Despite Sanlam's operating cash flows took a dive from 5.4 billion rand to 357 million rand, the insurance company has stressed that it is not on the verge of collapse.

According to Wikus Olivier, who heads the group's financial reporting, accounting standards led to the misleading hole in the cash-flow statement.

The figures presented seem very concerning, as operating activities cash flow went down 94 percent, while investment investment activities cash flow has increased with approximately 100 percent. According to Olivier this is an anomaly of accountancy rules.

Source: Money Web