Sanlam posts huge business growth in 2025, attributes earnings drop to high base from 2024 capital return

Financial services group Sanlam has reported "strong" growth for the financial year to end-December 2025.

New business volumes for the continent's biggest insurer soared by 18% (22% on a normalised basis) to nearly R500 billion, marking a record annual performance for the group.

However, headline earnings dropped 18% to R20.08 billion, while attributable profit slumped 28% to R22.24 billion. (CFO Abigail Mukhuba explains this further down)

Headline earnings per share (HEPS) were also down 18% to 792 cents per share from  964 cents in the previous reporting period.

The group achieved net result from financial services (NRFFS) of R8,1 billion, 14% higher than 2024 (15% per share).

The drop in earnings reported can be attributed to the very high base Sanlam was coming off in 2024, driven by the payout at the termination of its seven-year partnership with Capitec, clarifies chief financial officer Abigail Mukhuba.

"As part of that settlement at the end of the seven years we got about R1.4 billion in recapture fees ... We also had one-offs as far as the restructuring of some of our portfolio that we undertook, particularly the assets that we sold into our partnership also with Allianz."

Mukhuba further highlights the significant strengthening of the rand in 2025, particularly in the last quarter, which also impacted the comparability of their results.

Scroll up to the audio player to listen to the interview with the Sanlam Group CFO