Independent auditors’ report on the Sanlam Limited shareholders’ information

 
To the directors of Sanlam Limited
We have audited the Sanlam Limited Shareholders' Information ("Shareholders' Information") for the year ended 31 December 2010, which comprises the Report on Group Equity Value, Report on Shareholders' Fund and Report on Embedded Value of Covered Business and related notes which has been prepared in accordance with the basis of preparation and presentation. This report should be read in conjunction with the audited annual financial statements and basis of presentation and accounting policies.
 
Directors’ responsibility for the Shareholders’ Information
The company's directors are responsible for the annual financial statements, as well as for the preparation and presentation of the Shareholders' Information in terms of the basis of preparation and presentation, and for such internal control as the directors determine is necessary to enable the preparation of the Shareholders' Information that are free from material misstatement, whether due to fraud or error. This responsibility includes selecting and applying appropriate preparation principles and making valuation estimates that are reasonable in the circumstances. 
 
Auditor’s responsibility
Our responsibility is to express an opinion on the Shareholders' Information. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Shareholders' Information has been prepared, in all material respects, in accordance with the basis of preparation and presentation.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Shareholders' Information. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Shareholders' Information, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Shareholders' Information in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of the basis of preparation and presentation used and the reasonableness of valuation estimates made by the directors, as well as evaluating the overall presentation of the Shareholders' Information.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
 
Opinion
In our opinion, the Sanlam Limited Shareholders' Information has been prepared, in all material respects, in accordance with the basis of preparation and presentation of the Sanlam Limited Shareholders' Information Report. 
 
Ernst & Young Inc.
Director: Malcolm Peter Rapson
Registered Auditor
Chartered Accountant (SA)
 
Ernst & Young House
35 Lower Long Street
 
Cape Town
9 March 2011