continued

3.3

Reconciliation of net carrying amount: General insurance

3.3.1 Premium allocation approach
Reconciliation per valuation component
Reviewed – 30 June 2024

Audited – 31 December 2023

Incurred claims component

R million
Recognised in statement ofcomprehensive income
Income or (expense) fromreinsurance contracts(1)Reinsurance expenses for the
portion of ceded premiums
recovered during the period/year
Claims incurred during the period/
year (excluding investment
components) recoverable fromreinsurance contracts
Changes in incurred claims related
to past service
Other income or (expenses) fromreinsurance contracts
Reinsurance finance income or(expense)
Cash flow
Premiums paid
Recoveries received underreinsurance contracts held
Incurred claims recoverable –investment components

Best
Risk
estimate adjustmentof futurefor noncash flows financial risk

Total

Remainingcoveragecomponent

Subtotal

2 500

4 122

(1 622)(1 748)

2 521

3 996

(1 475)

3 996

3 996

(2 250)Best
Risk
estimate adjustmentof futurefor noncash flows financial risk

Total

Remainingcoveragecomponent

Subtotal

126

7 357

13 512(6 155)(6 508)353(1 636)

161

7 693

13 098(5 405)(5 812)

407

—

—

—

13 098

13 098————(2 250)(2 262)12(2 923)—(2 923)(3 020)

97

775

—

775

626

149

(2 758)—(2 758)(3 068)

310

—

—

—

—

—

276

—

276

276

—

(21)
(728)
(3 383)126(3 970)(3 383)

(147)
3 242
—

(112)
3 242
—

(35)
—
—

(336)
(5 463)(14 426)414(15 351)(14 426)

(750)
9 888
—

(696)
9 888
—

(54)
—
—

2 655

—

2 655

2 655

—

8 963

—

8 963

8 963

—

—

(587)

587

587

—

—

(925)

925

925

—

1 772

152

1 620

1 494

126

1 894

(1 839)

3 733

3 380

353

—

—

—

—

—

49

—

49

49

—

Net movement for the period/year
Recognised in other comprehensive
income – foreign currency translationdifferences
Reclassified as non-current liabilities
held for sale
Balance at the beginning of theperiod/year

—

—

—

—

—

2 373

—

2 373

2 373

—

(7 951)865(8 816)(8 101)(715)(12 267)

2 704(14 971)(13 903)(1 068)

Balance at the end of theperiod/year(6 179)1 017(7 196)(6 607)(589)(7 951)865(8 816)(8 101)

(715)

(1)

122

Incurred claims component

Reinsurance expenses are recognised similarly to insurance revenue, reflecting the portion of the premiums paid allocatedin profit or loss for services provided by reinsurers in the period/year, with the other amounts representing the net amounts(income) recoverable from reinsurers.

123Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount continued

3.3

Reconciliation of net carrying amount: General insurance continued

3.3.2 General model
Reconciliation per valuation component
Remainingcoveragecomponent

Contractual service margin

R million
Reviewed – 30 June 2024
Recognised in statement of comprehensive income
Income or (expense) from reinsurance contracts
Experience adjustments
Reinsurance finance income or (expenses) – impact of
unwinding discount rates and financial assumption changes
Cash flow
Premiums paid
Investment components

Best estimateof future
Total
cash flows

Risk
adjustment
for nonfinancial risk

Subtotal

Other(1)Excludingloss recovery
Total
component

Incurredclaimscomponent

(14)
(35)
(35)

(16)
(35)
(35)

—
—
—

2
—
—

2
—
—

(14)
(35)
(35)

71
50
50

(85)
(85)
(85)

21
(1)
(1)
—

19
(1)
(1)
—

—
—
—
—

2
—
—
—

2
—
—
—

21
(1)
(1)
—

21
(86)
(1)
(85)

—
85
—
85

Net movement for the period
Balance at the beginning of the period

(15)
1 480

(17)
1 522

—
(1)

2
(41)

2
(41)

(15)
1 480

(15)
1 469

—
11

Balance at the end of the period

1 465

1 505

(1)

(39)

(39)

1 465

1 454

11

49

69

—

(20)

(20)

49

49

—

49
—
(88)
(88)
—

69
—
(88)
(88)
—

—
(1)
—
—
—

(20)
1
—
—
—

(20)
1
—
—
—

49
—
(88)
(88)
—

49
—
(99)
(88)
(11)

—
—
11
—
11

Net movement for the year
Balance at the beginning of the year

(39)
1 519

(19)
1 541

(1)
—

(19)
(22)

(19)
(22)

(39)
1 519

(50)
1 519

11
—

Balance at the end of the year

1 480

1 522

(1)

(41)

(41)

1 480

1 469

11

Audited – 31 December 2023
Recognised in statement of comprehensive income
Reinsurance finance income or (expenses) – impact of
unwinding discount rates and financial assumption changes
Changes in estimates recognised in contractual service margin(2)Cash flow
Premiums paid
Incurred claims recoverable – investment components

Other covers amounts for reinsurance contracts that existed at the transition date to which Sanlam applied the fully
retrospective approach, plus amounts for insurance contracts recognised subsequent to the transition date.
(2)
Relates to future service. Line items without a superscript relate to current service.
(1)

124

125

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
3

Reinsurance contract carrying amount continued

3.4

Expected recognition of contractual service margin

Total
Years
R million

Analysis per line of business

Balance at the beginningof the period
Accretion of interest
Recognised in statement ofcomprehensive income

Years
<1

1–2

2–3

3–4

4–5

5 – 10>10

Reviewed – 30 June 2024
Balance at the beginningof the period
Accretion of interest
Recognised in statement ofcomprehensive income
Balance at the end of the period(8 311)(489)(6 938)(411)(5 870)(345)(4 994)(292)(4 258)(249)(3 632)(767)(1 614)
88

1 862

1 479

1 221

1 028

875

2 785

1 526

(6 938)(5 870)(4 994)(4 258)(3 632)(1 614)—

Balance at the end of the period

Balance at the end of the year

2–3

3–4

4–5

5 – 10>10(8 350)(492)(6 976)(414)(5 904)(349)(5 024)(295)(4 282)(252)(3 649)(771)(1 614)88(7 189)(436)(5 872)(360)(4 859)(302)(4 045)(249)(3 365)(211)(2 794)(626)(1 026)
14

1 753

1 373

1 116

929

782

2 394

1 012

(5 872)(4 859)(4 045)(3 365)(2 794)(1 026)

—

1 866

1 486

1 229

1 037

885

2 806

1 526

(6 976)(5 904)(5 024)(4 282)(3 649)(1 614)—(7 230)(439)(5 909)(363)(4 892)(306)(4 074)(252)(3 388)(214)(2 810)(630)(1 026)
14

Audited and re-presented –31 December 2023(1)Balance at the beginningof the year
Accretion of interest
Recognised in statement ofcomprehensive income

Audited and re-presented –31 December 2023(1)Balance at the beginningof the year
Accretion of interest
Recognised in statement ofcomprehensive income

1–2

Reviewed – 30 June 2024

Life insurance – Risk businessR million<1

Balance at the end of the year
(1)

1 760

1 380

1 124

938

792

2 414

1 012

(5 909)(4 892)(4 074)(3 388)(2 810)(1 026)—

Prior year re-presented due the grouping of maturities 5 – 6 years, 6 – 7 years, 7 – 8 years, 8 – 9 years and 9 – 10 years in
a new maturity named 5 – 10 years. Maturities were grouped as it was not providing useful information to the reader.

4

Investment contracts

4.1

Analysis of movement in investment contract liabilities

General insuranceYears
R million

<1

1–2

2–3

3–4

4–5

5 – 10

Balance at the end of the period

(39)
(3)

(38)
(3)

(34)
(4)

(30)
(3)

(24)
(3)

(17)
(4)

—
—

4

7

8

9

10

21

—

(38)

(34)

(30)

(24)

(17)

—

—

Audited and re-presented –31 December 2023(1)Balance at the beginningof the year
Accretion of interest
Recognised in statement ofcomprehensive income
Balance at the end of the year

126

Audited31 December
2023

IncomePremium income
Change in fair value of investment contract liabilities (including tax)
Outflow
Policy benefits
Retirement fund terminations
Fees, risk premiums and other payments to shareholders’ fund
Movement in policy loans
Other movements

59 61531 87027 745(37 083)(26 988)(6 840)(3 255)(1)—

136 762
69 31667 446(76 427)(51 834)(17 540)(7 053)
13(1)

Net movement for the period/year
Non-current liabilities held for sale
Balance at the beginning of the period/year

22 531(263)
488 50160 347(13 506)
441 660

Balance at the end of the period/year

510 769

488 501

R million>10

Reviewed – 30 June 2024
Balance at the beginningof the period
Accretion of interest
Recognised in statement ofcomprehensive income

Reviewed
30 June
2024

(41)
(3)

(37)
(3)

(33)
(4)

(29)
(3)

(23)
(3)

(16)
(4)

—
—

7

7

8

9

10

20

—

(37)

(33)

(29)

(23)

(16)

—

—

127

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
5

Earnings per share

Reviewed
30 June 2024

For basic earnings per share the weighted average number of ordinary shares is adjusted for the treasury
shares held by subsidiaries (including Sanlam Share Account Nominee Pty Ltd (SSA)). Basic earnings per
share is calculated by dividing earnings by the adjusted weighted average number of shares in issue.
For diluted earnings per share the weighted average number of ordinary shares is adjusted for the shares
not yet issued under the Sanlam Share Incentive Scheme and treasury shares held by subsidiaries (including
SSA). Diluted earnings per share is calculated by dividing earnings by the adjusted diluted weighted average
number of shares in issue.

Cents

Reviewed
30 June2024

Reviewed andre-presented(1)30 June2023

Basic earnings per share:
Headline earnings
Profit attributable to shareholders’ fund

473,0
478,0

339,0
388,6

Diluted earnings per share:
Headline earnings
Profit attributable to shareholders’ fund

467,0
471,0

333,9
382,7

Basic earnings per share from continuing operations:
Headline earnings
Profit attributable to shareholders’ fund

458,9
463,5

241,3
225,6

Diluted earnings per share from continuing operations:
Headline earnings
Profit attributable to shareholders’ fund

452,6
457,1

237,6
222,2

Basic earnings per share from discontinued operations:
Headline earnings
Profit attributable to shareholders’ fund

14,2
14,2

97,5
163,0

Diluted earnings per share from discontinued operations:
Headline earnings

14,0

96,1

Profit attributable to shareholders’ fund

14,0

160,5

R million
Analysis of earnings:
Profit attributable toshareholders’ fundLess: Net (profit)/loss on
disposal of subsidiaries
and associated companies(Profit)/loss on disposalof subsidiaries andassociated companies
Tax on profit on disposalof subsidiaries andassociated companies
Non-controlling interest
Less: Equity-accounted
non-headline earnings
Gross equity-accounted
non-headline earnings
Tax on equity-accounted
non-headline earnings
Non-controlling interest
Plus: Net impairments
Gross impairments
Non-controlling interest
Headline earnings

Continuing Discontinued
operations
operations

Reviewed and re-presented(1)30 June 2023
Total

Continuing
operations

Discontinued
operations

Total

9 636

296

9 932

4 596

3 320

7 916

(791)

—

(791)

58

(1 333)(1 275)(1 192)—(1 192)105(1 553)(1 448)

401
—

—
—

401
—

16
(63)

43
177

59
114

183

—

183

—

—

—

178

—

178

—

—

—

(8)
13
513
526
(13)

—
—
—
—
—

(8)
13
513
526
(13)

—
—
261
261
—

—
—
—
—
—

—
—
261
261
—

9 541

296

9 837

4 915

1 987

6 902

MillionNumber of shares:
Number of ordinary shares in issue at beginning of the year
Plus: Shares issued(2)Less: Shares cancelled(2)Less: Weighted Sanlam shares held by subsidiaries
Adjusted weighted average number of shares for basic earnings per share
Plus: Total number of shares in respect of Sanlam Limited long-term
incentive schemes
Adjusted weighted average number of shares for diluted earnings
per share

Reviewed
30 June2024

Reviewed andre-presented(2)30 June2023

2 202,9—(14,3)(109,7)2 226,91,2(4,0)(186,9)2 078,92 037,2

29,2

31,2

2 108,1

2 068,4Prior period re-presented due to the inclusion of Namibia into the discontinued operations. Refer to note 14 foradditional information.
(2)
Prior period re-presented to disclose the shares issued and shares cancelled separately.
(1)

128

129

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
6

Reconciliation of segmental information

The IFRS numbers are a base upon which Sanlam specific shareholders’ fund adjustments are made to derive
the net result from financial services and the underlying cash net result from financial services as disclosed in
the shareholders’ information. These shareholders’ fund adjustments do not impact attributable earnings or
total IFRS profit after tax.

The group segments are grouped according to the similarity of the solution offerings and market
segmentations of the various businesses in line with how the business is reported to management and theboard internally.

