SNT - Santam Limited - Trading Statement - 12 Months Ended 31 December 2011

SNT - Santam Limited - Trading Statement - 12 Months Ended 31 December 2011     
SANTAM LIMITED                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1918/001680/06)                                           
(Share Code: SNT ISIN: ZAE000093779)                                            
TRADING STATEMENT - FOR 12 MONTHS ENDED 31 DECEMBER 2011                        
In terms of the Listings Requirements of JSE Limited, companies are required    
to publish a Trading Statement as soon as they become reasonably certain that   
the financial results for the period to be reported on will differ by more      
than 20% from the financial results for the previous corresponding period.      
Santam delivered pleasing underwriting results for the financial year ended 31  
December 2011 with all major business units continuing to perform well. The     
consolidated underwriting result ended marginally below the exceptional         
results achieved in 2010.  A low frequency of large industrial accident and     
fire-related claims, no material natural catastrophe losses as well as          
excellent underwriting margins on the commercial motor book during this period  
contributed to a very good underwriting margin.                                 
Performance of the investment portfolio was broadly in line with the equity     
market movements resulting in significantly lower returns from the portfolio,   
compared to 2010.                                                               
Shareholders are advised that Santam expects its headline earnings per share    
(HEPS) for the year ended 31 December 2011 to be between 5% and 15 % below the  
HEPS for  the corresponding period, while earnings per share is expected to be  
15% to 25% lower than for 2010.  The decrease in HEPS is due to the lower       
levels of investment return.                                                    
The group`s solvency margin as at 31 December 2011 is expected to be higher     
than the targeted 35% to 45% band.                                              
The financial information on which this Trading Statement is based has not      
been reviewed or reported on by Santam`s external auditors. Santam will         
release its annual audited results for the year ended 31 December 2011 on 28    
February 2012.                                                                  
CAPE TOWN                                                                       
14 February 2012                                                                
Sponsor:                                                                        
Investec Bank Limited                                                           
Date: 14/02/2012 16:03:23 Supplied by www.sharenet.co.za                     
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