Santam (SNT) H1 2025 earnings summary

Executive summary

• Delivered robust interim results for H1 2025, with all business units achieving strong underwriting results and key metrics exceeding long-term targets, including an underwriting margin of 11.3% (2024: 6.5%).

• Annualised return on capital reached 33.2%, well above the 24% target, with net income attributable to equity holders up 19% year-over-year.

• Strategic progress included scaling direct channels, acquiring NMS Insurance Services (SA) Ltd, expanding internationally with approval for a Lloyd's syndicate, and acquiring a majority stake in Avatar Holdings Ltd (UK).

• South Africa remains the core market (80% of GWP), but international business grew 25% and now represents 20% of GWP.

Financial highlights

• Net earned premium grew 16% year-over-year; gross written premium up 10%.

• Net income increased 19% to R2,045 million; return on capital at 33.2%.

• Interim dividend of 590 cents per share, up 10.3% from 2024.

• Underwriting margin at 11.3% (2024: 6.5%); claims ratio improved to 56.0% from 62.3%.

• Headline earnings per share: 1,873 cents (2024: 1,578 cents); basic earnings per share: 1,873 cents (2024: 1,567 cents).

Outlook and guidance

• Focus on scaling direct and international diversification, including launch of Santam Syndicate 1918 at Lloyd’s.

• Continued disciplined underwriting, cost efficiency, and digital transformation.

• Long-term targets to 2030: GWP growth at CPI+GDP+1–2%, underwriting margin 5–10%, return on capital >24%.

• Economic growth expected to remain subdued in H2 2025, with global geopolitical risks and volatile weather conditions posing ongoing challenges.

• Underwriting actions and risk management initiatives position the group to manage margin volatility.