For total assets and liabilities, the shareholder’s fund information also incorporates the IFRS numbers as abase and further makes certain adjustments, as described below to arrive at the shareholder’s fund net asset
value. The policyholders and outside shareholders’ interest are treated as non-controlling interest for groupcompanies consolidated.

The operating segments reported for IFRS 8 – Operating Segments purposes include the following:Ì Sanlam Life and Savings– Sanlam Risk and Savings (previously reported under the segment SA Retail Affluent) (providing life
insurance and investment solutions to the middle and upper level of the market);– Glacier (previously reported under the segment SA Retail Affluent) (providing investment solutions andlife insurance to the middle and upper level of the market);– SA Retail Mass (providing life insurance and investment solutions to the entry level market); and– Sanlam Corporate (providing employee benefits services, group risk and investment services toretirement funds and corporates);Ì Sanlam Emerging Markets (incorporating all Sanlam’s Pan-Africa and Asia businesses);Ì Sanlam Investment Group (incorporating investment and wealth management businesses); andÌ Santam (being Sanlam’s general insurance provider subsidiary in South Africa).

IFRS adjustments represent the difference between shareholders’ fund reporting and IFRS. This includes but
is not limited to:Ì Deferred tax recognised in respect of assessed losses in policyholder funds under IFRS which creates anartificial mismatch which impacts the group’s shareholders’ fund and earnings.
Ì Asset mismatch reserve – is created in the group statement of financial position for investment variances
emanating from insurance and investment contracts measured under IFRS 17 and IFRS 9 respectively.
These reserves are not allowed under IFRS.
Ì Discontinued operations – for shareholders’ fund reporting, discontinued operations in terms of IFRS 5
Non-Current Assets Held for Sale are not re-presented as is the case for IFRS. These are accounted for as
if the operations are not yet discontinued and derecognised when the disposal becomes effective.
Ì Policyholder activities – to get to the full IFRS amounts, policyholder activities are added as these areexcluded for shareholders’ fund reporting.

Segment results per the shareholders’ fund income statement after tax and non-controlling interest(“segment results”) is used to measure performance as management believes this information is the most
relevant in evaluating the results from the respective segments as it represents Sanlam’s operational andinvestment activities in the manner that the Sanlam board assesses the group’s performance. Refer topage 40 in the shareholders’ fund information.

Group office is responsible for areas of financial risk management and is not an operating segment.

Group office and other

Consolidation entries and
IFRS adjustments

Policyholder
activities

Total

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Reviewed
Audited30 June 31 December
2024
2023

Sanlam Emerging Markets

Sanlam Investment Group

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Reviewed
30 June2024

Audited31 December
2023

Investment in associates and joint
venturesTotal assets

2 781
58 684

1 424
60 34640 29347 45541 58148 522619
39 968653
35 9091 607
56 7801 524
58 672

—
6 195

—
5 849

(1 960)(7 364)(1 226)(6 543)511
822 485517
787 697

43 851
1 024 203

44 473990 452

Total liabilities

20 77524 255

4 605

4 163

32 06228 03345 46248 217

3 353

3 374

2 177

(3 605)818 133

789 110926 567

893 547

R million

Sanlam Life andSavings(1)R million
Insurance revenue(4)Revenue(5)Profit/(loss) for the period fromcontinuing operations(2)Profit for the period from discontinued
operations

Sanlam Emerging
Markets

Sanlam Investment
Group

Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed
30 June30 June30 June30 June30 June30 June
2024
2023
2024
2023
2024
2023

SantamGroup office and other

Reviewed
30 June2024

Reviewed
30 June2023

Reviewed
30 June2024

Reviewed
30 June2023

Policyholder activities,
consolidation entries and
IFRS adjustments(2)Reviewed andReviewed re-presented(3)30 June30 June
2024
2023

Total
Reviewed andReviewed re-presented(3)30 June30 June2024
2023

21 0557 959

18 714
4 023

1 931
74

18 955
515

10
3 115

53
2 965

24 634—22 492
—

—
215

—
199

111
(330)

(18 314)(556)

47 741
11 03341 900
7 146

4 816

3 018

3 515

3 563

782

820

993

996

(174)

(481)

954

(2 857)

10 886

5 059

—

—

—

—

—

—

—

—

—

—

435

4 639

435

4 639

Includes the operations of Sanlam Risk and Savings, Glacier, SA Retail Mass, Sanlam Corporate and discretionary capital heldby Sanlam Life Insurance Limited.
(2)
Policyholder activities, consolidation entries and IFRS adjustments included in profit/(loss) for the period fromcontinuing operations relate to Sanlam Life and Savings R40 million (2023: (R24) million), Sanlam Emerging Markets(R310) million (2023: (R3 355) million), Sanlam Investment Group R114 million (2023: R95 million), Santam R881 million(2023: R582 million) and Group Office R231 million (2023: (R155) million). Consolidation entries relate to inter-segmental
transactions. For IFRS adjustments, refer to additional information above table. Non-controlling interest is included inthis column as it is excluded from the shareholders fund income statement.
(3)
Prior period re-presented due to the inclusion of Namibia into the discontinued operations. Refer to note 14 for additional
information.
(1)

130

SantamSanlam Life and Savings(1)The decrease in Sanlam Emerging Markets insurance revenue stem from the discontinued operations now being
equity-accounted following the creation of the joint venture SanlamAllianz in September 2023.
(5)Inter-segmental revenue is included in the policyholder activities, consolidation entries and IFRS adjustments column.
Group office and other had net positive inter-segmental revenue of R350 million (2023: net positive R330 million),
Sanlam Investments Group had net positive inter-segmental revenue of R179 million (2023: net positive R156 million),
Sanlam Life and Savings had net negative inter-segmental revenue R64 million (2023: net negative R53 million) andSanlam Emerging Markets had inter-segmental revenue of net negative R13 million (2023: net negative R12 million).
Inter-segmental revenue stem mainly from IT-services, investment management services and marketing and brandservices provided between segments.
(4)

131

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
7

Revenue

According to primary geography

Revenue included in result from other operations is considered to be revenue for IFRS purposes and includes
both IFRS 15 revenue and revenue scoped out of IFRS 15. The different sources of revenue are listed below.

R million

Major revenue sources not within the scope of IFRS 15:

Ì Income from investments held for capital market activities, such as realised and unrealised gains or losseson trading accounts, unsecured corporate bonds and money market assets and liabilities.

Major IFRS 15 revenue sources:Ì Income from investment management activities, such as fund management fees, collective investment andlinked-product administration fees, commissions, performance fees and other fees;Ì Income from capital market activities, such as advisory fees and structuring fees on financing provided; andÌ Income from other financial services, such as independent financial advice and trust services.
Revenue within the scope of IFRS 15 is either recognised at a point in time or over time. Revenue isrecognised over time if one of the following criteria is met:
Ì The customer simultaneously receives and consumes the benefits provided by the entity’s performance as
the entity performs;
Ì The entity’s performance creates or enhances an asset that the customer controls as the asset is createdor enhanced; orÌ The entity’s performance does not create an asset with an alternative use to the entity and the entity has
an enforceable right to payment for performance completed to date.
If none of the above criteria is met, revenue is recognised at a point in time.

IFRS 15 Revenue disaggregation
Revenue from contracts with customers are disaggregated by geographic location and type of revenue. We
believe it best depicts how the nature, amount, timing and uncertainty of the group’s revenue and cash flows
are affected by economic factors.

Reviewed – 30 June 2024
IFRS 15 Revenue
Administration fees
Asset management and performance fees
Capitation fees
Commissions
RetailConsulting fees
Other(1)
Revenue not within the scope of IFRS 15
Revenue(2)Reviewed and re-presented – 30 June 2023
IFRS 15 Revenue
Administration fees
Asset management and performance fees
Commissions
Consulting fees
Trust and estate fees
Other(1)
Revenue not within the scope of IFRS 15

Investment contract policyholders are charged for policy administration and other services. This fee income
is recognised as revenue over time as the related services are rendered.
Capitation fees, relating to health risk management contracts, are recognised as services rendered over thecontract duration. The fees are payable on a monthly basis and is aligned with the satisfying performanceobligations over time.
Commissions from investment management or administration services in respect of investment contracts
are recognised either at a point in time or over time. The fees are payable within 30 days of the service being
rendered.
Retail relates to revenue from the sale of goods in Afrocentric and is recognised at a point in time whencontrol of goods have been transferred.
Consulting fees are earned for advice and other services provided to clients of the group’s financial advisorybusinesses. For IFRS 15 purposes, these fees are accounted for either over time as the related services are
rendered or at a point in time, depending on when the performance obligations are satisfied. The fees arereceived on the basis of retainer contracts and services are provided on an ongoing (or continuous) basis.
The customer therefore simultaneously receives and consumes the benefits provided by the company’s
performance as the company performs. The fees are payable 30 days from date of invoice.
Estate fees are recognised at a point in time when the administration of estates are completed.

132

Trust administration fees are recognised as follows:Ì at a point in time: acceptance fees are recognised when new capital is received, termination fees arerecognised when trusts or funds are terminated and income fees are recognised on when the income ofa trust is received; orÌ over time: trust and fund management fees are recognised on a monthly basis as a percentage of assets
under management. Tax preparation, reporting fees and reference fees from related parties are recognisedover time.

Pan-Africa

Other
International

9 362
5 440
1 884
876
262
308
180
412

248
224
—
—
—
—
—
24

940
42
828
—
61
—
9
—

10 550
5 706
2 712
876
323
308
189
436
483

9 362

248

940

11 033

6 047
3 705
1 790
295
76
102
79

16
15
1
—
—
—
—

819
52
685
72
8
—
2

6 882
3 772
2 476
367
84
102
81
264

6 047

16

819

7 146

At a point
in timeOver time

Total

998
242
153
—
271
308
24
—

9 552
5 464
2 559
876
52
—
165
436

10 550
5 706
2 712
876
323
308
189
436
483

Total

(3)

Revenue(2)According to timing of revenue recognition

Recognition of different sources of revenue
Fees for asset management or administration services in respect of investment contracts are recognised asservices are rendered. Initial fees that relate to the future rendering of services are deferred and recognised
as those future services are rendered. Related performance fees are also recognised over time, however
represent variable consideration and therefore recognition is constrained until there is a ‘high degree ofconfidence’ that revenue will not be reversed in a subsequent reporting period; this is typically on
crystallisation of the fee. Clients' assets are managed on an ongoing basis and if there is an outperformanceof a specific benchmark over a certain period, a fee is recouped from the clients' account. The fees arepayable on a monthly basis and are aligned with the satisfying performance obligations over time.

South Africa

R million
Reviewed – 30 June 2024
IFRS 15 Revenue
Administration fees
Asset management and performance fees
Capitation fees
Commissions
RetailConsulting fees
Other(1)
Revenue not within the scope of IFRS 15
Revenue
Reviewed and re-presented – 30 June 2023(3)IFRS 15 Revenue
Administration fees
Asset management and performance fees
Commissions
Consulting fees
Trust and estate fees
Other(1)
Revenue not within the scope of IFRS 15
Revenue

11 033
757
292
74
308
17
63
3

6 125
3 480
2 402
59
67
39
78

6 882
3 772
2 476
367
84
102
81
264
7 146

Other IFRS 15 revenue relates to rebates, scrip lending fees received and licence fees.
Sanlam Life and Savings primarily have revenue in South Africa, R7 131 million (2023: R3 845 million), as well as a small
portion stemming from Other International and Pan-Africa, respectively Rnil million (2023: R1 million) and R248 million(2023: R64 million). Revenue in Sanlam Emerging Markets stem from Pan-Africa Rnil million (2023: Rnil million). Sanlam
Investment Group revenue from South Africa R2 247 million (2023: R2 194 million) and Other International R938 million(2023: R823 million). Group Office and Santam revenue stem from South Africa.
(3)
Prior period re-presented due to the inclusion of Namibia into the discontinued operations. Refer to note 14 for additional
information.
(1)

(2)

133

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
8

Financial assets and financial liabilities
Classification of financial instruments
Fair value through profit or loss
Designated asmeasured atfair value
through profit
or loss

Mandatorily
measured atfair value
through profit
or loss

Total
fair value

Gross

Expected credit
loss allowance

Reviewed – 30 June 2024
Investments
Equities and similar securities(1)Investment in joint ventures
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities
Trading account assets
Advances to customers
Working capital assets
Trade and other receivables
Short-term investments
Cash and cash equivalents

302 559—511
263 765
3 244—
35 039
—
—
3 476
—
3 476
—

507 583
171 997——
28 441
307 145—
14 113—————810 142
171 997511
263 765
31 685
307 145
35 03914 113
—
3 476
—
3 476
—

5 582
—
—
5 565
—
—
17
—
4 091
46 65118 733—27 918

—
—
—
—
—
—
—
—
17
(343)
(330)
—
(13)

