SANTAM LIMITED - Operational update to shareholders following Annual General Meeting held on 27 May 2014

Operational update to shareholders following Annual General Meeting held on 27 May 2014

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 27 MAY 2014


This serves as a general communication to Santam shareholders with regards to the business
environment for the four month period ended 30 April 2014.

The group experienced improved underwriting results compared to the same period in 2013.
However underwriting conditions remain challenging in South Africa with continued pressure on
claims costs. Widespread flood related claims were experienced in the northern parts of the
country, especially in Gauteng during March 2014.

The improvement in the underwriting results was influenced by a turnaround in the crop
insurance business compared to the significant losses recorded in 2013. The Santam
Commercial and Personal intermediated business benefitted from the impact of corrective
actions and segmented premium increases implemented since the first quarter of 2013.
Santam Specialist division and MiWay also delivered strong underwriting results.

Gross written premium growth was satisfactory considering the competitive environment, tough
economic conditions and low GDP growth in South Africa.

The Group’s investment performance was in line with the market, other than for the negative
impact of the hedge over equities which expired during the period. The remaining hedge of
R600 million expires during May 2014. The return on insurance funds showed a marginal
improvement compared to the prior period following the increase in interest rates in January
2014.

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 month period ending 30 June 2014 to
be published on SENS on 27 August 2014.

CAPE TOWN
27 MAY 2014

Sponsor:
Investec Bank Limited

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