Santam reported 10% growth in gross written premiums (GWP) for the six months ended 30 June 2026, despite a significant increase in weather-related losses.
The JSE-listed insurer said its underwriting margin declined to 8.1%, from 11.3% in the comparable period, while net earned premium increased by 6%.
Santam declared an interim dividend of 650 cents per share, 10.2% higher than the 590 cents paid for the 2025 interim period.
The insurer said the results were achieved despite a challenging macroeconomic environment, investment-market volatility, significant weather-related catastrophe events and other large losses.
Gross claims paid to policyholders exceeded R12 billion during the period. The underwriting margin remained above the midpoint of Santam’s target range of 5% to 10%.
Weather-related events included floods in Limpopo and Mpumalanga early in the year, as well as severe weather in the Western Cape in May. Catastrophe and other large losses amounted to R1.5 billion, net of reinsurance, compared with R144 million in the comparable period.
“This performance reflects disciplined underwriting, sound expense management and continued strategic progress on our FutureFit 2030 goals. More importantly, key performance indicators remained in line with or exceeded long-term targets,” said Santam Group CEO Tavaziva Madzinga.
“Our focus on strategic execution enabled us to successfully navigate a challenging operating environment,” he added.
GWP growth was supported by double-digit expansion at online short-term insurer MiWay, Santam Direct, Santam Re and Santam Partner Solutions, as well as the maiden contribution from Santam Syndicate 1918, based at Lloyd’s.
The Syndicate had a strong start, securing new incremental business with estimated earned premium income of R1.3bn. Of this amount, R461m had been recognised in GWP, with the balance expected to be earned in 2027 and 2028.
Property lines grew by 17%, supported by growth across Santam’s traditional businesses, the Syndicate’s first contribution and the base effect of the MultiChoice transaction.
The motor book benefited from growth across personal and commercial lines. Engineering and liability classes also delivered satisfactory growth, excluding Santam Re, while crop insurance was affected by weather conditions.
MiWay grew by 13%, supported by its diversified outbound, inbound and tied-agency strategies. Santam Re recorded strong double-digit GWP growth, driven by new partnerships and increased participation in existing partner businesses.
Santam Partner Solutions also made progress, supported by the MTN and MultiChoice device-insurance businesses, which performed broadly in line with expectations.
Broker Solutions and Client Solutions achieved overall GWP growth despite more moderate premium-rate increases and competitive pressure in outsourced business.
The underwriting result was adversely affected by catastrophe and other large losses, most of which were fire-related, as well as flooding in Limpopo and Mpumalanga and severe weather in the Western Cape during May.
The catastrophe and other large losses of R1.5bn exceeded normal expectations. These losses were partly offset by a R325m earnings benefit from a reduction in the group’s reserve sufficiency.
Santam Syndicate 1918 reported an underwriting loss of R230m. The group said this reflected the delayed recognition of revenue under IFRS, while costs were recognised in full. Despite this, Santam’s overall underwriting margin remained above the midpoint of its target range.
Attritional claims experience remained positive, supported by improved underlying profitability in the existing insurance book following underwriting actions implemented in recent years, as well as disciplined expense management.
The Alternative Risk Transfer businesses increased their profit contribution by 12% to R466m.
International business contributed 23% of total GWP, compared with 20% in June 2025. It grew by 25% to R5.3bn, from R4.2bn. South Africa contributed 77% of GWP and grew by 6.4% to R17.8bn.
Santam Syndicate 1918 began underwriting in London on 1 January 2026. This was complemented by a reinsurance office at India’s GIFT City, which opened on 1 April 2026.
Santam said the Syndicate had a promising pipeline and additional approved capacity from Lloyd’s for the remainder of 2026.
The Syndicate is expected to contribute meaningfully to earnings in future financial years, with monthly break-even still anticipated in 2027.
The group expects growth to benefit from the rollout of Santam CashBack, launched on 1 July 2026.
Edward.west@nationalmg.co.za
The National