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Offbeat – 10 May 2013


We could solve all the nationality issues with a couple of speed bumps, especially in front of my house, so I could go out in the mornings and amuse myself by watching the boy racer become one with the birds, and the pilots at the airport, as his turbo-charged bike launches him into the air.

We have two types of people in my neighbourhood, generally speaking. They are Namibians and Angolans. They are different from one another, at least I think so, listening to what one person says, that the Angolans drive like maniacs. If it is normal for an Angolan to drive like a maniac, then they probably have something to say about the way Namibians drive, probably that Namibians drive like arthritic tortoises. I don’t know. I can’t understand Portuguese.
This leads me to the question of whether or not the local black taxi drivers are all Angolans, because most of those taxi drivers drive like they learned their trade from Grand Theft Auto, except when they park in the middle of stop streets to discuss with their fares where they are going to go and the weather and all of that.
It also leads to confusion about the boy racer who goes from zero to 120, in the 40 metres from the top of the hill to the gate in front of my house. For those of you who are not from here, ‘Namibian’ is code for darker pigmentation, which leads to yet more confusion. The boy racer is obviously not Angolan because he was here before the Angolans started moving in, I feel like a Namibian because I was born in Namibia although I don’t have darker pigmentation, and the Angolans in my neighbourhood must all be ‘Namibian’ because they have darker pigmentation.
Perhaps we can take some meaningful steps towards clearing up the confusion by saying we are all neighbours, but allow me to say that I am Namibian because although I have only achieved my milky, coffee-coloured skin from years of sunburn, my heart is as darkly pigmented as any ‘Namibian’s’, not that hearts have pigmentation.
We could solve all the nationality issues with a couple of speed bumps, especially in front of my house, so I could go out in the mornings and amuse myself by watching the boy racer become one with the birds, and the pilots at the airport, as his turbo-charged bike launches him into the air. If we could also have a traffic officer at the stop sign to deal with the taxis collecting their fares, that would be nice as well. Otherwise, just give me the ticket book and I will fine them myself in the spirit of volunteerism, and aggravation. Don’t bother telling me what the fine is. I’ll make it up by adding zeroes after the number nine.
With the simple step of installing a couple of speed bumps, we could all become true neighbours, and leave the questions of nationality, borders and language to people who care about that sort of stuff: Home Affairs, Foreign Affairs, and possibly some Portuguese language teachers, not that I know any.
The funny thing about the Namibians and Angolans is that they both go to the same bar, drink the same beer, watch the same football and music videos, and play on the same pool table. The television is free, but maybe Foreign Affairs could subsidise the beer and pool, and maybe English or Portuguese lessons in the bar, instead of spending money on formal diplomacy. Home Affairs could also have someone come sit there with forms and a stamp.
I also notice that many Angolans walk to the shop, just like Namibians, my sunburned-self included, instead of driving like maniacs. Perhaps we could also have a pedestrian bridge for the river, in the rainy season. I don’t think anyone, Namibian or Angolan, likes the slippery stones, and the water smells like the sort of squelchy stuff you scrape off your shoes in disgust.
I walk though my neighbourhood a couple of times every week. I look in wonder. Even the very old ‘non-Namibian’ lady who is actually Namibian potters around without concern. Anywhere else and she would be behind high walls with armed response signs, barbed wire and electric fences. She is part of the neighbourhood, and we have peace.
The whole thing of nations and borders boils down to driving and language. Nothing else seems important. I am sure there are other places like this place. Perhaps we could all learn from them.

About The Author

Sanlam 2018 Annual Results

7 March 2019


Sanlam’s 2018 annual results provides testimony to its resilience amid challenging operating conditions and negative investment markets

Sanlam today announced its operational results for the 12 months ended 31 December 2018. The Group made significant progress in strategic execution during 2018. This included the acquisition of the remaining 53% stake in SAHAM Finances, the largest transaction concluded in the Group’s 100-year history, and the approval by Sanlam shareholders of a package of Broad-based Black Economic Empowerment (B-BBEE) transactions that will position the Group well for accelerated growth in its South African home market.

Operational results for 2018 included 14% growth in the value of new life insurance business (VNB) on a consistent economic basis and more than R2 billion in positive experience variances, testimony to Sanlam’s resilience in difficult times.

The Group relies on its federal operating model and diversified profile in dealing with the challenging operating environment, negative investment markets and volatile currencies. Management continues to focus on growing existing operations and extracting value from recent corporate transactions to drive enhanced future growth.

The negative investment market returns and higher interest rates in a number of markets where the Group operates had a negative impact on growth in operating earnings and some other key performance indicators. This was aggravated by weak economic growth in South Africa and Namibia and internal currency devaluations in Angola, Nigeria and Zimbabwe.

Substantial growth in Santam’s operating earnings (net result from financial services) and satisfactory growth by Sanlam Emerging Markets (SEM) and Sanlam Corporate offset softer contributions from Sanlam Personal Finance (SPF) and Sanlam Investment Group (SIG).

Key features of the 2018 annual results include:

Net result from financial services increased by 4% compared to the same period in 2017;

Net value of new covered business up 8% to R2 billion (up 14% on a consistent economic basis);

Net fund inflows of R42 billion compared to R37 billion in 2017;

Adjusted Return on Group Equity Value per share of 19.4% exceeded the target of 13.0%; and

Dividend per share of 312 cents, up 8%.

