Sanlam client inflows more than double despite two-pot claims

Says payouts to fund members total R2.5bn to date.

JSE-listed Sanlam saw its group net client cash flows for the nine months ended 30 September 2025 more than double to R40 billion, it announced in a trading update on Thursday.

Life insurance net inflows increased by 57% despite the implementation of the two-pot retirement system on 1 September. Withdrawals from retirement members’ savings pots to date amount to R2.5 billion.

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The group’s share price firmed to R89.19 in afternoon trade – 2% up from the previous day.

Sanlam says in September alone just under R1.5 billion was withdrawn from over 78 000 clients.

Under the two-pot regime, a third of pension fund members’ retirement savings are allocated to a savings component, and two-thirds of their contributions are allocated to a retirement component.

The group expects further outflows of assets from retirement funds for the full year.

Read:
Those aged 35 to 44 lead the way in two-pot withdrawals – Sanlam
Sanlam Corporate processes over 20 000 two-pot claims in first two days

South African Revenue Service Commissioner Edward Kieswetter confirmed at the end of October that withdrawals under the two-pot regime have resulted in just over R7 billion for the fiscus, surpassing the R5 billion initial estimate.

Read: Two-pot withdrawals to top R5bn for state coffers

Double-digit growth on key metrics

In its trading update, Sanlam notes that the net result from financial services (NRFFS) jumped by 15% over the nine-month period. Sanlam regards NRFFS as its key earnings metric.

Net operational earnings were up by 17%.

“Higher investment returns on the shareholder capital portfolio … resulted in increased growth in net operational earnings relative to NRFFS,” it notes. ADVERTISEMENT: CONTINUE READING BELOW

Life insurance new business volumes rose by 12%, underpinned by single premium growth in South Africa. The Asia operations also contributed strongly.

However, the costs of establishing new distribution channels in India negatively impacted Sanlam’s Asia business.

Earlier this year, Sanlam obtained a controlling stake in India’s Shriram Group’s insurance business. The group views India, with its relatively low insurance penetration, as a core market in its strategy to achieve long-term earnings growth.

Read:
Sanlam’s deal for controlling stake in Indian insurer Shriram
Sanlam banks on India as SA market reels

As for the group’s general insurance business segment, net premium growth was in line with the corresponding period in 2023.

Santam recorded an 8% increase in net earned premium for the conventional insurance business, and Asia recorded growth of 30%. In the Pan-Africa portfolio, SanlamAllianz recorded net earned premium growth of 9% on a comparable basis.

Read: Sanlam delivers double-digit growth

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