South African insurer Sanlam's HY interim profit more than doubles

JOHANNESBURG (Reuters) -South African insurer Sanlam Ltd said on Thursday its half-year profit jumped 118%, benefiting from better market returns on investment of premiums, lower claims and improved client base.

Sanlam, the country's biggest life insurer, posted headline earnings per share - a measure of corporate profit in South Africa - of 3.39 rand for the six-month period ended June 30, up from 1.56 rand in the corresponding period last year.

South African insurers, which control the largest and the most advanced insurance market in the continent, have been benefiting from higher interest rates as that gives them better returns on investment of premiums collected from clients.

But as interest rates keep increasing, insurers find it difficult to keep collecting premiums and generate new businesses.

Despite the challenges, the company forecast its second-half earnings to be similar to its first-half numbers, and also had a strong outlook for dividend growth.

(Reporting by Promit Mukherjee; Editing by Clarence Fernandez and Sherry Jacob-Phillips)