SANTAM LIMITED - Voluntary Announcement: Santam Receives In-Principle Approval To Launch A UK-Based Lloyds Syndicate

Voluntary Announcement: Santam Receives In-Principle Approval To Launch A UK-Based Lloyd’s Syndicate

SANTAM LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 1918/001680/06
LEI: 37890092DC55C7D94B35
ISIN: ZAE000093779
JSE Share Code: SNT
A2X Share Code: SNT
NSX Share Code: SNM
Bond Company Code: BISAN
("Santam", the "Company" or the "Group")


VOLUNTARY ANNOUNCEMENT: SANTAM RECEIVES IN-PRINCIPLE APPROVAL TO LAUNCH A
UK-BASED LLOYD'S SYNDICATE


1. INTRODUCTION

Shareholders and noteholders are herewith advised that Santam has received in-principle approval by
the Lloyd's Council to launch a Santam syndicate (the "Santam Syndicate"), subject to meeting the pre-
determined start-up operational requirements of Lloyd's. The initiative has received the relevant
regulatory approvals in South Africa.

Final approval and "permission to underwrite" by Lloyd's are expected during the fourth quarter of 2025.


2. STRATEGIC RATIONALE

International expansion and diversification is a key strategic pillar of Santam to accelerate future growth
prospects from a Gross Written Premium and earnings perspective. Santam's international operations
are currently driven through Santam Specialist Solutions and Santam Re. The establishment of the
Santam Syndicate is aimed at significantly enhancing Santam's international growth and diversification
ambition.

Lloyd's is one of the largest insurance and reinsurance market places globally. It provides an efficient
and scalable platform to access specialist insurance classes - an area where Santam has a leading
position and skill set in South Africa.

The initiative has the potential to enhance Santam's future growth prospects, without incurring the
extended period of investment typically associated with building a new "greenfield" operation. Santam
will also benefit from, among other, Lloyd's sound governance principles, superior credit ratings and the
strong distribution network of the market. The Santam Syndicate will, furthermore, leverage Santam's
specialist capabilities in South Africa as well as Santam's strong partnership with SanlamAllianz in the
rest of Africa.

The Santam Syndicate will enable access through Lloyd's licenses to trade in approximately 77
insurance and 200 reinsurance territories across the globe, as well as international specialist
underwriting expertise in the London market. Lloyd's, furthermore, employs a robust governance
framework encompassing various aspects to ensure the stability and responsible operation of the
market, which aims to foster good customer outcomes and mitigate risks for all affected stakeholders.

Santam has appointed the first members of its leadership team based in London, who possess
extensive experience and successful track records within the Lloyd's market. The team will be
augmented over the remainder of the year.

The business plan anticipates a minimal negative earnings impact in the first year of operations. This is
primarily due to the delayed recognition of written premiums, with a positive earnings contribution
expected from the second year onwards. The incremental earnings contribution is expected to meet the
Group's return on capital target over the medium term.

The launch of the Santam Syndicate is a significant endorsement of the quality of Santam's underwriting
capabilities, which further demonstrates the Group's commitment to strengthen its position as a leader
in specialist insurance classes. Santam has transformed the general insurance market in South Africa
since its establishment in 1918. The launch of the Santam Syndicate is the next chapter in transforming
Santam and its investment case, as well as its value proposition.


3. EFFECTIVE DATE

The Santam Syndicate aims to commence underwriting later this year, with business incepting from
01 January 2026 – i.e. subject to meeting the pre-determined start-up operational requirements of
Lloyd's.


4. CATEGORISATION

In accordance with Section 9 of the JSE Limited's Listings Requirements, the establishment of the
Santam Syndicate falls below the Category 2 threshold. As such, this announcement is made primarily
on a voluntary basis and no shareholder approvals are required.


5. INVESTOR LIAISON

A call with shareholders, investors and other key stakeholders is scheduled for 23 July 2025 (15H00 –
16H00 SA time). The dial-in details are as follows:
    • https://us06web.zoom.us/j/84704145753?pwd=gMrKolTaiwrDBlGOeRoGGF3tY0g1ds.1



Cape Town

23 July 2025


Equity and Debt Sponsor: Investec Bank Limited

NSX Sponsor: Simonis Storm Securities (Pty) Ltd
A Member of the Namibian Securities Exchange

Date: 23-07-2025 07:05:00
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