Operational Update to Shareholders following The Board Meeting held on 28 November 2018
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT & ISIN ZAE000093779)
NSX share code: SNM
OPERATIONAL UPDATE TO SHAREHOLDERS FOLLOWING THE BOARD MEETING HELD ON 28
This serves as a general communication to Santam shareholders with regard to the business for the ten-
month period ended 31 October 2018.
Conventional insurance business
The Santam Group’s conventional insurance business segment achieved strong underwriting results with a
net underwriting margin slightly above the upper end of the target range of 4% to 8%. The investment return
on insurance funds was lower than the comparative period mainly due to lower interest rates.
The Santam Commercial and Personal intermediated business experienced a strain on growth in the
current difficult economic climate. Overall, claims benefited from an absence of significant catastrophe
events and fewer large commercial fire 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, as well as
losses from the trade credit insurance business, negatively impacted the underwriting results.
MiWay experienced slower growth compared to the corresponding period in 2017, mainly due to the
challenging economic environment. Good underwriting results were achieved, with the loss ratio remaining
in line with the June 2018 results.
Santam Re reported strong gross written premium growth from third party business outside South Africa
but experienced increased claims activity, affecting the underwriting results negatively.
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 the business plan.
Shriram General Insurance (SGI) recorded satisfactory operating results.
Following the completion of the further investment in SAN JV on 9 October 2018 whereby Santam
increased its effective shareholding in Saham Finances to 10%, further progress was made with
operationalising a Pan-African specialist insurance provider between Santam and Saham Finances.
The group’s investment performance benefitted from significant foreign currency gains, which set off the
negative impact of unrealised fair value movements on equities and debt securities.
Headline earnings remain susceptible to the inherent volatility of underwriting and investment activities.
The results for the year ending 31 December 2018 will be released on SENS on 28 February 2019.
28 NOVEMBER 2018
Sponsor: Investec Bank Limited
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