Santam (SNT) Q3 2024 TU earnings summary

Executive summary

• Delivered solid operational performance for the nine months ended 30 September 2024, with underwriting results within the 5% to 10% target range despite challenging conditions.

• Achieved good growth in gross written premiums, net insurance results, and net income after tax, supported by diversification across segments and geographies.

• Operational resilience demonstrated amid weak economic growth in South Africa and competitive pressures in specialist lines.

Financial highlights

• Net earned premium growth of 8% year-over-year, with gross written premium also up 8%.

• Underwriting margin remained within the 5% to 10% target range, improving over the first half of 2024.

• Weather-related and significant losses totaled R960 million net of reinsurance year-to-date, with R133 million from July 2024 Western Cape floods.

• Investment return on insurance funds improved compared to the first half of 2024, supported by favorable interest-rate markets.

• Shareholder investment return exceeded expectations, driven by higher interest-bearing returns and revaluation gains, partially offset by forex losses.

Outlook and guidance

• Focus remains on profitable growth, targeting gross written premium growth of 1% to 2% above nominal economic growth.

• Actions to address property book underperformance are expected to benefit underwriting results into 2025.

• Underwriting performance for the remainder of 2024 remains susceptible to adverse weather and fire events, as well as investment market volatility.

• Results for the year ending 31 December 2024 expected to be released on or about 27 February 2025.