Total financial assets

306 035

521 696827 731

56 324(326)

Investment contract liabilities
Term finance
Structured transaction liabilities
External investors in consolidated funds
Trading account liabilities
Trade and other payables

510 769
7 476—
75 60920 965100——
11 178—1 592—

510 769
7 476
11 17875 60922 557100

Total financial liabilities

614 919

12 770627 689

Audited – 31 December 2023
Investments
Equities and similar securities(1)Investment in joint ventures
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities
Trading account assets
Advances to customers
Working capital assets
Trade and other receivables
Short-term investments
Cash and cash equivalents

284 207—517
243 6911 917—
38 082
—
—
9 089
—
9 089
—

485 531
159 385——
24 197301 949—
13 554—1212——769 738
159 385517
243 691
26 114301 949
38 08213 554
—
9 101
12
9 089
—

5 702
—
—
5 681
—
—
21
—
4 048
45 40319 566—25 837

Total financial assets

293 296499 097792 393

55 153

Investment contract liabilities
Term finance
Structured transaction liabilities
External investors in consolidated funds
Trading account liabilities
Trade and other payables

488 5017 444—
76 46816 500202——
12 287—1 947—

488 501
7 444
12 28776 46818 447202

Total financial liabilities

589 115

14 234603 349

R million

(1)
(2)

134

Amortised cost

Non-financial
instruments

Total

5 582
—
—
5 565
—
—
17
—
4 108
46 30818 403—27 905

—
—
—
—
—
—
—
—
—
1 369
1 369
—
—

815 724
171 997511
269 330
31 685
307 145
35 05614 1134 108
51 15319 7723 476
27 90555 9981 369

885 098

—
6 280
—
—
832
26 553

—
—
—
—
—
2 109

510 769
13 756
11 17875 60923 38928 76233 6652 109

663 463

—
—
—
—
—
—
—
—
17
(662)
(654)
—
(8)

5 702
—
—
5 681
—
—
21
—
4 065
44 741
18 912—25 829

—
—
—
—
—
—
—
—
1 090
1 090
—
—

775 440
159 385517
249 372
26 114301 949
38 10313 5544 065
54 93220 0149 089
25 829(645)

54 5081090

847 991

—
7 492
—
—
1 120
28 418

—
—
—
—
—
2 180

488 501
14 936
12 28776 46819 56730 80037 0302 180

642 559

Net(2)

The carrying amount of own shares recognised as equities and similar securities is R2 535 million (2023: R10 312 million).
The fair value approximates carrying amount for instruments measured at amortised cost.

135

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
9

Notes to the statement of cash flow

9.1

Cash utilised in operations

R million
Profit before tax per statement of comprehensive income(1)Profit before tax from continuing operations
Profit before tax from discontinued operations
Non-cash flow items(2)Insurance service result: Insurance revenue
Insurance service result: Insurance service expenses(2)Insurance service result: Income or (expense) from reinsurance contracts
Insurance investment result: Insurance finance income or (expense)
Insurance investment result: Reinsurance finance income or (expense)
Depreciation
Bad debts written off
Share-based payments
Profit on disposal of subsidiaries and associates
Fair value adjustments and change in external investors’ liability
Net impairment losses on financial assets and other impairments
Amortisation of intangibles
Equity-accounted earnings
Items excluded from cash utilised in operations
Interest and preference share dividends income
Dividends accrued
Interest accrued
Net movement in cash flows from operating assets and liabilities(1)(2)(3)
Net cash flows from investment contracts(1)IncomeOutflow
Other movements
Net cash flows from life insurance contracts(1)Premium allocation approach
General model
Variable fee approach
Net cash flows from general insurance contracts(1)Premium allocation approach
General model
Net cash flows from reinsurance contracts(1)Premium allocation approach
General model
Net cash flows from financial assets and liabilities, including
investment properties(1)Net cash flows from trading account assets/liabilities(1)(3)
Increase in advances to customers
Other(1)Cash utilised in operations

Reviewed
30 June2024

Reviewed,
re-presented
and restated(1)(2)(3)30 June2023

15 55815 096462(28 710)(48 728)
30 3433 567
11 280
(56)
393
298
249
(1 191)(22 639)485
322(3 033)(21 938)(16 606)(6 151)819
30 52922 53159 615(37 083)
(1)
8 797
2 425
10 264(3 892)
4 093
4 158
(65)
(1 185)
(743)
(442)

13 9938 645
5 348(49 886)(60 168)
36 021
6 300
7 670
(377)
466
63
283
(1 447)(37 763)257
175(1 366)(16 851)(10 799)(6 746)694
49 21736 52370 619(34 096)
—
7 811
3 592
7 993
(3 774)
7 042
7 043
(1)
(1 972)(1 408)(564)(11 926)
3 259
(43)
5 003

2 187
999
—
(3 373)(4 561)(3 527)

Prior period re-presented due to the inclusion of Namibia into the discontinued operation. Refer to note 14 for additional
information. Additionally note 9.1 was re-presented apart from profit before tax per statement of comprehensive income,non-cash flow items and items excluded from cash utilised in operations. This was done in order to group line items with thesame nature together under net movement in cash flows from operating assets and liabilities. This was followed by expanding
net movement from investment contracts and net cash flows from insurance and reinsurance to provide additional useful
information to users of the financial statements. Net (acquisition)/disposal of investments have been renamed to net cash
flows from financial assets and liabilities, including investment properties.
(2)
To align the lay-out of the 30 June 2024 cash flow statement to the 31 December 2023 structure, the following items within
the cash utilised in operation note were reclassified in the comparatives: insurance service results: insurance services
expenses and movement in net working capital assets and liabilities. Previously reported insurance service result: insurance
service expense of R48 249 million has been restated to R36 021 million. Similarly, previously reported net working capital
assets and liabilities (currently forming part of net movement in operating assets and liabilities) has been adjusted with
R12 228 million accordingly. This did not result in changes to cash utilised in operations.
(3)
The prior period has been restated for the reclassification of trade receivables and payables. The trading account assets
and trading account liabilities have been split out from trade and other receivables and trade and other payables
respectively. Refer to note 39.3 for additional information in the annual financial statements of the Sanlam Limited Groupfor 31 December 2023. The following link can be used: www.sanlam.com/downloads/integrated-report-and-annualfinancial-statements/2023/Sanlam-AFS-2023-spreads.pdf.
(1)

136

9.2

Acquisition of subsidiaries and associated companies
Reviewed
30 June2024

Reviewed
30 June2023

Investments in associated companies and joint ventures
The fair value of assets/liabilities acquired through businesscombinations is as follows:
Goodwill
Equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Investments
Trade and other receivables
Cash and cash equivalents
Term financeLease liabilities
Loan payable
Deferred tax liabilities
Trade and other payables
Provisions
Taxation
Non-controlling interest(1 517)

—

—
—
—
—
—
—
(10)
(5)
—
—
4
—
1
—
—
—

(1 539)(679)(115)(1 598)(86)(160)(1 199)
(362)
665
155
7
260
896
97
49
782

Total purchase consideration
Plus: Previously held interest at fair value
Plus: Share capital and preference shares issued
Plus: Deferred consideration
Cash element consideration
Plus: Cash and cash equivalents acquired(1 527)——4(1 523)5(2 827)
1 088
435
28
(1 276)
362

Cash component of acquisition of subsidiaries and associatedcompanies(1 518)(914)

R million
During the year, various interests in subsidiaries and associates
were acquired within the group(1).

(1)

9.3

The acquisitions during the current year relate to the 100% acquisition of Infinite Ltd (trading as EB Bluestar) and therecapitalisation of SanlamAllianz. The acquisitions during the previous year mainly relate to Afrocentric Investment
Corporation Ltd as well as Alexander Forbes Client administration.

Disposal of subsidiaries and associated companies
Reviewed
30 June2024

Reviewed
30 June
2023

1 938

1 233

—
—
—
—
7
—
(6)
112
1 191

22
(1 093)
473
1
1
(338)
(1)
(1 309)1 447

Total disposal priceLess: Cash and cash equivalents disposed of
Less: Consideration receivable

3 242
(7)
—

436
(1)
(14)

Cash component of disposal of subsidiaries and associated companies

3 235

421

R million
During the period, various interests in subsidiaries and associates were
disposed of within the group(1).
Investment in associated company and joint ventures
The carrying value of assets/liabilities disposed of were as follows:
Contract cost of investment management services
Investments
Non-current assets held for sale
Trade and other receivables
Cash and cash equivalents
Non-current liabilities held for sale
Trade and other payables
Foreign currency translation reserve release
Profit on disposal of subsidiaries and associates(1)

The disposals during the current period mainly relate to the partial sale of the direct shareholding in the associate
Shriram Finance Limited (1,6% of 2,01%) and the disposal of SIIP USA. The partial sale of direct shareholding did notaffect the classification of Shriram Finance Limited as it will remain an associate. The disposals during the previous year
mainly relate to investments in associated companies and joint ventures, Funeral Services group (FSG) in Botswana andACT Healthcare Assets.

137

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
9

Notes to the statement of cash flow continued

9.4

Cash and cash equivalents

Value in use

1 564

Carrying value

2 063

For the purposes of the statement of cash flows, cash and cash equivalents comprise of cash on hand,deposits held at call with banks and other short-term, highly liquid investments with original maturities ofthree months or less and are subject to an insignificant risk of change in value.

NAV (excluding pre-existing goodwill)

R million

Key business relationships – cost733

Deferred tax on key business relationships(198)

Key business relationships – amortisation(79)

Deferred tax – amortisation
Non controlling interest (NCI) key business relationships/deferred tax

21
(192)

34 502

Net impairment as at 30 June 2024

(499)

(4)
1 899

(47)
12 061

The gross impairment of goodwill amounts to R499 million. The impairment comprises of a write-down of
goodwill in respect of the premium paid at acquisition for synergies of R1 144 million.

29 80046 516

Reviewed
30 June2024

Reviewed
30 June2023

Bank and other cash balances
Deposits and similar securities – maturity <90 days

18 2509 655

15 92318 579Total cash and cash equivalents – statement of financial position

27 905

Bank overdrafts (included in trade and other payables)
Plus: Cash and cash equivalents included in non-current assets held for sale
Total cash and cash equivalents – statement of cash flows

R million

Included in cash and cash equivalents are restricted cash balances of R6 038 million (2023: R9 251 million)
relating mainly to Credit Support Agreements (CSA) with derivative counterparties as well as initial margins
with the JSE in respect of exchange traded derivatives. Restricted cash mainly consists of collateral pledged
R8 212 million (2023: R9 902 million), collateral received R9 730 million (2023: R5 076 million) and SAFEX or
YieldX initial margin accounts R3 097 million (2023: R2 593 million).

9.5

Non-cash transactions
Interest and dividend income in respect of investment funds to the amount of R2 511 million (2023:
R2 152 million) and R932 million (2023: R1 166 million) were reinvested. Both of these transactions represent
non-cash transactions and also affected the “Net acquisition of investments” in note 9.1.

10Critical accounting estimates and judgements
Estimates and assumptions are an integral part of financial reporting and as such have an impact on theamounts reported to the group’s assets and liabilities. Management applies judgement in determining
probability-weighted estimates of future experience. These judgements are based on historical experienceand reasonable expectations of future events and changes in experience. Estimates and assumptions are
regularly updated to reflect actual experience. It is reasonably possible that actual outcomes in futurefinancial years may differ to the current assumptions and judgements, possibly significantly, which could
require a material adjustment to the carrying amounts of the affected assets and liabilities.

10.1

Key assumptions
Key assumptions in determining the value in use for cash generating unit:

Weighted average local discount rate
Weighted average perpetuity growth rate
Revenue: compounded annual growth rate
(range of values over the 10 years)%%

30 June2024

31 December
2023

30 June
2023

19,8
5,0

19,6
5,0

19,9
5,0

%

6,5

7,1

7,0

Risk discount rate +100 basis points

R million

1 446

2 291

2 486

Risk discount rate -100 basis points

R million

1 702

2 684

2 646

Perpetuity growth rate +100 basis points

R million

1 607

2 544

2 587

Perpetuity growth rate -100 basis points

R million

1 527

2 412

2 537

Future cash flows are projected over 10 years. The year 10 cash flow is expected to be at a stable level andsustainable into perpetuity, which is aligned with industry norms. This is projected into perpetuity anddiscounted accordingly.
Management has determined the values assigned to each of the key assumptions above as follows:

Assumption

Approach used to determine the values

The critical estimates and judgements made in applying the group’s accounting policies are summarised
below. Given the correlation between assumptions, it is not possible to demonstrate the effect of changes
in key assumptions while other assumptions remain unchanged.

Discount rates
Perpetuity growth rate

Impairment of goodwill and key business relationships

Revenue annual
growth rates

This is a function of the local risk free rates plus a specific risk premium.
This is a function of expected long-term inflation and Gross Domestic Product(GDP) growth rates.
This is a function of expected long-term inflation and GDP growth rates, including
industry growth rates and management's expectations for the future.

