SANTAM LIMITED - Reviewed Interim Report for the six months ended 30 June 2018

Release Date: 30/08/2018 08:00
Code(s): SNT
 
Wrap Text
Reviewed Interim Report for the six months ended 30 June 2018

Santam Limited and its subsidiaries
Incorporated in the Republic of South Africa
Registration number 1918/001680/06
ISIN ZAE000093779
JSE share code: SNT
NSX share code: SNM

REVIEWED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2018

Group gross written premium growth 13%           
Conventional insurance gross written premium growth 9%
Conventional insurance underwriting margin 8.4%  
Economic capital coverage ratio 158%
Return on shareholders' funds 30.3%              
Earnings per share increased 49%
Headline earnings per share increased 72%        
Interim dividend of 363 cents per share, up 8%

FINANCIAL REVIEW

The Santam group reported strong gross written premium growth of 13% (9% excluding the impact of the Santam Structured Insurance acquisition in March 2017), and 
delivered excellent underwriting results under difficult economic circumstances.

The group's conventional insurance book achieved solid gross written premium growth of 9% and a net underwriting margin of 8.4% (2017: 4.2%), exceeding the 
group's target range of 4% to 8%. The Alternative Risk Transfer (ART) insurance segment grew gross written premium by 44% and increased its operating results to 
R63 million (2017: R35 million). The Sanlam Emerging Markets (SEM) general insurance businesses delivered improved operating results, with good contributions from 
the Saham Finances Group and Shriram General Insurance Company in India.

Investment income attributable to shareholders, inclusive of fair value movements on financial assets and liabilities, of R705 million (2017: R798 million) was 
reported. This excludes net investment return allocated to cell owners and policyholders. A positive movement in foreign exchange differences of R230 million was 
largely negated by fair value losses on the investment portfolio compared to fair value gains in the comparative period. The 2017 results included the release of 
the foreign currency translation reserve of R175 million relating to the unwinding of the Santam International investment.

Cash generated from operations increased to R2 billion (2017: R1.6 billion), positively impacted by the improved claims experience.

The key driver of the 72% increase in headline earnings per share from 593 cps in 2017 to 1 018 cps in 2018 was the significant improvement in the underwriting 
result.

A return on capital of 30.3% was achieved.

CONVENTIONAL INSURANCE

The conventional insurance business reported a net underwriting margin of 8.4% compared to the 4.2% reported in 2017. The underwriting results in the current 
period benefitted from the absence of significant catastrophe claims in contrast to the severe Knysna fire losses in June 2017. Fewer large commercial fire claims 
were also reported during this period.

Gross written premium growth
The intermediated personal and commercial lines business and MiWay experienced pressure on growth given the difficult economic conditions. Excellent growth in the 
specialist business and Santam re contributed to the 9% gross written premium growth reported for Conventional Insurance.

Gross written premium growth from the rest of Africa was strained. Santam Namibia reported a contraction in GWP of 3% in a low growth competitive market. 
Specialist Business benefitted from a once off construction project in 2017 which did not reoccur in 2018. Santam re, on the other hand, achieved strong growth in 
Southeast Asia, India and the Middle East through selective participations in these markets. The net effect was a contraction of 2% on premiums from outside of 
South Africa written on the Santam Ltd and Santam Namibia Ltd licences (2018: R1 516 million; 2017: R1 554 million).

The property class reported growth of 14% on the back of strong growth in the corporate property business following lower reinsurance capacity available in the 
market.

The motor class grew by 7%, with MiWay reporting 6% growth (gross written premium of R1 218 million; 2017: R1 148 million). MiWay saw a slowdown in growth from 
the second half of 2017 due to an increased focus on profitability, as well as the impact of the economic strain on consumers. The commercial and personal lines 
intermediated business similarly experienced a slowdown in growth of the motor book.

The liability class continued to experience significant competitive pressure, resulting in no growth reported during the period. The engineering class reported a 
gross written premium contraction of 6%, reflecting the impact of fewer large construction projects and the uncertainties impacting the construction sector.

The accident and health class reported growth of 18%, mainly driven by growth in the travel insurance business. The transportation class reported negative gross 
written premium growth of 3% following Santam's continued focus on profitability.

Underwriting result
The property class saw a significant turnaround from the R415 million net underwriting loss reported in 2017 to R280 million net underwriting profit in 2018 
following the absence of significant catastrophe claims, as well as fewer large commercial fire claims. The underwriting results were positively impacted by the 
underwriting actions implemented during the second half of 2017.

The motor class reported strong underwriting performance in both the intermediated and direct distribution channels. MiWay reported acceptable results with a 
claims ratio of 55.7% (2017: 55.4%), however negatively impacted by lower premium growth and increased management expenses, contributing an underwriting profit of 
R159 million (2017: R179 million).

The engineering class of business achieved excellent underwriting results with limited claims activity during the period, while the guarantee class of business 
was negatively impacted by the difficult economic environment. A number of large claims, including net claims of R100 million incurred to date relating to the 
listeriosis outbreak, reduced the underwriting results of the liability class. Estimate adjustments on previously reported claims further contributed to a net 
underwriting loss of R49 million (2017: net underwriting profit of R93 million).

The crop insurance business reported strong underwriting results, although lower than the excellent results reported in the comparative period. Santam re was 
negatively impacted by claims activity on the foreign book of business.

Following the significant losses incurred by the global and South African reinsurance market during 2017, Santam's deductible per catastrophe event increased to 
R150 million (2017: R100 million) for the 2018 financial year. It also resulted in increased reinsurance rates.

The net acquisition cost ratio of 29.6% increased from 27.5% in 2017. The management expense ratio increased from 15.1% in 2017 to 17.2% in 2018, mainly due to 
an increased incentive cost provision in 2018, timing differences in marketing spend, as well as growth initiatives at MiWay.

Strategic project costs, included as part of management expenses, amounted to 0.8% of net earned premium (2017: 0.8%). These costs mainly relate to the continued 
development of a new core underwriting, administration and product management platform for the Santam intermediated business, compliance projects, data 
enhancement and future digital solutions. The new core underwriting platform project is progressing according to plan, with most of personal lines policies now 
being managed on the new platform, as well as majority of new business quotes for commercial business products. The migration process for commercial business 
products is also well underway and is expected to be completed during the first half of 2019. Santam will continue to invest in strategic projects to optimise the 
use of technology in the group.

The net commission ratio remained unchanged at 12.4% (2017: 12.4%).

Investment return on insurance funds
The investment return on insurance funds was negatively impacted by lower returns on the investment portfolios backing the insurance funds following lower 
interest rates compared to 2017 and limited growth in the insurance funds following the improved claims ratio.

ALTERNATIVE RISK TRANSFER INSURANCE (ART)

The ART business reported growth of 44% with gross written premiums of R2 469 million (2017: R1 710 million). Centriq reported excellent growth of 27%. 
Santam Structured Insurance also reported good growth over the comparative period. The 2017 reporting period included the results of Santam Structured 
Insurance for three months following the acquisition of the business in March 2017.

The ART business reported solid operating results before tax and minority interests of R63 million (2017: R35 million).

SANLAM EMERGING MARKETS (SEM) GENERAL INSURANCE BUSINESSES (INCLUDING SAHAM FINANCES HELD THROUGH SAN JV)

The emerging markets general insurance business portfolio includes investments in the Saham Finances Group in Morocco (with subsidiaries in 26 countries in Africa 
and the Middle East), Pacific & Orient Insurance Co. Berhad (P&O) in Malaysia, Shriram General Insurance Company Ltd (SGI) in India and a further 12 general 
insurance businesses throughout Africa which are held in conjunction with SEM, excluding South Africa and Namibia.

Santam's share of the gross written premiums of these businesses decreased by 2% to R1 231 million (2017: R1 257 million) following the dilution of Santam's 
effective shareholding in Saham Finances from 7.5% to 7% in May 2017 and the disposal of Enterprise Insurance Company in June 2017.

SGI reported a decrease in gross written premiums following a decision to reduce exposure on the Indian crop business, while P&O's gross written premiums were on 
par with 2017 in local currency terms.

Saham Finances delivered in line with its business plan. Organic growth in gross written premium amounted to 10% in constant currency, with net earned premiums 
increasing by 13%. All regions contributed satisfactory growth in gross written premiums apart from Lebanon, which reflected the impact of a challenging 
operating environment and negatively affected profitability. Currency weakness in Angola resulted in pressure on this region's cost base and underwriting 
performance. This was, however, more than offset by overall good performances from the other regions and particularly strong growth in reinsurance profits. 

Santam's share of the net insurance result of these businesses increased to R142 million compared to R101 million in 2017, mainly due to improved profitability 
from Saham Finances and SGI. The portfolio of businesses achieved a net insurance margin of 16.2% (2017: 11.6%). The SGI results were positively impacted by 
reserve releases on third-party claims while P&O reported a marginal improvement in net insurance results at acceptable underwriting margins.

INVESTMENT RESULTS

Listed equities produced a negative return of 3% for the six months ended 30 June 2018, relative to the portfolio's SWIX-related benchmark return of -5.8%. 
Over the past quarter, the equity portfolio's benchmark was revised from the SWIX index to 60% SWIX and 40% Capped SWIX index.

The Santam group's fixed income exposure is managed in enhanced cash and active income portfolios. The fixed income portfolios performed close to their 
STeFI-related benchmarks.

Exchange rate volatility due to the weakening of the rand in 2018 compared to December 2017 resulted in a foreign exchange gain of R230 million 
(2017: foreign currency loss of R70 million), inclusive of the currency movements on Santam's interest in SEM's general insurance businesses in Africa, India and 
Southeast Asia.

