SANTAM LIMITED - Operational Update following the AGM

Operational Update following the AGM

SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT ISIN: ZAE000093779)

OPERATIONAL UPDATE TO SHAREHOLDERS FOLLOWING THE ANNUAL GENERAL
MEETING HELD ON 29 MAY 2013

This serves as a general communication to Santam shareholders with regards to the business
environment for the four month period ended 30 April 2013.

The group experienced difficult underwriting conditions during the period severely impacting the
underwriting result, and causing a substantially lower insurance result relative to the same
period in 2012.

   •   The profitability in the traditional Santam intermediated business remained under
       pressure. A continuing high level of claims frequency and severity was aggravated by
       flood related claims in Limpopo during January 2013 and an increase in fire claims in the
       commercial business line. Pro-active steps have been taken across the operations,
       underwriting and claims functions and segmented premium increases are being
       implemented to assist the underwriting performance.

   •   The crop insurance business was adversely impacted by hail damage to summer crops
       in the Eastern region of South Africa and drought insurance input claims in the Central
       and Western regions, resulting in a significant underwriting loss in this business.

   •   The Specialist Business units, MiWay and Santam Re delivered good underwriting
       results.

Gross written premium growth was satisfactory considering continued low industry growth.

The Group’s investment performance was marginally ahead of the market for the period.
Santam reduced its effective equity exposure by disposing of equities of R0.5 billion and taking
downside protection on a further R2 billion to date. With interest rates remaining low, the return
on insurance funds was at a comparable level to 2012.

Headline earnings continue to be susceptible to the inherent volatility of underwriting and
investment activities.

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

The next set of results will be the interim results for the six months ending 30 June 2013 to be
published on SENS on 28 August 2013.

CAPE TOWN
29 MAY 2013

Sponsor:
Investec Bank Limited

Date: 29/05/2013 10:42:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.