SANTAM LIMITED - Operational Update to Shareholders following The Board Meeting held on 30 May 2018

Operational Update to Shareholders following The Board Meeting held on 30 May 2018

SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT & ISIN ZAE000093779)
NSX share code: SNM
(‘Santam’)


OPERATIONAL UPDATE TO SHAREHOLDERS FOLLOWING THE BOARD MEETING HELD ON 30 MAY
2018

This serves as a general communication to Santam shareholders with regard to the business for the four-
month period ended 30 April 2018.

Conventional insurance business

The Santam Group’s conventional insurance business segment achieved strong underwriting results with a
net underwriting margin above the upper end of the target range of 4% to 8%. The investment return on
insurance funds was marginally lower than the comparative period due to lower interest rates and lower levels
of insurance funds.

The Santam Commercial and Personal intermediated business reported acceptable growth in the current
challenging economic climate. Overall, claims benefited from an absence of significant catastrophe events
and fewer large commercial claims.

The Santam Specialist business experienced strong growth in the corporate property business, with more
subdued growth in the other specialist classes. A number of large property and liability claims were
reported, negatively impacting underwriting results, while a low incidence of hail and drought claims
benefited the agriculture business.

MiWay was also affected by the challenging environment and experienced slower growth compared to the
corresponding period in 2017. Good underwriting results were, however, achieved, supported by a lower
claims frequency.

Santam Re reported strong gross written premium growth from third party business outside South Africa
whilst maintaining acceptable underwriting results.

Alternative risk transfer business (ART)

The ART business segment reported strong growth and operating results with good contributions from both
Centriq and Santam Structured Insurance.

Sanlam Emerging Market (SEM) partner businesses

Saham Finances’ growth and improved operating results were in line with expectations, with the Angola
operations in particular holding up well in a difficult environment.

Shriram General Insurance (SGI) recorded satisfactory growth and operating results.

Investment performance

The group’s investment performance was below expectations, in line with the market for the period.

Headline earnings remain susceptible to the inherent volatility of underwriting and investment activities.

The next set of results will be for the six months to 30 June 2018, to be released on SENS on 30 August
2018.

CAPE TOWN
30 MAY 2018
Sponsor: Investec Bank Limited

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