Positive fair value movements (excluding the impact of currency movements) of R55 million (2017: R104 million) in Santam's interest in SEM's general insurance 
businesses also contributed to the improved investment performance.

Net earnings from associated companies of R81 million (2017: R54 million) included R63 million from Saham Finances. The other key contributor to earnings from 
associated companies was Western Group Holdings Ltd.

PROSPECTS

Trading conditions remain very competitive in a low-growth South African economic environment, which translates into limited growth of insurable assets for the 
insurance industry. GDP contracted in the first quarter of 2018 and the South African Reserve Bank reduced its growth forecast for 2018 to 1.2%. It is expected 
that economic activity will in the near term be constrained by weak consumer spending linked to the recent increase in value added tax and by unemployment, which 
is at near record levels. Inflation (annual CPI) of 5.1% was reported at the end of July 2018.

The group's focus remains on growing profitably in South Africa and increasing its international diversification through the Santam Specialist Business and 
Santam re. International diversification is supported by close collaboration with the SEM general insurance businesses. In South Africa, continued focus is being 
placed on the development of Santam's full multichannel capability and refocused MiWay growth initiatives.

The focus will remain on appropriate underwriting actions to manage the risk associated with weak economic conditions, also taking the increased reinsurance 
rates into account. Santam continues to work with local municipalities to reduce risk and improve resilience.

The group remains focused on optimising efficiency by balancing management costs and underwriting profitability as well as the use of technology to improve 
underwriting results.

The investment market is likely to remain uncertain. The increased exposure to non-rand-denominated business further increases foreign exchange volatility for the 
group.

The group continues to prioritise and focus on its transformation priorities. These include the promotion of a diverse workforce, intermediary and supplier base; 
access to insurance products by non-traditional markets; and further impactful investment in communities.

The group economic capital requirement at 30 June 2018, based on the Santam internal economic model, amounted to R6.4 billion (2017: R5.9 billion). This resulted 
in an economic capital coverage ratio of 158% (2017 normalised: 151%), somewhat above the midpoint of the target range of 130% to 170%. Santam has submitted its 
internal model application pack to the Prudential Authority in July 2018 for approval.

We remain committed to efficient capital management.

EVENTS AFTER THE REPORTING PERIOD

The Santam Board announced on 30 August 2018, Santam’s intention to participate in a transaction with Sanlam to increase its effective interest in Saham Finances 
to 10% by subscribing for further shares in SAN JV to the extent of R864 million, plus its share of transaction costs. Post implementation of the transaction, 
Santam’s effective interest in Saham Finances, held indirectly through SAN JV, will increase from 7% to 10%.

Santam will fund its share of the purchase consideration and transaction costs from available internal resources.  

Santam, Sanlam and SEM have in principle reached an agreement for Santam to reduce over time its economic participation in the SEM general insurance businesses in 
Africa (excluding Namibia) from 35% to 10% to align with the effective 10% interest that Santam will have in Saham Finances. 

The transaction is subject to a number of conditions precedent, including regulatory approvals.

There have been no other material changes in the affairs or financial position of the company and its subsidiaries since the statement of financial position date.

DECLARATION OF ORDINARY DIVIDEND (NUMBER 129)

Notice is hereby given that the board has declared a gross interim dividend of 363.00 cents per share (2017: 336.00 cents per share), 290.40 cents net of dividend 
withholding taxation, where applicable, per ordinary share for the six months ended 30 June 2018 to those members registered on the record date, being 
Friday, 21 September 2018.

The dividend has been declared from income reserves. A dividend withholding taxation of 20% will be applicable to all shareholders who are not exempt.

Share code:                                   SNT
ISIN:                                         ZAE000093779
Company registration number:                  1918/001680/06
Company tax reference number:                 9475/144/71/4
Gross cash dividend amount per share:         363.00 cents
Net dividend amount per share:                290.40 cents
Issued shares at 30 August 2018:              115 131 417
Declaration date:                             30 August 2018
Last day to trade cum dividend:               Tuesday, 18 September 2018
Shares trade ex dividend:                     Wednesday, 19 September 2018
Record date:                                  Friday, 21 September 2018
Payment date:                                 Tuesday, 25 September 2018

Share certificates may not be dematerialised or rematerialised between Wednesday, 19 September 2018 and Friday, 21 September 2018, both days inclusive.

In terms of the dividends tax legislation, the dividends tax amount due will be withheld and paid over to the South African Revenue Service (SARS) by a nominee 
company, stockbroker or Central Security Depository Participant (CSDP) (collectively Regulated Intermediary) on behalf of shareholders. Shareholders should seek 
their own advice on the tax consequences associated with the dividend and are particularly encouraged to ensure their records are up to date so that the correct 
withholding tax is applied to their dividend.

APPRECIATION

The board would like to extend its gratitude to Santam's management, employees, intermediaries and other business partners for their efforts and contributions 
during the period.

PREPARATION AND PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS

The preparation of the independently reviewed interim financial statements was supervised by the chief financial officer of Santam Ltd, HD Nel CA(SA).

VP Khanyile        L Lambrechts
Chairman           Chief executive officer

30 August 2018


INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE SHAREHOLDERS OF SANTAM LIMITED

We have reviewed the condensed consolidated interim financial statements of Santam Limited in the accompanying interim report, which comprise the condensed 
consolidated statement of financial position as at 30 June 2018 and the related condensed consolidated statements of comprehensive income, changes in equity and 
cash flows for the six-months then ended, and selected explanatory notes.

DIRECTORS' RESPONSIBILITY FOR THE INTERIM FINANCIAL STATEMENTS

The directors are responsible for the preparation and presentation of these interim financial statements in accordance with the International Financial Reporting 
Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements 
as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa, and for such internal control as the directors 
determine is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express a conclusion on these interim financial statements. We conducted our review in accordance with International Standard on Review 
Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. ISRE 2410 requires us to conclude whether anything 
has come to our attention that causes us to believe that the interim financial statements are not prepared in all material respects in accordance with the 
applicable financial reporting framework. This standard also requires us to comply with relevant ethical requirements.

A review of interim financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform procedures, primarily consisting of making 
inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluate the evidence obtained.

The procedures in a review are substantially less than and differ in nature from those performed in an audit conducted in accordance with International Standards 
on Auditing. Accordingly, we do not express an audit opinion on these interim financial statements.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements of 
Santam Limited for the six months ended 30 June 2018 are not prepared, in all material respects, in accordance with the International Financial Reporting 
Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements 
as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa.

PricewaterhouseCoopers Inc
Director: Zuhdi Abrahams
Registered Auditor
Cape Town

30 August 2018


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                                                                                    Reviewed at         Audited at
                                                                                                                                   30 June 2018   31 December 2017
                                                                                                                      Notes           R million          R million

ASSETS
Non-current assets
  Property and equipment                                                                                                                    133                135                   
  Intangible assets                                                                                                                         817                841
  Deferred income tax                                                                                                                        91                 91
  Investment in associates and joint ventures                                                                                             2 007              1 789
  Financial assets at fair value through income                                                                           6              19 959             17 554
  Reinsurance assets                                                                                                      7                 544                202
  Deposit with cell owners                                                                                                                  120                129
  Total non-current assets                                                                                                               23 671             20 741

Current assets
  Cell owners' and policyholders' interest                                                                                                    8                 10
  Financial assets at fair value through income                                                                           6               2 288              2 182
  Reinsurance assets                                                                                                      7               5 502              5 622
  Deposit with cell owners                                                                                                                   42                 45
  Deferred acquisition costs                                                                                                                519                537
  Loans and receivables including insurance receivables                                                                   6               5 321              5 253
  Income tax assets                                                                                                                          26                 17
  Cash and cash equivalents                                                                                                               3 212              4 321
  Total current assets                                                                                                                   16 918             17 987

Total assets                                                                                                                             40 589             38 728

EQUITY
Capital and reserves attributable to the company's equity holders
  Share capital                                                                                                                             103                103
  Treasury shares                                                                                                                          (465)              (470)
  Other reserves                                                                                                                            (89)              (214)
  Distributable reserves                                                                                                                  8 410              7 999
                                                                                                                                          7 959              7 418
Non-controlling interest                                                                                                                    490                506
Total equity                                                                                                                              8 449              7 924

LIABILITIES
Non-current liabilities
  Deferred income tax                                                                                                                       101                 87
  Financial liabilities at fair value through income
    Debt securities                                                                                                       6               2 025              2 031
    Investment contracts                                                                                                  6               1 552              1 583
  Cell owners' and policyholders' interest                                                                                                3 208              3 227
  Insurance liabilities                                                                                                   7               2 151              1 789
  Reinsurance liability relating to cell owners                                                                                             120                129
  Total non-current liabilities                                                                                                           9 157              8 846

Current liabilities
  Financial liabilities at fair value through income
    Debt securities                                                                                                       6                  24                 25
    Investment contracts                                                                                                  6                  61                120
  Financial liabilities at amortised cost
    Collateral guarantee contracts                                                                                        6                 137                130
  Insurance liabilities                                                                                                   7              16 429             16 059
  Reinsurance liability relating to cell owners                                                                                              42                 45
  Deferred reinsurance acquisition revenue                                                                                                  317                326
  Provisions for other liabilities and charges                                                                                              124                106
  Trade and other payables including insurance payables                                                                   6               5 585              4 953
  Current income tax liabilities                                                                                                            264                194
  Total current liabilities                                                                                                              22 983             21 958

