Operational Update to Shareholders Following The Annual General Meeting Held on 1 June 2015 SANTAM LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1918/001680/06) (Share Code: SNT ISIN: ZAE000093779) NSX share code: SNM ("Santam") OPERATIONAL UPDATE TO SHAREHOLDERS FOLLOWING THE ANNUAL GENERAL MEETING HELD ON 1 JUNE 2015 This serves as a general communication to Santam shareholders with regards to the business environment for the four month period ended 30 April 2015. The Group achieved acceptable underwriting results and premium growth in a tough general economic climate. Underwriting conditions remain challenging in South Africa with continued pressure on claims costs. The Santam Commercial and Personal business delivered satisfactory underwriting results despite significant hail claims in Pietermaritzburg in February 2015. The Santam Specialist business showed good resilience in competitive market conditions, with a few large corporate property claims reducing the underwriting performance. Following the drought in the central parts of the country, the results of the crop insurance business were significantly lower compared to the same period in 2014. MiWay continued to report strong growth and acceptable loss ratios. Gross written premium growth slowed down compared to the prior period, reflecting the impact of competitive market conditions and the continued focus on underwriting profitability. The Group’s investment performance was in line with the market, showing a significant increase compared to the same period in 2014. The return on insurance funds was in line with the prior period. Headline earnings continue to be susceptible to the inherent volatility of underwriting and investment activities. At 30 April 2015 the group’s solvency margin was at the upper end of the target range of 35% to 45%. Santam recently announced a proposed specific repurchase of 4,2 million Santam shares for R800 million as part of the unwinding of the Santam broad-based black economic empowerment scheme (BBBEE scheme) (refer SENS announcement dated 13 May 2015 “Proposed specific repurchase and placement of Santam shares as part of the BBBEE scheme unwind”). It is anticipated that the group solvency margin will be around the middle of the target range following the repurchase. The unwinding of the BBBEE scheme will result in only a marginal dilution of Santam’s black ownership, which remains a key priority for the Group. The next set of results will be the interim results for the six month period ending 30 June 2015 to be published on SENS on 26 August 2015. CAPE TOWN 1 JUNE 2015 Sponsor: Investec Bank Limited Date: 01/06/2015 10:29:00 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.