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Unaudited Interim results for the six months ended 31 December 2025
Clientèle Limited
Registration number: 2007/023806/06
Share code: CLI
ISIN: ZAE000117438
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Recurring Embedded Value Earnings of R1,015.3 million
Embedded value per share of 2,264.5 cents
Recurring Return on Embedded Value of 23.7%
Value of New Business of R332.5 million
Headline earnings per share of 103.5 cents
INTRODUCTION
During the past six months, South Africa's macroeconomic environment has
transitioned toward a period of cautious optimism and stability. Following
the stabilisation of the Government of National Unity ("GNU"), investor
sentiment has improved, supported by a reduction in energy supply
disruptions and a more resilient currency, which has strengthened against
the US dollar over the period. Inflation has levelled off, falling within
the South African Reserve Bank's new target range. This disinflation
resulted in the repo rate reducing to 6.75% by late 2025. While GDP growth
remains modest, momentum is building as logistics and energy reforms
slowly begin to address long-standing structural bottlenecks. This has
resulted in a marginal improvement in the financial circumstances of our
target market. However, high unemployment and cost of living pressures as
well as fiscal pressures from rising public debt, continue to weigh on the
overall recovery.
As a result of changes in the economy, actions by management and despite
continuing instability in the Banking environment, the Group has
experienced an overall improvement in the areas of withdrawals, suspension
of debit order mandates and disputes, resulting in improved underlying
performance in most of the Group's operating entities. Furthermore, the
flow of value-adding new business has improved.
Although at different stages of maturity, the integration of 1Life and
Emerald into the Group is driving value creation through the realization
of synergies that allow the combined organization to outperform its
separate parts. This has been particularly evident through the
optimisation of distribution channels, leveraging the development of new
products and services and extracting operational efficiencies through the
reduction of duplicated costs. The Group is pleased with the progress made
to date.
The Group remains in a sound solvency and liquidity position and continues
to generate strong positive cash flows.
OPERATING RESULTS
In the reporting period ending 30 June 2025 various changes to the
application of IFRS 17 were adopted following the first full year of
consolidation of 1Life into the Group which has resulted in the
restatement of the 31 December 2024 interim financial results. All
commentary is based on the restated interim financial results where
applicable.
Group Statement of Comprehensive Income
For the six months ended 31 December 2025, the headline earnings
attributable to equity holders increased by 56.5% to R469.3 million
against the prior period restated headlines earnings (2024 restated:
R299.9 million). This performance includes the first-time consolidation
of reported earnings from Emerald Life of R49.5 million as well as
positive earning contributions from Clientèle (Clientèle Life, Clientèle
General, CBC Rewards, Clientèle Mobile and Direct Rewards) and 1Life.
The key elements of the Group's performance are:
The total net insurance service result
R'000
Restated 2024 Group 180 697
Clientele movement 112 106
Addition of Emerald 123 907
1Life movement(including Group
consolidation) (301)
2025 Total Group 416 409
The total net insurance service result increased by 130.4% to R416.4
million (2024 restated: R180.7 million) impacted by:
– The positive movement in the Clientèle result which is primarily as a
result of the reduction in onerous (loss making) contracts in the
current period;
– The net insurance service result of Emerald which had a positive impact;
and offset by,
– The 1Life movement which is, primarily, the net impact of the segment
and the Group consolidation adjustment relating to the accounting for a
cohort of long contract boundary insurance contracts at a Group level.
The total net investment result
R'000
Restated 2024 Group 93 191
Clientele movement 30 638
1Life movement 29 074
2025 Total Group 152 903
The total net investment result of R152.9 million is 64.1% higher than the
prior period (2024 restated: R93.2 million) impacted by:
– The net increase in Clientèle's result is due to:
– higher net returns on the recurring Premium Savings business and the
shareholder portfolio;
– a decrease in the liability for the Individual Policyholder Fund (IPF)
tax on the Single Premium business as the book runs off; and offset
by,
– a decrease in the Investments due to net maturities.
– The increase in 1Life's result which is due to a change in investment
strategy resulting in increased investment income over the period.
