| Tue 27 Nov 2007, 13:00 | | SNT - Santam Limited - Operational Update And Spec |
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SNT
SNT
SNT - Santam Limited - Operational Update And Special Dividend
Declaration Following Its Board Meeting Held 27 November 2007
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT & ISIN: ZAE000006854)
Board Meeting - Operational update to shareholders
This serves as a general communication to Santam shareholders with regards
to the company`s operating performance to date.
As mentioned with the announcement of our 2007 interim financial results in
August this year, pricing and underwriting margins in the South African
short-term insurance market remain under pressure due to the continued
softening of the market, particularly in the corporate and commercial
sectors. Santam Europe Ltd, the group`s Dublin based insurance company, has
not performed according to our expectations and as part of the normal
review of our businesses, it has been decided to discontinue the operations
by placing the company into final run-off. However, overall the
underwriting result of the group for the year to date remains satisfactory.
Santam`s investment portfolio performed well, in line with the strong local
equity market. Shareholders are again reminded of the inherent volatility
of underwriting and investment activities.
Significant progress has been made with the finalisation of Santam`s Broad-
Based Black Economic Empowerment (BBBEE) transaction entered into earlier
this year. The IFRS 2 (Share based payment) impact on the income statement
will depend on the timing of allocations. As the first allocations (to
staff only) are only expected to be made during December, it will not have
a material effect on the income statement of the group in 2007.
On 2 November, Santam successfully placed a further R400 million tranche of
unsecured subordinated callable notes. This placement completes the group`s
debt raising programme.
A special dividend of 2200 cps is hereby declared. This will reduce the
South African solvency to more optimum levels as part of our ongoing
capital efficiency programme.
DECLARATION OF DIVIDEND (NUMBER 107)
Notice is hereby given that the board has declared a special dividend of
2200 cps. Shareholders are advised that the last day to trade "cum
dividend" will be Thursday, 13 December 2007. The shares will trade "ex
dividend" from the commencement of business on Friday, 14 December 2007.
The record date will be Friday, 21 December 2007 and the payment date will
be Monday, 24 December 2007. Certificated shareholders may not
dematerialise or rematerialise their shares between Friday, 14 December
2007, and Friday, 21 December 2007, both dates inclusive.
The next set of results will be the abridged financial results for the 2007
financial year, to be published during the last week of February 2008.
CAPE TOWN
27 NOVEMBER 2007
Sponsor:
Investec Bank Limited
Date: 27/11/2007 13:00:01 Produced by the JSE SENS Department.
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