Sanlam Group Chief Executive Officer, Mr Ian Kirk said: “We are satisfied with our performance in a challenging operating environment. We will continue to focus on managing operations prudently and diligently executing on our strategy to deliver sustainable value to all our stakeholders. The integration of SAHAM Finances is progressing well. In addition, Sanlam shareholders approved the package of B-BBEE transactions, including an equity raising, at the extraordinary general meeting held on 12 December 2018. Our plan to implement these transactions this year remains on track.”

Sanlam Personal Finance (SPF) net result from financial services declined by 5%, largely due to the impact of new growth initiatives and dampened market conditions. Excluding the new initiatives, SPF’s contribution was 1% down on 2017 due to the major impact that the weak equity market performance in South Africa had on fund-based fee income.

SPF’s new business sales increased by 4%, an overall satisfactory result under challenging conditions. Sanlam Sky’s new business increased by an exceptional 71%. Strong growth of 13% in the traditional individual life channel was augmented by the Capitec Bank credit life new business recognised in the first half of 2018, and strong demand for the new Capitec Bank funeral product. The Recurring premium and Strategic Business Development business units also achieved strong growth of 20%, supported by the acquisition of BrightRock in 2017. Glacier new business grew marginally by 1%. Primary sales onto the Linked Investment Service Provider (LISP) platform improved by 5%, an acceptable result given the pressure on investor confidence in the mass affluent market. This was however, offset by lower sales of wrap funds and traditional life products.

The strong growth in new business volumes at Sanlam Sky had a major positive effect on SPF’s VNB growth, which increased by 7% (14% on a comparable basis).

Sanlam Emerging Markets (SEM) grew its net result from financial services by 14%. Excluding the impact of corporate activity, earnings were marginally up on 2017 (up 8% excluding the increased new business strain).

New business volumes at SEM increased by 20%. Namibia performed well, increasing new business volumes by 22% despite weak economic conditions. Both life and investment new business grew strongly. Botswana underperformed with the main detractor from new business growth being the investment line of business, which declined by 24%. This line of business is historically more volatile in nature.

The new business growth in the Rest of Africa portfolio was 68% largely due to corporate activity relating to SAHAM Finances, with the East Africa portfolio underperforming.

The Indian insurance businesses continued to perform well, achieving double-digit growth in both life and general insurance in local currency. The Malaysian businesses are finding some traction after a period of underperformance, increasing their overall new business contribution by 3%. New business production is not yet meeting expectations, but the mix of business improved at both businesses.

SEM’s VNB declined by 3% (up 6% on a consistent economic basis and excluding corporate activity). The relatively low growth on a comparable basis is largely attributable to the new business underperformance in East Africa.

Sanlam Investment Group’s (SIG) overall net result from financial services declined by 6%, attributable to lower performance fees at the third party asset manager in South Africa, administration costs incurred for system upgrades in the wealth management business and lower earnings from equity-backed financing transactions at Sanlam Specialised Finance. The other businesses did well to grow earnings, despite the pressure on funds under management due to lower investment markets.

New business volumes declined by 13% mainly due to market volatility and low investor confidence in South Africa. Institutional new inflows remained weak for the full year, while retail inflows also slowed down significantly after a more positive start to the year. The international businesses, UK, attracted strong new inflows (up 57%).

Sanlam Corporate’s net result from financial services increased by 4%, with the muted growth caused by a continuation of high group risk claims experience. Mortality and disability claims experience weakened further in the second half of the year, which is likely to require more rerating of premiums in 2019. The administration units turned profitable in 2018, a major achievement. The healthcare businesses reported satisfactory double-digit growth in earnings, while the Absa Consultants and Actuaries business made a pleasing contribution of R39 million.

New business volumes in life insurance more than doubled, reflecting an exceptional performance. Single premiums grew by 109%, while recurring premiums increased by a particularly satisfactory 56%.

The good growth in recurring and single premium business, combined with modelling improvements, supported a 64% (71% on a comparable economic basis) increase in the cluster’s VNB contribution.

Following a year of major catastrophe events in 2017, Santam experienced a relatively benign claims environment in 2018. Combined with acceptable growth in net earned premiums, it contributed to a 37% increase in gross result from financial services (41% after tax and non-controlling interest). The conventional insurance book achieved an underwriting margin of 9% in 2018 (6% in 2017).

As at 31 December 2018, discretionary capital amounted to a negative R3.7 billion before allowance for the planned B-BBEE share issuance. A number of capital management actions during 2018 affected the balance of available discretionary capital, including the US$1 billion (R13 billion) SAHAM Finances transaction. Cash proceeds from the B-BBEE share issuance will restore the discretionary capital portfolio to between R1 billion and R1.5 billion depending on the final issue price within the R74 to R86 price range approved by shareholders.

Looking forward, the Group said economic growth in South Africa would likely remain weak in the short to medium term future, and would continue to impact efforts to accelerate organic growth. The outlook for economic growth in other regions where the Group operates is more promising. Recent acquisitions such as the SAHAM transaction should also support operational performance going forward.

“We remain focused on executing our strategy. We are confident that we have the calibre of management and staff to prudently navigate the anticipated challenges going forward,” Mr Kirk concluded.

Details of the results for the 12 months ended 31 December 2018 are available at