Sanlam FY profit up, sees further growth in 2010

South Africa's second-biggest insurer Sanlam SLMJ.J lifted 2009 profit thanks to better returns on equity investments and as it built up new customers while existing clients kept their insurance policies.

Sanlam, one of the biggest asset managers in the country, reported on Thursday normalised headline earnings per share for the year to end-December jumped 133 percent to 218.9 cents, in line with its forecast of a 130-140 percent rise.

New business climbed 3 percent to 103 billion rand ($13.88 billion).

Sanlam said it was positioned for further growth in 2010, and declared a dividend of 104 cents, 6 percent up from 2008.

Sanlam's unit Santam, South Africa's biggest property and casualty insurer, posted higher 2009 profit earlier this month thanks to no large industrial fire claims and strong returns on its investment portfolio as equity markets recovered.

However, other South African insurers have seen profits squeezed as customers, struggling with high levels of personal debt, lapse on or cancel policies in a tough economic environment. Sanlam's peers Liberty LBHJ.J and Metropolitan METJ.J both reported lower 2009 profit.