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SANTAM LIMITED - Trading Statement

Release Date: 10/02/2015 14:30
Code(s): SNT     PDF:  
Wrap Text
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

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