Santam (SNT) H2 2025 earnings summary

Executive summary

• Delivered strong full-year 2025 performance, with most key metrics exceeding long-term targets, driven by disciplined underwriting, cost efficiency, and a benign claims environment.

• Strategic focus on strengthening the South African base, expanding internationally, and scaling ecosystem partnerships, with notable progress in all vectors.

• Significant operational advances include the launch of Santam Syndicate 1918 at Lloyd's, expansion in India, and successful integration of MultiChoice and MTN partnerships.

• Improved investment returns across all managed portfolios, exceeding benchmarks, and maintained top employer rankings.

Financial highlights

• Top-line growth of 14.7% year-over-year, well above the nominal GDP plus 1%-2% target.

• Net income rose 10% to R4,059 million, supported by improved profitability and a strong property portfolio turnaround.

• Underwriting margin improved to 11.3% (2024: 7.6%), exceeding the 5%-10% target range.

• Total ordinary dividend declared at 1,680 cps (ZAR 16.80 per share), up 10.5% from 2024.

• Alternative Risk Transfer earnings increased to R944 million (2024: R781 million).

Outlook and guidance

• Expect underwriting margin to normalize within the 5%-10% range due to increased weather-related losses in early 2026.

• Float returns anticipated to revert to 2.2%-2.4% from the elevated 3% in 2025.

• Return on capital target of 24% remains appropriate through the cycle, with some near-term pressure from start-up losses at the Lloyd's syndicate.

• Focus on scaling international diversification, digital capabilities, and direct channel acceleration.

• 2026 priorities include disciplined underwriting, broker enablement, and leveraging partnerships.