The recoverable amount of goodwill, key business relationships and other intangible assets for impairment
testing purposes have been determined based on the higher of fair value less cost to dispose and value in
use methods for both life and non-life businesses.

10.1.1 Afrocentric (Afrocentric Investment Corp Ltd)The carrying value of Afrocentric comprise of net asset value (NAV), goodwill, key business relationships anddeferred tax relating to the key business relationships. The recoverable amount is based on the fair value lesscost to sell. The impairment test compares the fair value less cost to sell with the carrying value.
For the June 2024 recoverable amount calculation, the 59,78% shareholding was valued on the discounted
cash flow (DCF) basis based on an updated five-year projection. The value was substantially lower than theprevious valuations due to a decline in the profitability of the group that includes a decline in the profitabilityof Activo group and increased competition in the pharmacy delivery market.
Additionally further discretion was applied to allow for underlying uncertainties, including the longer-term
impacts of National Health Insurance (NHI) and possible changes in key partnerships and clients. The
recoverable amount of Afrocentric has decreased from R2,5 billion in December 2023 to R1,6 billion inJune 2024. This decrease in recoverable amount led to a goodwill impairment of R499 million.

138

634
1 144

Goodwill allocated10.2 Insurance and reinsurance contracts
This disclosure should be read in conjunction with the valuation methodology as described in the basis ofpreparation disclosed in the 2023 annual financial statements.

10.2.1 Classification
Assessing significance of insurance risk and discretionary amounts for investment contracts withdiscretionary participation features (DPF)
The group applies judgement to assess whether contracts are in scope of IFRS 17 in some product lines, suchas whether additional payments on death related to minimum investment guarantees or vesting bonuses are
significant on a present value basis. Where these additional payments have been assessed not to besignificant on a present value basis and there are no DPF these investment contracts are in scope of IFRS 9.
The group issues investment contracts with DPF where judgement is applied in assessing whether thediscretionary amounts are a significant proportion of the total contractual benefits.

139

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Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
10

Critical accounting estimates and judgements continued

10.2 Insurance and reinsurance contracts continued
10.2.1 Classification continued
VFA (variable fee approach) eligibility
The group applies the VFA to life insurance savings business for insurance contracts with DPF that aresubstantially investment-related. The group applies judgement to assess on the initial recognition of thecontracts, whether:(a) a substantial share of the fair value returns on the underlying items is expected to be paid to thepolicyholders; and(b) a substantial proportion of any change in the amounts to be paid to the policyholders is expected to varywith the change in fair value of the underlying items.
The assumed threshold for “substantial share” and “substantial proportion” is in excess of 50%. The group
has applied judgement to conclude that assessments can be performed for groups of homogeneouscontracts with similar contract features/terms based on readily available qualitative or quantitative
information for investment contracts with DPF (with no significant insurance risk), and other market-linked
savings contracts where minimum investment guarantees and/or rider benefits create significant insurance
risk. The group has performed quantitative assessments on an individual contract level for the material linesof universal life insurance business where the relative significance of the insurance and investment
components can vary based on the benefit selections made by each policyholder.
The assessment of criteria (a) considers the “pass-through” nature of the returns on the underlying item, andtherefore excludes any benefits not payable from the underlying, such as fixed insurance benefits in excessof the investment components payable on death. Any deduction of a charge from the underlying item forinsurance benefits (including for any waiver of premium) is included in the share of the returns to be paid tothe policyholder as it forms part of the policyholder’s share.
The assessment of criteria (b) considers how much of the total benefits payable to the policyholder will varywith changes in underlying items, including benefits that do not vary with the returns on underlying items inall scenarios (such as fixed insurance benefits). The assessment therefore considers whether on average thechanges in the total amounts payable to policyholders are substantially related to the changes in the fairvalue of the underlying items based on testing the impact on this relationship for different scenarios where
market/non-market variables are adjusted.

Premium allocation approach (PAA) eligibility
The group applies the PAA to measure a group of insurance contracts issued or reinsurance contracts held if,
at inception of the group: the coverage period of each contract in the group of insurance contracts is one
year or less; or the group reasonably expects that the PAA would produce a measurement of the liability orasset for remaining coverage for a group of insurance contracts that would not differ materially from themeasurement that would be achieved by applying the requirements of the General Measurement Model(GMM).
Where the coverage period is greater than one year, the group will use judgement to assess theappropriateness of the PAA measurement model as follows:Ì Project the fulfilment cash flows of the group of insurance contracts and take into account the time valueof money where the time between providing each part of the services and the related premium is morethan a year.
Ì Determine the projected liability or asset for remaining coverage under the PAA at each projected time
period (initial recognition and subsequent measurement at our external reporting frequency, ie half-yearlyor annually).
Ì Determine the liability or asset for remaining coverage under the GMM (including the CSM) at initialrecognition as well as subsequent measurement. The group will use judgement as described in section
10.2.2 to determine the fulfilment cash flows and CSM at each projection point.
Ì At each projection point, the difference between the liability or asset for remaining coverage under the
PAA and GMM is determined (the difference).
Ì The difference is compared to the pre-determined materiality threshold (relative measure) at each point in time.
Ì Where the difference does not exceed the determined threshold (at any time) then the group passes the
PAA eligibility test (for the base scenario).
Ì The group will perform scenario testing using the above process to ensure differences remain immaterial.

140

Scenario testing will be performed at least annually, by updating the projected fulfilment cash flows underreasonably expected scenarios, which would affect cash flow variability. The group applies judgement incalibrating these scenarios for changes in market and non-market variables based on management’s view of
the key changes affecting cash flow and liability variability for each portfolio of insurance contracts.
Judgement will be applied to define relative materiality thresholds for each group of insurance contracts
based on ensuring that the absolute impacts of all groups of insurance contracts with coverage periods
longer than a year applying the PAA, falls within an absolute measure of materiality for each future year.

10.2.1.1 Aggregation
The identification of portfolios of insurance contracts is driven by how the business is managed, with broad
product lines being managed together and subject to similar risks. This could result in contracts allocated toa portfolio being measured under the VFA, and other contracts allocated to the same portfolio being
measured under GMM. This is relevant to universal life insurance business in the Sanlam Life and Savings(SLS) cluster where these contracts are managed together and subject to similar risk, although theweighting between insurance/investment-related risks could differ between contracts. Contracts within aportfolio are subject to “similar risks” if the risks are non-offsetting and respond similarly to changes in key
assumptions. This should result in, for example:
Ì term life insurance contracts (exposing the group to mortality risk) and annuity contracts (exposing thegroup to longevity risk) not being allocated to the same portfolio; andÌ whole of life and term life insurance contracts (both types of contracts exposing the group to mortalityrisk) being allocated to the same portfolio if managed together.
Furthermore, businesses are not required to allocate different benefit types within the same product line todifferent portfolios if the insurance contracts are managed together, for example, if as part of pricing the
profit margins are set, or assets are allocated, at the broad product level. This avoids arbitrary allocation of
insurance contracts to different portfolios where they are managed together and priced within the samebroad product line.
The portfolios are further divided into groups of insurance contracts issued based on the expected
profitability at inception date, based on whether:
1. contracts are onerous at initial recognition;
2. contracts at initial recognition have no significant possibility of becoming onerous subsequently; or
3. contracts at initial recognition have a significant possibility of becoming onerous subsequently (ie theremaining contracts).
The group applies judgement to assess whether reasonable and supportable information is available toallocate a set of contracts to the same group of onerous contracts, for example, based on policyholder
pricing groups and other internal management information. Where reasonable and supportable information
is not available to identify a set of onerous contracts, this assessment is performed at an individual contractlevel. The individual contract assessments can be performed on an adjusted expense allocation basis for
aggregation purposes where it can be justified as a systematic and rationale basis for allocating theexpenses included in the fulfilment cash flows to a group of insurance contracts.
Judgement has been applied to conclude that the proportion of insurance contracts issued that have nosignificant possibility of becoming onerous is immaterial to the group, and this profitability group istherefore not relevant. The group does not issue insurance contracts with sufficiently high profit margins toabsorb the impact of any single scenario with no significant possibility of the insurance contracts becoming
onerous.
Insurance contracts have typically been allocated to annual cohorts which align with annual financial periods(ie the group will add more contracts to an annual cohort after the end of an interim reporting period, where
relevant), except for non-participating life annuities where insurance contracts have typically been allocatedto monthly cohorts due to the sensitivity of pricing to changes in financial risk.
For insurance contracts issued measured under the PAA, no contracts have been allocated to onerous
groups of contracts at initial recognition. The group may have to apply judgement to assess whether facts
and circumstances have indicated that a group of contracts has become onerous subsequent to initialrecognition. This assessment will follow normal business practice of typically using three to five years ofexperience to form expectations of profitability. Expectations will be updated half-yearly to understand if agroup of insurance contracts, which was previously assumed not to be onerous, subsequently becomes
onerous due to changes in experience relative to the pricing basis. The group has not identified any groups
of insurance contracts issued measured under the PAA that have become onerous subsequent to initialrecognition.

141

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Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
10

Critical accounting estimates and judgements continued

10.2 Insurance and reinsurance contracts continued
10.2.2 Measurement
10.2.2.1 Recognition and derecognition
The initial recognition date and derecognition of insurance contracts are not areas of significant judgement
for the group.

10.2.2.2 Fulfilment cash flows
Fulfilment cash flows include the following components:
Ì probability-weighted estimates of future cash flows;Ì adjustments to reflect the time value of money and financial risk relating to future cash flows, to the extent
that the financial risk is not included in the estimates of future cash flows; andÌ a risk adjustment for non-financial risk.
The probability-weighted estimates of future cash flows are determined through the following deterministic
modelling approach, with contract level calculations typically being performed and aggregated for eachgroup of insurance contracts:
Ì identifying all sets of cash flows (eg related to premiums, claims and expenses) directly related to thefulfilment of a particular group of insurance contracts;Ì defining all reasonable outcomes (eg insured and other events such as policyholder death/survival andcontract lapse/surrender) that affect the amount and timing of future cash flows;Ì estimating the probability that the cash flows will occur based on the different possible outcomes; andÌ calculating the probability-weighted mean (expected value) of future cash flows which reflects the fullrange of possible outcomes.
The estimates of future cash flows are discounted at the prevailing discount rates (refer to the ‘Discountrates’ on page 144 for further details).
Stochastic modelling techniques are used to determine the present value of future cash flows that are highlyinterrelated and vary based on changes in market variables. This is relevant in estimating the cost ofminimum investment return guarantees which is mainly relevant to some insurance contracts with direct
participating features in SLS. Stochastic modelling involves projecting future cash flow profiles using a large
number of possible scenarios for market variables such as equity returns and interest rates.

Estimates of future cash flows
The group includes in the measurement of a group of insurance contracts all the future cash flows within theboundary of each contract in the group. Estimates of future cash flows incorporate in an unbiased way all
reasonable and supportable information that is available without incurring undue cost or effort. This
information includes internal and external historical information about claims and other experience, adjusted
to allow for expected future changes in experience. Estimates of future cash flows therefore reflect thegroup’s current view of prevailing conditions. Market variables are consistent with current observable market
prices. Changes in legislation that affect estimates of future cash flows are only allowed for once
substantively enacted.

Contract boundaries
The determination of the contract boundary of an insurance contract is not an area of significant judgement
for the group.
For reinsurance contracts held, the group’s agreements with reinsurers include terms for the cancellation of
new underlying business with notice periods typically ranging between three and six months. The group has
applied judgement to assess that estimates of future cash flows arising from new underlying contracts
expected to be issued after the reporting date but within the notice period for the cancellation of thisbusiness, are either immaterial for the group or relate to future reinsurance contracts, and are therefore notincluded in the measurement of the reinsurance contracts held.

142

Expenses
The following expense cash flows are included within the boundary of a contract:Ì Acquisition cash flows that relate to the selling, underwriting and starting of a group of contracts that are
directly attributable to the portfolio of contracts to which the group belongs. This includes underwriting
expenses, upfront commissions payable to intermediaries, and commissions payable in respect of policychanges; andÌ Administration and other expense cash flows incurred in fulfilling the obligations under the insurance
contracts, such as investment management expenses where relevant (see below for further details), claims
handling costs, costs related to premium billing and maintenance commissions that are expected to be
paid to intermediaries.
Both direct costs and an allocation of fixed and variable overheads are included. Attributable costs are
determined using functional cost analysis techniques. The group applies judgement by taking a broad viewof attributable expenses where it is reasonable and supportable. The other expenses relating to insurance
operations, ie expenses not directly attributable to the fulfilment of insurance contracts such as someproduct development and training costs, are recognised in profit or loss as incurred and are not includedin the measurement of insurance and reinsurance liabilities.
Unit expense assumptions are based on April 2024 actual figures plus estimates for the last two months of
the reporting period (adjusted for significant differences from actual). For Sanlam Emerging Markets inparticular, businesses still building scale and expected to grow significantly will set unit costs based on
approved budgets and business plans over the relevant time horizon (typically three to five years). Unit
expense assumptions are escalated at estimated expense inflation rates per annum, with a higher rate
assumed for legacy business. The allocation between acquisition and administration and other expense cash
flows is based on functional cost analyses and reflects actual expenses incurred during 2023. The future
expense assumptions do not include any cash flows that are not directly attributable to the fulfilment of theinsurance contracts.
An increase in unit expenses increases the estimates of future cash flows, therefore resulting in a decreasein the CSM (all else being equal).

