Sanlam, the South African insurance giant, expects a strong hike in its earnings for the financial year ended December 31, 2024 due to “excellent organic growth across all business lines”.
In a trading update, released on Thursday, the group forecasts headline earnings per share (Heps) to rise between 30% and 40%, in a range of 913 cents to 983c, up from 702c in 2023. Diluted Heps is projected to follow a similar trajectory, climbing to between 900c and 969c from 692c last year.
Earnings per share (Eps) are anticipated to surge 45% to 55%, ranging from 1 019c to 1 089c, against 703c in 2023, with diluted Eps tracking at 1 005 cents to 1074 cents from 693c.
Net operational earnings per share are set to grow 30% to 40%, hitting 837c to 901c, up from 644c.
“Higher investment returns on the shareholder capital portfolio in 2024, coupled with reduced project expenses supported the expected percentage increase in net operational earnings,” it said.
Meanwhile, net result from financial services (NRFFS) and cash NRFFS per share are expected to increase 20% to 30%, reaching 688c to 746c, compared to 574 cents in 2023. Excluding a one-off reinsurance recapture fee tied to the end of a funeral insurance joint venture with Capitec, NRFFS per share growth narrows to 10% to 20%, or 631c to 688c.
The group noted a lower weighted average number of shares lifted NRFFS and operational earnings metrics.
The annual results are due on March 6, 2025.
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