South Africa's second-biggest insurer said in a trading statement the jump in headline EPS - the key profit measure for South African companies which excludes non-trading, capital and certain one-off items - was boosted by strong equity markets.

"Strong equity markets, increased assets under management and incentive fees earned, contributed to a material improvement from both the local and international operations within the Investment cluster," Sanlam Chief Executive Officer Johan van Zyl said in a statement.

Overall growth in new business exceeded the 11 percent growth recorded in the first six months of the year, but Sanlam said total life insurance new business increased only marginally on the same period in 2004.

Single premium life business growth is still marginally behind the growth last year.

Some analysts said Sanlam continued to show marginal new business volume growth compared with competitors such as Old Mutual and Liberty Group.

"Old Mutual and Liberty seem to be doing okay but Sanlam seems to be lagging and that is quite disappointing.

The outflow has widened...and this is also a function of new business volumes not being higher," said one Johannesburg analyst who declined to be named.

-Nampa-Reuters

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