Decrements
Assumptions with regard to future mortality, disability and disability payment termination are consistent
with the group’s recent experience for the 4,5 years up to 30 June 2023. The mortality rates between
policyholder groups allow for various rating factors, such as gender and smoker status. Given the significant
size of the group's insurance books and the length of its data history, the performance of the group’s
insurance contracts during normal conditions is predictable based on past experience. Mortality anddisability rates are adjusted to allow for: the expected deterioration in mortality rates as a result of HIV/Aids;the expected improvements in mortality rates in the case of annuity business; and the expected impact of
future extreme (eg pandemic) events where relevant.
Mortality and disability cover are material in South Africa, Namibia, and Botswana with actuarial guidancetables typically developed in these countries to best fit the group’s recent experience. In countries where
sufficient data is not available based on past experience to develop actuarial guidance tables, the groupchooses an appropriate standard table (eg based on the industry tables in South Africa), adjusted to fit thegroup’s recent experience.
An increase in mortality and disability rates increases the estimates of future cash flows, therefore resulting
in a decrease in the CSM (all else being equal).
Surrender, lapse and paid-up rates are key assumptions in the measurement of life insurance contracts (riskand savings business). Assumptions with regard to future surrender, lapse and paid-up rates are based on
the group’s recent experience for the 4,5 years ending 30 September 2023.
An increase in surrender or lapse rates may increase or reduce the estimates of future cash flows, therefore
resulting in a decrease or increase in the CSM depending on the specific product features (all else being equal).

Inflation assumptions
The group applies judgement to determine whether changes in inflation assumptions are related to financial
risk or non-financial risk. Inflation assumptions that are based on market observable rates are related tofinancial risk, with changes in fulfilment cash flows as a result of updates to these assumptions being
presented in insurance finance income or expenses. Inflation assumptions that are based on the group’s
expectation of inflation (for example, based on analysts or insurance bodies’ views of country inflation) aretreated as assumptions that are related to non-financial risk, with changes in fulfilment cash flows as a resultof updates to these assumptions adjusting the CSM. In general, changes in inflation assumptions in the groupare related to financial risk. Changes in inflation assumptions related to non-financial risk are an exception tothis general rule.

143

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Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
10

Critical accounting estimates and judgements continued

The table below sets out the risk-free yield curves used in the group’s major geographies:
1 year
5 years
10 years
15 years
Reviewed
Audited Reviewed
Audited Reviewed
Audited Reviewed
Audited30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December

10.2 Insurance and reinsurance contracts continued
10.2.2 Measurement continued
10.2.2.2 Fulfilment cash flows continued
Term-dependent inflation assumptions are applied to premiums and claims cash flows (where increases incash flows are contractually linked to consumer price index (CPI)) by deriving an inflation curve based on
the difference between long-term nominal and real yields. For some of the group’s African operations, wherelong-term fixed-interest markets are underdeveloped, inflation assumptions are based on an assessment of
the longer-term inflation outlook while maximising the use of relevant available market observable prices.

%

2024

2023

2024

2023

2024

2023

2024

2023

South Africa
Namibia
Malaysia

9,02
9,02
3,32

9,51
9,51
3,27

10,21
10,21
3,66

10,40
10,40
3,62

12,23
12,23
3,90

12,41
12,41
3,92

13,58
13,58
4,05

13,85
13,85
4,08

The following illiquidity premiums (presented as a range between a lower and upper bound) are applied in
the group’s major geographies where relevant:Expense inflation assumptions maximise the use of relevant available market observable prices while also
reflecting the group’s long-term perspective of expected increases in expenses for budgeting and businessplanning purposes.
The base expense inflation rates applied in the group’s main South African companies are either based on
an inflation curve or a point estimate determined based on the difference between a representative point on
the nominal risk-free yield curve and the historic real interest rate gap between nominal and inflation rates.
Further adjustments are typically made for retail business in South Africa that are administered on oldplatforms to allow for the expected reduction in file size over the coverage period of the insurance contracts.

The ultimate liability arising from claims under general insurance business
The estimation of the ultimate liability arising from claims under general insurance contracts is an importantaccounting estimate. There are several sources of uncertainty that need to be considered in the estimationof the liability for incurred claims that the group will ultimately incur. Historic claims triangulations thatcross-tabulate claims incurred by their date of loss and date of payment are used to determine the expected
cost of future claims. A payment pattern based on the historic claims paid triangulation is used to determine
the speed at which the claims provisions are run off in the future. Discount rates are applied to the future
estimates of claims payments to allow for the time value of money included in these cash flows.
The risk environment can change suddenly and unexpectedly owing to a wide range of events or influences.
The group is constantly refining its general insurance risk monitoring and management tools to enable thegroup to assess risks appropriately, despite the greatly increased pace of change. The growing complexityand dynamism of the environment in which the group operates means that there are, however, natural limits.
There will never be absolute certainty in respect of identifying risks at an early stage, measuring themsufficiently or correctly estimating their real hazard potential.

Bonus rate assumptions
Separate asset portfolios are maintained in support of insurance liabilities for each of the major product linesof life insurance – savings business, each portfolio having an asset mix appropriate for the specific product.
Bonus rates are declared for each class of relevant savings business in relation to the funding level of eachportfolio and the expected future investment return on the assets of the particular investment portfolio.

Discount rates
The group applies a bottom-up approach to determine discount rates applied to future cash flows for
insurance contracts.
Estimates of future cash flows that do not vary with investment returns on underlying items are discounted
using a risk-free yield curve, adjusted to reflect the characteristics of the cash flows and the liquidity of theinsurance contracts. Risk-free rates are determined based on the market observable yield curves forgovernment bonds, with extrapolation between the last available market point and an ultimate forward rate,considering long-term real interest rate and inflation expectations. Long-term inflation expectations are used
to construct yield curves for markets where observable market data is not available.
The group applies judgement to determine the point estimate illiquidity premium added to the risk-free yield
curve to reflect the liquidity characteristics of the insurance contracts. An illiquidity premium is estimated foreach portfolio of insurance contracts where relevant. Insurance contracts such as non-participating life
annuities and income protection incurred claims that cannot be surrendered or lapsed, are illiquid.

144

Reviewed
30 June2024%
South Africa
Namibia(1)0 – 0,250 – 0,50

Audited andrestated(1)31 December2023
0 – 0,250 – 0,50

The prior year has been restated due to an error, the major geography South Africa was restated from 0-0.5% to
0-0.25%.

Estimates of future cash flows that do vary with investment returns on underlying items are discounted usingrisk-free or real-world discount rates. Risk-free discount rates are consistent with the rates applied to the
cash flows not varying with investment returns on underlying items. Real-world discount rates are consistent
with a risk-free yield curve plus a risk premium which reflects the variability in the cash flows based on theunderlying mix of asset classes other than fixed-interest securities. Where a deterministic valuation approachis used, the risk premium is estimated as a flat rate, which represents the average historic risk premiums overan extended time horizon. For the material lines of business in the group, real-world discount rates areapplied to cash flows that vary based on the returns on underlying items.
The future investment returns on underlying items are consistent with the discount rates applied to the
cash flows that vary with these investment returns on underlying items. The allowance for investment
management expenses, policyholder taxation at current tax rates and charges for investment guarantees
is determined separately from the future investment returns and discount rates for measurement andpresentation purposes. For some of the group’s African operations, where long-term fixed-interest markets
are underdeveloped, investment return and discount rate assumptions are based on an assessment of
longer-term economic conditions. The investment returns and discount rate assumptions for Namibianbusinesses are based on the market yields of South African fixed-interest securities on the valuation date.

Risk adjustment for non-financial risk
The risk adjustment is the compensation that an entity requires for bearing the uncertainty about theamount and timing of the cash flows that arise from non-financial risk. The main sources of non-financial risk
are the estimates related to decrement rates for mortality and morbidity, persistency rates and expenses.
Adjustments for financial risks are included either in the estimates of future cash flows or in the discountrates and are therefore excluded from the risk adjustment. Operational risk will be excluded from the risk
adjustment as it is mainly related to general operational risk that cannot be directly attributed to thefulfilment of the insurance contracts.
The risk adjustment for non-financial risk is included in the fulfilment cash flows and is measured explicitly,
as changes in the risk adjustment impact on accounting estimates (including the CSM) and need to bedisclosed separately in the liability reconciliations (refer to notes 2.2, 2.3, 2.4, 3.2 and 3.3 for further details).
IFRS 17 does not require entities to use a specific technique to estimate the risk adjustment, with theconfidence level technique highlighted as a possible approach. However, an entity that uses a techniqueother than the confidence level technique for determining the risk adjustment, is required to disclose thetechnique used and the confidence level corresponding to the results of that technique. The material linesof business in SLS and Santam adopt a confidence level technique, as well as the material lines of generalinsurance (GI) business in Sanlam Emerging Markets (SEM). The life insurance businesses in SEM use amargins approach targeting a specified confidence level. The confidence level is determined based on eachcluster’s level of risk appetite for bearing the non-financial risk arising from the uncertain amount and timingof cash flows.

145

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Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
10

Critical accounting estimates and judgements continued

Premium experience adjustments
The experience adjustments arising from premiums received (including related cash flows such as insurance
acquisition cash flows) that do not vary based on the returns on underlying items, adjust the CSM if related
to future service, or such amounts are recognised in insurance revenue in the reporting period if related tocurrent (or past) service.

10.2 Insurance and reinsurance contracts continued
10.2.2 Measurement continued
Risk adjustment for non-financial risk continued
The confidence level technique is determined with reference to a particular target confidence level.
A distribution of fulfilment cash flows is required, from which the risk adjustment is determined based on
the standard deviation around the mean for the target confidence level. The standard deviation is estimatedassuming the same risk distribution used for solvency purposes. For life insurance businesses, the standard
deviation is therefore derived based on the solvency capital requirements and assuming that the fulfilment
cash flows can be approximated by a normal distribution, with the risk adjustment representing the value atrisk in excess of the target confidence level over one year. For GI businesses, the standard deviation isderived from past claims development experience. For the life insurance businesses in SLS, the risk
adjustment has been calibrated and calculated based on a target confidence level at the 80th percentile.
For Santam and the material SEM GI businesses, the target confidence levels are between the 75th and 85th
percentile. The GI businesses use a statistical model to determine the volatility in best estimate claims
liabilities, with the risk adjustments being determined based on the expected volatility in the outstanding
claims across all expected future periods.

The group applies judgement to determine whether these experience adjustments are related to current(or past) or future service. The premium-related experience adjustments typically relate to current (or past)
service. Experience adjustments relating to premiums received for future coverage are an exception to thisgeneral rule. Such an example is where the premium experience adjustments have a direct impact on thevalue of future benefits payable to policyholders, resulting in the experience adjustments and the changes
in the estimates of the future cash flows to largely offset when adjusting the CSM.

10.3 Investment properties
The value drivers underpinning the valuation of properties have not significantly changed since 31 December
2023. At the reporting date, the key assumptions and unobservable inputs used by the group in determining
fair value were in the following ranges for the group’s portfolio of properties:

Unobservable inputs across sectors
Reviewed
30 June2024
R million

The margins approach requires the calibration of margins based on historic decrement/expense experienceand fitting a statistical distribution to the data. Margins are initially calibrated on an independent basis foreach risk type based on a specified confidence level. The margins are modelled as percentage changes tothe probability-weighted best estimate assumptions applied over the relevant duration for each policy. The
direction of each margin is tested independently and the direction that increases the best estimate of future
cash flows is adopted. The increase in the best estimate of future cash flows resulting from these margins
represents the risk adjustment component of the fulfilment cash flows. The confidence levels corresponding
to the results of the margins approach vary between the 80th and 90th percentile across the different SEM
territories.

South African portfolio
Discounted cash flow method
Vacancy rate
Expected expense growth (average over five
years, range cover different types of expenses)
Office buildings
Discount rate
Exit capitalisation rate
Retail buildings
Discount rate
Exit capitalisation rate
Industrial buildings
Discount rate
Exit capitalisation rate

The risk adjustment allows for the effect of diversification benefits between different risk and product types(where relevant), which is determined based on correlation matrix techniques and other diversification
impacts determined for solvency purposes.
For businesses using the confidence level technique:Ì the allocation of the risk adjustment to portfolios and groups of contracts will be estimated using anappropriate measure; andÌ the risk adjustment for reinsurance contracts held will be determined by applying the technique to bothgross and net of reinsurance, and deriving the amount of risk transferred to the reinsurer as the difference
between the two results.

