Wrap Text
Operational Update for the nine months ended 30 September 2025
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1918/001680/06
LEI: 37890092DC55C7D94B35
JSE Share Code: SNT & ISIN: ZAE000093779
A2X Share Code: SNT
NSX Share Code: SNM
Bond Company Code: BISAN
("Santam" or "the Company")
OPERATIONAL UPDATE FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2025
This is a general communication to Santam shareholders and noteholders (collectively the
"Security holders") covering the operational performance of the Group for the nine months
ended 30 September 2025 (the "period"). Unless the context indicates otherwise, references
to the comparable period are to the nine months ended 30 September 2024.
The Group continued to deliver a strong performance since the end of June 2025, with the
results for the period exceeding the longer-term targets for all key financial performance
indicators. Highlights include double-digit growth in gross written and net earned premiums,
an underwriting margin above the upper end of the 5% to 10% target range and annualised
return on capital in excess of 30%. Net income growth was in line with the performance for the
first half of the year.
Conventional insurance business
The conventional insurance business achieved net earned premium growth of 16%, with solid
contributions from all major businesses except for Santam Specialist Solutions. MiWay's
growth continued to accelerate, with the business achieving solid double-digit growth in gross
written and net earned premiums. Business insurance continued to perform exceptionally well,
with personal lines growth accelerating since the end of June 2025. Santam Re also achieved
excellent growth, supported by significant business from strategic partnerships. Broker, Client
and Partner Solutions recorded good growth, in line with the performance for the first half of
the 2025 financial year. Within Specialist Solutions, competitive conditions negatively
impacted growth.
Gross written premium increased by 10%, with solid growth across all major insurance
classes, excluding the impact of the shift between insurance classes from the portfolio
restructuring in Santam Re.
The improvement in the underlying rating strength and profitability of the in-force book,
combined with a favourable claims environment, benefited the underwriting performance for
the period. The net underwriting margin remained above the 5% to 10% target range, in line
with the margin reported for the first half of the year.
Favourable interest-rate market returns and outperformance of benchmarks supported
investment returns earned on insurance funds, which amounted to 3% of net earned
premiums, exceeding the comparable period.
Alternative Risk Transfer ("ART") business
The ART business segment reported excellent operating results, with substantial growth in fee
income, underwriting results and investment margins.
Shareholder investment returns
The investment return earned on the Group's capital portfolios was below expectations and
that of the comparable period. This was primarily due to foreign currency translation losses on
the foreign exposure in the portfolio, including the investment in Shriram General Insurance,
resulting from the strengthening of the Rand since 31 December 2024.
Capital and subordinated debt
On 6 October 2025, Santam issued additional 5-year unsecured subordinated floating rate
notes to the value of R1.53 billion, as well as 7-year unsecured subordinated floating rate
notes to the value of R470 million. The effective interest rate for the 5-year floating rate notes
is three-month JIBAR plus a spread of 120 basis points, and for the 7-year notes, three-month
JIBAR plus a spread of 129 basis points.
The Group's economic capital cover ratio remained well within the 145% to 165% target range
following the interim dividend payment in September 2025.
Prospects
In July 2025, we received in-principle approval by the Lloyd's Council to launch a Santam
syndicate (the "Santam Syndicate"), subject to meeting the pre-determined start-up
operational requirements of Lloyd's. Final approval and "permission to underwrite" by Lloyd's
are expected towards the end of 2025. The establishment of the Santam Syndicate is aimed
at significantly enhancing Santam's international growth and diversification ambition. Lloyd's
provides an efficient and scalable platform to access specialist insurance classes - an area
where Santam has a leading position and skill set in South Africa. Good progress is being
made in the operationalisation of the Santam Syndicate in preparation for final approval.
The Group experienced limited significant claims in the period. The conventional insurance
underwriting performance for the remainder of the year, however, remains susceptible to
adverse weather-related and other significant loss experience. Additionally, investment market
volatility could potentially impact the investment returns earned on insurance funds and the
shareholder capital portfolio. These factors may impact earnings growth for the full year.
The sound foundation laid by our FutureFit 2030 strategy, the strength of our client and
intermediary relationships and a superior distribution footprint position us well to maintain a
solid financial performance as we focus on enhancing Santam's international growth and
diversification. Profitable growth remains a key focus area for all businesses.
The financial information included in this announcement has not been reviewed or reported
on by Santam's external auditors.
Shareholders and noteholders are further advised that Santam's results for the year ending
31 December 2025 are expected to be released on SENS on or about 5 March 2026.
11 November 2025
Equity and Debt Sponsor: Investec Bank Limited
NSX Sponsor: Simonis Storm Securities (Pty) Ltd (a member of the Namibian Securities
Exchange)
Date: 11-11-2025 02:00:00
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