The total net insurance finance income
R'000
Restated 2024 Group 197 905
Clientele movement 21 656
1Life movement (including Group
consolidation) 1 420
Addition of Emerald (16 314)
2025 Total Group 204 667
The total net insurance finance income is 3.4% higher than the prior
period at R204.7 million (2024 restated: R197.9 million) mainly due to:
– The positive movement in the Clientèle result which arises from the
increase in the interest accreted on insurance contracts together with a
reduction in the long-term inflation assumptions;
– The 1Life movement (including Group consolidation) of R1.4 million, which
is made up of two parts, namely, the positive result in the underlying
entity which is primarily due to the interest accreted on insurance
contracts, offset by the Group consolidation charge which recognises the
change in assumptions at the date of acquisition of 1Life; and offset
by,
– The re-insurance finance expenses in Emerald.
Revenue from contracts with customers
R'000
2024 Group 178 234
Clientele movement 19 410
1Life movement 2 132
Addition of Emerald 17 679
2025 Total Group 217 455
Revenue from contracts with customers increased by 22.0% to
R217.5 million (2024: R178.2 million). This is largely
driven by:
– The positive movement in the Clientèle revenue arising from an increase
in the revenue earned from the growing stand-alone Rewards business
(including the Group Consolidation entry which relates to inter-company
transactions), offset by the decrease in the business fee income earned
in the IFA division;
– The positive movement in the 1Life revenue arising from an increase in
the deferred income earned on Single Premium Investment business; and,
– The Emerald revenue which arises from fee and commission
income.
The Group's operating expenses
R'000
2024 Group (266 343)
Addition of Emerald (58 246)
Clientele movement (588)
1Life movement 28 146
2025 Total Group (297 031)
The Group's operating expenses increased by 11.5% to R297.0
million (2024: R266.3 million) driven by the net impact of:
– The addition of Emerald's operating costs;
– The small move in Clientèle's expenses (which includes the Group
consolidation arising from the elimination of inter-segment
transactions relating, primarily, to IFRS 16 lease entries); and offset
by,
– The improvement in 1Life's expenses which is due to the reduction in
duplicate expenses as a consequence of synergies and the progress made
in terms of the integration of the business into the Group.
Taxation charge
The taxation charge for the period increased by 136.6% to
R209.6 million (2024 restated: R88.6 million) due to:
– An increase in the tax charge within Clientèle, arising primarily from
a portion of the assessed loss in the IPF that has been utilised
resulting in an increased tax charge of R14.3 million (2024: R30.9
million tax release);
– The increase in 1Life profitability over the period (net of the Group
consolidation impacts that arise, primarily, from adjustments made at
the date of acquisition of 1Life); and,
– The inclusion of Emerald's tax charge for the period.
Total comprehensive income ("TCI")
R'000
Restated 2024 Group 1 061 532
Clientele movement 872 898
1Life movement 272 723
Addition of Emerald 49 504
Prior Period Bargain Purchase Gain (403 152)
2025 Total Group 1 853 505
The TCI increased by 74.6% to R1,853.5 million (2024 restated:R1,061.5
million) driven by:
– The increase in the OCI of Clientèle and 1Life (including the Group
consolidation);
– The TCI of Emerald in the Group's results; offset by; and,
– The once off prior period bargain purchase gain arising from the
acquisition of 1Life.
The above has resulted in the earnings per share of 103.53 cents being
35% lower than the prior period (2024 restated: 158.27 cents) and 34%
lower than previously reported (2024 reported: 156.85 cents). The headline
earnings per share of 103.53 cents which is 53% higher than the comparative
period (2024 restated: 67.51 cents) and 102% higher than previously
reported (2024 restated: 51.25 cents).
The Group EV and Value of New Business ("VNB")
The Group EV as at 31 December 2025 increased to R10.3 billion (June 2025:
R9.2 billion). The increase is driven by strong growth in each entity as a
result of positive production metrics, assisted by a lower RDR and small
withdrawal profits in Clientèle offset by withdrawal losses in 1Life. A
dividend of R598.3 million was paid in September 2025. The various other
movements which grew the EV to R10.3 billion are detailed in the Group
Embedded Value Results section of the condensed interim financial
statements. Recurring Embedded Value Earnings ("REVE") of R1.0 billion
were earned for the period (December 2024: R537.8 million), an increase
of 89% which includes the first-time consolidation of Emerald which
contributed R181.2 million before the cost of financing (R22 million of
financing costs are included in the Clientèle Life result). The VNB for
the period of R332.5 million increased by 77% period-on-period (December
2024: R187.4 million) and includes Emerald's VNB of R61.1 million.
OUTLOOK*
– In this challenging and changing environment, the Group remains focused
on Treating its Clients Well ("TCW") and providing products and services
that meet their needs and exceed their expectations. The Group will
continue to improve the delivery of our existing and new products and
services to the market conveniently and efficiently.
