Trading Statement for the year ended 31 December 2016 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 TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2016 Shareholders are advised that Santam expects its headline earnings per share (HEPS) for the year ended 31 December 2016 to be between 39% to 44% below and earnings per share (EPS) to be between 44% to 49% lower than those reported for the comparative period in 2015. HEPS is expected to be between 1 033 cps and 1 125 cps (2015: 1 844 cps), while EPS is expected to be between 1 066 cps and 1 170 cps (2015: 2 090 cps). The decrease in HEPS and EPS has been driven by a normalisation of the net underwriting results, compared to the exceptional performance of 2015, as well as significantly lower investment returns, mainly due to the strengthening of the rand in 2016. The net underwriting margin is expected to be above the midpoint of the long term target range of 4% to 8% of net earned premiums. The underwriting results were negatively impacted by a few large corporate property claims and a decline in crop business profits from their high levels of 2015, driven by drought-related claims during the first half of 2016. Several catastrophe events impacted the 2016 results, mitigated by reinsurance recoveries. The net commission ratio also increased following lower reinsurance commission earned on specialist business lines and higher commission rates on business from outside South Africa. The South African investment portfolio performed well compared to the market. Foreign currency exchange losses however had a significant negative impact on investment returns. The financial information on which this Trading Statement is based has not been reviewed or reported on by Santam’s external auditors. Santam will release its audited results for the year ended 31 December 2016 on 2 March 2017. CAPE TOWN 14 February 2017 Sponsor: Investec Bank Limited Date: 14/02/2017 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.