SANLAM LIMITED — Earnings Release 2025

Mar 12, 2026

Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
("Sanlam", "Sanlam Group" or "the group")
JSE Share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660

Sanlam Life Insurance Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1998/021121/06)
Bond Issuer Code: BISLI
LEI: 378900E10332DF012A23
("Sanlam Life")

Audited annual results for the year ended 31 December 2025 and dividend declaration

Key performance indicators

For the year ended 31 December	Unit	2025	2024	% change	Normalised¹ % change
Earnings
Management information
Net result from financial services (NRFFS)²,³	R million	15 939	15 443	3%	20%
Net operational earnings²,⁴	R million	17 154	18 544	(7%)	5%
Headline earnings	R million	16 550	20 083	(18%)
Profit attributable to shareholders	R million	15 941	22 240	(28%)
Weighted average number of shares	million	2 114	2 111	0%
Adjusted weighted average number of shares	million	2 114	2 115	0%
Headline earnings per share	cents	792	964	(18%)
Diluted headline earnings per share	cents	783	952	(18%)
Dividend per share	cents	485	445	9%
International Financial Reporting Standards (IFRS) information
Profit attributable to shareholders per share	cents	763	1 068	(29%)
Diluted profit attributable to shareholders per share	cents	754	1 054	(28%)
Business volumes
Total new business volumes	R million	495 990	420 236	18%	22%
Total net client cash flows	R million	126 752	54 141	>100%	>100%
Life insurance
New business volumes (PVNBP)⁵	R million	113 854	103 231	10%	17%
Value of new covered business	R million	2 294	2 902	(21%)	(11%)
New covered business margin	%	2,01	2,81
Life insurance net client cash flows	R million	35 694	16 737	>100%	>100%
General insurance
New business volumes	R million	55 182	49 139	12%	16%
Net client cash flows	R million	24 421	19 966	22%	24%
Investment management
New business volumes	R million	357 691	297 211	20%	24%
Net client cash flows	R million	66 637	17 438	>100%	>100%
Group equity value
Group equity value	R million	185 559	171 810	8%
Group equity value per share	cents	8 773	8 123	8%
Return on group equity value per share	%	13,4	20,3
Adjusted return on group equity value per share	%	15,7	18,0
Return on equity
Return on equity⁶	%	17,1	23
Adjusted return on equity	%	18,1	21,9
Solvency cover
Sanlam group economic	%	183	188

¹ In 2024 constant currency with adjustments for corporate activity and specific one-off items.
² A measure of Sanlam group's operating performance aligned with cash earnings that drive dividend distribution. NRFFS includes shareholders' fund adjustments that reduce earnings volatility.
³ Effective 1 January 2026, net result from financial services (NRFFS) will be replaced with operating profit, and net operational earnings with adjusted headline earnings.
⁴ Profit after tax earned by the group from operating activities and includes investment return earned on the capital portfolio and project expenditure.
⁵ Present value of new business premiums.
⁶ 2024 return on equity has been aligned with the new reporting framework. Return on equity is based on adjusted headline earnings as a percentage of opening shareholders' fund equity excluding consolidation reserves.

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Leveraging our quality businesses to accelerate growth

Sanlam's 2025 results reflect a year of strong operational execution and strategic delivery against a dynamic macro-economic backdrop. Financial markets were generally supportive, with higher asset values underpinning asset-based fee income and client activity, while interest rates peaked during the first half of the year before sharply declining in the second half of the year. Currency movements were a notable feature of the year, with a significant strengthening of the South African rand against key currencies toward the end of 2025, particularly the Indian rupee and US dollar.

Economic growth conditions across South Africa and the broader African markets showed gradual improvement over the period. Moderating inflation trends provided some relief to consumers, supporting affordability, persistency and savings behaviour across key customer segments. At the same time, heightened climate related risks remained a feature of the operating environment in 2025, particularly for the general insurance businesses, reinforcing the importance of prudent underwriting, reinsurance discipline and risk selection.

Against this backdrop, Sanlam delivered excellent growth in new business volumes. These outcomes highlight the group's strong positions across high-growth emerging markets and the quality of the group's diversified business platforms and distribution capabilities.

The group restructured its operations to strengthen its franchise in the retail mass market in South Africa, reinforced its partnership with Allianz in Pan-Africa (i.e. Africa ex-South Africa) and reshaped its asset management operations to focus on high growth asset classes. Building on this strong foundation, our Vision 2030 strategy targets faster future growth and stronger future cash generation.

