Sanlam Limited is a South African established financial service group listed on the Johannesburg Stock Exchange (JSE) that was established as a life insurance company but has since transformed into a diversified financial services group with listings on the Johannesburg, A2X and Namibian stock exchanges.
The graph below shows the latest Sanlam Limited share price (JSE: SLM). With a market capitalization of ZAR 187.42 billion, Sanlam stands as a dominant player, providing a comprehensive suite of financial solutions to a diverse clientele spanning individuals, businesses, and institutions across Africa, Asia, and beyond.
Sanlam’s recent financial performance underscores its strength and resilience. The company’s 2024 revenue reached ZAR 204.17 billion, representing a robust 6.96% increase from the previous year. More impressively, earnings surged by 53.61% to ZAR 22.24 billion, demonstrating effective management and a favorable operating environment.
This growth is further substantiated by a Return on Equity (ROE) of 20% for the trailing twelve months ending June 2024, significantly exceeding the industry average of 14%. This superior ROE highlights Sanlam’s ability to generate profits from shareholders’ investments, a key indicator of financial health and efficiency. The company also demonstrated its commitment to shareholders by increasing its annual dividend to ZAR 4.45 per share, payable on April 7, 2025, reflecting a 5.91% growth over the past five years.
YOUR CAPITAL IS AT RISK
Recent Developments
Sanlam’s strategic initiatives have been pivotal in driving its growth and expanding its market reach. The strengthened partnership with Allianz, with Allianz Europe BV increasing its stake in Sanlam Allianz Africa to 49%, signifies a deepened collaboration that can unlock synergistic opportunities and enhance its competitive positioning across the African continent.
The acquisition of a 60% stake in Multichoice’s insurance business further solidifies its presence in the insurance sector, tapping into a broader customer base and diversifying its revenue streams. Furthermore, the planned acquisition of a 25% stake in African Rainbow Capital Financial Services Holdings, backed by Patrice Motsepe, signals Sanlam’s strategic foray into the digital banking arena, positioning it to capitalize on the burgeoning demand for innovative financial solutions in the digital age.
Over the past five years, Sanlam’s share price has increased by 59%, translating to a compound annual growth rate (CAGR) of 16%. While this growth is commendable, it slightly trails the overall market return, suggesting that there may be untapped potential for further appreciation. However, the stock’s 20% rise in the past year indicates a positive trend, reflecting renewed investor confidence and the successful execution of its strategic initiatives.
Who is Sanlam Limited?
Sanlam Limited operates through a number of subsidiaries, associated companies and joint ventures with Sanlam Life being the largest operating subsidiary and the holding company of most of Sanlam’s operations in emerging markets.
Sanlam Limited demutualised in 1998 and Sanlam Limited then listed on the JSE and the Namibian Stock Exchange.
The history of Sanlam Limited can be traced back to 8 June 1918 when it was founded. In 2018, Sanlam Limited celebrated its centenary as well as 20 years since demutualisation and listing in South Africa and Namibia.
Today, Sanlam Limited has a diversified portfolio of products and services in more sectors of the financial value chain and renders the following services: client-centric wealth creation, management and protection in South Africa, to be a leading player in Pan-African financial services with a meaningful presence in India and Malaysia and to play a niche role in wealth and investment management in specific developed markets.
The current CEO of Sanlam Limited is Paul Hanratty.
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Sanlam Limited’s equity stocks are for sale online on the Johannesburg Stock Exchange (JSE) under the stock symbol SLM.
Sanlam Limited forms part of the Insurance Industry and the Financials Sector of the Johannesburg Stock Exchange (JSE).
Sanlam Ltd (JSE: SLM) – 5 Year Chart
Sanlam’s success will hinge on its ability to navigate the evolving financial landscape, adapt to changing customer preferences, and effectively execute its strategic initiatives. The company’s expansion into digital banking holds considerable promise, but it will need to overcome challenges related to technology integration, regulatory compliance, and competition from established players in the fintech space.
Its partnerships will need to be carefully managed to ensure that they deliver the anticipated synergies and do not create undue dependencies or conflicts of interest. Moreover, Sanlam will need to remain vigilant in managing its risk exposure, particularly in light of the volatile economic and political environment in South Africa and other emerging markets where it operates.
Company Essentials
Sanlam Limited has its headquarters at 2 Strand Road, Bellville, Cape Town, 7530.
The company currently serves clients across the African continent, India, Europe, Malaysia, United Kingdom, India, the USA, Australia and selected developed markets.
Sanlam Limited (SLM.JO) remains a significant force in the South African financial services sector, with a strong track record of growth and profitability. Its strategic initiatives, including partnerships and acquisitions, position it for continued success in the years to come. However, investors should carefully weigh the potential risks and uncertainties, including economic volatility and regulatory challenges, before making investment decisions. A balanced and informed approach, incorporating both the bullish and bearish perspectives, is essential for navigating the complexities of the financial markets and maximizing long-term returns.
How to buy Sanlam Limited Shares – Step by Step
The stock market is one of the most attractive financial markets that sees millions of retail investors and traders’ participating daily. To buy, sell or trade Sanlam Limited stocks on the Johannesburg Stock Exchange (JSE), traders and investors can follow a few simple steps:
- Find the share that you want to buy, in this case, “SLM”.
- Select a forex broker that offers access to the Johannesburg Stock Exchange (JSE).
- Review the broker’s trading conditions, fees, deposit and withdrawal methods, trading platform, customer support, regulation, and other components to ensure that they are aligned with your trading plan.
- Open a live trading account with the broker by completing the online application form and providing the necessary documentation to verify the trading account.
- You are now ready to make your first share purchase through the broker.
- You can further start to build and diversify your portfolio by buying more shares.
YOUR CAPITAL IS AT RISK
🟩 The Bull Case for JSE: SLM
- Strong Financial Performance: Consistent revenue and earnings growth, coupled with a high ROE, indicate a healthy and well-managed company.
- Strategic Partnerships: Collaborations with Allianz and acquisitions like Multichoice’s insurance business expand market reach and create synergistic opportunities.
- Attractive Dividend Yield: A dividend yield of nearly 5% provides a steady income stream for investors.
- Expansion into Digital Banking: The investment in African Rainbow Capital Financial Services Holdings positions Sanlam for future growth in the digital finance space.
🟥 The Bear Case for JSE: SLM
- Underperformance Relative to Market: Historical CAGR slightly below market average raises concerns about potential for future growth.
- Volatility: The stock has exhibited volatility over the past month.
- South African Economic Risks: Economic instability in South Africa could negatively impact Sanlam’s performance.
- Regulatory Risks: Changes in financial regulations could pose challenges to Sanlam’s operations.
