Trading Statement SANTAM LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1918/001680/06) (Share Code: SNT ISIN: ZAE000093779) TRADING STATEMENT – FOR THE YEAR ENDED 31 DECEMBER 2014 Shareholders are advised that Santam expects its earnings per share (EPS) as well as its headline earnings per share (HEPS) for the year ended 31 December 2014 to be between 35% (EPS 1 326 cents; HEPS 1 395 cents) to 45% (EPS 1 424 cents; HEPS 1 498 cents) above those reported for the prior period (EPS 982 cents; HEPS 1 033 cents). The increase in HEPS and EPS has been driven by a significant improvement in underwriting results compared to the comparative period in 2013. The improvement in underwriting results was influenced by improved contributions from all business units including a substantial turnaround in the crop insurance business. In addition, the absence of hail related catastrophe events during the 4th quarter resulted in a better underwriting performance during the 2nd half of the financial year compared to 2013. However, underwriting conditions remain challenging in South Africa, with continued pressure on claims costs, low GDP growth and a very competitive landscape. The Group’s net underwriting margin is expected to be above 8%, exceeding the long term target range of 4% to 6%. The Group achieved satisfactory growth in gross written premiums across all businesses. The Group’s investment performance was in line with the market, however investment returns were lower than 2013. The group’s solvency margin as at 31 December 2014 is expected to be marginally above the upper end of the targeted range of 35% to 45% of net premiums. Given pending changes to regulatory capital requirements as well as potential business opportunities Santam is appropriately capitalised. The financial information on which this Trading Statement is based has not been audited or reported on by Santam’s external auditors. Santam will release its audited interim results for the year ended 31 December 2014 on 2 March 2015. Headline earnings continue to be susceptible to the inherent volatility of underwriting and investment activities. CAPE TOWN 10 February 2015 Sponsor: Investec Bank Limited Date: 10/02/2015 02:30:00 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.