Sanlam lifts 2006 headline earnings

JOHANNESBURG – South African insurer Sanlam raised 2006 headline earnings per share by 33 per cent yesterday and announced a 2,7 billion rand share buyback which sent its stock higher.

But Sanlam said market conditions, including the risk-underwriting and investment climate, would prevent a repeat of this year’s earnings performance. Sanlam said headline EPS – the key profit measure for South African firms which excludes non-trading, capital and certain extraordinary items – rose to 304,9 cents from 229,8 cents a year ago.The group, which is also one of the biggest asset managers in South Africa with 524 billion rand in assets under management and administration, said on Feb.28 it expected headline EPS to increase between 30 and 35 per cent.The group said it will return a further 2,7 billion rand to shareholders through a share buyback and will offer 17 to 20 rand per share in a voluntary tender offer by shareholders.Shares in Sanlam gained as much as 5,45 per cent to 19,35 rand.”The share buyback has pleased the guys.The market seems to think it will be anywhere from 19 rand plus and they are seeing this in a very positive light,” one Johannesburg-based trader said.Sanlam said the sale of its stake in banking group Absa in mid-2005 complicated a direct comparison of the results and also led to attributable earnings falling 36 per cent to 6,95 billion rand.The group sold its stake in Absa to Barclays in 2005, realising some 10 billion rand.Nampa-ReutersSanlam said headline EPS – the key profit measure for South African firms which excludes non-trading, capital and certain extraordinary items – rose to 304,9 cents from 229,8 cents a year ago.The group, which is also one of the biggest asset managers in South Africa with 524 billion rand in assets under management and administration, said on Feb.28 it expected headline EPS to increase between 30 and 35 per cent.The group said it will return a further 2,7 billion rand to shareholders through a share buyback and will offer 17 to 20 rand per share in a voluntary tender offer by shareholders.Shares in Sanlam gained as much as 5,45 per cent to 19,35 rand.”The share buyback has pleased the guys.The market seems to think it will be anywhere from 19 rand plus and they are seeing this in a very positive light,” one Johannesburg-based trader said.Sanlam said the sale of its stake in banking group Absa in mid-2005 complicated a direct comparison of the results and also led to attributable earnings falling 36 per cent to 6,95 billion rand.The group sold its stake in Absa to Barclays in 2005, realising some 10 billion rand.Nampa-Reuters