Increased participation interest in Shriram General Insurance in India SANTAM LIMITED (Incorporated in the Republic of South Africa) Registration Number 1918/001680/06 JSE share code: SNT ISIN: ZAE000093779 NSX share code: SNM (“Santam”) INCREASED PARTICIPATION INTEREST IN SHRIRAM GENERAL INSURANCE IN INDIA 1. Introduction and transaction summary In December 2013, Santam, Sanlam Limited (“Sanlam”) and Sanlam Emerging Markets Proprietary Limited (“SEM”), a wholly owned subsidiary of Sanlam, entered into a framework agreement (“Framework Agreement”) which set out the terms by which Santam participates in Sanlam’s investments in emerging market short-term insurance businesses using SEM as the investment vehicle. Following recent regulatory changes allowing a 49% foreign shareholding in insurance companies in India, SEM has increased its stake in in Shriram General Insurance Company Limited (“SGI”) by 23%. Shareholders are advised that in terms of the Framework Agreement, Santam has elected to participate in the increased investment in SGI through the subscription for a further share of a separate class (“Target Share”) in SEM for a consideration of R251.35 million (the “Purchase Consideration”) (the “Transaction”). The Target Share is linked to the economic benefits of SGI. The Purchase Consideration was funded from cash resources and the Transaction became effective on 5 December 2016. 2. Background and rationale In December 2013 Santam subscribed for a Target Share linked to a 7.0% participatory interest in SGI. The Transaction increases Santam’s participation interest in SGI from 7.0% to 15.1% thereby increasing Santam’s exposure to the company which it believes is well positioned for growth in the Indian market. SGI is the short-term insurance business of the Shriram Group, a financial conglomerate based in India. SGI is positioned to be a market leader in motor insurance. 3. Small related party transaction As Sanlam is the majority shareholder of Santam, the Transaction is a small related party transaction for Santam in terms of Section 10.1(b) of the JSE Listings Requirements. Accordingly, in terms of section 10.7(b) of the JSE Listings Requirements, an independent expert is required to provide an opinion as to the fairness of the terms of the Transaction. Investec Bank Limited (“Investec”) was appointed as the independent expert to provide a fairness opinion. Investec has found the terms and conditions of the Transaction fair to the shareholders of Santam. Their fairness opinion is available for inspection at Santam’s registered office for a period of 28 days from the date of this announcement. Cape Town 7 December 2016 Sponsor: Investec Bank Limited Date: 07/12/2016 12:30:00 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.