SANTAM LIMITED - Operational update to shareholders for the 10 month period to 31 October 2013

Operational update to shareholders for the 10 month period to 31 October 2013

SANTAM LIMITED

(Incorporated in the Republic of South Africa)

(Registration number: 1918/001680/06)

(Share Code: SNT ISIN: ZAE000093779)



Board Meeting - Operational update to shareholders for the 10 month period to 31

October 2013



This serves as a general communication to Santam shareholders with regards to the

business environment for the year to date.



The Santam Group’s net underwriting margin remains below the medium term target range

of 5% to 7%.



Growth in gross written premiums for the intermediated business remained under pressure

as a result of competitive market conditions. The underwriting result improved considerably

during the third quarter following reduced weather related claims and the positive impact of

premium increases and corrective actions. The October results have been negatively

impacted by commercial fires. The specialist classes continued to report acceptable results

although at lower margins compared to the previous year.



MiWay continued to report acceptable loss ratios while maintaining solid growth in premium

income.



The investment portfolio performed in line with the positive market movements experienced

during the second half of the year. Fair value movements on equities were however limited

due to the down-side protection taken out over equities to the value of R2 billion during

March 2013.



The group’s solvency margin remained comfortably within the target range of 35% to 45%.



Since October 2013, the Group’s results were negatively impacted by adverse weather

conditions in November; mainly hail related claims in the East Rand and flooding in the

Western and Southern Cape.



Due to the nature of Santam’s business, headline earnings are susceptible to the inherent

volatility of underwriting and investment activities of the Group.



The next set of results will be the final results for 2013 to be published on 26 February 2014.









CAPE TOWN

27 NOVEMBER 2013



Sponsor:

Investec Bank Limited


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