Total liabilities                                                                                                                        32 140             30 804

Total shareholders' equity and liabilities                                                                                               40 589             38 728


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                                                                   Reviewed            Reviewed
                                                                                                           Six months ended    Six months ended
                                                                                                               30 June 2018        30 June 2017
                                                                                                   Notes          R million           R million             Change


Gross written premium                                                                                                15 591              13 795                13%
Less: reinsurance written premium                                                                                     4 571               3 709
Net written premium                                                                                                  11 020              10 086                 9%
Less: change in unearned premium
  Gross amount                                                                                                          478                (257)
  Reinsurers' share                                                                                                    (579)               (208)
Net insurance premium revenue                                                                                        11 121              10 551                 5%
Interest income on amortised cost instruments                                                          9                103                  63
Interest income on fair value through income instruments                                               9                620                 543
Other investment income/(losses)                                                                       9                278                 (16)
Income from reinsurance contracts ceded                                                                                 899                 698
Net (losses)/gains on financial assets and liabilities at fair value through income                    9               (140)                153
Investment income and fair value losses on financial assets held for sale                              9                  -                 175
Other income                                                                                                             88                  64
Net income                                                                                                           12 969              12 231                 6%

Insurance claims and loss adjustment expenses                                                                         8 906              10 700
Insurance claims and loss adjustment expenses recovered from reinsurers                                              (1 988)             (3 448)
Net insurance benefits and claims                                                                                     6 918               7 252                (5%)

Expenses for the acquisition of insurance contracts                                                                   2 191               1 952
Expenses for marketing and administration                                                                             2 040               1 674
Expenses for investment-related activities                                                                               23                  24
Amortisation and impairment of intangible assets                                                                         33                  37
Impairment of loans                                                                                                       5                   -
Investment return allocated to cell owners and structured insurance products                                            156                 120
Total expenses                                                                                                       11 366              11 059                 3%

Results of operating activities                                                                                       1 603               1 172                37%
Finance costs                                                                                                          (102)               (127)
Net income from associates and joint ventures                                                                            81                  54
Profit on sale of associates                                                                          11                  -                   5
Gain on dilution of associate                                                                         11                  -                  18
Reclassification of foreign currency translation reserve on dilution of associate                     11                  -                 (90)
Income tax recovered from cell owners and structured insurance products                               10                 44                   -
Profit before tax                                                                                                     1 626               1 032
Tax expense allocated to shareholders                                                                 10               (400)               (224)
Tax expense allocated to cell owners and structured insurance products                                                  (44)                  -
Total tax expense                                                                                                      (444)               (224)
Profit for the period                                                                                                 1 182                 808                46%

Other comprehensive income, net of tax
Items that may subsequently be reclassified to income:
  Currency translation differences                                                                                        -                (161)
  Share of associates' currency translation differences                                                                 125                  83
  Hedging reserve movement                                                                                                -                   5
Total comprehensive income for the period                                                                             1 307                 735                78%

Profit attributable to:
- equity holders of the company                                                                                       1 124                 753                49%
- non-controlling interest                                                                                               58                  55
                                                                                                                      1 182                 808

Total comprehensive income attributable to:
- equity holders of the company                                                                                       1 249                 680                84%
- non-controlling interest                                                                                               58                  55
                                                                                                                      1 307                 735

Earnings attributable to equity shareholders

Earnings per share (cents)                                                                            12
  Basic earnings per share                                                                                            1 018                 683                49%
  Diluted earnings per share                                                                                          1 009                 677                49%


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                                Attributable to equity holders of the company                   Non-
                                                                         Share      Treasury         Other Distributable                 controlling
                                                                       capital        shares      reserves      reserves         Total      interest         Total
                                                                     R million     R million     R million     R million     R million     R million     R million
Balance as at 1 January 2017                                               103          (472)          (41)        7 286         6 876           469         7 345
Profit for the year                                                          -             -             -         1 667         1 667           140         1 807
Other comprehensive income:
  Currency translation differences                                           -             -            (3)            -            (3)            -            (3)
  Release of translation differences on financial assets held 
   for sale                                                                  -             -          (175)            -          (175)            -          (175)
  Share of associates' currency translation differences                      -             -           (41)            -           (41)            -           (41)
  Reclassification of foreign currency translation reserve on 
   dilution of associate                                                     -             -            90             -            90             -            90
  Hedging reserve movement                                                   -             -             6             -             6             -             6
Total comprehensive income for the year ended 31 December 2017               -             -          (123)        1 667         1 544           140         1 684
Issue of treasury shares in terms of share option schemes                    -            78             -           (78)            -             -             - 
Purchase of treasury shares                                                  -           (76)            -             -           (76)            -           (76)
Release of contingency reserve                                               -             -           (50)           50             -             -             -
Share-based payment costs                                                    -             -             -            77            77             -            77
Dividends paid                                                               -             -             -        (1 003)       (1 003)         (103)       (1 106)
Balance as at 31 December 2017                                             103          (470)         (214)        7 999         7 418           506         7 924
Profit for the period                                                        -             -             -         1 124         1 124            58         1 182
Other comprehensive income:
  Share of associates' currency translation differences                      -             -           125             -           125             -           125
Total comprehensive income for the period ended 30 June 2018                 -             -           125         1 124         1 249            58         1 307
Issue of treasury shares in terms of share option schemes                    -            69             -           (69)            -             -             -
Purchase of treasury shares                                                  -           (64)            -             -           (64)            -           (64)
Share-based payment costs                                                    -             -             -            38            38             -            38
Dividends paid                                                               -             -             -          (682)         (682)          (74)         (756)
Balance as at 30 June 2018                                                 103          (465)          (89)        8 410         7 959           490         8 449
Balance as at 1 January 2017                                               103          (472)          (41)        7 286         6 876           469         7 345
Profit for the period                                                        -             -             -           753           753            55           808
Other comprehensive income:
  Currency translation differences                                           -             -          (161)            -          (161)            -          (161)
  Share of associates' currency translation differences                      -             -            83             -            83             -            83
  Hedging reserve movement                                                   -             -             5             -             5             -             5 
Total comprehensive income for the period ended 30 June 2017                 -             -           (73)          753           680            55           735
Issue of treasury shares in terms of share option schemes                    -            74             -           (74)            -             -             -
Purchase of treasury shares                                                  -           (65)            -                          (65)           -           (65)
Transfer to reserves                                                         -             -             1            (1)            -             -             -
Share-based payment costs                                                    -             -             -            41            41             -            41
Dividends paid                                                               -             -             -          (631)         (631)          (49)         (680)
Balance as at 30 June 2017                                                 103          (463)         (113)        7 374         6 901           475         7 376


CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                                                                                                          Restated(1)
                                                                                                                                       Reviewed           Reviewed
                                                                                                                               Six months ended   Six months ended
                                                                                                                                   30 June 2018       30 June 2017
                                                                                                                      Notes           R million          R million


Cash flows from operating activities
Cash generated from operations                                                                                                            1 968              1 637
Interest paid                                                                                                                              (172)               (94)
Income tax paid                                                                                                                            (369)              (210)
Acquisition of financial assets                                                                                                         (10 804)            (7 706)
Proceeds from sale of financial assets                                                                                                    9 137              6 649
Net cash (used in)/from operating activities                                                                                               (240)               276

Cash flows from investing activities
Acquisition of financial assets                                                                                                            (536)               (68)
Proceeds from sale of financial assets                                                                                                      488                150
Cash acquired through acquisition of business, net of cash paid                                                          11                   -                852
Purchases of equipment                                                                                                                      (24)               (20)
Purchases of intangible assets                                                                                                              (13)               (12)
Proceeds from sale of equipment                                                                                                               1                  1
Acquisition of associates and joint ventures                                                                             11                   -               (152)
Capitalisation of associates                                                                                             11                 (11)               (14)
Proceeds from sale of associates                                                                                         11                   -                 23
Net cash (used in)/from investing activities                                                                                                (95)               760

Cash flows from financing activities
Purchase of treasury shares                                                                                                                 (64)               (65)
Proceeds from issue of unsecured subordinated callable notes                                                                                  -              1 000
Increase in investment contract liabilities(2)                                                                                                -                  5
Increase in collateral guarantee contracts(2)                                                                                                 -                  6
Dividends paid to company's shareholders                                                                                                   (682)              (631)
Dividends paid to non-controlling interest                                                                                                  (74)               (49)
Decrease in cell owners' and policyholders' interest(2)                                                                                       -                (38)
Net cash (used in)/from financing activities                                                                                               (820)               228

Net (decrease)/increase in cash and cash equivalents                                                                                     (1 155)             1 264
Cash and cash equivalents at beginning of period                                                                                          4 321              2 887
Exchange gains/(losses) on cash and cash equivalents                                                                                         46                (33)
Cash and cash equivalents at end of period                                                                                                3 212              4 118

1  Refer to note 14 for detail.
2  Cash flows relating to investment contract liabilities, collateral guarantee contracts and cell owners' and policyholders' interest have previously been
   included as part of financing activities in the statement of cash flows. As a result of the acquisition of SSI, management has reassessed the classification 
   of these cash flows and determined that these cash flows relate to operating activities. This change in classification has been applied prospectively, as these 
   cash flows were previously considered immaterial.


NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.  Basis of preparation

    The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards, IAS 34 Interim 
    Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the 
    Financial Reporting Standards Council and the requirements of the Companies Act of South Africa.