New business volumes

Group new business volumes increased by 18% (22% on a normalised basis) to nearly R500 billion, marking a record annual performance for the group. This was driven by strong flows into our South African asset management operations and solid contributions across both life and general insurance, demonstrating the robustness and diversification of our distribution engines across the portfolio.

Life insurance net value of new business (VNB) decreased by 11% on a normalised basis, largely driven by a shift in product mix as clients continued to favour market-linked/living annuities over life annuities as well as development costs associated with establishing new distribution channels in India. On an actual basis, growth was down 21%, further impacted by the cessation of the Capitec partnership and disposal of Namibia to the SanlamAllianz joint venture in 2024.

Net client cash flows more than doubled to R127 billion, underpinned by strong contributions across all lines of business. South African asset management operations delivered robust net inflows. The life business also recorded particularly strong inflows, supported by exceptional single premium corporate and robust Glacier market-linked annuity sales, further bolstered by improved retention over the period. General insurance delivered satisfactory growth in net flows.

Earnings

Comparability with 2024 is impacted by structural actions. These include the cessation of the Capitec partnership, which resulted in a one-off reinsurance recapture fee in 2024, as well as the integration of our Namibian holdings into the SanlamAllianz joint venture and the partial disposal of our direct stake in Shriram Finance Limited during 2024. Both transactions generated significant profits on the disposal of subsidiaries and associates during 2024. The 2025 results were impacted by Sanlam reducing its interest in the SanlamAllianz joint venture from 59.59% to 51%.

The group achieved net result from financial services (NRFFS) of R15.9 billion, 3% higher than 2024 (3% per share), and 20% higher on a normalised basis, benefiting from strong contributions from life insurance and health, general insurance, investments and credit and structuring.

NRFFS benefited from favourable mortality experience and stronger asset-based fee income in our South Africa and Pan-Africa life businesses. Underwriting experience was positive across the group's South African general insurance operations due to lower attritional and large weather-related claims, while India delivered satisfactory earnings. The underwriting experience in the group's Pan-Africa operations was however negatively impacted by a sharp deterioration in claims towards the end of the year. Earnings in these businesses were also negatively impacted by tax assessments following the integration of businesses in the portfolio. Higher fee income from increased assets under management and favourable

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market conditions supported our investment management business. Our credit and structuring activities in both India and South Africa continued to show solid growth.

Net operational earnings decreased by 7%, primarily due to lower investment returns on following a sharp strengthening of the South African rand in the second half of 2025. This reduced the rand value of foreign-currency denominated assets and was compounded by hedging undertaken to mitigate rand volatility on the India insurance transactions pending regulatory approval, as well as higher US dollar balances held by Santam in anticipation of the launch of the Lloyd's syndicate. Underlying investment performance in local currencies remained sound. Net operational earnings were further affected by a full-year impact of Assupol transaction financing costs and increased project related expenditure largely associated with establishing Syndicate 1918 and progressing the SFL/MUFG transaction.

Headline earnings declined by 18%, largely due to corporate activity and structural changes in 2024 and 2025, lower investment returns in shareholder funds due to the strengthening of the rand in 2025, as well as negative investment variances. Despite the large fall in yields in 2025, effective hedging of guaranteed liabilities resulted in marginal investment variances arising. However, an anomaly arising from the shortage of SA government bonds at the longest duration gave rise to an unrealised loss of R967 million, gross of tax, in 2025. The negative investment variances arising from the anomaly in long-dated bond yields were largely offset by positive investment variances on negative rand reserves at Assupol, as well as gains from the SanlamAllianz portfolio, particularly reflecting the strong performance of the Moroccan equity market.

The total investment variance for 2025, net of tax, was an unrealised loss of R405 million, which was transferred to the asset mismatch reserve (AMR).

Attributable earnings decreased by 28%, reflecting the significantly lower disposal gains from subsidiaries and associates relative to the prior year's elevated base, in addition to the factors explained above.

Revised earnings framework

As communicated at the Capital Markets Day in October 2025 and in our nine-month operational update, the group has adopted a new financial reporting framework aligned with IFRS 17, reflecting our focus on simpler and clearer reporting. The naming conventions and definitions of key earnings metrics have been revised accordingly.

