Sanlam Share Price 2025: Partnerships and Africa Expansion Drive Momentum Post H1 Earnings
Sanlam Limited (JSE: SLMJ) has staged a strong rebound in 2025, driven by new partnerships in Africa and India, improved business inflows...
Quick overview
- Sanlam Limited has rebounded strongly in 2025 due to new partnerships in Africa and India, improved business inflows, and a strategic UK divestment.
- The company's stock has shown resilience, recovering from a difficult Q1 and maintaining an upward trend despite recent selling pressure.
- While revenue and earnings per share have improved, profitability is impacted by rising costs, and a significant revenue decline is forecasted compared to peers.
- Sanlam's strategic expansion in Africa, including a joint venture with Allianz, positions it as a leading non-banking financial services group on the continent.
Sanlam Limited (JSE: SLMJ) has staged a strong rebound in 2025, driven by new partnerships in Africa and India, improved business inflows, and a major UK divestment that sharpened its strategic focus.
Share Price Recovery with Technical Support
Sanlam’s stock has shown resilience after a difficult Q1, rebounding from the 200-week SMA (purple) and climbing toward R92.5 in late August. This surge broke above its 2024 high of 9,160 ZAC before selling pressure resurfaced following the H1 earnings release.
SLMJ Chart Weekly – The Retreat Has Ended
Despite this pullback, buyers quickly re-entered the market, helping the stock regain momentum last week. On the monthly chart, the uptrend is more evident, with moving averages offering strong support during corrections. The 20 SMA (gray) held steady during the latest dip, reinforcing the view that the broader upward trend remains intact.
SLMJ Chart Monthly – The 20 SMA Held As Support
While revenue growth and EPS gains were encouraging, Sanlam’s profitability was dented by rising costs. Its robust balance sheet, high liquidity, and strong interest coverage mitigate risks, but the forecasted revenue decline compared to peers could weigh on future growth expectations.
Sanlam (JSE: SLM) First Half 2025 Results
Key Financial Results
- Revenue: R113.7b → up 31% YoY (vs 1H 2024).
- Net Income: R10.2b → up 6.1% YoY.
- Profit Margin: 9.0% → down from 11% (margin squeeze due to higher expenses).
- EPS: R4.90 → improved from R4.64 in 1H 2024.
Earnings Insights
- Revenue expected to fall ~79% p.a. on average over the next 3 years, compared to a 33% projected decline for the SA insurance sector.
- Margin pressure remains a concern, despite earnings growth.
Balance Sheet & Financial Position
- Debt-to-equity ratio: 16.27% (relatively modest).
- Debt: R17.81b.
- Interest coverage: Strong at 67x.
- Cash reserves: R65.02b.
- Equity: R109.43b.
- Total Liabilities: R1.09t.
- Total Assets: R1.20t.
Strategic Expansion Across Africa with Allianz
Sanlam made a bold step in Africa with the creation of SanlamAllianz Nigeria, a joint venture with Allianz’s Nigerian business. The official launch on June 5, 2025, in Lagos underscored Sanlam’s ambition to deepen its West African footprint under a unified, globally trusted brand.
Momentum is building elsewhere: Sanlam Kenya Plc has scheduled a virtual EGM on October 9 to seek shareholder approval for a rebrand to Sanlam Allianz Holdings (Kenya) Plc. This reflects the broader integration of operations across the continent.
The joint venture now spans 26 African countries with a combined equity value of over R33 billion (€2 billion), making it the largest pan-African non-banking financial services group.
In Kenya, the strategy is already showing results. Insurance revenue rose to Sh3.73 billion in H1 2025, up from Sh3.52 billion a year earlier, highlighting steady momentum in one of Sanlam’s key growth markets.
Balancing Growth and Risks
Sanlam is successfully navigating a transition year, buoyed by regional expansion, strategic alliances, and resilient share performance. However, the company still faces challenges, including margin pressure from rising expenses and industry-wide revenue headwinds.
For investors, the outlook is a mix of confidence in Sanlam’s financial strength and growth ambitions, alongside caution over the pace of earnings expansion in a competitive market.
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