Sanlam reports new business volumes rose by a third in first four months

Insurance group Sanlam said on Wednesday that new business volumes rose by a third in the first four months of 2020, although South Africa’s Covid-19 lockdown began to hit sales from the end of March.

The group saw R96bn in new business volumes in the four months to end-April, saying in a trading update it had achieved an “acceptable” performance despite pressure from the pandemic.

New business volumes dropped off towards the end of March, and in April, with the group cautious about its prospects for the rest of 2020. “The position remains fluid, but the gradual lifting of lockdown requirements in a number of markets, including SA, should provide some relief to economic activity,” Sanlam said.

“Our designation as an essential service in SA excludes our tied and independent advisors in line with the measures in our other market,” the group said. “As a result, new business volumes have been significantly impacted since the last week of March in the absence of face-to-face sales.”

In afternoon trade on Wednesday, Sanlam’s share price was down 3.78% to R59.39, having fallen 24.82% so far in 2020.