and Malaysia. Now roughly 25% of profit and value are outside of South Africa.
Divisions are capitalised to the extent that they need capital, with both capital and the Sanlam brand being controlled from the centre. Group businesses compete for capital, and the group invests where it gets the best returns, Möller says. Businesses are given hurdle rates and measured against them.
Emerging market returns have been substantial – increasing from 17% in 2012 to 30% in 2013.
Möller says that there are a lot of expectations to keep growing and adding businesses, and Sanlam is working on meeting them.
Sanlam’s results were due out just after going to press, but a recent operational update indicated that new business volumes of R150bn in the first 10 months of financial 2014 were up 17% on the same period in 2013. Emerging Markets achieved new business growth of 30%.
Overall net fund i nflows of R27.5bn compared to R18bn in 2013. Strong growth in financial services was largely offset by lower investment return earned on the capital portfolio. Diluted headline earnings a share increased by 4%.