– The integration of 1Life and Emerald into the Group is tracking ahead of
plan. Areas of efficiency and synergy have been identified, and efforts
are focused on improving business efficiencies where required, as well
as capital and liquidity management.
– Investment of time and effort in the Clientèle App, Clientèle Rewards,
Clientèle Royalty, 1Lifestyle and the Clientèle Mobile initiatives align
with the Group's focus on "shared value."
– The addition of the 'maize meal' voucher launched as part of the loyalty
programs of the Group, post December 2025, is showing early signs of
better-than-expected adoption.
– With the ongoing challenges within the premium collections' environment,
management have implemented initiatives to continue reducing the level
of withdrawals.
– Management is focused on efforts to differentiate products and services
offered to the Group's customers. The Board remains optimistic that there
are opportunities for growth and value creation, over time, in the
Group's target market.
– The Group's performance reflects the health and quality of its operating
entities, all of which remain well positioned to capture a share of any
additional growth opportunities that emerge in the target markets where
they operate.
– A tight control environment will be maintained, whilst every effort will
be made to maintain and improve business efficiencies and deliver value
to our clients.
– We aim to deliver on our mission to be South Africa's most valued and
trusted financial services partner.
* Any forward-looking information in this announcement has not been
reviewed or reported on by the Group's auditors and is the
responsibility of the directors.
By order of the Board
GQ Routledge BW Reekie
Chairman Managing Director
02 March 2026
Six months ended 31 December Year-
ended
2025 2024 % change 30 June
2025
Net profit for the period 474,339 704,677* (33%) 1,059,348
(R'000)
Earnings per share for 103.53 158.27* (35%) 235.07
the period (cents)
Headline earnings share 103.53 67.51* 53% 147.08
for the period (cents)
Embedded Value at the end 10,264,545 8,360,419 23% 9,164,809
of the period (R'000)
Embedded Value per share 2,264.54 1,884.61 20% 2,021.97
(cents)
Annualised Recurring 23.7% 14.3% 16.8%
return on Embedded Value
(%)
Value of New Business for 332,509 187,446 77% 330,148
the period (R'000)
Recurring Embedded Value 1,015,267 537,785 89% 1,269,313
Earnings for the period
(R'000)
*restated
Clientèle: Risk Discount Rate 12.0%.
1Life: Risk Discount Rate 12.1 %.
Emerald Life: Risk Discount Rate 11.3%.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Directors and is
only a summary of the information in the full announcement and does not
contain the full or complete details. The full announcement can be found
through this link:
https://senspdf.jse.co.za/documents/2026/jse/isse/CLI/INT2026.PDF
Copies of the full announcement are available for inspection at the
Company's registered office, at no charge, during office hours and may
also be requested from the Company Secretary on 011 320 3000 or
companysecretary@clientele.co.za
Any investment decisions should be based on consideration of the full
announcement accessible via the JSE link above and published on the
Company's website which can be found through this link:
https://clientele.co.za/sens-announcements/
Comprehensive commentary including regulatory requirements is contained in
the full announcement.
Sponsor: PricewaterhouseCoopers Corporate Finance
Proprietary Limited
Registered office: Clientèle Office Park, Cnr Rivonia and
Alon Roads, Morningside, Johannesburg 2196, South Africa
PO Box 1316, Rivonia 2128, South Africa
Transfer secretaries: Computershare Investor Services
Proprietary Limited, First floor, Rosebank Towers, 15
Biermann Avenue, Rosebank, 2106, South Africa PO Box 61051,
Marshalltown 2107, South Africa
Directors: GQ Routledge BA, LLB (Chairman); BW Reekie* BSc(Hons)
(Managing Director); GK Chadwick MBA MAg; H Louw* BCom(Hons); PG
Nkadimeng BSc Statistics and Economics; BA Stott CA(SA); TJ Creamer Cert.
Leadership for Senior Executives; AC Pillay* CA(SA), MCom; RDT Zwane* BA,
M.Phil, MBA; RD Williams BBusSc(Hons), FASSA; HP Mayers BCom(Hons),
FASSA; TE Mashilwane CA(SA), RA, MBA; MA Raisbeck** BSc(Hons)
Agricultural Economics, CA(England and Wales).
* Executive Director
** Alternate to TJ Creamer
Company secretary: Lisa Rae Lill
Clientèle Limited is a licensed controlling company of the
Clientèle Insurance Group.
Date: 02-03-2026 05:35:00
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