Santam (SNT) investor relations material

Executive summary

• Delivered resilient H1 2026 results with disciplined underwriting and strategic international expansion, including the launch of Syndicate 1918 and a new office in India, despite challenging macro and weather conditions.

• Underwriting margin of 8.1% within the 5%-10% target range, despite ZAR 1.5 billion in weather and large losses.

• Strong earnings growth supported by investment returns, robust ART business performance, and a one-off revaluation gain from Sanlam's acquisition of a majority stake in Shriram General Insurance.

• Direct channels (MiWay, Santam Direct) achieved double-digit growth, with initiatives like Santam CashBack enhancing retention.

• Over ZAR 12 billion returned to the economy through claim settlements, reinforcing client and intermediary relationships.

Financial highlights

• Gross written premium (GWP) up 10% year-over-year to R23.1 billion; net earned premium (NEP) up 6% to R18.9 billion.

• Net income increased by 7% year-over-year, reaching ZAR 2.2 billion; earnings per share up to 2006 cents.

• Return on capital at 27%, exceeding the 24% target.

• Interim dividend of ZAR 6.50 per share (650 cents), up 10.2%.

• Economic capital coverage at 167%, above the target range.

Outlook and guidance

• Focus remains on margin expansion, profitable growth, and cost discipline, with continued underwriting and pricing discipline.

• Continued scaling of direct and international businesses, with Syndicate 1918 expected to become profitable in H2 2027.

• Cautious outlook for H2 2026 due to Super El Niño and market volatility.

• Long-term targets to 2030: GWP growth of CPI+GDP+1%-2%, underwriting margin 5%-10%, international/direct GWP >30%, return on capital >24%.

• Ongoing investments in AI, data, and resilience-building initiatives.