    In line with the minimum requirements of IAS 34 Interim Financial Reporting, and in order to align with Sanlam, the comparative period information presented 
    has been limited to:
    - the statement of financial position information as at the end of the full financial year (31 December 2017); and
    - the statement of comprehensive income and the statement of cash flows with comparative information for the equivalent period in the previous financial year 
      (30 June 2017).

    With the acquisition of SSI in the 2017 financial year, the tax on cell owners and structured insurance products is more significant. As a result, the tax on 
    cell owners and structured insurance products in the current period has been separately disclosed in the statement of comprehensive income. In the prior periods, 
    this tax was disclosed as part of tax expense (refer to note 10 for detail).

2.  Accounting policies

    The accounting policies applied in the preparation of the condensed consolidated interim financial statements are in terms of IFRS and are consistent with 
    those accounting policies applied in the preparation of the previous consolidated annual financial statements, except for:

    The following new IFRSs and/or IFRICs were effective for the first time from 1 January 2018:
    - Amendment to IFRS 2 - Classification and measurement of share-based payment transactions
    - Amendments to IFRS 4 - Applying IFRS 9 Financial instruments with IFRS 4 Insurance contracts
    - IFRS 9 - Financial Instruments
    - IFRS 15 - Revenue from contracts with customers
    - Amendment to IAS 40 - Transfers of Investment Property
    - Annual improvements 2014-16 cycle
    - IFRIC 22 - Foreign currency transactions and advance consideration

    There was no material impact on the condensed consolidated interim financial statements identified. Specifically regarding IFRS 9, the assessment of the 
    impact of implementation included the following:

    Classification and measurement - Financial assets
    - Debt instruments, previously measured at FVPL (fair value through profit and loss), are also measured at FVPL under IFRS 9. A key input in the assessment 
      of the classification of debt instruments held was the business model applied to manage the financial assets. Financial assets that are held to sell and 
      those that are managed and whose performance is evaluated on a fair value basis will be measured at FVPL because they are neither held to collect 
      contractual cash flows nor held to collect contractual cash flows and to sell.
    - Loans and receivables, previously measured at amortised cost, continue to be measured at amortised cost under IFRS 9 as the business model is hold to 
      collect and their cash flows represent solely payments of principal and interest.
    - Equity instruments, previously measured at FVPL, are also measured as FVPL under IFRS 9. Management has not taken the irrevocable election to present 
      changes through FVOCI (fair value through other comprehensive income) for equities not held for trading.

    Classification - Financial liabilities
    - Debt securities issued by Santam are measured at FVPL under IFRS 9 as these instruments are managed at fair value in terms of the related business model. 
      The amount of changes in fair value attributable to changes in own credit risk of these liabilities were considered immaterial.
    - Investment contract liabilities predominantly consist of unit-linked contracts where the value of the liability is directly derived from the performance of
      the related assets. Based on the principle of eliminating an accounting mismatch in the financial statements, investment contracts are designated to be 
      measured at FVPL.

    Impairment of financial assets
    The majority of financial assets in the Santam group are measured at FVPL. All insurance and reinsurance receivables are recognised and measured in terms of 
    IFRS 4 Insurance contracts and the group has not amended its policies for the measurement of IFRS 4. The insurance and reinsurance receivables are therefore 
    excluded from the scope of IFRS 9's expected credit loss (ECL) impairment. The most significant class of financial asset subject to an ECL impairment is loans 
    and receivables. Applying the expected credit loss model to loans and receivables at amortised costs, did not result in material additional provisions for 
    impairment.

    IFRS 15 Revenue from Contracts with Customers introduces a single, principles-based five-step model to be applied to all contracts with customers. IFRS 15 
    does not apply to insurance contracts within the scope of IFRS 4 Insurance Contracts. Based on management's assessment, the impact on the net results was not 
    material.

    Of the standards that are not yet effective, management expects IFRS 17 Insurance contracts to have an impact on the group. IFRS 17 establishes the principles 
    for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard. IFRS 17 was issued in May 2017 and 
    applies to annual reporting periods beginning on or after 1 January 2021. The group is currently facilitating a programme to review the impact of the 
    implementation and ensure a seamless transition.

3.  Estimates

    The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the 
    application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

    In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the group's accounting 
    policies and the key sources of estimation uncertainty are the same as those that applied to the consolidated annual financial statements for the year ended 
    31 December 2017.

4.  Risk management

    The group's activities expose it to a variety of financial risks: market risk (including price risk, interest rate risk, foreign currency risk and derivatives 
    risk), credit risk and liquidity risk. Insurance activities expose the group to insurance risk (including pricing risk, reserving risk, accumulation risk and 
    reinsurance risk). The group is also exposed to operational risk and legal risk.

    The capital risk management philosophy is to maximise the return on shareholders' capital within an appropriate risk framework.

    The condensed consolidated interim financial statements do not include all risk management information and disclosures required in the annual financial 
    statements and should be read in conjunction with the group's annual financial statements for the year ended 31 December 2017.

    There have been no material changes to the risk management policies since 31 December 2017.

5.  Segment information

    Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating 
    decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the chief 
    executive officer, supported by the group executive committee.

    The group conducts mainly insurance and investment activities.

    Insurance activities:
    The group presents its insurance results in the following segments:
    - Conventional insurance business written on insurance licences controlled by the group, consisting of Santam Commercial and Personal, Santam Specialist 
      (niche business and agriculture), credit insurance written by Santam Structured Insurance (SSI),  Santam re and MiWay;
    - Alternative risk transfer insurance business written on the insurance licences of Centriq and SSI; and
    - Santam's share of the insurance results of the Sanlam Emerging Markets (SEM) general insurance businesses, including SAN JV (Saham Finances).

    Conventional insurance is further analysed by insurance class. Operating segments are aggregated based on quantitative and/or qualitative significance. 
    The performance of insurance activities is based on gross written premium as a measure of growth, with operating result as measure of profitability.

    Growth is measured for SEM GI businesses based on the gross written premium generated by the underlying businesses. With regard to the SEM and SAN JV 
    (Saham Finances) insurance business, this information is considered to be a reallocation of fair value movements recognised on the SEM target shares as well 
    as equity-accounted earnings on the investments in associates and joint ventures. It is also included as reconciling items in order to reconcile to the 
    consolidated statement of comprehensive income. Overall profitability is measured based on net investment income and fair value movements from SEM target 
    share investments and net income from associates for the investment in SAN JV.

    Insurance business denominated in foreign currencies is covered by foreign denominated bank accounts and investment portfolios. Foreign exchange movements on
    underwriting activities are therefore offset against the foreign exchange movements recognised on the bank accounts and investment portfolios.

    Investment activities:
    Investment activities are all investment-related activities undertaken by the group. Due to the nature of the activities conducted, investment activities are
    considered to be one operating segment. Investment activities are measured based on net investment income.

    Given the nature of the operations, there is no single external client that provides 10% or more of the group's revenues.

    The investment return on insurance funds is calculated based on the day-weighted effective return realised by the group on the assets held to cover the 
    group's net insurance working capital requirements.

    The Santam BEE transaction costs are unrelated to the core underwriting and investment performance of the group. Therefore, these costs are disclosed as 
    unallocated activities.

    Santam Ltd is domiciled in South Africa. Geographical analysis of the gross written premium and non-current assets and liabilities is based on the countries 
    in which the business is underwritten or managed. Non-current assets comprise goodwill and intangible assets, property and equipment, investments in 
    associates and joint ventures and SEM target shares (included in financial assets).

5.1 For the six months ended 30 June 2018 (reviewed)

                                                                                Insurance 
                                                                                                                                            Reconciling
     Business activity                                                Alternative      Santam's                                                     and          IFRS
                                                       Conventional          risk  share of SEM         Total    Investment         Total   unallocated         Total
                                                          R million     R million     R million     R million     R million     R million     R million     R million


     Revenue                                                 13 122         2 469         1 231        16 822           301        17 123        (1 532)       15 591
     Net earned premium                                      10 947           174           877        11 998             -        11 998          (877)       11 121
     Net claims incurred                                      6 795           123           591         7 509             -         7 509          (591)        6 918
     Net commission                                           1 361           (69)           71         1 363             -         1 363           (71)        1 292
     Management expenses (excluding BEE costs)(1)             1 875            95           193         2 163             -         2 163          (193)        1 970
     Net underwriting result                                    916            25            22           963             -           963           (22)          941
     Investment return on insurance funds                       263            38           120           421             -           421          (120)          301
     Net insurance result                                     1 179            63           142         1 384             -         1 384          (142)        1 242
     Other income(2)                                             41            20             -            61             -            61             -            61
     Other expenses(2)                                          (41)          (20)            -           (61)            -           (61)            -           (61)
     Operating result before non-controlling interest 
      and tax                                                 1 179            63           142         1 384             -         1 384          (142)        1 242
     Reallocation of operating result(3)                          -             -          (142)         (142)            -          (142)          142             -
     Investment income net of investment-related fees             -           156           121           277           260           537             -           537
     Investment return allocated to cell owners and 
      structured insurance products                               -          (156)            -          (156)            -          (156)            -          (156)
     Finance costs                                                -             -             -             -          (102)         (102)            -          (102)
     Income from associates and joint ventures                    -             -            63            63            18            81             -            81
     Santam BEE costs                                             -             -             -             -             -             -            (2)           (2)
     Amortisation and impairment of intangible assets(1)        (12)           (1)            -           (13)            -           (13)            -           (13)
     Impairment of loans                                         (5)            -             -            (5)            -            (5)            -            (5)
     Profit before tax attributable to shareholders           1 162            62           184         1 408           176         1 584            (2)        1 582

     1  Amortisation of computer software included as part of management expenses. Santam's share of the costs to manage the SEM portfolio of R15.3 million has 
        been included in management expenses.
     2  Includes other operating income and expenses not related to underwriting activities.
     3  Reconciling items consist of the reallocation of net insurance results relating to the underlying investments SEM and SAN JV (Saham Finances) for 
        management reporting purposes.

