Shareholders’ fund income statement

for the year ended 31 December 2010
 
   
Sanlam Personal
Finance
Sanlam Developing
Markets
Sanlam UK
Sanlam Employee
Benefits
Short-term
Insurance
Sanlam
Investments
Capital
Management
Subtotal: Operating
businesses
R million Note
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
Financial services income 9
7 578
6 846
4 411
3 929
357
367
2 676
2 190
14 018
13 345
2 114
1 940
573
575
31 727
29 192
Sales remuneration  
(1 309)
(1 133)
(1 107)
(1 060)
(48)
(57)
(41)
(41)
(2 052)
(1 915)
(4 557)
(4 206)
Income after sales remuneration  
6 269
5 713
3 304
2 869
309
310
2 635
2 149
11 966
11 430
2 114
1 940
573
575
27 170
24 986
Underwriting policy benefits  
(1 525)
(1 635)
(1 780)
(1 522)
(1 818)
(1 653)
(8 694)
(9 100)
(13 817)
(13 910)
Administration costs 10
(2 335)
(2 047)
(1 071)
(984)
(265)
(275)
(579)
(282)
(1 800)
(1 584)
(1 425)
(1 204)
(319)
(305)
(7 794)
(6 681)
Result from financial services before tax
 
2 409
2 031
453
363
44
35
238
214
1 472
746
689
736
254
270
5 559
4 395
Tax on financial services income 11
(645)
(508)
(94)
(99)
(6)
(67)
(60)
(414)
(257)
(165)
(181)
(53)
(50)
(1 438)
(1 161)
Result from financial services after tax
 
1 764
1 523
359
264
44
29
171
154
1 058
489
524
555
201
220
4 121
3 234
Minority shareholders’ interest  
(49)
(25)
(141)
(101)
2
4
(483)
(247)
(35)
(39)
(706)
(408)
Net result from financial services
12
1 715
1 498
218
163
46
33
171
154
575
242
489
516
201
220
3 415
2 826
Net investment income  
442
484
33
57
21
15
177
252
73
116
9
4
755
928
Dividends received – Group companies  
61
110
61
110
Other investment income 13
476
483
59
107
26
16
222
325
133
252
28
9
944
1 192
Tax on investment income 11
(95)
(109)
(22)
(27)
(5)
(1)
(45)
(73)
(1)
(17)
(9)
(2)
(177)
(229)
Minority shareholders’ interest  
(4)
(23)
(59)
(119)
(10)
(3)
(73)
(145)
                                   
Core earnings
 
2 157
1 982
251
220
67
48
348
406
648
358
498
520
201
220
4 170
3 754
Project expenses  
(24)
(27)
(22)
(1)
(46)
(28)
Amortisation of value of business acquired and other intangibles  
(7)
(7)
(41)
(46)
(24)
(22)
(13)
(6)
(7)
(92)
(81)
BEE transaction costs  
(8)
(7)
(8)
(7)
Net equity-accounted headline earnings  
15
1
48
39
1
1
64
41
Equity-accounted headline earnings  
30
2
84
69
2
2
116
73
Minority shareholders’ interest  
(15)
(1)
(36)
(30)
(1)
(1)
(52)
(32)
Net investment surpluses  
1 093
1 157
5
(18)
(1)
239
408
234
155
76
32
1 646
1 734
Investment surpluses – Group companies  
515
551
515
551
Other investment surpluses  
656
741
14
(71)
(1)
272
499
506
300
89
39
1 536
1 508
Tax on investment surpluses 11
(78)
(135)
(9)
21
(33)
(91)
(90)
(45)
(7)
(217)
(250)
Minority shareholders’ interest  
32
(182)
(100)
(6)
(7)
(188)
(75)
Secondary tax on companies – after minorities  
65
(94)
(29)
(61)
(23)
1
(24)
(117)
Normalised headline earnings
 
3 284
3 011
179
156
42
26
587
814
848
516
568
553
202
220
5 710
5 296
Profit/(loss) on disposal of operations  
37
2
(2)
325
327
35
Net profit on disposal of associated companies  
71
71
Profit on disposal of associated companies  
71
71
Tax on profit on disposal of associated companies  
Impairments  
51
(51)
69
33
(2)
(23)
3
(3)
(124)
(11)
(3)
(55)
Normalised attributable earnings
14
3 335
2 960
179
156
111
59
585
791
922
550
446
540
527
220
6 105
5 276
Fund transfers  
Attributable earnings per Group statement of comprehensive income
 
