Sharenet Sites 
Sharenet Sites
Operational Update to Shareholders following The Board Meeting held on 29 November 2017
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 BOARD MEETING HELD
ON 29 NOVEMBER 2017
This serves as a general communication to Santam shareholders with regard to the business
environment for the ten month period ended 31 October 2017.
Conventional Insurance business
The Santam Group’s conventional insurance business segment achieved positive underwriting
results following the 30 June 2017 interim reporting period. The conventional insurance net
underwriting margin for the 10 month period remained at the lower end of the target range of 4%
to 8%.
The Santam Commercial and Personal intermediated business continued to report satisfactory
growth in gross written premium, driven by an increase in policy count and premium increases.
The claims environment however remained challenging following the significant weather related
catastrophe events in Johannesburg and Durban on 9 October 2017.
As reported in the 2017 interim results, Santam’s view was that the June 2017 catastrophe
losses from the Cape Town storms and Knysna fires should be treated as one event. However,
given the uncertainty at the time around this event, Santam accounted for the losses as two
events. Santam has now agreed with its lead re-insurers that it should be treated as one event
and this has resulted in an improvement of the net underwriting results.
The Santam Specialist business experienced a marked slowdown in growth compared to the
2017 interim results due to the difficult economic environment, subdued commodity prices
impacting the crop business and increasing competition. MiWay also reported lower growth,
however maintaining its strong underwriting results. Santam Re contributed good growth and
satisfactory underwriting results from third party business.
Alternative Risk Transfer business
Since 30 June 2017, the Alternative Risk Insurance business segment improved its contribution
to the net insurance result of the Group, with a strong performance by Centriq along with the
contribution from the recently acquired Santam Structured Insurance.
Sanlam Emerging Markets (SEM) partner businesses
The growth achieved by Saham Finances slightly lagged the business plan due to economic
pressure in Angola and Nigeria. However, operating earnings remained on track with the business
plan.
Investment performance
The Group’s investment performance was in line with the market for the period subsequent to
30 June 2017. The Group entered into a zero-cost collar on 31 July 2017 over R1.2 billion of
listed equity investments, and locked in an investment return of 10.5% for the year to date, with
further upside participation (excluding dividends) of 2.2%. The structure matures on 21
December 2017. There was an increase in foreign currency gains on US dollar denominated
assets following the weakening of the Rand.
Headline earnings remain susceptible to the inherent volatility of underwriting and investment
activities.
The annual results for the year ending 31 December 2017 will be released on SENS on 1 March
2018.
CAPE TOWN
29 NOVEMBER 2017
Sponsor: Investec Bank Limited
Date: 29/11/2017 03:14:00 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.
