Sanlam's HY interim profit more than doubles

Source: Pixabay

Sanlam, the country's biggest life insurer, posted headline earnings per share - a measure of corporate profit in South Africa - of R3.39 for the six-month period ended 30 June, up from 1.56 rand in the corresponding period last year.

South African insurers, which control the largest and the most advanced insurance market on the continent, have been benefiting from higher interest rates as that gives them better returns on investment of premiums collected from clients.

But as interest rates keep increasing, insurers find it difficult to keep collecting premiums and generate new businesses.

Despite the challenges, the company forecast its second-half earnings to be similar to its first-half numbers, and also had a strong outlook for dividend growth.