A risk adjustment is determined for incurred claims using the techniques explained in this section where
there is uncertainty in the amount and the timing of the underlying cash flows. For insurance contracts
measured under the PAA, a risk adjustment is only determined for incurred claims (where relevant).

Office buildings
Discount rate
Exit capitalisation rate

10.2.2.3 Contractual service margin
The CSM is recognised as income in insurance revenue over the duration of insurance contracts issued basedon the number of coverage units provided in each period. Coverage units are determined for broad producttypes to best reflect the rendering of insurance contract services in a particular reporting period.
The coverage units of the group of insurance contracts are identified by considering for each contract thequantity of the benefits provided under the contract and its expected coverage period. The quantity of
benefits is typically determined based on the maximum amounts that policyholders can claim in each period.
The coverage units are updated at each reporting date to reflect the actual experience over the reporting
period and the expected coverage to be provided in the future.

3 328

570

11

891

Reviewed
30 June2024%

Audited31 December
2023
%

21,00

18,00

5,38 – 10,40

5,10 – 9,60

13,29 – 15,44
8,98 – 12,68

12,75 – 13,54
8,94 – 11,09

13,19 – 14,90
7,86 – 10,50

12,21 – 15,00
8,00 – 10,77

13,70 – 14,84
9,00 – 10,50

13,38 – 14,30
9,91 – 10,42

1,00, 14,19
and 28,00

13,12
and 21,00

11,75 – 12,25
8,75 – 10,00

11,50 – 12,25
9,75 – 10,00

2 674

3 454

465

International portfolio
Discounted cash flow method
Vacancy rate

The risk adjustment calculations will be performed separately for reinsurance contracts held using themargins approach.

Coverage units

2 787

Audited31 December
2023
R million

976

Commitments and contingencies
The guarantee in respect of the distribution agreement between Sanlam Life and Savings and Capitec, expiredin April 2024, as a result of the partnership between Sanlam and Capitec dissolving in October 2024.
The group, like the insurance industry in general, is subject to litigation, mediation and arbitration, andregulatory, governmental and other sectoral inquiries and investigations in the normal course of its business.
The outcome of these can be uncertain, but based on current information, the directors do not believe thatany current mediation, arbitration, regulatory, governmental or sectoral inquiries and investigations andpending or threatened litigation or dispute will have a material adverse effect on the group's financial position.
Financial claims are lodged against the group from time to time. Provisions are recognised for these claims
based on best estimates of the expected outcome of the claims. Given the high degree of uncertainty
involved in determining the expected outcome, it is reasonably possible that outcomes in future financial
years will be different to the current estimates.
There are no material commitments or contingencies that have not been provided for or fully disclosed,
unless additional disclosures may potentially prejudice the legal arguments of the group.

146

147

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
12

Related parties
The transactions to unwind the B-BBEE SPV arrangements were implemented on a basis ensuring that theparticipants in the B-BBEE SPV arrangements are placed in the position they would have been in had the
B-BBEE SPV arrangements unwound on or around 8 March 2024 (being the original termination date) in
accordance with the original terms.
The collar loan, between SU BEE Investment SPV (RF) (Pty) Limited (SU BEE Investment) and Standard
Bank, was settled with the delivery of approximately 25,6 million Sanlam Limited shares in tranches fromJanuary to May 2024.
Effective 21 June 2024, U.R.D Beleggings (Edms) Beperk (URD Beleggings), a subsidiary in the group,
acquired all the issued ordinary shares of SU BEE Funding SPV (RF) (Pty) Limited (SU BEE Funding) for
R100. SU BEE Investment is a wholly owned subsidiary of SU BEE Funding.
Sanlam Limited and SU BEE Investment concluded an agreement which became effective 26 June 2024 forthe acquisition by Sanlam Limited of 85,8 million treasury shares held by SU BEE Investment. It was
implemented at a price of R72,97 per share and an aggregate consideration of R6,3 billion, which remained
outstanding on loan account (Consideration Loan). Sanlam Limited immediately cancelled and delisted theshares so acquired. SU BEE Investment distributed the Consideration Loan to SU BEE Funding on
27 June 2024.
On 28 June 2024, SU BEE Funding have adopted a resolution for the redemption of the A preference sharesin its issued shares in accordance with its terms. SU BEE Funding settled its obligations to make payment of
the amounts payable by it to URD Beleggings (the holder of the A preference shares) on 1 July 2024 byceding and assigning a portion of the Consideration Loan to URD Beleggings.
There were no other transactions with major shareholders for the six-month period ended June 2024.

13

Business combinations

13.1

Afrocentric (Afrocentric Investment Corp Ltd)

14

Disposal groups, discontinued operations and assets classified as held for saleNon-current assets (or disposal groups) are classified as held for sale if their carrying amount will berecovered principally through a sale transaction rather than through continued use, a sale is consideredhighly probable and it is available for sale in its present condition. These assets are measured at the lowerof carrying value and their fair value less costs to sell, unless they are specifically excluded from themeasurement provisions of IFRS 5: Non-current Assets Held For Sale and Discontinued Operations, in whichcase they are measured in accordance with the applicable IFRS. Immediately before initial classification asheld for sale, the assets to be reclassified are measured in accordance with applicable IFRS.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sellof an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised.
A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group)
is recognised at the date of derecognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while
they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposalgroup classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale arepresented separately from the other assets in the group statement of financial position. The liabilities of adisposal group classified as held for sale are presented separately from other liabilities in the groupstatement of financial position.
A discontinued operation is a component of the entity that has been disposed of or is classified as held forsale and that represents a separate major line of business or geographical area of operations, is part of asingle co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiaryacquired exclusively with a view to resale. The results of discontinued operations are presented separately
in the group statement of comprehensive income.

Effective 29 May 2023, the Sanlam group acquired 59,8% in Afrocentric, gaining control for the first time.
The goodwill arising on the acquisition is attributable to synergies and future opportunities expected. The
acquisition accounting has been finalised, there were no changes since December 2023.
Refer to note 35.1 for additional information in the annual financial statements of the Sanlam Limited Groupfor 31 December 2023. The following link can be used: www.sanlam.com/downloads/integrated-report-and
annual-financial-statements/2023/Sanlam-AFS-2023-spreads.pdf.

13.2 Other business combinations
Refer to note 9.2 for additional information.

148

149

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Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
14

Disposal groups, discontinued operations and assets classified as held for salecontinued

R million
Reviewed –30 June 2024
AssetsInvestment
properties
Owner-occupied
properties
Disposal groups
MCIS
Discontinued
operation
Sanlam Pan-Africa

Segment

Note

Sanlam Life andSavings
Fair value
Level 3Sanlam Emerging
Markets
Carrying value
Sanlam Emerging
Markets
Carrying value

Sanlam Emerging
Markets
Carrying value

14.2.314.3.1

Total
Audited –31 December 2023
AssetsInvestment
properties
Owner-occupied
properties
Disposal groups
MCIS
Discontinued
operation
Sanlam Pan-Africa

Sanlam Life andSavings
Fair value
Level 3Sanlam Emerging
Markets
Carrying value
Sanlam Emerging
Markets
Carrying value

Sanlam Emerging
Markets
Carrying value

Total

14.1

14.2.114.3.1

Noncurrent
assetsheld forsale

Noncurrent
liabilities
held forsale

The following assets and liabilities were reclassified as held for sale as at 30 June 2024 and 31 December 2023.

Net

1 774

—

1 774

1 771

—

1 771

3
17 833—(16 294)

3
1 539

17 833(16 294)

1 539

27 379(23 501)

3 878

27 379(23 501)

3 878

46 986(39 795)

7 191

Reviewed
30 June2024

Audited31 December
2023

Assets of disposal group classified as held for sale:
Goodwill
Equipment
Right-of-use assets
Owner-occupied properties
Intangible assets
Reinsurance contract assets
Investments
Investment properties
Equities and similar securities
Interest-bearing investments
Investment funds
Working capital assets
Trade and other receivables
Cash and cash equivalents

196
158
48
37
87
146
16 1661
1 984
12 442
1 739
995
208
787

196
143
56
39
98
103
16 2551
1 892
12 980
1 382
1 356
201
1 155

Assets of disposal group held for sale

17 83318 24615 054
772
51
244
173
139
34
—

15 273
799
60
219
266
122
35
109

16 29416 617

R million

2 210

—

2 210

2 207

—

2 207

3
18 246—(16 617)3
1 629

18 246(16 617)

1 629

Liabilities of disposal group classified as held for sale:
Insurance contract liabilities
Term finance – Other interest-bearing liabilities
Lease liabilities
Deferred tax
Working capital liabilities
Trade and other payables
Provisions
Taxation

26 757(22 786)

3 971

Liabilities of disposal group held for sale

26 757(22 786)

3 971

14.3 Discontinued operations

47 213(39 403)

7 810

14.3.1 Sanlam Pan-Africa (Sanlam Emerging Markets)

Investment properties
During 2024, no further sales were approved by the Sanlam property committee. This allows the Sanlam
Properties team to market the assets for sale to potential buyers for all 8 properties. Once serious buyers
have been identified, the sale and purchase agreements are initiated. The purchase prices are approved by
the Property Committee, in line with the latest internal valuations that were performed and approved in theprevious month. The sales are expected to be finalised during 2024 – 2025, as the average sale period is
12 months.

150

14.2.1 MCIS (Sanlam Emerging Markets)
Sanlam has been engaging with a potential buyer on the sale of MCIS. This sale is pending regulatory
approval and is considered highly probable within the next 12 months.

Below is a summary of non-current assets and disposal groups held for sale:

Measurement Fair valuebasehierarchy

14.2 Disposal groups

Sanlam Pan-Africa (SPA) has been reclassified as a discontinued operation held for sale from 30 June 2022
following entering into a definitive agreement in respect of a long-term strategic joint venture arrangement
regarding Sanlam’s operations on the African continent, outside of South Africa with Allianz. Sanlam andAllianz contributed their respective African operations into a newly incorporated joint venture company,
creating a leading Pan-African financial services group with an extensive footprint across the African
continent.
SPA is considered to be a separate major geographical area of operations based on its contribution to the
Sanlam Emerging Markets. The SPA operations and cash flows can be clearly distinguished operationally andfor financial reporting purposes, from the rest of the group. The classification as a discontinued operation
was considered to be met.

151

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
14

Disposal groups, discontinued operations and assets classified as held for salecontinued

Assets and liabilities of discontinued operations:
The following assets and liabilities were reclassified as held for sale as at 30 June 2024 and as at
31 December 2023.

14.3 Discontinued operations continued
14.3.1 Sanlam Pan-Africa (Sanlam Emerging Markets) continued
The first phase of the transaction was finalised on 4 September 2023. The new incorporated joint venture isequity-accounted as at 30 June 2024 by Sanlam. The take-on date for the first phase was 1 October 2023.
The second phase of the transaction involves the inclusion of Sanlam’s operations in Namibia in thelong‑term strategic joint venture arrangement. As at 31 December 2023, Sanlam’s operations in Namibia
have been classified as a discontinued operation.
An impairment test was conducted prior to the reclassification as a disposal group. The expected proceeds
are in line with the fair value less costs to sell. Fair value less cost to sell was higher than the carrying value
and thus no impairment was recognised.

Financial performance relating to the discontinued operations for the six months ended is set out below:
Reviewed
30 June2024

Reviewed andre-presented(1)30 June2023

Result from insurance operations
Result from insurance contracts
Insurance service result
Insurance revenue
Insurance service expenses
Expense from reinsurance contracts
Insurance investment result
Insurance finance expense
Reinsurance finance income
Investment income on assets held in respect of insurance contracts
Investment surpluses on assets held in respect of insurance contracts

368
375
175
987
(785)
(27)
200
(383)
39
479
65

2 393
2 401
1 261
18 267(14 759)(2 247)
1 140
(969)
36
630
1 443

Other expenses relating to insurance operations
Result from other operations
Revenue
Investment income
Investment surpluses
Change in fair value of investment contract liabilities
Change in fair value of external investors' liabilities
Sales remuneration
Administration costs
Impairments
Amortisation of intangibles

(7)
(4)
123
431
578
(621)
(295)
(43)
(177)
—
—

(8)
2 878
763
1 089
2 957
(997)
(245)
(144)
(545)
(235)
(56)

Net operating result
Equity-accounted earnings
Finance cost – otherNet monetary loss

364
98
—
—

4 980
420
(38)
(15)

Profit before tax
Taxation
Shareholders’ fund
Policyholders’ fund

462

5 347

(15)
(12)

(690)
(18)

Profit for the period

435

4 639

R million

(1)

152

Reviewed
30 June2024

Audited31 December
2023

Assets of discontinued operations classified as held for sale:
Goodwill
Equipment
Right-of-use assets
Contract costs for investment management services
Reinsurance contract assets
Deferred tax
Investments
Investment properties
Investment in associates and joint ventures
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities
Working capital assets
Trade and other receivables
Taxation
Cash and cash equivalents

14
34
7
380
182
2
25 300
416
1 360
3 519
11 276
39
8 246
444
1 460
320
28
1 112

—
30
11
349
116
2
24 438
412
1 292
3 586
10 347
30
8 159
612
1 811
363
41
1 407

Assets of discontinued operations held for sale

27 37926 757

Liabilities of discontinued operations classified as held for sale:
Insurance contract liabilities
Investment contract liabilities
Lease liabilities
External investors in consolidated funds
Deferred tax
Working capital liabilities
Trade and other payables
Taxation

7 464
13 769
8
1 686
18
556
556
—

7 121
13 506
12
1 597
19
531
530
1

Liabilities of discontinued operations held for sale

23 50122 786

Reviewed
30 June2024

Reviewed
30 June2023

Cash flow from operating activities
Cash flow from investment activities
Cash flow from financing activities

(281)
(5)
(4)

(1 321)381
1

Net decrease in cash and cash equivalents generated by discontinued
operations

(290)

(939)

R million

Cash flow information from discontinued operations

R million

Prior year re-presented due to discontinued operation including the operations in Namibia.