     For the six months ended 30 June 2017 (reviewed)
                                                                                Insurance
                                                                                                                                            Reconciling
     Business activity                                                Alternative      Santam's                                                     and          IFRS
                                                       Conventional          risk  share of SEM         Total    Investment         Total   unallocated         Total
                                                          R million     R million     R million     R million     R million     R million     R million     R million


     Revenue                                                 12 085         1 710         1 257        15 052           404        15 456        (1 661)       13 795
     Net earned premium                                      10 250           301           870        11 421             -        11 421          (870)       10 551
     Net claims incurred                                      7 003           249           640         7 892             -         7 892          (640)        7 252
     Net commission                                           1 273           (18)           59         1 314             -         1 314           (59)        1 255
     Management expenses (excluding BEE costs)(1,4)           1 546            76           219         1 841             -         1 841          (219)        1 622
     Net underwriting result                                    428            (6)          (48)          374             -           374            48           422
     Investment return on insurance funds(4)                    296            42           149           487             -           487          (149)          338
     Net insurance result                                       724            36           101           861             -           861          (101)          760
     Other income(2)                                             41            22             -            63             -            63             -            63
     Other expenses(2)                                          (42)          (23)            -           (65)            -           (65)            -           (65)
     Operating result before non-controlling interest 
      and tax                                                   723            35           101           859             -           859          (101)          758
     Reallocation of operating result(3)                          -             -          (101)         (101)            -          (101)          101             -
     Investment income net of investment-related fees             -           120            88           208           347           555             -           555
     Investment return allocated to cell owners and 
      structured insurance products                               -          (120)            -          (120)            -          (120)            -          (120)
     Finance costs                                                -             -             -             -          (127)         (127)            -          (127)
     Income from associates and joint ventures including  
      profit on sale and impairment                               -             -            26            26            33            59             -            59
     Gain on dilution of associate                                -             -            18            18             -            18             -            18
     Reclassification of foreign currency translation  
      reserve on dilution of associate                            -             -           (90)          (90)            -           (90)                        (90)
     Santam BEE costs                                             -             -             -             -             -             -            (3)           (3)
     Amortisation and impairment of intangible assets(1)        (18)            -             -           (18)            -           (18)            -           (18)
     Profit before tax                                          705            35            42           782           253         1 035            (3)        1 032

     1  Amortisation of computer software included as part of management expenses. Santam's share of the costs to manage the SEM portfolio of R17.3 million has 
        been included in management expenses.
     2  Includes other operating income and expenses not related to underwriting activities.
     3  Reconciling items consist of the reallocation of net insurance results relating to the underlying investments SEM and SAN JV (Saham Finances) for  
        management reporting purposes.
     4  A reclassification of R26 million between management expenses and investment return on insurance funds was made as a result of alignment with Sanlam.

5.2  Additional information on insurance activities
     The group's conventional insurance activities are spread over various classes of general insurance.

                                                                                                   30 June 2018 (reviewed)                30 June 2017 (reviewed)
                                                                                           Gross written       Underwriting       Gross written       Underwriting
                                                                                                 premium             result             premium             result
                                                                                               R million          R million           R million          R million


     Accident and health                                                                             273                40                  232                 35
     Crop                                                                                             87                61                   72                131
     Engineering                                                                                     608               127                  645                114
     Guarantee                                                                                       124               (32)                  77                 (3)
     Liability                                                                                       563               (49)                 566                 93
     Miscellaneous                                                                                     8                (8)                   5                  2
     Motor                                                                                         6 349               513                5 944                459
     Property                                                                                      4 763               280                4 188               (415)  
     Transportation                                                                                  347               (16)                 356                 12
     Total                                                                                        13 122               916               12 085                428

     Comprising:
     Commercial insurance                                                                          7 207               407                6 542                247
     Personal insurance                                                                            5 915               509                5 543                181
     Total                                                                                        13 122               916               12 085                428

5.3  Additional information on investment activities

                                                                                                                                   30 June 2018       30 June 2017
                                                                                                                                       Reviewed           Reviewed
                                                                                                                                      R million          R million


     The group's return on investment-related activities can be analysed as follows:

     Investment income                                                                                                                      359                308
     Net (losses)/gains on financial assets and liabilities at fair value through income                                                    (76)                63
     Income from associates and joint ventures                                                                                               18                 33
     Investment-related revenue                                                                                                             301                404
     Expenses for investment-related activities                                                                                             (23)               (24)
     Finance costs                                                                                                                         (102)              (127)
     Net total investment-related transactions                                                                                              176                253

     For detailed analysis of investment activities, refer to notes 6 and 9.

5.4  Additional information on Santam's share of SEM

     The group's return on Santam's share of SEM activities can be analysed as follows:

     For the six months ended 30 June 2018 (reviewed)
                                                                                                                                         SAN JV
                                                                                                                                         (Saham
                                                                                                                       SEM          Finances)(3)             Total
                                                                                                                 R million            R million          R million


     Revenue                                                                                                           625                  606              1 231

     Net earned premium                                                                                                430                  447                877
     Net claims incurred                                                                                               318                  273                591
     Net commission                                                                                                     24                   47                 71
     Management expenses (excluding BEE costs)                                                                         111                   82                193
     Net underwriting result                                                                                           (23)                  45                 22
     Investment return on insurance funds                                                                               85                   35                120
     Net insurance result/operating result before non-controlling interest and tax(2)                                   62                   80                142
     Reallocation of operating result(1)                                                                               (62)                 (80)              (142)
     Investment income net of investment-related fees                                                                  121                    -                121
     Income from associates and joint ventures                                                                           -                   63                 63
     Profit before tax                                                                                                 121                   63                184

     1  Reconciling items consist of the reallocation of net insurance results relating to the underlying investments SEM and SAN JV (Saham Finances) for 
        management reporting purposes.
     2  Santam's share of SAN JV's non-controlling interest and tax of R36 million resulted in net results of R44 million.
     3  Santam held an effective interest of 7%.

     For the six months ended 30 June 2017 (reviewed)

                                                                                                                                         SAN JV     
                                                                                                                                         (Saham
                                                                                                                       SEM          Finances)(4)             Total
                                                                                                                 R million            R million          R million


     Revenue                                                                                                           672                  585              1 257
 
     Net earned premium                                                                                                434                  436                870
     Net claims incurred                                                                                               359                  281                640
     Net commission                                                                                                     14                   45                 59
     Management expenses (excluding BEE costs)(2)                                                                      118                  101                219
     Net underwriting result                                                                                           (57)                   9                (48)
     Investment return on insurance funds(2)                                                                            96                   53                149
     Net insurance result/operating result before non-controlling interest and tax(3)                                   39                   62                101
     Reallocation of operating result(1)                                                                               (39)                 (62)              (101)
     Investment loss net of investment-related fees                                                                     88                    -                 88
     Income from associates including profit on sale                                                                     -                   26                 26
     Gain on dilution of associate                                                                                       -                   18                 18
     Reclassification of foreign currency translation reserve on dilution of associate                                   -                  (90)               (90)
     Profit before tax                                                                                                  88                  (46)                42

     1  Reconciling items consist of the reallocation of net insurance results relating to the underlying investments SEM and SAN JV (Saham Finances) for 
        management reporting purposes.
     2  A reclassification of R26 million between management expenses and investment return on insurance funds was made as a result of alignment with Sanlam.
     3  Santam's share of SAN JV's non-controlling interest and tax of R30 million resulted in net results of R32 million.
     4  Santam held an effective interest of 7.3%.

5.5  Geographical analysis

                                                                                               Gross written premium                    Non-current assets
                                                                                             30 Jun 2018        30 Jun 2017         30 Jun 2018        31 Dec 2017
                                                                                                Reviewed           Reviewed            Reviewed            Audited
                                                                                               R million          R million           R million          R million


     South Africa                                                                                 14 075             12 241               1 111              1 125
     Rest of Africa(1)                                                                             1 650              1 960               2 101              1 967
     Southeast Asia, India, Middle East                                                            1 000                737                 955                886
     Other                                                                                            97                115                   -                  -
                                                                                                  16 882             15 053               4 167              3 978
     Reconciling items(2)                                                                         (1 231)            (1 258)                  -                  -
     Group total                                                                                  15 591             13 795               4 167              3 978

     1  Includes gross written premium relating to Namibia of R544 million (Jun 2017: R560 million).
     2  Reconciling items relate to the underlying investments included in SEM and Saham activities for management reporting purposes.

