Sanlam Limited: 1Q26 Update | Adverse weather, a weak INR and poor investment returns have depressed profit

Research evidence excerpt

Sanlam Limited: 1Q26 Update | Adverse weather, a weak INR and poor investment returns have depressed profit

Update

May 21, 2026 02:59 PM GMT

RMB Morgan Stanley Proprietary Limited+MSanlam Limited | Europe Warwick Bam

Equity Analyst

1Q26 Update | Adverse weather, Warwick.Bam@rmbmorganstanley.comNicole Player, CFA +27 11 587-0815

Research Associate

Nicole.Player@rmbmorganstanley.com +27 11 587-0807

a weak INR and poor investment

Sanlam Limited (SLMJ.J, SLM SJ)

Insurance | South Africareturns have depressed profit

Stock Rating Equal-weight

Industry View In-Line

Price target ZAc 11,950

Reaction to earnings Shr price, close (May 20, 2026) ZAc 8,818

52-Week Range ZAc 10,847- 8,073

Unchanged Meaningful shortfall Modest revision lower Mkt cap, curr (mn) ZAR 189,339

Impact to our thesis Financial results versus consensus Direction of next 12-month Net debt (12/25e) (mn)* ZAR 21,404

consensus EPS

EV, curr (mn)* ZAR 219,689

Source: Company data, Morgan Stanley Research

* = GAAP or approximated based on GAAP

Key Takeaways

Operating profit increased by 2% y/y, predominantly due to weather-related

claims for Santam in SA and SanlamAllianz in Morocco and Madagascar.

Investment variances were mixed, with higher bond yields in SA partially

reversing the ALM losses in FY25, offset by weaker equity market performance in

Morocco.

Investment return on shareholder capital declined y/y, due to reduced bond and

equity market returns, market movements in Ninety One and an INR hedging loss.

Adjusted headline earnings undisclosed but commentary noted it was lower than

1Q25.

SLM believes the outlook supports its previous guidance for FY26 operating

profit excluding investment variances to exceed SA CPI +3%.

Sanlam (SLM) has released a 1Q26 operating update.