Sanlam business up 30 percent

Sanlam, one of South Africa's leading financial services groups, said on Wednesday that for the four months ended April 2103' its new business volumes were up 30 percent at R49 billion.

Releasing an operational update' it said business clusters largely performed well, with Sanlam Personal Finance recording a 28 percent increase in new business sales.

The Investment cluster also grew new business volumes by 48 percent, with Wealth Management, Investment Services and International operations achieving strong growth.

Commenting on the results, Sanlam Group Chief Executive, Dr Johan van Zyl, said consistent focus on the diversification strategy supported the Group to absorb the relatively weak investment market performance in South Africa over the period as well as a challenging claims environment experienced by Santam.

Santam experienced continued high levels of claims frequency and severity in its traditional intermediated business. This was aggravated by flood related claims, an increase in commercial fire claims and significant hail and drought claims in its agriculture business.

"We are satisfied with our performance and will continue to implement our strategy which we believe has delivered value for our shareholders," he said.

Looking ahead' it said it does not anticipate any material improvement in the economic environment for the remainder of the year.

"We anticipate the current economic climate will continue to pose challenges and the trading conditions will remain challenging for the rest of the year. However, we expect that our continued focus on strategy will see us through," Dr Van Zyl concluded.

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