AM Best Affirms Stable A- Rating for Sanlam Life Insurance Limited

AM Best has confirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for Sanlam Life Insurance Limited, a South African-based insurer and subsidiary of Sanlam Limited. The ratings were affirmed due to Sanlam’s solid consolidated balance sheet strength, strong operating performance, and effective enterprise risk management practices. The outlook on these ratings remains stable, reflecting the confidence in the insurer’s financial and operational stability. Sanlam’s balance sheet strength is supported by its robust risk-adjusted capitalisation, ranked highest by AM Best's Best’s Capital Adequacy Ratio (BCAR). The rating agency's evaluation includes partial credit for the insurer's economic capital and hybrid debt within its capital structure. Despite the group’s conservative asset allocation, there is some consideration of risk concentration in domestic securities, which is mitigated by overall asset quality. Sanlam maintains low financial leverage and considerable financial flexibility. Operationally, Sanlam has demonstrated consistent profitability with a net profit after tax of approximately USD 1.3 billion for 2024 and a return on equity of 24%. The insurer benefits from a diversified portfolio spanning life, non-life, credit, and asset management segments. Growth in protection, annuities, and savings products contributed to a 14% increase in net financial service results, with non-life underwriting also proving resilient amid competitive South African market conditions and recent weather-related challenges. Sanlam is recognized as the leading pan-African financial services group, with significant presence in South Africa and expanding operations across the continent. Its joint venture with Allianz SE extends its geographical diversification across 26 African countries, strengthening both life and non-life insurance lines. This strategic partnership further enhances Sanlam’s robust business profile and market reach. The affirmation of Sanlam Life Insurance Limited's credit ratings by AM Best reinforces its strong capital position and operational resilience in the African insurance market. These factors contribute to its stable outlook and underscore its integrated risk management and diversified business model.