/ 14 September 2000

SANLAM GROWS, AND GROWS AND …

LIFE insurance giant Sanlam said its half-year earnings jumped 18%, and that it looked set to achieve its target of 10% growth for the year. Headline earnings per share rose to 45.1c in the six months to June 30, from 38.1c in the same period last year, boosted mainly by growth in its personal finance unit, which posted operating profit growth of 35%. “Given favourable market conditions for the remainder of the year, these achievements, together with the growth of headline earnings by 18% place us well on track to achieve our target of 10% real growth for the year,” Sanlam Finance Director Flip Rademeyer said. Sanlam’s results were, however, tempered by a 36% reduction in fund manager Genbel Securities’ (Gensec) contribution to the group’s headline earnings to R130m from R202m in 1999. Gensec last month reported a 40% drop in its first-half earnings which it blamed on difficult investment market conditions in the first half of 2000. Sanlam’s share rose by 2.12% after the news, strongly outperforming the financial sector on the Johannesburg Stock Exchange Exchange, which was up by 0.83%. Sanlam has a 65% interest in Gensec, South Africa’s second-largest fund manager. Last month Sanlam announced plans to take out minorities in Gensec at R37 a share.