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Audited Consolidated Financial Statements for the year ended 31 December 2023 and Declaration of Ordinary Dividend
Santam Limited
Incorporated in the Republic of South Africa
Registration number 1918/001680/06
ISIN: ZAE000093779
JSE share code: SNT
NSX share code: SNM
A2X share code: SNT
Debt company code: BISAN
LEI: 37890092DC55C7D94B35
("Santam" or "the company" or "the group")
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 AND DECLARATION OF ORDINARY DIVIDEND
KEY FINANCIAL RESULTS
Year ended Year ended Change
31 Dec 2023 31 Dec 2022 %
Group insurance revenue (R million) 46,882 43,082 9%
Ordinary dividend per share (R cents per share) 905.00000 845.00000 7%
Basic earnings per share (R cents per share) 2,973 1,806 65%
Headline earnings per share (HEPS) (R cents per share) 2,310 1,817 27%
SALIENT FEATURES
- Conventional insurance GWP growth of 6% to R37.4 billion
- Conventional insurance net underwriting margin of 3.5% (5.1% in December 2022)
- Gross claims paid of R29.9 billion
- Return on shareholders' funds of 28.5%
- Economic capital coverage ratio of 155% (156% in December 2022)
- Final dividend of 905.00000 cents per share
KEY PERFORMANCE HIGHLIGHTS
Santam once again demonstrated its resilience, achieving strong financial results despite difficult operating conditions. Our
resilience is a testament to our business core strength - we have a solid legacy and a consistent, proven record of
sustainable value creation. Net income increased by 64% with a return on capital of 28.5%. A final dividend of 905 cents per
share was declared; up 7% on 2022.
Conventional insurance
Conventional insurance underwriting profit declined by 26% at a margin of 3.5% (2022: 5.1%). Performance was impacted by the
floods in the Western Cape, hail storms in Gauteng, the earthquake in Turkiye, and fires throughout the country that
negatively affected the profitability of the property class of business.
- Santam Broker Solutions and Santam Client Solutions were most significantly impacted by the weather-related claims.
- This was offset by an exceptional underwriting result from Santam Specialist Solutions where most lines of business
experienced a lower frequency of large claims compared to 2022.
- MiWay recorded a loss ratio of 59% (2022: 60%) and an underwriting profit of R168 million (2022: R254 million).
Underwriting actions showed positive results but were offset by investments into strategic initiatives.
- Strong investment return on insurance funds contributed an overall 3% increase in conventional earnings.
Alternative Risk Transfer (ART) insurance
The ART business, consisting of Santam Structured Insurance and Centriq, reported profits of R516 million (2022: R368
million), the combination of solid growth in operating earnings as well as investment return.
International businesses
Our investments in India and Malaysia delivered exceptional revenue growth of 31%. The Indian business was the main
contributor with strong growth across all distribution channels.
Strategy
In 2023, we introduced our new operating model and refreshed strategy. We have made good progress towards our 2030 targets and
are confident in the ability to deliver superior shareholder returns.
DECLARATION OF ORDINARY DIVIDEND (NUMBER 138)
Notice is hereby given that the board has declared a gross final dividend of 905.00000 cents (2022: 845.00000 cents) per
ordinary share for the year ended 31 December 2023 to those members registered on the record date, being Friday, 22 March
2024. The dividend has been declared from income reserves. A dividend withholding taxation of 20% will be applicable to all
shareholders who are not exempt, with a net dividend of 724.00000 cents per ordinary share payable to such shareholders.
Company tax reference number: 9475/144/71/4
LEI: 37890092DC55C7D94B35
Gross ordinary cash dividend amount per share: 905.00000 cents
Net ordinary cash dividend amount per share: 724.00000 cents
Issued shares at 29 February 2024: 115 131 417
Declaration date: Thursday, 29 February 2024
Last day to trade cum dividend: Monday, 18 March 2024
Shares trade ex-dividend: Tuesday, 19 March 2024
Record date: Friday, 22 March 2024
Payment date: Monday, 25 March 2024
To allow for the dividend calculation, Santam's share register will be closed for all transfers, off-market transactions and
dematerialisations or rematerialisations between Tuesday, 19 March 2024 and Friday, 22 March 2024, 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 Securities 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 encouraged to ensure their records are up to date so that the correct withholding tax is
applied to their dividend.
SHORT FORM ANNOUNCEMENT
This short form announcement is the responsibility of the directors. The annual financial statements have been audited by the
company's auditors, PricewaterhouseCoopers who expressed an unmodified audit opinion on the audited consolidated annual
financial statements. The audited annual financial statements, including the audit opinion is available on the JSE cloudlink:
https://senspdf.jse.co.za/documents/2024/jse/isse/SNT/ye23.pdf and on the company's website at
https://www.santam.co.za/media/zhhhimvy/2023-financial-statements.pdf.
Any investment decision by investors and/or shareholders and/or bondholders in relation to the company's shares or bonds
should be based on consideration of the audited annual financial statements as the information in this announcement does not
provide all of the details.
The presentation to analysts can be found on the company's website at
https://www.santam.co.za/media/bl5jds3z/2023-december-ias-booklet.pdf.
ADMINISTRATION
INVESTOR RELATIONS
T Rulashe
T: +27 21 915 7346
E: Thabiso.Rulashe@santam.co.za
NON-EXECUTIVE DIRECTORS
M Chauke, CD Da Silva, MP Fandeso, PB Hanratty, DEH Loxton, MM Mahlangeni, NT Moholi (chairperson), AM Mukhuba, JJ Ngulube,
PE Speckmann, LA Swartz
EXECUTIVE DIRECTORS
TC Madzinga (group chief executive officer), ML Olivier (group chief financial officer)
COMPANY SECRETARY
R Eksteen
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
15 Biermann Avenue, Rosebank 2196
Private Bag X9000, Saxonwold 2132
Tel: 011 370 5000
Fax: 011 688 5216
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
A2X share code: SNT
Debt company code: BISAN
LEI: 37890092DC55C7D94B35
29 February 2024
SPONSOR
Equity sponsor: Investec Bank Limited
Debt sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Santam is an authorised financial services provider (licence number 3416).
Date: 29-02-2024 07:05:00
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