Strong inflows and new business drive Sanlam’s Q1 growth

Sanlam reported a strong first quarter, with new business volumes rising 29% and net client inflows climbing 45% to R38.6 billion, the group announced in a trading update on Thursday.

Operating profit increased 8%, despite heightened weather-related claims and a more volatile operating environment, including the escalating conflict in the Middle East.

Sanlam share price 

Sanlam says its capital position remains strong, with solvency cover remaining within target ranges and discretionary capital of R3.2 billion.

Business update

In South Africa, the Assupol integration is progressing well, with branch rollout on track and preparations under way for the launch of banking services with GoTyme.

Read: Competition Tribunal greenlights TymeBank and Sanlam JV [Aug 2025]

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The Ninety One transaction has also been completed, further strengthening the group’s strategic position. This increases Sanlam’s effective economic interest in Ninety One to approximately 9.1% on a dual-listed company basis, excluding minority interests.

In India, Sanlam has increased its ownership in the Shriram insurance businesses. Its effective economic holding in the Shriram General Insurance Company rose to 50.99%.

Sanlam also completed the acquisition of a 14.7% interest in Shiram Life Insurance Company from Piramal Finance Limited at the end of March for R1.1 billion, increasing its interest to a 68.4%.

Read:
Sanlam Private Equity takes majority stake in Medhold
Sanlam boosts India strategy with Shriram Finance deals [Dec 2025]

The Mitsubishi UFJ Financial Group (MUFG) has completed a capital injection into Shriram Finance Limited (SFL), strengthening SFL’s ability to accelerate growth.

In addition, the Santam 1918 Syndicate is building momentum and is expected to support future premium growth.

Outlook

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The group expects strong cash generation to continue through the year.

Even though the external operating environment is expected to stay volatile for the rest of the year, Sanlam says it is resilient and supported by strong capital levels, diversified earnings and careful risk management.

Management is taking focused steps to address the short-term pressure from weather-related claims in the general insurance business.

Read:
India could surpass SA as Sanlam’s top earnings driver – CFO
Sanlam profit up despite slower operational earnings growth

Sanlam’s completion of the capital injection into Shriram Finance in April 2026, will dampen short-term earnings growth, but should support strong medium-term growth across the Shriram ecosystem.

Says Sanlam group CEO Paul Hanratty: “We remain confident in the long-term growth opportunities across our core markets and expect to deliver on our full-year earnings and dividend guidance, supported by strong liquidity and capital strength.”

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