Santam (SNT) Status update summary

Strategic rationale and objectives

• Launching a Lloyd's syndicate aligns with the 2030 strategy to drive international growth and diversify revenue streams, leveraging established specialty capabilities from South Africa and Africa.

• Lloyd's offers global reach, strong A-ratings, and access to over 200 territories, making it an attractive platform for expansion.

• The initiative is expected to accelerate international ambitions, provide defensive benefits for existing African business, and tap into Lloyd's deep talent pool and governance standards.

• In principle approval granted to launch a London-based syndicate, accelerating international growth and diversification goals.

• The initiative aligns with the 2030 FutureFit strategic ambition, marking a transformational step in the group's 107-year history.

Operational and financial targets

• Targeting international business to exceed 20% of group gross written premium (GWP) by 2030, up from the current 18%.

• Year one GWP for the syndicate is planned at GBP 300–400 million, with 60% from existing business.

• Planned Gross Written Premium for 2026 is projected at £300–£400 million.

• Underwriting margin is targeted above 10%, with a group return on capital goal of 24–25%.

• Initial earnings impact will be dilutive due to IFRS premium recognition, but the syndicate is expected to be accretive in the medium to long term.

Execution and risk management

• The syndicate will focus on specialist lines where there is proven expertise, ensuring a relatively low-risk expansion.

• Immediate scale will be achieved by ceding part of the existing specialty portfolio; defensive strategy to retain African business moving to London.

• Reinsurance arrangements and risk appetite will mirror current group practices, with robust governance and oversight from both Lloyd's and the group.

• Capital requirements will be met through existing resources and an additional ZAR 1 billion subordinated debt, with no expected impact on ordinary dividends.

• Final approval and permission to underwrite expected in Q4 2025, contingent on operational readiness and regulatory approvals in South Africa.