Sanlam (LA6A) Q2 2026 Earnings Report
DE:LA6A Q2 2026 EPS Results
- Actual EPS
- EUR 0.33
- Consensus EPS
- ―
- Beat/Miss
- ―
- One Year Ago EPS
- EUR 0.23
DE:LA6A Q2 2026 Revenue Results
- Actual Revenue
- EUR 5.87B
- Expected Revenue
- ―
- Beat/Miss
- ―
- YoY Revenue Growth
- +1.25%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/10/2026
- Time
- Before Open
- Conference Call
- Thursday, September 10, 2026
Sanlam's next earnings date is estimated for March 11, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
The call was broadly positive despite meaningful short-term earnings pressure. Management highlighted robust new business and cash flows, strong value creation, resilient life and asset management performance, strategic progress in India and asset management, sound solvency and confidence in meeting full-year guidance and dividend expectations. These positives outweighed the identified challenges in weather-affected general insurance, Malaysia, AfroCentric, investment returns, currency translation and selected credit and health operations.
Management expects cash conversion during the current year will improve over that in the previous year, expects to meet its dividend expectations for full year '26, and said the performance in the first half earnings is not expected to affect dividend capacity; it still expects to meet its guidance for the full year. Adjusted return on equity was expected to lift by 2030 to above our 20% target. Santam Syndicate 1918 remains on track for full year ZAR 1.3 billion, while remaining stranded costs in investment management will be addressed by year-end '26. Pan-Africa general insurance is expected to show a slightly better second half, with very significant improvement expected in 2027 and the net insurance margin recovering back towards the 10% to 15% target range. Malaysia will also be weak in the second half, with the business expected to take a year or 2 to probably a couple of years to be back on an even keel, while India is expected to be back in a fairly good shape during next year. The GoTyme banking offering is expected to kick off with confidence early in 2027.
- Robust New Business and Client Cash FlowsTotal new business was 22% up, while net client cash flow was ZAR 78 billion, representing a very strong increase in group assets under management. Management confirmed that all of the group-level net client cash flow increases of 42% were organic.
- Underlying Earnings Growth Despite Reported PressureCore earnings grew by 1% in the first half of 2026 on a comparable basis. Management estimated that true sustainable underlying earnings growth was around 7%, before weather-related and other abnormal large claims in African general insurance eroded earnings by around 8% and investment in organic growth initiatives eroded earnings by a further 3%.
- Strong Returns and Continued Value CreationAdjusted return on equity was 18.4%, while adjusted return on group equity value was 15.5% on an annualized basis. Management said the group created strong value through profitable new business, excellent operating experience, the increased value of the Shriram Finance stake and asset management businesses, and strategic initiatives in India and asset management.
- Progress Toward the 20% Return TargetManagement expects adjusted return on equity to rise above the 20% target by 2030 as earnings grow and cash efficiency improves. Adjusted return on equity of just over 18% was above the group's 5-year average performance of just above 17% and comfortably above its cost of capital.
- Strong Life Insurance PerformanceLife insurance core earnings were just below ZAR 5 billion and increased on a comparable basis, driven by favorable mortality experience, higher asset fee income, cost efficiencies in South Africa and Pan-Africa, and the RANFR reassessment. New business increased 14% on a comparable basis and net client cash flows increased 24%.
- Asset Management Growth After Ninety One TransactionThe asset management businesses retained by Sanlam delivered 48% growth in core earnings despite transferring just over ZAR 400 billion of assets under management to Ninety One. New business volumes increased 29% on a comparable basis, assets under management closed at around ZAR 1.3 trillion, and the business benefited from strong flows, forecast cost efficiencies, and growth in multi-manager and Satrix Index businesses.
- India Portfolio Reshaping CompletedSanlam completed a series of transactions that strengthened its Indian growth platform, including increased exposure to life and general insurance, the addition of the capital markets business, and the introduction of MUFG as a banking partner for the newly capitalized Shriram Finance. Management said the transactions position the group for improved growth, capital efficiency and returns in India's fast-growing and underpenetrated insurance market.
