Sanlam says one-off cost probably pulled earnings per share down 20%


South African insurance coverage firm Sanlam on Wednesday flagged decrease headline earnings for the 10 months ending October 31, weighed down by a once-off accounting price.

The group stated diluted headline earnings per share (Heps), the principle revenue measure in South Africa, might fall by 20% after a once-off accounting price of R1.7 billion within the first half of the yr.

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But it surely added that if the accounting price is excluded, Heps might enhance marginally by 2%.

Sanlam stated internet operational earnings for the interval are anticipated to rise 16% on the again of sturdy internet fund inflows and a rise in new enterprise gross sales.

Sanlam is working towards a backdrop of gradual financial progress in its residence market in South Africa and a forex collapse in its Angolan market.

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“We don’t anticipate enchancment within the financial situations of the foremost territories the place the Group operates within the quick time period. New enterprise progress potential will commensurately stay beneath stress,” the group stated in an announcement.

It added it can concentrate on rising Saham, a Moroccan insurance coverage agency by which it purchased a remaining 53% stake in a $1.1 billion deal final yr.

Sanlam is current in 45 nations, together with nations in sub-Saharan Africa, North America, Europe, and Asia.

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