3 335
2 960
179
156
111
59
585
791
922
550
446
540
527
220
6 105
5 276
Ratios
                                 
Admin ratio (1)  
37,2%
35,8%
32,4%
34,3%
85,8%
88,7%
22,0%
13,1%
15,0%
13,9%
67,4%
62,1%
55,7%
53,0%
28,7%
26,7%
Operating margin (2)  
38,4%
35,6%
13,7%
12,7%
14,2%
11,3%
9,0%
10,0%
12,3%
6,5%
32,6%
37,9%
44,3%
47,0%
20,5%
17,6%
Diluted earnings per share
15                                
Adjusted weighted average number of shares (million)                                  
Net result from financial services (cents)  
83,9
73,0
10,7
7,9
2,2
1,6
8,4
7,5
28,1
11,8
23,9
25,1
9,8
10,7
167,0
137,6
Core earnings (cents)                                  
(1) Administration costs as a percentage of income earned by the shareholders’ fund less sales remuneration.
(2) Result from financial services before tax as a percentage of income earned by the shareholders’ fund less sales remuneration.
(3) Comparative information for Sanlam Developing Markets, Sanlam Investments and Capital Management were restated. Refer to note 38.
 
 
   
Subtotal: Operating businesses
Corporate and Other
Consolidation entries
Total
R million Note
2010
2009
2010
2009
2010
2009
2010
2009
Financial services income 9
31 727
29 192
112
87
31 839
29 279
Sales remuneration  
(4 557)
(4 206)
(4 557)
(4 206)
Income after sales remuneration  
27 170
24 986
112
87
27 282
25 073
Underwriting policy benefits  
(13 817)
(13 910)
(13 817)
(13 910)
Administration costs 10
(7 794)
(6 681)
(275)
(253)
(8 069)
(6 934)
Result from financial services before tax
 
5 559
4 395
(163)
(166)
5 396
4 229
Tax on result from financial services 11
(1 438)
(1 161)
51
45
(1 387)
(1 116)
Result from financial services after tax
 
4 121
3 234
(112)
(121)
4 009
3 113
Minority shareholders’ interest  
(706)
(408)
(706)
(408)
Net result from financial services
12
3 415
2 826
(112)
(121)
3 303
2 705
Net investment income  
755
928
157
158
(61)
(110)
851
976
Dividends received – Group companies  
61
110
(61)
(110)
Other investment income 13
944
1 192
166
176
1 110
1 368
Tax on investment income 11
(177)
(229)
(9)
(18)
(186)
(247)
Minority shareholders’ interest  
(73)
(145)
(73)
(145)
                   
Core earnings
 
4 170
3 754
45
37
(61)
(110)
4 154
3 681
Project expenses  
(46)
(28)
(2)
(48)
(28)
Amortisation of value of business acquired and other intangibles  
(92)
(81)
(3)
(92)
(84)
BEE transaction costs  
(8)
(7)
(8)
(7)
Net equity-accounted headline earnings  
64
41
77
141
41
Equity-accounted headline earnings  
116
73
77
193
73
Minority shareholders’ interest  
(52)
(32)
(52)
(32)
Net investment surpluses  
1 646
1 734
(151)
(515)
(551)
1 131
1 032
Investment surpluses – Group companies  
515
551
(515)
(551)
Other investment surpluses  
1 536
1 508
(145)
1 536
1 363
Tax on investment surpluses 11
(217)
(250)
(6)
(217)
(256)
Minority shareholders’ interest  
(188)
(75)
(188)
(75)
Secondary tax on companies – after minorities  
(24)
(117)
(111)
(33)
(135)
(150)
Normalised headline earnings
 
5 710
5 296
9
(150)
(576)
(661)
5 143
4 485
Profit on disposal of operations  
327
35
327
35
Net profit on disposal of associated companies  
71
6
77
Profit on disposal of associated companies  
71
6
77
Tax on profit on disposal of associated companies  
Impairments  
(3)
(55)
(21)
(3)
(76)
Normalised attributable earnings
14
6 105
5 276
15
(171)
(576)
(661)
5 544
4 444
Fund transfers  
(21)
(56)
(21)
(56)
Attributable earnings per Group statement of comprehensive income  
6 105
5 276
15
(171)
(597)
(717)
5 523
4 388
Ratios
                 
Admin ratio  
28,7%
26,7%        
29,6%
27,7%
Operating margin  
20,5%
17,6%        
19,8%
16,9%
Diluted earnings per share
15                
Adjusted weighted average number of shares (million)               
2 045,3
2 053,1
Net result from financial services (cents)  
167,0
137,6
(5,5)
(5,9)
161,5
131,8
Core earnings (cents)              
203,1
179,3