Santam reports strong first-half performance amid economic challenges and good weather

SANTAM, South Africa's largest short-term insurer, reported a strong first-half performance in a benign catastrophe claims environment when compared to the same period last year.

- EDWARD WEST

Santam’s chief risk officer, Charisse Ras, said in an interview on Monday that in the first half of last year, Santam paid large weather and property-related claims. However, the level of these were much lower currently, although the weather would eventually turn.

The group also benefited from underwriting measures it implemented to tackle high claims inflation and frequency, which helped restore the profitability and earnings momentum of its in-force book.

Tavaziva Madzinga, Santam Group CEO, said these actions contributed to robust growth in gross written premiums (GWP) over the six months, along with an improvement in underwriting margins.

The strong first-half performance exceeded the fongeterm targets for the 2025 financial year, reporting an 11.3% (June 2024: 6.5%) conventional underwriting margin, GWP growth of 10% (8%), and a 16% (7%) increase in net earned premium.

The group underwriting margin almost doubled to 11.3% from 6.5%, surpassing the 5% to 10% target range. The annualised return on capital was 33.2%, well above the 24% target. MiWay, the direct insurance business, recorded 14% GWP growth and a 10.9% underwriting margin.