SNT - Santam Limited - Trading Statement - Year Ended 31 December 2008
SNT
SNT
SNT - Santam Limited - Trading Statement - Year Ended 31 December 2008
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT ISIN: ZAE000093779)
TRADING STATEMENT - YEAR ENDED 31 DECEMBER 2008
In terms of the Listings Requirements of JSE Limited, companies are required
to publish a Trading Statement as soon as they become reasonably certain that
the financial results for the period to be reported on will differ by more
than 20% from the financial results for the previous corresponding period.
Shareholders are advised that Santam expects its earnings per share to reduce
between 25% and 35% and headline earnings per share to be between 30% and 40%
lower for the year ended 31 December 2008, compared to the prior year. This
represents a significant improvement from results reported for the first half
of 2008 when both earnings per share and headline earnings per share were 89%
lower than the first half results of 2007.
As reported in our Operational update on 26 November 2008, the industry
conditions were challenging for the year with pressure on premium rates.
However, the company achieved a substantially better net insurance result in
the second half of 2008, compared to both the first half of 2008 and the
second half of 2007.
As generally experienced by investors in the financial markets, the
performance of the company`s investment portfolio was under severe pressure
during the year with negative investment returns reported in both halves.
However, absolute investment performance improved during the second half of
the year, mainly as a result of reducing the company`s exposure towards
listed equities. The group`s solvency margin comfortably remained within the
target band of 35% to 45%.
The company completed the disposal of its discontinued European insurance
operations before year end. The net result for the discontinued operations
also ended favourably against the first half of the year and equivalent
period in 2007.
The financial information on which this Trading Update is based has not been
reviewed or reported on by Santam`s external auditors. Santam will release
its audited results for the year ended 31 December 2008 on 24 February 2009.
CAPE TOWN
28 January 2009
Sponsor:
Investec Bank Limited
Date: 28/01/2009 14:00:01 Produced by the JSE SENS Department.
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