5.6  Geographical analysis of SAN JV (Saham)'s results (reviewed)
     
     Analysis of Santam's average effective interest of 7% (2017: 7.3%)
                                                          
                                                          Life insurance            General insurance              Reinsurance                    Total
     Analysis of Santam's share of gross written   30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017
      premium                                         R million     R million     R million     R million     R million     R million     R million     R million


     Morocco                                                 58            54           224           230             -             -           282           284
     Lebanon                                                 24            25            22            25             -             -            46            50
     Mauritius (Saham Re)                                     -             -             -             -            47            38            47            38
     Ivory Coast                                             19            18            59            54             -             -            78            72
     Angola                                                   2             3            51            49             -             -            53            52
     Other                                                   14            11            92            87            41            41           147           139
     Consolidation adjustment                                (1)           (7)           (5)           (2)          (41)          (41)          (47)          (50)
                                                            116           104           443           443            47            38           606           585

                                                          
                                                          Life insurance            General insurance              Reinsurance                    Total
     Analysis of Santam's share of net             30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017
      underwriting results                            R million     R million     R million     R million     R million     R million     R million     R million


     Morocco                                                  5             -            18             9             -             -            23             9
     Lebanon                                                  -             -             -             -             -             -             -             -
     Mauritius (Saham Re)                                     -             -             -             -            20            19            20            19
     Ivory Coast                                             (2)           (5)            5             4             -             -             3            (1)
     Angola                                                   -             -             -            (1)            -             -             -            (1)
     Other                                                   (3)           (3)            5            (3)           (3)          (11)           (1)          (17)
                                                              -            (8)           28             9            17             8            45             9

     Analysis of SAN JV (Saham)'s results (100%)

                                                          Life insurance            General insurance              Reinsurance                    Total
                                                   30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017
     Analysis of SAN JV (Saham)'s gross written        Reviewed      Reviewed      Reviewed      Reviewed      Reviewed      Reviewed      Reviewed      Reviewed
      premium                                         R million     R million     R million     R million     R million     R million     R million     R million

     Morocco                                                831           742         3 213         3 162             -             -         4 044         3 904
     Lebanon                                                337           341           311           341             -             -           648           682
     Mauritius                                                -             -             -             -           674           527           674           527
     Ivory Coast                                            274           244           839           739             -             -         1 113           983
     Angola                                                  30            35           730           667             -             -           760           702
     Other                                                  196           150         1 319         1 193           589           567         2 104         1 910
     Consolidation                                          (16)          (99)          (75)          (32)         (586)         (567)         (677)         (698)
     Gross written premium                                1 652         1 413         6 337         6 070           677           527         8 666         8 010

                                                          Life insurance            General insurance              Reinsurance                    Total
     Analysis of SAN JV (Saham)'s underwriting     30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017  30 June 2018  30 June 2017
      result                                          R million     R million     R million     R million     R million     R million     R million     R million

     Morocco                                                 62             5           254           126             -             -           316           131
     Lebanon                                                  2            (1)            2            (1)            -             -             4            (2)
     Mauritius                                                -             -             -             -           290           256           290           256
     Ivory Coast                                            (26)          (68)           61            48             -             -            35           (20)
     Angola                                                   -            (1)            7           (10)            -             -             7           (11)
     Other                                                  (43)          (38)           72           (39)          (36)         (155)           (7)         (232)
     Underwriting result                                     (5)         (103)          396           124           254           101           645           122


                                                                                                                                    Reviewed at         Audited at
                                                                                                                                   30 June 2018   31 December 2017
                                                                                                                                      R million          R million


6.  Financial assets and liabilities
    The group's financial assets are summarised below by measurement category.

    Financial assets
    Financial assets at fair value through income                                                                                        22 247             19 736
    Loans and receivables
      Receivables arising from insurance and reinsurance contracts                                                                        4 315              4 279
      Loans and receivables excluding insurance receivables                                                                               1 006                974
                                                                                                                                         27 568             24 989

    Financial liabilities
    Financial liabilities at fair value through income                                                                                    3 662              3 759
    Financial liabilities at amortised cost                                                                                                 137                130
    Trade and other payables                                                                                                              5 585              4 953
                                                                                                                                          9 384              8 842

    Financial instruments measured at fair value on a recurring basis
    The table below analyses financial instruments, carried at fair value through income, by valuation method. There were no significant changes in the valuation 
    methods applied since 31 December 2017. The different levels have been defined as follows:

    - Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
    - Level 2: Input other than quoted prices included within level 1 that is observable for the asset or liability, either directly (that is, by prices) or 
      indirectly (that is, derived from prices). The fair value of level 2 instruments are determined as follows:
      - Quoted equity securities are valued using quoted prices with the main assumption that quoted prices might require adjustments due to an inactive market.
      - Unquoted equity securities are valued using the discounted cash flow (DCF) or net asset value method based on market input.
      - Quoted debt securities are valued using yield of benchmark bond, DCF benchmarked against similar instruments with the same issuer, price quotations of JSE
        interest rate market or issue price of external valuations based on market input.
      - Unquoted debt securities are valued using DCF, real interest rates, benchmark yield plus fixed spread or deposit rates based on market input.
      - Quoted unitised investments with underlying equity securities are valued using quoted prices with the main assumption that quoted prices might require
        adjustments due to an inactive market.
      - Quoted unitised investments with underlying debt securities are valued using DCF, external valuations and published price quotations on the JSE equity and
        interest rate market or external valuations that are based on published market input with the main assumptions being market input, uplifted with inflation.
      - Derivatives are valued using the Black-Scholes model, net present value of estimated floating costs less the performance of the underlying index over 
        contract term, DCF (using fixed contract rates and market related variable rates adjusted for credit risk, credit default swap premiums, offset between 
        strike price and market projected forward value, yield curve of similar market-traded instruments) with the main assumptions being market input, credit 
        spreads and contract inputs.
    - Level 3: Input for the asset or liability that is not based on observable data (that is, unobservable input).

    There were no significant transfers between level 1 and level 2 during the current period.


    Reviewed at 30 June 2018                                                                     Level 1            Level 2             Level 3              Total
    Financial assets at fair value through income                                              R million          R million           R million          R million


    Equity securities
      Quoted
        Listed                                                                                     2 112                 18                   -              2 130
        Irredeemable preference shares                                                                 1                  -                   -                  1
      Unquoted                                                                                         -                 34               1 266              1 300
    Total equity securities                                                                        2 113                 52               1 266              3 431
    Debt securities 
      Quoted
        Government and other bonds                                                                     -              4 051                   -              4 051
        Collateralised securities                                                                      -                531                   -                531
        Money market instruments more than one year                                                    -              3 252                   -              3 252
      Unquoted
        Government and other bonds                                                                     -                634                   -                634
        Money market instruments more than one year                                                    -              4 589                   -              4 589
        Redeemable preference shares                                                                   -                118                  25                143
    Total debt securities                                                                              -             13 175                  25             13 200
    Unitised investments
      Quoted
        Underlying equity securities                                                                   -              1 972                   -              1 972
        Underlying debt securities                                                                     -              1 355                   -              1 355
    Total unitised investments                                                                         -              3 327                   -              3 327
    Derivative instruments
      Exchange traded futures(1)                                                                       -                  -                   -                  -
      Interest rate swaps                                                                              -                  1                   -                  1
    Total derivative instruments                                                                       -                  1                   -                  1
    Short-term money market instruments                                                                -              2 288                   -              2 288
    Total financial assets at fair value through income                                            2 113             18 843               1 291             22 247
  
    1  Carrying value as at 30 June 2018 is less than R1 million.

    Financial liabilities at fair value through income
    Debt securities                                                                                    -              2 049                   -              2 049
    Investment contracts                                                                               -              1 613                   -              1 613
    Total financial liabilities at fair value through income                                           -              3 662                   -              3 662


    Audited at 31 December 2017                                                                  Level 1            Level 2             Level 3              Total
    Financial assets at fair value through income                                              R million          R million           R million          R million


    Equity securities
      Quoted
        Listed                                                                                     2 086                  9                   -              2 095
        Irredeemable preference shares                                                                 2                  -                   -                  2
      Unquoted                                                                                         -                 36               1 143              1 179
    Total equity securities                                                                        2 088                 45               1 143              3 276
    Debt securities
      Quoted
        Government and other bonds                                                                     -              3 776                   -              3 776
        Collateralised securities                                                                      -                541                   -                541
        Money market instruments more than one year                                                    -              4 094                   -              4 094
      Unquoted
        Government and other bonds                                                                     -                184                   -                184
        Money market instruments more than one year                                                    -              3 367                   -              3 367
        Redeemable preference shares                                                                   -                157                  25                182
    Total debt securities                                                                              -             12 119                  25             12 144
    Unitised investments
      Quoted
        Underlying equity securities                                                                   -              1 765                   -              1 765
        Underlying debt securities                                                                     -                369                   -                369
    Total unitised investments                                                                         -              2 134                   -              2 134
    Derivative instruments
        Exchange traded futures                                                                        -                  8                   -                  8
        Interest rate swaps(1)                                                                         -                  -                   -                  -
    Total derivative instruments                                                                       -                  8                   -                  8
    Short-term money market instruments                                                                -              2 174                   -              2 174
    Total financial assets at fair value through income                                            2 088             16 480               1 168             19 736

    1 Carrying value as at 31 December 2017 is less than R1 million.

    Financial liabilities at fair value through income
    Debt securities                                                                                    -              2 056                   -              2 056
    Investment contracts                                                                               -              1 703                   -              1 703
    Total financial liabilities at fair value through income                                           -              3 759                   -              3 759

    The following table presents the changes in level 3 instruments:

                                                                                                  Equity               Debt
                                                                                              securities         securities         Derivatives              Total
    30 June 2018 (reviewed)                                                                    R million          R million           R million          R million


    Opening balance                                                                                1 143                 25                   -              1 168
    Gains recognised in profit or loss                                                               123                  -                   -                123
    Closing balance                                                                                1 266                 25                   -              1 291

    31 December 2017 (audited)
    Opening balance                                                                                1 181                 29                   -              1 210
    Acquisitions                                                                                       2                  -                   -                  2
    Business combination                                                                               -                 (4)                  -                 (4)
    Disposals                                                                                       (106)                 -                   -               (106)
    Settlements                                                                                        -                  -                  58                 58
    Gains/(losses) recognised in profit or loss                                                       66                  -                 (58)                 8
    Closing balance                                                                                1 143                 25                   -              1 168


    The unquoted equity instruments recognised as level 3 instruments consist mainly of the participation target shares issued by Sanlam Emerging Markets (Pty) Ltd 
    (SEM). The Sanlam group entered into agreements in June 2017 to dispose of its various interests in the Enterprise Group in Ghana. In terms of the 
    co-investment arrangement with SEM, Santam, which had an economic interest of 14% in Enterprise Insurance Company Ltd (EIC), disposed of its interest in EIC 
    for R105 million.