153

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
14

Disposal groups, discontinued operations and assets classified as held for salecontinued

14.3 Discontinued operations continued
14.3.1 Sanlam Pan-Africa (Sanlam Emerging Markets) continued
Classification of financial instruments of discontinued operations
Fair value through profit or loss

Amortised cost

Mandatorily

DesignatedTotal
fair value

Reviewed – 30 June 2024
Instruments
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities
Working capital assets
Trade and other receivables
Cash and cash equivalents

11 765
3 519
—
—
8 246
—
—
—
—

11 734—11 251
39
—
444
—
—
—

23 4993 519
11 251
39
8 246
444
—
—
—

25
—
25
—
—
—
1 432
320
1 112

25
—
25
—
—
—
1 432
320
1 112

23 5243 519
11 276
39
8 246
444
1 432
320
1 112

Total financial assets

1 457

R million

Gross

Net

Total

11 765

11 73423 4991 457

24 956

Investment contracts liabilities
External investors in consolidated funds
Trade and other payables———

13 7691 686—

13 769
1 686
—

—
—
556

13 769
1 686
556

Total financial liabilities—

15 45515 455556

16 011

Level 1

Level 2

Total

Reviewed – 30 June 2024
Financial instruments
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds
Deposits and similar securities

3 519
6 654
—
8 239
—

—
4 597
39
7
444

3 519
11 251
39
8 246
444

Total assets at fair value

18 4125 087

23 499Financial instruments
Investment contracts liabilities
External investors in consolidated funds

—
1 686

13 769—13 769
1 686

Total liabilities at fair value

1 686

13 76915 455

Fair value information on discontinued operations
Recurring fair value measurements (financial instruments)
R million

154

155

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
15

Fair value disclosures
Financial instruments carried on the statement of financial position include investments (excluding
investment properties, associates and joint ventures), receivables, cash, deposits and similar securities,
investment policy contracts, term finance liabilities, liabilities in respect of external investors in consolidated
funds and payables.

On initial recognition, the group designates a financial liability as at fair value through profit or loss when
doing so results in more relevant information either because:Ì it eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise
arise from measuring assets or liabilities or recognising the gains and losses on them on different basis; orÌ a group of financial liabilities or a group of financial assets and liabilities is managed and its performance isevaluated on a fair value basis, in accordance with a documented risk management or investment strategy
and information about the group is provided internally on that basis to the entity’s key management
personnel.

Recognition and derecognition

Initial measurement

Financial instruments are recognised when the group becomes party to a contractual arrangement that
constitutes a financial asset or financial liability for the group that is not subject to suspensive conditions.
Regular way investment transactions are recognised by using trade date accounting.

A financial asset or financial liability is initially measured at fair value, plus for a financial asset or financial
liability not measured at fair value through profit or loss, transaction costs that are directly attributable to its
acquisition or issue.

Financial assets are derecognised when the contractual rights to receive the cash flows expire or when theasset is transferred. On derecognition of a financial asset, the difference between the carrying amount at thedate of derecognition and the consideration received is recognised in profit or loss.

Costs directly attributable to the acquisition of financial assets classified as at fair value through profit orloss are recognised in the statement of comprehensive income as part of investment surpluses.

Financial instruments

Financial liabilities are derecognised when the obligation to deliver cash or other resources in terms of thecontract is discharged, cancelled or expires. On derecognition of a financial liability, the difference between
the carrying amount extinguished and the consideration paid is recognised in profit or loss.
Collateral placed at counterparties as part of the group’s capital market activities are not derecognised.
No transfer of ownership takes place in respect of collateral other than cash and any such collateral acceptedby counterparties may not be used for any purpose other than being held as security for the trades to whichsuch security relates. In respect of cash security, ownership transfers in law. However, the counterparty has
an obligation to refund the same amount of cash, together with interest, if no default has occurred in respectof the trades to which such cash security relates. Cash collateral is accordingly also not derecognised.

Classification
Financial assets
On initial recognition, a financial asset is classified as measured at:Ì Amortised cost;Ì Fair value through profit or loss (either mandatory or designated); orÌ Fair value through other comprehensive income.
A financial asset is measured at amortised cost if it meets both of the following conditions and is notdesignated as at fair value through profit or loss:Ì it is held within a business model whose objective is to hold assets to collect contractual cash flows; andÌ its contractual terms give rise on specified dates to cash flows that are solely payments of principal andinterest on the principal amount outstanding.
A debt instrument is measured at fair value through other comprehensive income only if it meets both of thefollowing conditions:
Ì the asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; andÌ its contractual terms give rise on specified dates to cash flows that are solely payments of principal andinterest on the principal amount outstanding.
All financial assets not classified as measured at amortised cost or fair value through other comprehensive
income as described above are mandatorily measured at fair value through profit or loss. In addition, thegroup designates certain financial assets that would otherwise meet the requirements to be measured atamortised cost or at fair value through other comprehensive income as at fair value through profit or loss if
doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities
On initial recognition, the group classifies its financial liabilities into one of the following categories:
Ì Amortised cost, orÌ Fair value through profit or loss (either mandatory or designated)
The classification of financial instruments is determined at initial recognition based on the purpose for which
the financial assets are acquired or liabilities assumed. Financial liabilities classified as at fair value throughprofit or loss comprise held-for-trading liabilities, including derivatives (mandatory fair value through profit
or loss) as well as financial liabilities designated as at fair value through profit or loss.

156

Subsequent measurement
Financial instruments classified as at fair value through profit or loss are measured at fair value after initialrecognition. Net gains and losses (ie on the sale of investments and fair value gains and losses), interest or
dividend income and foreign exchange gains or losses are recognised in profit or loss. Changes in fair value
are recognised in the statement of comprehensive income as investment surpluses. The particular valuation
methods adopted are disclosed in the individual policy statements associated with each item.
Financial instruments classified as amortised cost are measured at amortised cost using the effective
interest method. Interest income, interest expense, foreign exchange gains and losses and impairment arerecognised in profit or loss. Any gain or loss or derecognition is also measured in profit or loss.

Impairment
The group recognises loss allowances for expected credit losses on:Ì Financial assets measured at amortised cost (including contract assets/contract receivables/leasereceivables)
At each reporting date, the loss allowances are measured at an amount equal to lifetime expected credit
losses if the credit risk on the financial instrument has increased significantly since initial recognition.
At each reporting date, the loss allowances are measured at an amount equal to the 12-month expectedcredit losses if:
Ì The credit risk on a financial instrument has not increased significantly since initial recognition; orÌ Financial instruments are determined to have a low credit risk at the reporting date.
The group determines whether the credit risk on a financial instrument has increased significantly bycomparing this risk of default occurring on the financial instrument as at the reporting date with the risk ofdefault occurring on the financial instrument as at the date of initial recognition together with reasonable
and supportable information that is indicative of significant increases in credit risk since initial recognition.
At each reporting date, the loss allowances are measured at an amount equal to the 12-month expectedcredit losses if the credit risk on a financial instrument has not increased significantly since initial recognition.
Financial instruments that are determined to have a low credit risk at the reporting date are assumed to haveno significant increase in credit risk.
At each reporting date, the loss allowances are measured at an amount equal to lifetime expected credit
losses if the credit risk on the financial instrument has increased significantly since initial recognition.
12-month expected credit losses are the portion of expected credit losses that result from default events thatare possible within the 12 months after the reporting date. Lifetime expected credit losses are the expectedcredit losses that result from all possible default events over the expected life of a financial instrument.
An impairment gain or loss is recognised in profit or loss for the amount of expected credit losses (or reversals)that is required to adjust the loss allowance at the reporting date.

Measurement of expected credit losses
Expected credit losses are a probability-weighted estimate of credit losses and are measured as the present
value of all cash short falls (ie the difference between the cash flows due to the entity in accordance with thecontract and the cash flows that the group expects to receive).

157

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
15

Fair value disclosures continued

R million

Level 1

Level 2

Level 3

Total

Financial assets and liabilities are offset and the net amount reported in the statement of financial position
when there is currently a legally enforceable right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

Recurring fair value measurements
Audited – 31 December 2023
Financial instruments
Investment in joint ventures
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds(1)Deposits and similar securities
Trading account assets
Trade and other receivables
Short-term investments—
155 100
83 67910280 222
—
9 809
—
—

—
1 247
158 704
26 10416 87438 103
3 697
12
9 089

517
3 038
1 308
—
4 853
—
48
—
—

517
159 385
243 691
26 114301 949
38 10313 55412
9 089

Other financial liabilities

Total assets at fair value

528 820

253 830

9 764

792 414

Financial instruments
Investment contract liabilities
Term finance
Structured transactions liabilities
External investors in consolidated funds
Trading account liabilities
Trade and other payables——
25
73 172
1 640—

488 501
7 444
12 2553 003
16 807
202

—
—
7
293
—
—

488 501
7 444
12 28776 46818 447202

Total liabilities at fair value

74 837528 212300

603 349

Presentation of loss allowances in the statement of financial position
Loss allowances for expected credit losses are presented as a deduction from the gross carrying amountsof the financial assets.

Write-offs
The gross carrying amount of a financial asset is written off and reduced when there is no reasonable
expectation of recovering a financial asset in its entirety or a portion thereof.

Offsetting

Other financial liabilities include:Ì Term finance liabilities incurred as part of interest margin business and matched by specific financial
assets measured at amortised cost;Ì Other term finance liabilities measured at stock exchange prices or amortised cost as applicable;
Ì Investment contract liabilities measured at fair value, determined on the bases as disclosed in the section
on policy liabilities in the basis of presentation; andÌ External investors in consolidated funds measured at the attributable net asset value of the respective funds.

Determination of fair value and fair value hierarchy
Below follows required disclosure of fair value measurements, using a three-level fair value hierarchy thatreflects the significance of the inputs used in determining the measurements. It should be noted that these
disclosures only cover assets and liabilities measured at fair value.

(1)

Collective investment schemes that are quoted in an active market of transactions between investors and collective
investment schemes based on a quoted/published price.

Included in the level 1 category are assets and liabilities that are measured by reference to unadjusted,
quoted prices in an active market for identical assets and liabilities.
Included in the level 2 category are assets and liabilities measured using inputs other than quoted prices
included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly(ie derived from prices). For example, instruments measured using a valuation technique based on assumptions
that are supported by prices from observable current market transactions are categorised as level 2.
Assets and liabilities measured using inputs that are not based on observable market data are categorised
as level 3.