- India Life Business Showing RecoveryAlthough the rupee depreciated 17%, management said India was reasonable in constant currency terms. Shriram Life's value of new business was positive again in the first half after regulatory changes had previously turned it negative, and management said the business was tracking ahead of plan and expected to be back in fairly good shape during next year.
- Ninety One Partnership and Wealth StrategyThe Ninety One transactions in the U.K. and South Africa were completed in the first half. Sanlam is now focused on being a purely solutions-led wealth and asset manager, with the majority of stranded costs eliminated, a leaner cost structure and strong flows creating a more valuable business.
- Sanlam Allianz Integration and Maiden DividendThe Morocco in-country merger completed the integration of Sanlam and Allianz's two large and diverse insurance portfolios across the continent. All 11 Pan-Africa regulatory integrations were complete, Sanlam Allianz delivered its maiden dividend in 2026, and management expects dividends from the joint venture to grow steadily over time.
- Santam Underwriting Resilience and Syndicate ExpansionDespite severe weather claims, Santam's underwriting margin remained above the midpoint of its target range, supported by favorable attritional claims and disciplined expense management. Santam also outperformed its return on capital target and declared 10% growth in its interim dividend. Syndicate 1918 wrote just below ZAR 500 million of gross premiums to date and remained on track for full-year gross premiums of ZAR 1.3 billion.
- Credit and Structuring Growth in IndiaCredit and structuring earnings remained resilient on a comparable basis. India's earnings grew 18%, supported by a stronger Shriram Finance loan book and an improved net interest margin.
- Balance Sheet and Solvency StrengthGroup solvency remained firmly within the target range after the 2025 dividend and capital deployed into growth. The position was supported by ZAR 2.4 billion of new subordinated debt. Discretionary capital reduced from ZAR 8 billion to just over ZAR 2 billion after approximately ZAR 5 billion was ring-fenced to increase Sanlam's interests in Shriram Life and General Insurance, while management said the reduction did not represent a weakening of the balance sheet.
- Improved Cash Conversion and Dividend ConfidenceManagement expects cash conversion during 2026 to improve over the previous year. Strong cash generation and remittance focus are expected to support the group's dividend expectations, and management confirmed that it still expects to meet full-year guidance and that first-half earnings pressure is not expected to affect dividend capacity.
- Reduced RANFR Interest-Rate ExposureSanlam moved most assets backing its risk adjustment for nonfinancial risk liabilities to fixed-rate exposure. RANFR interest-rate exposure declined by around 60%, materially reducing interest-rate sensitivity and improving the stability and predictability of operating profit, while cash flows and risk appetite remained unchanged.
- GoTyme Banking Platform ProgressThe partnership with GoTyme received approval to offer banking services to Sanlam clients. Sanlam has rolled out branches, started training staff and begun internal testing of banking services, with a planned customer launch early in 2027.
DE:LA6A Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 11, 2027 | 2026 (Q4) | ―- | 0.14 | ― | ― |
| Sep 10, 2026 | 2026 (Q2) | ―0.33 | 0.23 | 44.74% (+0.10) | |
| Mar 12, 2026 | 2025 (Q4) | ―0.14 | 0.28 | -52.28% (-0.15) | |
| Sep 04, 2025 | 2025 (Q2) | ―0.23 | 0.22 | 4.31% (+0.01) | |
| Mar 06, 2025 | 2024 (Q4) | ―0.28 | 0.15 | 93.53% (+0.14) | |
| Sep 05, 2024 | 2024 (Q2) | ―0.22 | 0.18 | 19.72% (+0.04) | |
| Mar 07, 2024 | 2023 (Q4) | ―0.15 | 0.17 | -12.37% (-0.02) | |
| Sep 07, 2023 | 2023 (Q2) | ―0.18 | 0.16 | 18.33% (+0.03) | |
| Mar 09, 2023 | 2022 (Q4) | ―0.17 | 0.16 | 4.30% (+0.01) | |
| Sep 08, 2022 | 2022 (Q2) | ―0.16 | 0.11 | 45.16% (+0.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