    Of the R123 million gain (Dec 2017: R66 million gain) recognised on equity securities, a R121 million gain (Dec 2017: R65 million gain) relates to the SEM 
    target shares, of which R66 million (Dec 2017: R57 million loss) relates to foreign exchange gains, and R55 million to an increase (Dec 2017: R122 million) 
    in fair value in local currency terms. Key drivers of the fair value movements of Santam's share of the SEM investment portfolio were:

    - An increase in the value of Shriram General Insurance Company Ltd of R47 million, in local currency terms, was mainly attributed to good performance 
      achieved in the Indian insurance market.

    The fair value of the SEM target shares is determined using predominantly discounted cash flow (DCF) models, with the remainder valued at or within close 
    proximity of the latest available net asset value of the underlying company. The most significant assumptions used in these DCF models are the discount rate, 
    exchange rate and net insurance margin expectations. Should the discount rates increase or decrease by 10%, the cumulative value of the most significant 
    target shares valued by way of DCF models would decrease by R159 million (Dec 2017: R140 million) or increase by R239 million (Dec 2017: R211 million), 
    respectively. If the relative foreign exchange rates increase or decrease by 10%, the cumulative fair values will increase or decrease by R95 million 
    (Dec 2017: R86 million). Should the net insurance margin profile (projected over a period of 10 years) increase or decrease by 10%, the cumulative fair values 
    will increase by R79 million (Dec 2017: R93 million) or decrease by R79 million (Dec 2017: R93 million), respectively. The remaining target shares are mostly 
    impacted by changes in exchange rates.

    At 30 June 2018, the group had exchange traded futures with an exposure value of R0.07 million (Dec 2017: R235 million). The group also had interest rate 
    derivative assets as part of the international bond portfolio with a gross exposure asset and liability at 30 June 2018 of R37 million (Dec 2017: R33 million) 
    and R36 million (Dec 2017: R33 million) respectively.

    During 2007, the company issued unsecured subordinated callable notes to the value of R1 billion in two tranches. The fixed effective rate for the 
    R600 million issue was 8.6% and 9.6% for the second tranche of R400 million, representing the R203 companion bond plus an appropriate credit spread at the 
    time of the issues. The fixed coupon rate, based on the nominal value of the issues, amounts to 8.25% and for both tranches the optional redemption date was 
    15 September 2017. Between the optional redemption date and final maturity date of 15 September 2022, a variable interest rate (JIBAR-based plus additional 
    margin) would have applied. Both tranches were, however, redeemed on 15 September 2017, resulting in the realisation of the initial discount of R45 million.

    During April 2016, the company issued additional unsecured subordinated callable notes to the value of R1 billion in two equal tranches of fixed and floating 
    rate notes. The effective rate for the floating rate notes represents the three-month JIBAR plus 245 basis points, while the rate for the fixed rate notes 
    amounted to 11.77%. The floating rate notes have an optional redemption date of 12 April 2021 with a final maturity date of 12 April 2026, and the fixed rate 
    notes an optional redemption date of 12 April 2023 with a final maturity date of 12 April 2028.

    During June 2017, the company issued additional unsecured subordinated callable floating rate notes to the value of R1 billion in anticipation of the 
    redemption of the R1 billion subordinated debt issued in 2007. The effective interest rate for the floating rate notes represents the three-month JIBAR plus 
    210 basis points. The notes have an optional redemption date of 27 June 2022 with a final maturity date of 27 June 2027.

    Per the conditions set by the Prudential Authority, Santam is required to maintain liquid assets equal to the value of the callable notes until maturity. 
    The callable notes are therefore measured at fair value to minimise undue volatility in the statement of comprehensive income. The fair value of the fixed 
    rate notes is calculated using the yield provided by BESA and adding accrued interest. The fair value of the floating rate notes is calculated using the price 
    provided by BESA and adding accrued interest.

    On 31 July 2017, a zero cost collar structure on equities to the value of R1.2 billion was entered into based on the SWIX 40, providing full downside 
    protection from the implementation level of 10 972, with upside participation (excluding dividends) of 2.2%. The structure matured on 21 December 2017 
    (resulting in a realised loss of R58 million) and was not renewed.

                                                                                                                                    Reviewed at         Audited at
                                                                                                                                   30 June 2018   31 December 2017
                                                                                                                                      R million          R million


7.  Insurance liabilities and reinsurance assets
    Gross insurance liabilities
    Long-term insurance contracts
    - claims reported and loss adjustment expenses                                                                                           88                 75
    - claims incurred but not reported                                                                                                       60                 62
    General insurance contracts
    - claims reported and loss adjustment expenses                                                                                        8 219              8 273
    - claims incurred but not reported                                                                                                    2 507              2 310
    - unearned premiums                                                                                                                   7 706              7 128
    Total gross insurance liabilities                                                                                                    18 580             17 848

      Non-current liabilities                                                                                                             2 151              1 789
      Current liabilities                                                                                                                16 429             16 059

    Recoverable from reinsurers
    Long-term insurance contracts
    - claims reported and loss adjustment expenses                                                                                           14                 18
    - claims incurred but not reported                                                                                                       14                 15
    General insurance contracts
    - claims reported and loss adjustment expenses                                                                                        3 850              3 918
    - claims incurred but not reported                                                                                                      602                496
    - unearned premiums                                                                                                                   1 566              1 377
    Total reinsurers' share of insurance liabilities                                                                                      6 046              5 824

      Non-current assets                                                                                                                    544                202
      Current assets                                                                                                                      5 502              5 622

    Net insurance liabilities
    Long-term insurance contracts
    - claims reported and loss adjustment expenses                                                                                           74                 57
    - claims incurred but not reported                                                                                                       46                 47
    General insurance contracts
    - claims reported and loss adjustment expenses                                                                                        4 369              4 355
    - claims incurred but not reported                                                                                                    1 905              1 814
    - unearned premiums                                                                                                                   6 140              5 751
    Total net insurance liabilities                                                                                                      12 534             12 024


                                                                                                                                    Reviewed at         Audited at
                                                                                                                                   30 June 2018   31 December 2017
                                                                                                                                      R million          R million

8.  Non-current assets held for sale
    Non-current assets held for sale relates to the winding up of the Santam International group. The winding up also resulted in the release of the foreign 
    currency translation reserve relating to the investment of R175 million (refer to note 9).

    Assets that are classified as held for sale
    Financial assets at fair value through income
      Opening balance                                                                                                                         -                  8
      Settlements                                                                                                                             -                 (8)
      Closing balance                                                                                                                         -                  -
                                                                                                                                                                           
                                                                                                                                       Reviewed           Reviewed
                                                                                                                               Six months ended   Six months ended
                                                                                                                                   30 June 2018       30 June 2017
                                                                                                                                      R million          R million


9.  Investment income and net (losses)/gains on financial assets and liabilities
    Investment income                                                                                                                     1 001                590
      Interest income derived from assets measured at                                                                                       723                606
        Amortised cost                                                                                                                      103                 63
        Fair value through income                                                                                                           620                543
      Other investment income/(losses)                                                                                                      278                (16)
        Dividend income                                                                                                                      85                 37
        Foreign exchange differences                                                                                                        193                (53)
    Net (losses)/gains on financial assets and liabilities at fair value through income                                                    (140)               153
      Net realised gains on financial assets                                                                                                 65                 21
      Net fair value (losses)/gains on financial assets designated as at fair value through income                                         (204)               143
      Net realised/fair value (losses)/gains on derivative instruments                                                                       (3)                 5
      Net fair value losses on short-term money market instruments                                                                            -                 (2)
      Net fair value losses on financial liabilities designated as at fair value through income                                               2                (14)
        Net fair value gains/(losses) on debt securities                                                                                      6                (14)
        Net realised losses on investment contracts                                                                                          (6)                 -
        Net realised gains on debt securities                                                                                                 2                  -


    Investment income and net losses on financial assets held for sale(1)                                                                     -                175
      Foreign exchange differences                                                                                                            -                175

                                                                                                                                            861                918

    1  The release of the foreign currency translation reserve of R175 million for the group related to Santam International.

10.  Income tax
     Normal taxation
     Current period                                                                                                                         393                118
     Recovered from cell owners(1)                                                                                                            -                (41)
     Other taxes                                                                                                                              1                  -
     Foreign taxation - current period                                                                                                       33                 28
     Total income taxation for the period                                                                                                   427                105

     Deferred taxation
     Current period                                                                                                                          17                121
     Prior period                                                                                                                             -                 (2)
     Total deferred taxation for the period                                                                                                  17                119

     Total taxation as per statement of comprehensive income                                                                                444                224
     Income tax recovered from cell owners and structured insurance products(1)                                                             (44)                 -
     Total tax expense attributable to shareholders                                                                                         400                224

     Profit before taxation per statement of comprehensive income                                                                         1 626              1 032
     Adjustment for income tax recovered from cell owners and structured insurance products(1)                                              (44)                 -
     Total profit before tax atttributable to shareholders                                                                                1 582              1 032

     1  As part of the alternative risk transfer business, the Santam Group incurs taxation on behalf of cell owners and policyholders of certain structured 
        insurance products which are fully recovered from these parties. With the acquisition of SSI in the 2017 financial year, the tax on cell owners and 
        structured insurance products is more significant. As a result, the tax on cell owners and structured insurance products in the current period has been 
        separately disclosed in the financial statements. In the prior periods, this tax was disclosed as part of tax expense.