158

R million

Level 1

Level 2

Level 3Total

Recurring fair value measurements
Reviewed – 30 June 2024
Financial instruments
Investment in joint ventures
Equities and similar securities
Interest-bearing investments
Structured transactions
Investment funds(1)Deposits and similar securities
Trading account assets—
167 156
87 841
2
270 326—
11 139—1 371
175 404
31 68330 66835 039
2 928

511
3 470
520
—
6 151
—
46

511
171 997263 765
31 685
307 145
35 03914 113

Short-term investments

—

3 476

—

3 476

Total assets at fair value

536 464

280 569

10 698827 731

Financial instruments
Investment contract liabilities
Term finance
Structured transactions liabilities
External investors in consolidated funds
Trading account liabilities
Trade and other payables———
71 761
1 786—

510 769
7 476
11 1783 688
20 771
100

—
—
—
160
—
—

510 769
7 476
11 17875 60922 557100

Total liabilities at fair value

73 547553 982160

627 689

159

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
15

Fair value disclosures continued
Reconciliation of movements in level 3 assets and liabilities measured at fair value
Investment injoint ventures

Equities andsimilarsecurities

Interestbearing
investments

Investment
funds

Tradingaccount
assetsTrade andotherreceivables

Total assets

Reviewed – 2024
AssetsBalance at 1 January 2024
Net (losses)/gains in statement of comprehensive income(1)Acquisitions
Disposals
Foreign exchange movements
Reclassified to non-current assets held for sale

517
(6)
—
—
—
—

3 038
304
768
(596)
(1)
(43)

1 308
5
—
(793)
—
—

4 853
172
1 325
(199)
—
—

48
6
339
(348)
1
—

—
—
—
—
—
—

9 764
481
2 432
(1 936)—(43)

Balance at 30 June 2024

511

3 470

520

6 151

46

—

10 698

Audited – 2023
Balance at 1 January 2023
Net gains in statement of comprehensive income(1)Acquisitions
Disposals
Foreign exchange movements
Reclassified to non-current assets held for sale
Settlements

471
46
—
—
—
—
—

922
1 585
652
—
8
(129)
—

543
36
776
(47)
—
—
—

2 262
2 063
528
—
—
—
—

—
51
85
(92)
4
—
—

110
—
—
(67)
(22)
—
(21)

4 308
3 781
2 041
(206)
(10)
(129)
(21)

Balance at 31 December 2023

517

3 038

1 308

4 853

48

—

9 764

R million(1)

Net (losses)/gains in statement of comprehensive income forms part of investment surpluses and investment surpluses
on assets held in respect of insurance contracts.

Structured
transactions
liabilities

External
investors inconsolidated
funds

Total
liabilities

Reviewed – 2024
Liabilities
Balance at 1 January 2024
Net gains in statement of comprehensive income(1)Settlements
Foreign exchange movements

7
(5)
(2)
—

293
(136)
—
3

300
(141)
(2)
3

Balance at 30 June 2024

—

160

160

Audited – 2023
Balance at 1 January 2023
Net losses/(gains) in statement of comprehensive income(1)Foreign exchange movements

—
7
—

401
(139)
31

401
(132)
31

Balance at 31 December 2023

7

293

300

R million

(1)

160

Net (gains)/losses in statement of comprehensive income forms part of investment surpluses and investment surpluses
on assets held in respect of insurance contracts.

161

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
15

Fair value disclosures continued

Valuation techniques used in determining the fair value of assets and liabilities

Gains (realised and unrealised) included in statement of comprehensive income(1)Instrument

R million
Total gains included in statement of comprehensive income
for the period/year
Total unrealised gains included in statement of comprehensive income
for the period/year for assets held at the end of the reporting period/year(1)

Reviewed
30 June2024

Audited31 December
2023

622

3 078

1 102

3 946

Net gains in statement of comprehensive income forms part of investment surpluses and investment surpluses on assets
held in respect of insurance contracts.

Transfers between levels
Interestbearing
investments(1)Investment
funds

Total
assetsAssets
Reviewed – 30 June 2024
Transfer from level 1 to level 2(1 519)—(1 519)Audited – 31 December 2023
Transfer from level 1 to level 2
Transfer from level 2 to level 1

(83)
—

—
244

(83)
244

R million(1)

Instruments that were not actively traded in the market have been transferred from level 1 to level 2. Conversely,
instruments that have become actively traded in the market have been transferred from level 2 to level 1.

Valuation basis

Main assumptions

Significant
unobservable input

Investment in joint
ventures3

Earnings multiple

Earnings multiple, country Adjusted earnings multiple
risk and size of theand sustainable EBITDA
business and marketability

Equities and similar
securities

2 and 3

DCF and earnings
multiple

Cost of capital andconsumer price index

Interest-bearing
investments

2 and 3

DCF, quoted put/surrender price by issuer

Bond and interbank swap Discount rate and cost ofinterest rate curve, cost of capital
capital and consumer
price index

Structured transactions
assets and liabilities

2 and 3

Option pricing models
and DCF

Bond and interbank swap
interest rate curve,
forward equity andcurrency rates andvolatility risk adjustments

Investment funds andinvestment contract
liabilities

2 and 3Current unit price ofunderlying unitised asset,
multiplied by the numberof units held, earnings
multiple and DCF

Bond and interbank swap Earnings multiple
interest rate curve, cost ofcapital, consumer priceindex and bond interest
rate curve

Deposits and similar
securities, short-term
investments and cash
and cash equivalents

2

Trading account assets
and liabilities

2 and 3Mark-to-market and yield Bond and interbank swap
curveinterest rate curve

Cost of capital, adjusted
earnings multiple, budgets
and forecasts

Earnings multiple

n/a

DCF, earnings multiple,
Bond and interbank swap Earnings multiple
quoted put/surrenderinterest rate curve, cost of
price by issuer and option capital, consumer pricepricing models
index, forward rate, credit
risk spread and liquidity
spreadTrade and otherreceivables/payables

2

DCF, earnings multiple,
Bond and interbank swap n/aquoted put/surrenderinterest rate curve, cost of
price by issuer and option capital, consumer pricepricing models
index, forward rate, credit
risk spread and liquidity
spreadTerm finance2

DCF

External investors inconsolidated funds

162

Applicable
to level2 and 3

Bond and forward rate,n/acredit ratings of issuer,liquidity spread andagreement interest curves

Current unit price ofUnit prices
underlying unitised asset
multiplied by the numberof units held

Based on underlying
assets163

Sanlam Interim Results 2024

Sanlam Interim Results 2024

Condensed consolidated interim
financial statements

Condensed consolidated interim
financial statements

Notes to the condensed consolidated interim
financial statements continued
15

Fair value disclosures continued
Sensitivity of level 3 assets and liabilities measured at fair value to changes in key assumptions
Effect of a
10% increasein earnings
multiple(2)Effect of a
10% decreasein earnings
multiple(2)Effect of a
1% decreasein discountrate(2)

R million

Total

Carrying
amount(1)Assets
Reviewed – 30 June 2024
Investment in joint ventures
Equities and similar securities
Interest-bearing investments
Investment funds
Trading account assets

511
3 470
520
6 151
46

511
3 470
—
6 151
26

51
347
—
615
3

(51)
(347)
—
(615)
(3)

520
20

(1)

1

Total assets

10 69810 1581 016(1 016)

540

(27)

27

Audited – 31 December 2023
Investment in joint ventures
Equities and similar securities
Interest-bearing investments
Investment funds
Trading account assets

517
3 038
1 308
4 853
48

517
3 038
822
4 853
28

52
304
82
485
3

(52)
(304)
(82)
(485)
(3)

486

(29)

29

20

(1)

1

Total assets

9 764

9 258

926

(926)

506

(30)

30

Effect of a
10% increasein earnings
multiple(2)

(26)

26

Effect of a
10% decreasein earnings
multiple(2)Total

Carrying
amountLiabilities
Reviewed – 30 June 2024
External investors in consolidated funds

160

160

16

(16)

Total liabilities

160

160

16

(16)

Audited – 31 December 2023
Structured transactions liabilities
External investors in consolidated funds

7
293

7
293

1
29

(1)
(29)

Total liabilities

300

300

30

(30)

R million

Carrying
amount(3)Effect of a
1% increasein discountrate(2)

Represents mainly private equity investments valued on earnings multiple, with sensitivities based on the full valuation.
The effect of a 10% increase/decrease in the earnings multiple and a 1% increase/decrease in the discount rate represents
the impact on profit or loss.
(3)
Represents mainly instruments valued on a discounted cash flow basis, with sensitivities based on changes in the
discount rate.
(1)

(2)

164

165

Sanlam Interim Results 2024

Notes to the condensed consolidated interim
financial statements continued

Administration

16

Restatements

Registered name: Sanlam Limited

16.1

Classification errors on adoption of IFRS 17

17

In the restatement note in December 2023 (note 39.5) it was indicated that the group will be restating thestatement of comprehensive income relating to June 2023. The group has reconsidered this and made thedecision not to restate the statement of comprehensive income as these items do not represent material
misstatements both qualitatively and quantitatively.

Registration number:

1959/001562/06

Tax reference number:

9536/346/84/5

JSE share code (primary listing):

SLM

Subsequent events

NSX share code:

SLA

A2X share code:

SLM

ISIN:

ZAE000070660 incorporated in South Africa

Internet address:

http://www.sanlam.com

Directors:

Andrew Birrell,
Anton Botha,

On 8 August 2024, Sanlam Life issued subordinated debt to the amount of R2 billion.
On 2 September 2024 Sanlam Limited announced Sanlam Life Insurance Limited’s’ intention to acquire
a 25% interest in African Rainbow Capital Financial Services Holdings Proprietary (ARC FSH). All theconditions precedent to the transaction have been fulfilled and the transaction became unconditional, andwas implemented according to its terms, with an effective date of 2 September 2024. The transaction waspartially funded through a cash consideration of R2,4 billion and an asset-for-share transaction of R1,5 billion
for the 25% interest Sanlam Life Insurance Limited has in ARC Financial Services Investments Proprietary
Limited (ARC FSI). The transaction is a natural extension of Sanlam’s existing interest in ARC FSI. Sanlam willcontinue to explore ways to collaborate strategically with ARC FSH and its portfolio investments to enhancecompetition and to assist Sanlam in providing holistic and integrated product offerings to its clients. Sanlam
Life Insurance Limited’s 25% shareholding in ARC FSH shall be treated as an investment in an associate
In February 2024, the group announced the intention to acquire the South African mass market focusedinsurer Assupol Holdings (Assupol) for R6,5 billion, pending approval from regulators and Assupolshareholders. This proposal received Assupol shareholder support on 17 April 2024. The transaction received
Competition Tribunal approval on 22 August 2024 and is subject to an employment related condition.
Remaining regulatory approvals are expected imminently.
As indicated in the announcement to shareholders on 4 May 2022, the initial shareholding split ofSanlamAllianz was 60% and 40% to Sanlam and Allianz SE (Allianz) respectively, subject to certain postclosing adjustments, and excluded Sanlam’s holdings in Namibia which were to be contributed at a laterstage. Post-closing adjustments relating to movements in net asset value and corporate actions between
initial agreement and transaction conclusion resulted in a final shareholding split of 59,6% and 40,4% toSanlam and Allianz respectively. Shareholders and noteholders are notified that Sanlam integrated its
Namibian holdings into SanlamAllianz at an initial valuation of R6,2 billion, subject to post-closing
adjustments. To maintain the shareholding distribution of SanlamAllianz at 59,6% for Sanlam and 40,4% forAllianz, Sanlam will subscribe for additional shares in SanlamAllianz, representing 59,6% of the valuation,and receive a cash consideration of R2,5 billion from SanlamAllianz, representing 40,4% of the valuation.
SanlamAllianz intends to finance this payment using a capital raise through a share issue to Allianz for cash.
This transaction is subject to post-closing adjustments and obtaining necessary regulatory approvals and isanticipated to take effect in September 2024. Allianz retains the option to raise its stake in SanlamAllianz to49,0% within six months of the completion of the Namibia transaction.
No other material facts or circumstances have arisen between the dates of the statement of financial position
and this report that affect the financial position of the Sanlam group at 30 June 2024 as reflected in thesefinancial statements.

Temba Mvusi

Ebenezer Essoka,
Nicolaas Kruger,
Ndivhuwo Manyonga,
Mathukana Mokoka,
Kobus Möller,
Sipho Nkosi,
Karabo Nondumo,
Thembisa Skweyiya,
Willem van Biljon,
Dr Johan van Zyl,
Elias Masilela,
Dr Shirley Zinn

(Chair)
Dr Patrice Motsepe(Deputy Chair)
Paul Hanratty(Group Chief Executive)
Abigail Mukhuba(Group Finance Director)

Executive Head: Investor Relations
Grant Davids

Debt Sponsor to Sanlam Life Insurance Limited
Rand Merchant Bank, a division of FirstRand Bank Limited

Company Secretary:
Adela Fortune

Transfer secretaries:
Registered number: 2004/003647/07

Registered office:2 Strand Road, Bellville 7530, South Africa

Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196,
South Africa
Private Bag X9000, Saxonwold 2132, South Africa

Telephone +27 (0) 21 947 9111
Fax +27 (0) 21 947 3670
Postal address:
PO Box 1, Sanlamhof 7532

Tel +27 (0) 11 370 5000
Fax +27 (0) 11 688 5200

Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited

sanlamholders@computershare.co.za

Contact:

Sanlam Head Office:

Sanlam client care centre:
021 916 5000 or 0860 SANLAM (0860 726 526),(021) 947 9111/+27 (0) 21 947 9111 (International)

2 Strand Road, Bellville, South Africa
ir@sanlam.co.za
33”45’09.77S 18”38’28.32E...we are sanlam.com

166

Contact:
Sanlam client care centre:
021 916 5000 or 0860 SANLAM (0860 726 526),(021) 947 9111/+27 (0) 21 947 9111 (International)

Sanlam Head Office:2 Strand Road, Bellville, South Africa
ir@sanlam.co.za
33”45’09.77S 18”38’28.32E...we are sanlam.com