Effective 1 January 2026, net result from financial services (NRFFS) will be replaced with operating profit, and net operational earnings with adjusted headline earnings. Both measures remove Sanlam-specific shareholders' fund adjustments and reflect full investment market movements, resulting in greater period-to-period volatility as investment variances will no longer be smoothed for profit-reporting purposes. In addition, project expenses, previously included under net operational earnings, are now reported as part of operating profit and adjusted headline earnings.

Importantly, our dividend policy remains unchanged: we will continue to smooth investment variances when determining cash available for distribution, supported by the substantial reserves that remain on the balance sheet. Dividend impact will also continue to be shielded from pre-funded project costs as these are funded by established reserves. As a result, while operating profit is expected to be more volatile than under our historic NRFFS approach, dividends are expected to remain smooth, steady and unaffected by the change in reporting methodology. The 2026 financial year will establish the operating profit baseline.

Value creation

Group equity value per share was R87,73 on 31 December 2025. RoGEV and adjusted RoGEV per share was 13,4% and 15,7% respectively for 2025, with adjusted RoGEV ahead of the hurdle rate of 14,7%.

The adjusted RoGEV result was achieved through the addition of strong VNB (albeit at a lower level than 2024), positive experience variances in the life insurance operations, a strong underwriting result at Santam and good performance in the investment and credit operations. The group impaired the value of

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its investments in Afrocentric and Malaysian general insurance. Coupled with the weak results from the Pan-African general insurance business, this negatively impacted the adjusted RoGEV. Actual RoGEV was slightly lower than adjusted RoGEV. The positive impact from net investment variances and economic assumption changes were insufficient to offset the negative foreign currency impact on RoGEV arising from the strengthening of the rand which had the effect of reducing the value of the group's operations outside South Africa.

Shareholders are advised that a final gross cash dividend of 485 cents per share was declared for the year ended 31 December 2025, an increase of 9% on the prior year dividend. The dividend is payable on Monday, 13 April 2026 by way of electronic bank transfers to ordinary shareholders recorded in the register of Sanlam at close of business on Friday, 10 April 2026. The last date to trade to qualify for this dividend will be Tuesday, 7 April 2026, and Sanlam shares will trade ex-dividend from Wednesday, 8 April 2026. Share certificates may not be dematerialised or rematerialised between Wednesday, 8 April 2026 and Friday, 10 April 2026, both dates included. Shareholders who have not yet provided their banking details for dividend payments are requested to do so by contacting Sanlam's transfer secretary, Computershare, at 0861 100 913 or +27 (0)11 370 5000.

The South African dividend withholding tax regime applies in respect of this dividend. The dividend in full will be subject to the 20% withholding tax, where applicable, which results in a net dividend, to the shareholders who are not exempt from paying dividend tax, of 388 cents per share. The number of ordinary shares in issue in the company's share capital as at the date of the declaration is 2,089,788,801 excluding treasury shares of 27,365,148. The company's tax reference number is 9536/346/84/5.

This short-form results announcement is the responsibility of the Sanlam board of directors and is a summary of the information contained in the audited consolidated annual financial statements for the year ended 31 December 2025 (Annual Financial Statements) which can be found at:

https://senspdf.jse.co.za/documents/2026/jse/isse/slm/FY25.pdf and together with further commentary https://www.sanlam.com/downloads/results-announcements/2025/2025-annual-results-spreads.pdf on the Sanlam website.

The Annual Financial Statements for the year ended 31 December 2025 have been independently audited by the group's joint auditors, PwC Inc. and KPMG Inc. Their audit report containing an unmodified audit opinion, along with the Annual Financial Statements are available for inspection at the company's registered office and available at https://www.sanlam.com/downloads/integrated-report-and-annual-financial-statements/2025/Sanlam-AFS-2025-spreads.pdf on Sanlam's website.

Copies of the Annual Financial Statements are available for inspection at, or may be requested from the Company Secretary, Sanlam's registered office and the offices of its sponsor during office hours or online at www.sanlam.com, at no charge. Any investment decision should be based on a consideration of the Annual Financial Statements.

SANLAM LIMITED
Registered office: 2 Strand Road, Bellville, 7530, South Africa
Sanlam Investor Relations
E-mail: ir@sanlam.co.za

JSE SPONSOR

Equity Sponsor to Sanlam
The Standard Bank of South Africa Limited

Debt Sponsor to Sanlam Life Insurance Limited
The Standard Bank of South Africa Limited

NSX sponsor
Simonis Storm Securities (Pty) Ltd
12 March 2026