SANLAM Namibia’s contribution to the Sanlam Group new business volumes from emerging markets dropped from N$1,54 billion in 2014 to N$1,28 billion in 2015 according to interim results released yesterday.
Sanlam’s emerging markets include Namibia, Botswana, Kenya Uganda, Rwanda, Burundi, Tanzania, Malawi, Zambia, Malaysia, Mozambique Lesotho, The Gambia, India, Nigeria, Ghana and Nigeria.
Overall new business volumes from emerging markets increased to N$5,39 billion up from N$4 billion.
Net fund flows from Namibia dropped by N$41 million to N$343 million. Gross operating profit from Namibia increased slightly to N$257 million from N$254 million in 2014. Overall gross operating profit dropped to N$1,11 billion from N$1,12 billion in 2014.
Sanlam new business volumes growth was supported by an exceptional performance in Botswana, Malaysia, Rwanda and Ghana.
“Net result from financial services declined by 10%, largely attributable to a difficult operating environment in Zambia and abnormal bad debt experienced in India,” the company said.
Commenting on the results, Sanlam Group chief executive Ian Kirk said: “We are satisfied that we were able to deliver an overall sound operational performance despite unfavourable conditions. The medium to long term growth potential of all the regions remains intact.”
Kirk said the company expects the operating environment to remain challenging for the rest of the year, which is likely to impact on most of its performance measures.
“Despite the short-term pressure on operating earnings growth, we remain confident our strategy is sound and that it will enable us to deliver on our medium to long-term growth targets.”