SANLAM ADR EACH REPR 2 SHS (OTCMKTS:SLLDY) was a notable outperformer during Tuesday’s trading session surging by 11% on relatively high volumes, which were 1.3 times the 30 day average turnover. Bears continue to be in total control as Sanlam Adre continues to form lower tops and lower bottoms indicative of the strong bearish momentum. The stock continues to trade below all moving averages. Many traders believe the price action seen during Tuesday’s trading session was a mere profit taking move.The MACD oscillators are showing signs no signs of a bullish reversal, which is considered to be a huge negative.
SANLAM ADR EACH REPR 2 SHS (OTCMKTS:SLLDY) announced interim results for 2015 following a good performance in 2014. As per the reports, the net growth in business volumes in this year remains intact at 22% to touch a whopping figure of R100 billion.
Other Highlights For The Year
If taken into account all the financial businesses, one can notice that net results per share from all of them put together have increased 5% on YOY basis. At the same time, the return on Group Equity Value per share for the year increased 13 percent YOY. The group equity value per share for the year was R47,53. Normalized headline earnings per share were up 4% in the year.
The net value of new covered business reached to R655 million, 5% higher than the numbers reported in 2014. Although Sanlam performed up to expectations in most of the business fields, its margin in new covered business was 2.66% for the year against last year’s 2.68 percent. The company witnessed a net fund inflow of R7 billion during the year.
It reported a total of R2.5 billion unallocated discretionary capital and CAR cover for its life insurance entity of 4.8 times for the year.
Expansion in African Subcontinent
Before announcing the interim results for the year, Sanlam announced an initiative to increase its footprint in Africa. As per the reports, Sanlam and its subsidiary Santam announced their agreements to acquire 30% stake in the Saham Finances S.A., insurance business of Saham Group. Sanlam and Santam have paid around $375 million to acquire this Morocco-based business, which is expected to help them expand in Africa.
The Saham Group already owns 62.5% shares of Saham Finances, and this step will help it strengthen its stake-holding position in the company. The senior management of the company looks forward to taking more such steps in the future to expand in different regions.