                                                                                                                                       Reviewed           Reviewed
                                                                                                                               Six months ended   Six months ended
                                                                                                                                   30 June 2018       30 June 2017         
                                                                                                                                      R million          R million
     Reconciliation of taxation rate (%)
     Normal South African taxation rate                                                                                                    28.0               28.0


     Adjusted for:
       Disallowable expenses                                                                                                                0.1                0.2
       Foreign tax differential                                                                                                             0.2                0.4
       Exempt income                                                                                                                       (1.3)              (1.3)
       Investment results                                                                                                                     -               (1.3)
       Income from associates and joint ventures                                                                                           (1.4)              (1.9)
       Exempt foreign currency translation                                                                                                    -               (2.3)
       Other permanent differences                                                                                                         (0.3)              (0.2)
       Other taxes                                                                                                                            -                0.1
     Net reduction                                                                                                                         (2.7)              (6.3)

     Effective rate attributable to shareholders (%)                                                                                       25.3               21.7

11.  Corporate transactions
     2018
     Acquisitions
     Professional Provident Society Short-term Insurance Company Ltd (PST)
     During March and June 2018, pro rata recapitalisations took place in terms of which Santam injected a further total of R11 million into the company.

     2017
     Acquisitions
     Santam Structured Insurance (Pty) Ltd
     During March 2017, the Santam group acquired a shareholding of 100% in RMB-SI Investments (Pty) Ltd (now Santam Structured Insurance (Pty) Ltd (SSI)) for 
     R193 million in cash. Key SSI management obtained a 10% economic participation interest in SSI at the acquisition date for R20 million. The 10% participatory 
     interest is included as a liability under provisions.

                                                                                                                                                         R million


     Details of the assets and liabilities acquired (based on provisional purchase price allocation) are as follows:
     Property and equipment                                                                                                                                     15
     Investment in associates and joint ventures                                                                                                                17
     Financial assets at fair value through income                                                                                                           4 341
     Reinsurance assets                                                                                                                                        391
     Deferred acquisition costs                                                                                                                                  9
     Loans and receivables including insurance receivables                                                                                                     519
     Cash and cash equivalents                                                                                                                               1 045
     Deferred income tax                                                                                                                                       (86)
     Cell owners' and policyholders' interest                                                                                                               (1 849)
     Financial liabilities at fair value through income                                                                                                     (1 551)
     Insurance liabilities                                                                                                                                  (2 242)
     Deferred reinsurance acquisition revenue                                                                                                                   (2)
     Provisions for other liabilities and charges                                                                                                              (30)
     Trade and other payables including insurance payables                                                                                                    (350)
     Current income tax liabilities                                                                                                                            (14)
     Net asset value acquired                                                                                                                                  213
     Long-term incentive provision                                                                                                                             (20)
     Purchase consideration paid                                                                                                                               193

     SAN JV (RF) (Pty) Ltd
     Effective 10 May 2017, SEM and Santam, through its investment in SAN JV (RF) (Pty) Ltd (SAN JV), acquired a further 16.6% interest in Saham Finances via a
     subscription for new shares for US$351 million (R4.8 billion). Santam's share of the purchase price, including transaction costs, was US$11 million 
     (R152 million). Santam's interest in SAN JV therefore diluted to 15% (previously 25%). As a result of the dilution, R90 million of the foreign currency 
     translation reserve relating to SAN JV was released to profit or loss. An R18 million gain on dilution was also recognised.

     Professional Provident Society Short-term Insurance Company Ltd (PST)
     During March, June, September and December 2017, pro rata recapitalisations took place in terms of which Santam injected a further total of R23 million into 
     the company.

     Disposals
     Paladin Underwriting Managers (Pty) Ltd
     During January 2017, the group sold its 40% shareholding in Paladin Underwriting Managers (Pty) Ltd for R23 million. The net profit realised was R5 million 
     and capital gains tax of R2 million was recognised.


                                                                                                                                       Reviewed           Reviewed
                                                                                                                               Six months ended   Six months ended
                                                                                                                                   30 June 2018       30 June 2017

12.  Earnings per share
     Basic earnings per share
     Profit attributable to the company's equity holders (R million)                                                                      1 124                753
     Weighted average number of ordinary shares in issue (million)                                                                       110.38             110.26
     Earnings per share (cents)                                                                                                           1 018                683

     Diluted earnings per share
     Profit attributable to the company's equity holders (R million)                                                                      1 124                753
     Weighted average number of ordinary shares in issue (million)                                                                       110.38             110.26
     Adjusted for share options                                                                                                            1.07               1.02
     Weighted average number of ordinary shares for diluted earnings per share (million)                                                 111.45             111.28

     Diluted basic earnings per share (cents)                                                                                             1 009                677

     Headline earnings per share
     Profit attributable to the company's equity holders (R million)                                                                      1 124                753
     Adjusted for:
       Impairment of goodwill and other intangible assets                                                                                     -                  7
       Reclassification of foreign currency translation reserve on dilution of associate                                                      -                 90
       Gain on dilution of associate                                                                                                          -                (18)
       Profit on sale of associates                                                                                                           -                 (5)
       Tax charge on profit on sale of associates                                                                                             -                  2
       Foreign currency translation reserve reclassified to profit and loss                                                                   -               (175)
     Headline earnings (R million)                                                                                                        1 124                654

     Weighted average number of ordinary shares in issue (million)                                                                       110.38             110.26
     Headline earnings per share (cents)                                                                                                  1 018                593

     Diluted headline earnings per share
     Headline earnings (R million)                                                                                                        1 124                654
     Weighted average number of ordinary shares for diluted headline earnings per share (million)                                        111.45             111.28
     Diluted headline earnings per share (cents)                                                                                          1 009                588

13.  Dividend per share
     Dividend per share (cents)                                                                                                             363                336

14.  Restatement of statement of cash flows
     As part of management's consideration of the impact of IFRS 9 on the classification and measurement of financial assets, the way in which the investment 
     portfolios are managed and how actively they are traded was assessed. As a result of this assessment it was concluded that it is more appropriate to classify 
     the cash flows relating to the investment portfolios as part of operating activities rather than investing activities. The acquisition of and proceeds from 
     sales relating to strategic investments, equity portfolios and portfolios backing subordinated debt will remain as part of investing activities as these 
     portfolios are not considered part of the operations of the business. Comparative numbers have been restated.

     The table below shows the impact of the change:

                                                                                                        Previously reported                               Restated
                                                                                                           Six months ended         Restatement   Six months ended
                                                                                                               30 June 2017        30 June 2017       30 June 2017
                                                                                                                  R million           R million          R million


     Net cash (used in)/from operating activities
     - Acquisition of financial assets                                                                                   -               (7 706)            (7 706)
     - Proceeds from sale of financial assets                                                                            -                6 649              6 649

     Net cash (used in)/from investing activities
     - Acquisition of financial assets                                                                               (7 774)              7 706                (68)
     - Proceeds from sale of financial assets                                                                         6 799              (6 649)               150
     Net impact                                                                                                        (975)                  -               (975)
 
15.  Events after the reporting period
     The Santam Board announced on 30 August 2018, Santam’s intention to participate in a transaction with Sanlam to increase its effective interest in Saham Finances 
     to 10% by subscribing for further shares in SAN JV to the extent of R864 million, plus its share of transaction costs. Post implementation of the transaction, 
     Santam’s effective interest in Saham Finances, held indirectly through SAN JV, will increase from 7% to 10%.

     Santam will fund its share of the purchase consideration and transaction costs from available internal resources.  

     Santam, Sanlam and SEM have in principle reached an agreement for Santam to reduce over time its economic participation in the SEM general insurance businesses 
     in Africa (excluding Namibia) from 35% to 10% to align with the effective 10% interest that Santam will have in Saham Finances. 

     The transaction is subject to a number of conditions precedent, including regulatory approvals.
     
     There have been no other material changes in the affairs or financial position of the company and its subsidiaries since the statement of financial position date.

ADMINISTRATION

NON-EXECUTIVE DIRECTORS
B Campbell, BTPKM Gamedze, VP Khanyile (chairman), IM Kirk, MLD Marole, NV Mtetwa, JJ Ngulube, MJ Reyneke, PE Speckmann, HC Werth

EXECUTIVE DIRECTORS
L Lambrechts (chief executive officer), HD Nel (chief financial officer)

COMPANY SECRETARY
M Allie

TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196  
PO Box 61051, Marshalltown 2107
Tel: 011 370 5000
Fax: 011 688 7721
www.computershare.com

SANTAM HEAD OFFICE AND REGISTERED ADDRESS
1 Sportica Crescent  
Tyger Valley, Bellville 7530  
PO Box 3881, Tyger Valley 7536
Tel: 021 915 7000
Fax: 021 914 0700
www.santam.co.za

Registration number 1918/001680/06
ISIN ZAE000093779
JSE share code: SNT
NSX share code: SNM

SPONSOR
Investec Bank Ltd


Santam is an authorised financial services provider (licence number 3416).




Date: 30/08/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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