Sanlam Limited

Analyst thesis

Our recommendation is based on:

• Diversified insurance and wealth platform: Sanlam Limited (SLM) has a diversified earnings base across life insurance, wealth management, investment management, credit, and general insurance operations. Its broad South African franchise is complemented by exposure to Africa, India, and other international markets. This geographic and business diversification supports earnings resilience, recurring fee income, and long-term growth opportunities.

• Supportive operating environment and growth opportunities: Despite short-term inflationary pressures pushing rates higher, weaker equity markets, and market volatility, SLM is positioned to benefit from improving financial conditions over the longer term. Growth opportunities across Africa and India are supported by low insurance penetration, rising savings demand, and continued acquisition-led expansion.

• Strong capital generation and resilient profitability: SLM continues to deliver solid returns, underpinned by a diversified operating model, disciplined capital allocation, and a strong balance sheet. The group’s capital position supports sustainable dividends, strategic acquisitions, and continued investment in growth initiatives.

• SLM currently trades at a discount to our intrinsic value, suggesting the market is not fully reflecting the benefits of its diversified franchise, acquisition strategy, and long-term growth opportunities.